A

PROJECT REPORT ON

WELFARE AMENITIES
A Project Report submitted in Partial Fulfillments for the award of the degree

MASTER OF BUSINESS ADMINISTRATION

Submitted By

CHINTADA RAMESH BABU

ANDHRA UNIVERSITY, VIZIANAGARAM

Under the guidance of

Mr. N.K. RAJU

Sr. MANAGER (HR) - WELFARE

RASHTRIYA ISPAT NIGAM LIMITED

Facilitated by

Management Development Department

Rashtriya Ispat Nigam Limited
Visakhapatnam

1
 .CERTIFICATE

This is to certify that the project titled WELFARE AMENITIES that is

being submitted by CHINTADA RAMESH BABU of MBA - HR (2016-18)
ROLL.NO:116200202065 from ANDHRA UNIVERSITY, VIZAG. The
project has been successfully completed under the guidance & supervision of
Mr. N.K.RAJU, Sr. MANAGER (HR)WELFARE, VISAKHAPATNAM
STEEL PLANT. This project has been approved by the Management
Development Dept., RINL-Visakhapatnam Steel Plant and further certificate of
successful completion of the project has been provided by the same.

Date: Sri O.R.M.RAO

Place: Visakhapatnam AGM (MD)

2
 CERTIFICATE

This is to certify that the project work entitled, WELFARE

AMENITIES is a bonafide work carried out by Mr. CHINTADA RAMESH
BABU (a student of MBA (HR), Reg No.-116200202065) under my guidance for
the partial fulfillment of the requirement for the award of the Degree in
MASTER OF BUSINESS ADMINISTRATION from ANDHRA
UNIVERSITY,VIZAG.

Place: Visakhapatnam N.K RAJU

Date: Sr. MANAGER (HR) - WELFARE

3
 DECLARATION

I hereby solemnly declare that this project report entitled A

STUDY ONWELFARE AMENITIES AT VISAKHAPATNAM STEEL
PLANT has been prepared by me during the period of 8 weeks from 08-05-
2017 to 08-07-2017 under the guidance of Mr. N.K RAJU, Sr. MANAGER
(HR) -WELFARE. This project is the result of my own work and has not been
submitted to any other institute or university earlier.

Place: Visakhapatnam CHINTADA RAMESH BABU

Date: Regd No: 116200202065

4
 ACKNOWLEDGEMENT

I am very thankful to Mr. N.K.RAJU, Sr. MANAGER(HR)-WELFARE,

Rashtriya Ispat Nigam Limited, Visakhapatnam steel Plant for providing
his guidance and sparing his valuable time as my project guide in completing
my project successfully in time.

I also express my sincere thanks to Sri. O RAMA MOHAN RAO,

AGM (MD), RINL/VSP & Student Coordinator for accepting my request for
doing the project work in their esteemed organization. I also thank to
ANDHRA UNIVERSITY, VIZAG for timely advice during the study period
for the successful completion of the Project work.

Finally, I would like to thank my parents for their encouragement and

support.

CHINTADA RAMESH BABU

Regd. No : 116200202065.

5
 PROJECT CONTENTS

1. CHAPTER INTRODUCTION 1-7

2. CHAPTER STEEL INDUSTRY PROFILE 8-11

3. CHAPTER COMPANY PROFILE 12-19

4. CHAPTER CONCEPTUAL PROFILE 20-57

5. CHAPTER FINDINGS, ANALYSIS

& INTERPRETATION 58-74

6. CHAPTER SUMMARY AND SUGGESTION 75-77

7. CHAPTER BIBLIOGRAPHY 78-79

6
1. CHAPTER: INTRODUCTION

OBJECTIVESOF THE STUDY

NEED FOR THE STUDY

RESEARCH METHODOLOGY

SIGNIFICANCE OF THE STUDY

SCOPEOF THE STUDY

LIMITATIONS OF STUDY

7
INTRODUCTION:
The concept of welfare is dynamic and varies with times,
region, industry, country, social values, customs, degree of industrialization, the
general socio-economic development of the people and the political ideologies
prevailing. It is also moulded according to the age group, sex, socio-cultural level of
workers in various industries. However, efforts have been made by expert bodies
about the concept of welfare. A few of these definitions are given below:
The Oxford dictionary defines Employees welfare as efforts to make life
worth living for workmen" while the Chamber's dictionary defined welfare as a state
of faring or doing well; freedom from calamity, enjoyment of health and prosperity".

The encyclopedia of social sciences defines.

The voluntary efforts of the employers to establish within the existing industrial item
working and something as living and cultural conditions of employees beyond; as
required by law, the customs of the industry and the conditions of market".
R.R. Hopkins:
Welfare is fundamentally an attitude of mind on the part of management.

The real need for welfare arises from the two basic conditions generally known as
the long arm of job and the social invasion of the factory. The working environment
of any job in a factory or mine or a workshop imposes some adverse effect on the
workers because of the heat, noise, and fumes etc., involved in the manufacturing
process. There are also occupational hazards and environmental problems inherent
and inevitable in manufacturing process itself, which cannot be removed or reduced.
This can be referred to as the long arm of the job.

This stretches out its adverse effect on to the worker, long after his normal working
hours, affecting his physical and mental well-being. Hence, the need of welfare
services within the factory or work place is felt.

Thus, the term Welfare is a comprehensive term, which includes any activity
connected with social, moral, economic betterment of workers provided by any
agency. Such activities may differ from country to country and from region to region
and from Firm to Firm.

8
OBJECTIVES: The objectives of the study are

To know about the Company in brief and to understand the Personnel Department at
RINL-VSP
To understand the extent to which the welfare measures provided by Visakhapatnam
steel plant, towards their employees.
To know the level of awareness of employee about the various welfare measures
provided to them.
To study how the welfare facilities provided help in increasing the productivity and job
satisfaction.
To learn how welfare services provided to employees help organization to build up a
stable work force by reducing absenteeism and labor turnover.
To offer useful suggestions for improving the effectiveness of welfare measures.

NEED FOR THE STUDY:

Welfare in the broader sense means well-being of the employee. Welfare
measures are the steps taken by the management to create a good environment in
which the workers feel satisfied both physically and mentally and in the end, produce
the best results by putting their maximum efforts.

As a result, productive devices and compensatory benefits have to be provided for

the welfare of the workers. This can be referred to as the long arm of the Job which
stretches out its adverse effect on to the workers, long after normal working hours,
affecting his physical and mental well-being. Hence, the need of welfare services
within the factory or work place is felt.

Regarding the aspect of social invasion of the factory when a worker comes to his
work place, he is not an isolated individual but a member of society having family
members. Hence, the imperative need to provide welfare services to satisfy his
personal and family needs is felt.

9
RESEARCH METHODOLOGY:
Research methodology is the systematic way to solve the research problems.
The relevant data has been collected from two different sources
Primary source.
Secondary source.
Primary source:
The primary data is collected through observations and also through questionnaire.
The questionnaire is circulated among the employees to collect information.
Secondary source:
The secondary data is collected through company journals, intranet and internet.

QUESTIONNAIRE ADMINISTRATION:
The questionnaire was prepared after counseling with the Company Guide. A
set of questionnaire was prepared. A five point scale strongly agree to strongly
disagree was used for this purpose.

SAMPLE DESIGN:
A sample of 200 respondents was taken using random sampling. The
researcher contacted the employees personally and brief summary of the nature of
the study and details in the questionnaire were narrated to them.

PERIOD OF STUDY:
The present study had been undertaken for period of 6 weeks, in which it had
divided into three stages as such. Stage I is of research problem and collection the
literature of the topic chosen. Stage II is of analysis and interpretations by using
different statistical tools, findings and recommendations.

STATISTICAL TOOLS USED:

For the purpose of present study percentage analysis was used.

10
SIGNIFICANCE OF THE STUDY:
Welfare amenities are provided in an effort to motivate and enhance the
benefits to the employees, the industry and the society as a whole. They are, thus,
essential for Industrial Democracy. With the rapid development of newer and
improved technologies, tremendous changes are taking place all around us.
Employees are becoming more and more knowledgeable with greater aspirations.
They aspire for improved quality of life and working conditions.
Given the above backdrop and the challenges ahead of RINL, Visakhapatnam Steel
Plant, provision of Welfare amenities assumes a very significant role for survival and
growth of the company. In this context, the implications of Welfare measures in
VSP can be stated as follows:

It affords the workers a sense of belongingness to the organization and a sense of

commitment.
It helps in motivating employees to achieve organizational goals.
Workers get induced to contribute their best with a sense of commitment.
It ensures minimum industrial conflict and accelerates economic growth.

SCOPE:
The study covers all the statutory welfare measures namely canteens,
washing facilities, resting facilities, work dress and storing facilities, sanitary and
drinking water facilities and the non-statutory welfare measures namely education,
housing, co-operative societies, transport and recreation.

It also includes a study on issues like grievance handling and working

environment, which also have impact on the overall welfare of the worker.The study
is conducted only on employees of Visakhapatnam Steel Plant, which forms the
universe of this study

11
LIMITATIONS OF STUDY:
The findings of the present study cannot be generalized as they are based
purely limiting to the one unit of this singular organization without giving any
comparisons to the practices in similar industry. Being a company spread all over
India, for all practical reasons and limitations, we may not be able to travel to all
Steel Plant units. Thus, this study limits to the Visakhapatnam Steel Plant only.

This study is more of professional oriented. Hence it cannot be constructed to

denote and / or purported to standardize as a model for this project.A few limitations
and constraints came in way of conducting the present study, under which the
researcher had to work are as follows:

The sample size chosen is covered only a small portion of the whole population of
STEEL PLANT and the outcome cannot be a reliable one.
The study is confined to limited period i.e. Six weeks.
Accuracy of the study is purely based on the information as given by the respondents.
Data collected cannot be asserted to the free from cores, as the sample size restricted to
the employees.
To prepare such kind of report is very tough task because there is the possibility that
employee may hide some truth or information.
Although all attempts were made to make this an objective study, biases on the part of
respondents might have resulted in some subjectivity.
Though, no effort was spared to make the study most accurate and useful, the sample
Size selected for the same may not be the true representative of the Company, resulting
in biased results.
This being the maiden experience of the researcher of conducting study such as this, the
possibility of better results, using deeper statistical techniques in analyzing and
interpreting data may not be ruled out.

12
 CHAPTER II

STEEL INDUSTRY PROFILE

13
 STEEL INDUSTRY PROFILE

INTRODUCTION TO STEEL INDUSTRY IN INDIA :

Steel is crucial to the development of any modern economy and is considered
to be the backbone of human civilization. The level of per capita consumption of
steel is treated as an important index of the level of socioeconomic development and
living standards of the people in any country. It is a product of a large and
technologically complex industry having strong forward and backward linkages in
terms of material flows and income generation.
All major industrial economies are characterized by the existence of a strong steel
industry and the growth of many of these economies has been largely shaped by the
strength of their steel industries in their initial stages of development. Steel industry
was in the vanguard in the liberalization of the industrial Sector and has made rapid
strides since then. The new Greenfield plants represent the latest in technology.
Output has increased, the industry has moved up i n the value chain and exports
have raised consequent to a greater integration with the global economy. The new
plants have also brought about a greater regional dispersion easing the domestic
supply position notably in the western region. At the same time, the domestic steel
industry faces new challenges. Some of these relate to the trade barriers in

14
developed markets and certain structural problems of the domestic industry notably
due to the high cost of commissioning of new projects. The domestic demand too
has not improved to significant levels. The litmus test of the steel industry will be to
surmount these difficulties and remain globally competitive.

HISTORY OF STEEL:
Steel was discovered by the Chinese under the reign of Han dynasty in 202
BC till 220 AD. Prior to steel, iron was a very popular metal and it was used all over
the globe. Even the time period of around 2 to 3 thousand years before Christ is
termed as Iron Age as iron was vastly used in that period in each and every part of
life. But, with the change in time and technology, people were able to find an even
stronger and harder material than iron that was steel. Using iron had some
disadvantages but this alloy of iron and carbon fulfilled all that iron couldnt do. The
Chinese people invented steel as it was harder than iron and it could serve better if it
is used in making weapons. One legend says that the sword of the first Han emperor
was made of steel only. From China, the process of making steel from iron spread to
its south and reached India. High quality steel was being produced in southern India
in as early as 300 BC. Most of the steel then was exported from Asia only. Around
9th century AD, the smiths in the Middle East developed techniques to produce
sharp and flexible steel 26 blades. In the 17th century, smiths in Europe came to
know about a new process of cementation to produce steel. Also, other new and
improved technologies were gradually developed and steel soon became the key
factor on which most of the economies of the world

THE GLOBAL STEEL INDUSTRY:

The current global steel industry is in its best position in comparing to last
decades. The price has been rising continuously. The steel industry is enjoying its
6th consecutive years of growth in supply and demand. And there is many more
merger and acquisitions which overall buoyed the industry and showed some good
results. The supreme crisis has lead to the recession in economy of different
countries, which may lead to have a negative effect on whole steel industry in
coming years. However steel production and consumption will be supported by
continuous economic growth

15
CONTRIBUTION OF COUNTRIES TO GLOBAL STEEL INDUSTRY :
The countries like China, Japan, India and South Korea are in the top of the
above in steel production in Asian countries. China accounts for one third of total
production i.e. 419m ton, Japan accounts for 9% i.e. 118 m ton, India accounts for
53m ton and South Korea is accounted for 49m ton, which all totally becomes more
than 50% of global production. Apart from this USA, BRAZIL, UK accounts for the
major chunk of the whole growth.

Country Wise Crude Steel Crude Steel Production

Production During The Year (mtpa)
Of 2007-08 Country
CHINA 272.5
JAPAN 112.7
UNITED STATES 98.9
RUSSIA 65.6
SOUTH KOREA 47.5
F.R.GERMANY 46.4
UKRAINE 38.7
BRAZIL 32.9
INDIA 32.6
ITALY 28.4

Indias crude steel output was 68.32 million tons . The country managed to
expand the capacity for crude steel production from 72.76 million tons per annum
mtpa in 2009-10 to 78 mtpa in 2010-11.
According to government, public sector steel companies performed well during the
year. Their combined profit after tax was Rs8605 crore during the period April-
December 2010.

16
 CHAPTER III

COMPANY PROFILE

17
PROFILE OF RINL:
On 17 April 1970, the then
prime minister of India, Late Mrs.
Indira Gandhi announced the
government's decision in the
Parliament to establish a steel plant
at Visakhapatnam. The activities
kicked off by appointing site selection
committee in June 1970 and
subsequently the committees report
was approved for site. On 20 January 1971 she laid the foundation stone.

Consultants were appointed in February 1971, and feasibility reports were

submitted in 1972. The first block of land was taken over on 7 April 1974. M/s M.N.
Duster & Co was appointed as the consultant for preparing the detailed Project
report in April 1975 and in October 1977 they have submitted the report for 3.4 mtpa
of liquid steel. With the offer for assistance from government of erstwhile USSR, a
revised project concept was evolved. Detailed Project Report for a plant capacity of
3.4 Mtpa was prepared by M/s M.N. Dastur & Co in November 1980. In February
1981 the contract was signed with USSR for preparation of working drawings for
coke ovens, Blast Furnace and sinter plant. The blast furnace foundation was laid
with first mass concreting in the project in January 1982. The construction of
township also started.

A new company Rashtriya Ispat Nigam Limited (RINL) was formed on 18

February 1982. Visakhapatnam Steel Plant was separated from SAIL and RINL was
made the corporate entity of Visakhapatnam Steel Plant in April 1982.

Vizag Steel Plant is the only Indian shore-based steel plant, and it has
massive land, up to 19,000 acres (7,700 ha), and is poised to become up to 20 MT in
a single campus and turnover in 2011-2012 was 14,457Crores. On 20th May, 2009
Honorable Prime Minister Manmohan Singh launched the expansion project of
Visakhapatnam Steel Plant from a capacity of 3.6MT to 6.3MT at a cost of Rs. 8,692
Crores. But the investment was revised to 14,489 crores with following classification:

18
 Expenditure for the financial year 2009-10 Rs 1840 Crore
Rs 5883 Crores since inception of the Project
Total Commitment, including enabling works, steel procurement, Consultancy,
Spares, etc is Rs 11591 Crores as on 25.03.10.
The expansion project is expected to become functional by 2012.

VISION:
To be a continuously growing world class company we shall
Harness our growth potential and sustain profitable growth.
Deliver high quality and cost competitive products and be the first choice of
customers.
Create an inspiring work environment to unleash the creative energy of people.
Achieve excellence in enterprise management.
Be respected corporate citizen, ensure clean and green environment and develop
vibrant communities around us.

MISSION:
To attain 20 million ton liquid steel capacity through technological up-
gradation, operational efficiency and expansion; augmentation of assured supply of
raw materials; to produce steel at international standards of cost and quality; and to
meet the aspirations of the stakeholders.

OBJECTIVES:
Expand plant capacity to 6.3Mt by 2012-13 with the mission to expand further in
subsequent phases as per Corporate Plan
Revamping existing Blast Furnaces to make them energy efficient to
contemporary levels and in the process increase their capacity by 1 Mt, thus total
hot metal capacity to 7.5 Mt
Be amongst top five lowest cost liquid steel producers in the world
Achieve higher levels of customer satisfaction
Vibrant work culture in the organization
Be proactive in conserving environment, maintaining high levels of safety &
addressing social concerns

19
CORE VALUES:

Commitment
Customer Satisfaction
Continuous Improvement
Concern for Environment
Creativity & Innovation

Visakhapatnam Steel Plant (VSP), the first coast based Steel Plant of India is
located, 16 KM South West of city of Destiny i.e. Visakhapatnam. Bestowed with
modern technologies, VSP has an installed capacity of 3 million Tonnes per annum
of Liquid Steel and 2.656 million Tonnes of saleable steel. At VSP there is emphasis
on total automation, seamless integration and efficient up gradation, which result in
wide range of long and structural products to meet stringent demands of discerning
customers within India and abroad. VSP products meet exacting International Quality
Standards such as JIS, DIN, BIS, BS etc.

VSP has become the first integrated Steel Plant in the country to be certified to all
the three international standards for quality (ISO-9001), for Environment
Management (ISO-14001) & for Occupational Health & Safety (OHSAS-18001). The
certificate covers quality systems of all Operational, Maintenance and Service units
besides Purchase systems, Training and Marketing
functions spreading over 4 Regional Marketing Offices, 24 branch offices and stock
yards located all over the country.

VSP by successfully installing & operating efficiently Rs. 460 crores worth of
Pollution Control and Environment Control Equipments and converting the barren
landscape by planting more than 3 million plants has made the Steel Plant, Steel
Township and surrounding areas into a heaven of lush greenery. This has made
Steel Township a greener, cleaner and cooler place, which can boast of 3 to 4 C
lesser temperature even in the peak summer compared to Visakhapatnam City.

VSP exports Quality Pig Iron & Steel products to Sri Lanka, Myanmar, Nepal,
Middle East, USA, China and South East Asia. RINL-VSP was awarded "Star

20
Trading House" status during 1997- 2000. Having established a fairly dependable
export market, VSP plans to make a continuous presence in the export market.
Having a total manpower of about 16,600 VSP has envisaged a labour productivity
of 265 Tonnes per man year of Liquid Steel.

BACKGROUND:
With a view to give impetus to Industrial growth and to meet the aspirations of
the people from Andhra Pradesh, Government of India decided to establish
Integrated Steel Plant in Public Sector at Visakhapatnam (AP). The announcement
to this effect was made in the Parliament on 17th April 1970 by the then Prime
Minister of India late Smt. Indira Gandhi. A site was selected near Balacheruvucreak
near Visakhapatnam city by a Committee set up for the purpose, keeping in view the
topographical features, greater availability of land and proximity to a future port. The
foundation stone for the plant was laid by Smt. Gandhi on 20.01.1971.

Seeds were thus sown for the construction of a modern & sophisticated Steel
Plant having annual capacity of 3.4 Million Tonnes of hot metal. An agreement was
signed between Governments of India and the erstwhile USSR on June 12th, 1979
for setting up of an Integrated Steel Plant to produce structural & long products on
the basis of detailed Project report prepared by M/s M.N. Dastur& Company. A
Comprehensive revised DPR jointly prepared by Soviets & M/s Dastur& Company
was submitted in Nov 1980 to Govt. of India.

The construction of the Plant started on 1st February 1982. Government of

India on 18th February 1982 formed a new Company called RashtriyaIspat Nigam
Ltd. (RINL) and transferred the responsibility of constructing, commissioning &
operating the Plant at Visakhapatnam from Steel Authority of India Ltd. to RINL.

Due to poor resource availability, the construction could not keep pace with
the plans which led to appreciable revision of the plant cost. In view of the critical
fund situation and need to check further increase in the plant costs, a rationalized
concept was approved which was to cost Rs. 6849 crores based on 4th Quarter of
1988.

21
 The rationalized concept was based on obtaining the maximum output from
the equipments already installed, planned / ordered for procurement and achieving
higher levels of operational efficiency and labor productivity. Thus the plant capacity
was limited to 3.0 Million tones of Liquid Steel per annum. In the process, one of the
Steel Melt Shops and one of the mills were curtailed.

The availability of resources were continued to be lower than what was

planned and this further delayed the completion of the construction of the plant.
Finally all the units were constructed and commissioned by July 92 at a cost of Rs.
8529 crores. The plant was dedicated to nation by the then prime Minister of India
Late Sri P. V. Narasimha Rao on 1st August, 1992. Since Commissioning VSP has
already crossed many milestones in the fields of production, productivity & exports.
Coke rate of the order of 509 Kg/Ton of Hot metal, average convertor life of 2864
heats an average of 23.6 heats per sequence in continuous Bloom Caster. Specific
energy consumption of 6.07 G Kal / ton of liquid steel, a specific refractory
consumption of 8.94 kg and a labor productivity of 265 Ton / man year are some of
the peaks achieved (during the year 2004-05) in pursuit of excellence.

VSP TECHNOLOGY: STATE-OF-THE-ART

7 meter tall Coke Oven Batteries with coke dry quenching. Biggest Blast
Furnaces in
the Country
Bell - less top charging system in Blast Furnace
100% slag granulation at the BF Cast House
Suppressed combustion - LD gas recovery system
100% continuous casting of liquid steel.
"Tempcore" and "Stelmor" cooling process in LMMM & WRM respectively
Extensive waste heat recovery systems
Comprehensive pollution control measures

22
Major Sources of Raw Materials:

Raw Material Source:

Iron Ore Lumps & Fines Bailadila, Chattisgarh

BF Lime Stone Jaggayyapeta, AP
SMS Lime Stone Dubai
BF Dolomite Madharam, AP
SMS Dolomite Madharam, AP
Manganese Ore Chipurupalli, AP
Boiler Coal Talcher, Orissa
Imported Boiler Coal Indonesia
Imported Coking Coal Australia / US
Medium Coking Coal (MCC) Kathara / Swang / Rajarappa / Kedla
Imported LAM Coke China
Quartzite Lump & Fines Local
Sand Sarepalli, AP

Annual
Department Capacity Units(3.0 Mt Stage)
(000 T)
Coke Ovens 2,261 3 Batteries of 67 Ovens & 7 Mtrs. Height
2 Sinter Machines of 312 Sq. Mtr. Grate area
Sinter Plant 5,256
each
Blast Furnace 3,400 2 Furnaces of 3200 Cu. Mtr. Volume each

Steel Melt 3 LD Converters each of 133 Cu. Mtr. Volume

3,000
Shop and six 4 Strand bloom casters
LMM 710 4 Stand finishing Mill
WRM 850 2*10 Stand finishing Mill
MMSM 850 6 Stand finishing Mill

23
MAIN PRODUCTS OF VSP

Steel Products By-Products

Blooms Nut Coke Granulated Slag
Billets Coke Dust Lime Fines
Channels Coal Tar
Angles Ammonium Sulphate
Beams Anthracene Oil
Squares HP Naphthalene
Flats Benzene
Rounds Toluene
Re-bars Zylene
Wire Rods Wash Oil

Statistical Information:

Production Performance (000 Tonnes) :

YEAR HOT LIQUID SALEABLE

METAL STEEL STEEL
2000-01 3165 2909 2507
2001-02 3485 3083 2757
2002-03 3941 3356 3056
2003-04 4055 3508 3169
2004-05 3920 3560 3173
2005-06 4153 3603 3237
2006-07 4046 3606 3290
2007-08 3913 3322 3074
2008-09 3546 3145 2701
2009-10 3900 3399 3167
2010-11 3828 3425 3072
2011-12 3778 3410 2990
2012-13 3814 3250 2900
2013-14 3769 3390 3016
2014-15 3780 3488 3017
2015-16 3975 3826 3513

24
 CHAPTER IV

CONCEPTUAL PROFILE

25
CONCEPT OF WELFARE:

Welfare in organization is essential because it forms the total package

on offer for the employees . The topic for this study is: How effective are the

welfare measures being implemented at Visakhapatnam steel plant.

The aim of this study is to be able to analyze and find out areas for improvement

in the implementation of the welfare programmes, so as to make necessary

suggestions for making it more effective.

IMPORTANCE OF WELFARE MEASURES:

Welfare measures directly relate to human resources of an organization. In

the initial stage of industrialization, welfare measures of personnel in an industry

were given very less importance. The primitive concept of workers linked it is to a

commodity or an intimate object without any human characteristics. This came the

concept of labour as the machine, which has to be kept in a good working order with

proper lubrication to enhanced production, but still regards as lifeless. There was

also the goodwill concept of labour, which was the beginning of the humanization of

labour from the state of commodity or a machine. But it was only the 'Citizen concept

of labour that gave the workers human dignity with the right to discuss, decide and

vote as a citizen of a welfare state. This concept gave rise to the philosophy of

industrial democracy. As now, we are in the final stage of the partnership concern

when labor is regarded as an equal and responsible partner in industry.

26
NEED FOR WEFARE AMENITIES:

The real need for welfare arises from the two basic condition generally known

as the long arm of he job' and the 'social invasion of the factory'. The working

environment of any job in a factory or mine or a workshop imposes some adverse

effect on the workers because of the heat, noise, fumes etc. involved in the

manufacturing process. There are also occupational hazards and environmental

problems inherent and inevitable in the manufacturing process itself, which cannot

be removed or reduced. As a result productive devices and compensatory benefits

have to be provided for the welfare of the workers. This can be referred to as the

'Long arm of the job', which stretches out its adverse effect on the worker, long after

his normal working hours, affecting his physical and mental well-being. Hence, the

need for welfare services within the factory or work place is felt.

Regarding the aspect of 'social invasion of the factory' when a worker comes

to his working place, he is not an isolated individual but a member of society having

family members. A worker need to be satisfied in regard to his culture and living

environment. Hence the imperative needs to provide a welfare services to satisfy his

personal and family needs is felt.

WELFARE AMENITIES:

Welfare has been given the utmost emphasis in the overall policy of Human

Resource Management of the company. Pursuant to this policy, VSP has taken

several initiatives for introducing and implementing Nonstatutory welfare which

impart and propagate the feeling that the company cares for its employees.

27
 PERSONNEL DEPARTMENT AT VSP

The Personnel Department of RINL- Visakhapatnam Steel Plant is under the

leadership of Shri Y R Reddy, Director (Personnel).
The HR Policy of the Company is as follows:
We, at Visakhapatnam steel plant, believe that our employees are the most
important resources. To realize the full potential of employees, the company is
committed to:
Provide work environment that makes the employees committed and
Motivated for maximizing productivity.
Establish systems for maintaining transparency, fairness and equality in
dealing with employees.
Empower employees for enhancing commitment, responsibility and
accountability.
Encourage teamwork, creativity, innovativeness and high achievement
orientation.
Provide growth and opportunities for developing skills and Knowledge.
Ensure functioning of effective communication channels with employees.

There are 17,634 employees at VSP, of which 6,085 are executives and 11549
are non-executives. Of those, nearly 650 executives and 800 non-executives are
under the Personnel Directorate. Executive grades are from E-1 to E-9 and for non-
executives it is from S-1 to S-10. The Personnel and Training & HRD Departments
are two separate departments under the same Directorate. The Personnel
Department looks after the following areas:
Service Rules
Appraisal System and Promotion Policy
Wage Structure
Allowances
Advances
Employees Motivation and Welfare Schemes
Retirement Benefits and other Miscellaneous Rules

28
 The Sections of Personnel Departments are located in the Administrative Building
and Plant Personnel. In the Plant Personnel, there are 10 Zones and in each Zone
there is a Section of Personnel Department which caters to the need of employees in
the nearby departments. The Personnel Department maintains an online Portal. This
portal helps the employees in getting better service and information.

WELFARE MEASURES AT A GLANCE :

The details of Various Welfare schemes prevailing in Visakhapatnam Steel

Plant are furnished below:-
I. STATUTORY WELFARE MEASURES:
1) As per Factories Act, 1948
a) Canteen Facilities
b) Baby Crche
c) First Aid Appliances, Ambulance Room
d) Water Coolers
e) Facilities for sitting
f) Urinals and Latrines
g) Safety Provisions
h) Welfare Officers
i) Safety Officers
j) Leave facilities
k) Washing Facilities
l) Facilities for storing and drying clothing
m) Shelters, Restrooms & Lunch rooms
2) Welfare amenities as per Mines Act for employees working in Mines
3) Gratuity as per the provisions of Payment of Gratuity Act.
4) Contributory Provident Fund and Miscellaneous Act, 1952.
5) Pension as per employees Pension Scheme, 1995.
6) Workmen Compensation as per Workmens Compensation Act, 1923
7) Welfare measures for Contract Labour as provided in the Contract Labour
Act, 1970
8) Maternity Leave as per Maternity Benefit Act, 1961.
9) The Bonus as per Payment of Bonus Act, 1965.
29
NON-STATUTORY WELFARE MEASURES:

1. Medical Facilities for employees and dependent family members, retired

employees and their spouses.
2. Educational facilities
3. Scholarships to the meritorious children of employees of VSP
4. Housing facilities
5. Work dress
6. Conveyance advance / Allowance to employees
7. House building Advance
8. Motivational Schemes like Jawaharlal Nehru Awards, Suggestion
Reward Scheme Incentive Scheme etc.
9. Employees Consumers Cooperative Society.
10. Cooperative Thrift & Credit Society.
11. Recreational Facilities through Community Welfare Centres
12. Sports facilities
13. Group Savings Linked Insurance (GSLI)
14. Group Personal Accident Insurance Scheme (GPAI)
15. Contribution from Incentive earnings
16. Traveling Expenses on Retirement.
17. Death Relief Scheme
18. Mediclaim Insurance policy for retired employees
19. Superannuation Benefit Fund
20. Employees Family Benefit Scheme.

Welfare Measures In VSP In Detail

The following is the data collected about the welfare measures at Visakhapatnam
Steel Plant. Since this data has been collected from the past records and
organizations policy statements, this data constitutes the secondary data.

1) Statutory welfare measures

2) Non Statutory welfare measures

30
STATUTORY WEFARE MEASURES:

1. AS PER FACTORIES ACT, 1948:

Canteen Facilities: (Section 46):

The State government may make rules requiring that in any specified
Factory wherein more than two hundred and fifty workers are ordinarily employed, a
canteen or canteens shall be provided and maintained by the Occupier for the use of
the workers. Without prejudice to the generality of the foregoing power, such rules
may be provided for-
i. The day by which such canteen shall be provided
ii. The standards in respect of construction, accommodation, furniture and other
requirement of the canteen the food stuffs to be served therein and the charges
which may be made.
iii. The constitution of managing committee for the canteen and representation of the
workers in the management of the canteen; the items of expenditure in the running
of the canteen which are not to be taken into account in fixing the cost of food stuffs
and which shall be borne by the employer;
vi. The delegation to the Chief Inspector, subject to such conditions as may be
prescribed, of the power to make under the clause.
Canteen facilities in VSP have been organized through the operation of 16 Canteens
even though the requirement under statute is to operate only 7 canteens. Out of
these, 16 are located inside the Plant and 1 outside the Plant. These Canteens cater
to the needs of employees by providing breakfast, tea, lunch and evening snacks at
fixed rates which have been in vogue, since 1-12-1996. Besides this, through a
system of extension points, tea and snacks are made available to the employees in
different shifts in the Shop Floor itself. For this purpose, there are 141 extension
points at 59 locations throughout the Plant. RINL/VSP has been extending
Canteen Subsidy to the employees @ Rs.20/- per day of actual attendance (50% of
the price of specified food items i.e. one meal, one snack, one coffee and one tea
per day), subject to a minimum of Rs.80/- per month, as per the terms of the Tri-
partite Agreement entered into with the Recognised Union. Apart from this, an
additional expenditure of Rs.90 lakhs per annum is being spent for running and

31
maintaining the 17 canteens on the existing rates and for providing services at the
extension points. The affairs of the canteen are managed by a bi-partite committee
(Canteen Managing Committee) consisting of five representatives from the
Recognised Union and five from the Management. Canteens of VSP have been
assessed under Occupational Health & Safety Management System and found to be
in accordance with the requirements of the standards of OHSAS 18001:1999.

Minimum Dining Space Required

For 2550 at a time = 2,550 * 10 sq. Ft. one canteen in VSP is having 340.56 sq. Mts.
= 340.56 * 10.76 sq. Ft. = 3, 3664.43 sq. Ft.
Total dining space required = 7 canteens
Dining space of one canteen 3,664.43 sq. Ft.
Therefore, 7 Nos. canteens are statutory canteens.

Creches (Section-48):
In every factory where in more than 230 women workers are ordinarily
employed, there shall be provided and maintained a suitable room for the use of
children under the age of 6 years of such women. Such rooms shall provide
adequate accommodation shall be adequately lighted and ventilated. Shall be under
the maintained in a clean and sanitary condition and shall be under the charge of
women trained in the care of children and infants. Ins. by Act 94 of 1976 (w.e.f.26-
10-1976)
A Baby Creche for the children of Women Employees is being operated inside the
Plant. The creche is under the care of trained personnel, who look after the needs of
the babies in the creche like provision of milk, water, biscuits, play toys etc.

First Aid Appliances, Ambulance Room (Section 45):

There shall, in every factory, be provided and maintained, so as to be readily
accessible during all working hours first aid boxes or cupboards equipped with the
prescribed contents, and the number of such boxes or cupboards to be provided and
maintained shall not be less than one for every one hundred and fifty workers
ordinarily employed (at any time) in the factory.Nothing expect the prescribed
contents shall be kept in a First Aid Box or cup board. Each FirstAid box or

32
cupboard shall be kept in the change of separate responsible person (who holds a
certificate in FirstAid treatment recognized by the State Government) and who shall
always be readily available during the working hours of the factory.
In every factory wherein more than five hundred are ordinarily employed there
shall be provided and maintained an ambulance room of prescribed size, containing
the prescribed equipment and in the charge of such medical and nursing staff as
may be prescribed.

Facilities for sitting (section 44):

In every factory suitable arrangements for sitting shall be provided and
maintained for all workers obliged to work in a standing position, in order that they
may take of any opportunities for test which may occur in the course of their work. If,
in the opinion of the Chief Inspector, the workers in any factory engaged in a
particular manufacturing process or working in a particular room are able to do their
work efficiently in a sitting position, he may, by order in writing, require the Occupier
of the factory to provide before a specified date such seating arrangements as may
be practicable for all workers so engaged or working. The State Government may, by
notification in the official gazette, declare that the provision of sub section (1) shall
not apply to any specified factory or class or description of factories or to any
specified manufacturing process. Every factory has to provide necessary sitting
arrangements, particularly for workers who are obliged to work in a standing position.
All such facilities are provided in the VSP wherever the worker is necked to sit. In the
plant we not find these sitting arrangements where it is not needed.

Welfare officer (section 49):

In every factory wherein five hundred or more workers are ordinarily employed
the Occupier shall employ in the factory such number of Welfare Officer as may be
prescribed. The State Government may prescribe the duties, qualifications and
conditions of service of officers employed under the sub station (1).

33
Safety officers (section 40b):
In every factory
i) Where in, one thousand or more workers are ordinarily employed or
ii) Wherein, in the opinion of the State Government, any manufacturing process or
operation is carried on, which process or operation involves any risk of bodily
injury, poisoning or disease, or any other hazard to the person employed in the
factory.

The duties, qualification and conditions of service of Safety Officers shall be such,
as may be prescribed by the State Government. The Factories Act of 1948 provides
for the statutory appointment of a Welfare Officer in a factory, sec. 49 (1) and (2) of
the factories Act, lay down that:

In every factory where in 500 workers or more workers are ordinarily employed the
Occupier shall employ in the factory such member of Welfare Officers as may be
prescribed.

The State Government may prescribe the duties, qualifications and conditions of
service of officers employees under sub sec.

The function of a Welfare Officer could broadly be classified under 3 areas of

manpower management.
o Labour welfare
o Labour Administration
o Labour Relations

Coming to the welfare of the Visakhapatnam Steel Plant, there is Labour Welfare
department consisting of Labour Officers i.e. 26 Welfare Inspectors one per each
zone.

Functions of Welfare Officers:

To look after the health and welfare of workers.
To look after the working conditions.
To look after sanitation and cleanliness.

34
 To look after welfare amenities.
To look after the Workers education.
Information of Welfare Committees.
To implement the Welfare Acts.
To look after the organizational discipline.
In the administration of legislation covering industrial relations.
To settle the grievances of the workers.
To increase the relation between Trade Union and management.

Washing facilities (section -42):

In every factory
Adequate and suitable facilities shall be provided and maintained for the use
of the workers therein;
Separate and adequately screened facilities shall be provided for the use of
male and female workers;
Such facilities shall be conveniently accessible and shall be kept clean.

The State Government may, in respect of any factory or class or description of

factories or of any manufacturing process, prescribe standards of adequate and
suitable facilities for washing. It was the Royal commission on labour which noted
that the provision of suitable washing facilities for all employees though desirable
was deficient in many factories. The worker who lives on crowded areas has
inadequate facilities for washing and bathing at home provision of such facilities
would add to his comfort, health and efficiency. The Commission recommended that
workers engaged in dirty processes, a suitable washing place and water should be
made available compulsorily.

Sec. 42 of Factories Act laid down that every factory has to provide adequate
and suitable washing facilities separately for the use of male and female workers. In
this regard the State Government may prescribe standards of adequate and suitable
facilities for washing. In the Visakhapatnam steel plant, very good washing facilities
are provided to the employees. Each and every department has got the freezers for
drinking water and washing every one conveniently.

35
Facilities For Storing And Drying Clothing (Section 43):
The State Government may, in respect of any factory or class or description of
factories, make rules requiring the provision therein of suitable place for keeping
clothing not worn during working hours and for the drying of wet clothes.
It is only the Factories Act, which has incorporated such a provision Under Sec. 43 of
the Act. State Government may make rules for the provisions of suitable places for
keeping clothing during working hours and for the drying of wet clothes.
All these facilities are being provided to the VSP employees in side the Plant. They
have been provided with cupboards for storing the dresses, which is very necessary
for workers.

Shelter, rest rooms and lunch rooms (section 47):

In every factory wherein more than one hundred and fifty workers are
ordinarily employed, adequate and suitable shelter or rest rooms and a suitable
lunchroom, with provision for drinking water, where workers can eat meals brought
by them, shall be provided and maintained for the use of the workers:
Provided that any canteen maintained in accordance with the provisions of section
46 shall be regarded as part of the requirements of this subsection:
Provided further that where a lunch room exists, no worker shall eat any food in the
workroom.
a. The shelters or restrooms or lunch rooms to be provided under subsection
(1) shall be sufficiently lighted and ventilated and shall be maintained in cool
clean condition.
b. The State Government may Prescribe the standards in respect of
construction, accommodation, furniture and other equipment of shelters,
restrooms to be provided under this section; By notification in the Official
Gazette, exempt any factory or class or description of factories from the
requirements of this section. Every factory employing more than 150 workers
must provide adequate and suitable shelters or rest-rooms and lunch rooms,
with provision for drinking water. But in case a canteen is maintained in
accordance with the provision of sec. 46, it will be allowed to eat food in the
workroom. These are to be maintained in a cool and clean condition. In VSP,
all these facilities are provided to the employees for taking rest after lunch.

36
2. WELFARE AMENITIES AS PER MINES ACT,1952 FOR EMPLOYEES AT MINES:

The aim of this Act is to provide a consolidated law relating to the

regulation and safety of labour in mines. The Act provides for safety, health, and
welfare amenities of persons working in mines.

Drinking Water (Section-19):

In every mine effective arrangements shall be made to provide and maintain
at suitable points conveniently situated a sufficient supply of cool and
wholesome drinking water for all persons employed there in:
Provided that in the case of persons employed below ground, the Chief
Inspector may, in lieu of drinking water being provided and maintained at
suitable points, permit any other effective arrangements to be made for such
supply.
All such points shall be legibly marked DRINKING WATER in a language
understood by majority of the persons employed in the mine and no such
point shall be situated within 10 [ten meters] of any washing place, urinal or
latrine, unless a shorter distance is approved in writing by the Chief
Inspector.
In respect of all mines or any class or description of mines, the central
Government may make rules for securing compliance with the provisions of
sub-section (1) and (2) and for the examination by prescribed authorities of
the supply and distribution of drinking water.
RINL, VSP has provided 305 Nos. of Water Coolers for drinking water &
facilities for washing on the Shop-Floor in the Plant.
Leave:
In matters of Leave, RINL Leave Rules provide 10 days additional EL, over and
above the maximum ceiling prescribed under the Factories Act subject to the
employee qualifying to earn the leave. Apart from Earned Leave, the Company
provides Casual Leave, Half Pay Leave/Commuted Leave, Special Casual Leave,
Quarantine Leave, etc.

37
Factories Act:
Rest-rooms, sitting arrangement, latrines, safety provisions, appointment of
Welfare Officers, Safety Officers, etc are also provided as per provisions of Factories
Act. Contributory Provident Fund is paid @ 12% of the wages of the employees and
the fund is managed by a Trust as per Section 17 of the Employees' Provident Fund
and Miscellaneous Provisions Act, 1952. The Employees' Pension Scheme-1995
introduced by the Government of India has been implemented.

Workmens Compensation:
Workmen's Compensation is being paid within the stipulated time to all the
entitled employees as per the Act. As against the half monthly payment, envisaged
as compensation for temporary disablement under the Workmen's Compensation
Act, an employee who gets injured by accident arising out of and in the course of his
employment is given leave with full pay for the period of disablement. Further, free
medical treatment is given in the Company run Hospital. In case of referral for
specialized treatment outside, full expenses are borne by the Company.

Contract Labor Welfare:

The welfare facilities like Canteens, Rest Rooms, Washing Places, Urinals, Latrines,
Drinking Water, Crche, etc. provided by the Company are also available for the
Contract Labour engaged in VSP. Besides, the above facilities medical facilities are
also provided to Contract Labour by the Contractors.

Conservancy (Section 20):

There shall be provided separately for males and females in every mine, a
sufficient number of latrines and urinals as prescribed

38
 3. GRATUITY AS PER THE PROVISIONS OF PAYMENT OF GRATUITY ACT 1972:

Employees are paid Gratuity in terms of the Payment of Gratuity Act 1972 and
as amended from time to time. Over and above the Gratuity Act, in case of death of
an employee before the qualifying service of five years Gratuity is paid as follows:
1st year of service ... 2 months emoluments
Before 5 years of service ... 6 months emoluments
On completion of 5 years of service 12 months emoluments
For all other cases at the time of separation from the Company, a
maximum of Rs.10 Lakhs or amount calculated based on the service rendered by
the respective individual, whichever is less, is being released towards Gratuity. The
Cheques for Provided Fund and Gratuity are given to the employees on the very
next date of his retirement.

4. CONTRIBUTORY PROVIDENT FUNDS AND MISCELLANCE PROVISIONS ACT 1952:

The main object of this Act is to provide for Provident Fund, Employee
Pension Deposit linked Insurance for employees working in Factories and other
establishment. The Act contemplates a contribution by the employer towards PF. It
also provides for an employee pension, out of the Contributions made by employer
as prescribed in the Act and scheme. Employees are allowed to withdraw for certain
specific purposes like, House building: Children's marriage/education etc.

5. WELFARE MEASURES FOR CONTRACT LABOUR AS PROVIDED IN THE

CONTRACT LABOUR ACT, 1970:
The main object of this Act is to regulate the employment of the contract labor
in certain establishment and to provide for its abolitions under certain circumstances
on the advice of the Advisory Committee. The Act provides for welfare and health of
contract labor including provisions relating to canteen, rest rooms, and first aid
facilities. The Act enjoins the Principal Employer, the responsibility for payment of
wages and compensation in case of accidents and in case of non payment of the
same by the contractor.

39
6. MATERNITY LEAVES AS PER MATERNITY BENEFIT ACT, 1961:
The entitlement shall be 180 days from the date of commencement of leave
with respect to female employees with less than two surviving children only. In case
of female employees with two or more surviving children, the said leave would be
restricted to 84 days only and in case of miscarriage or abortion, the entitlement of
leave shall be six weeks from the date of miscarriage or abortion.

7. THE EQUAL REMUNERATIION ACT, 1976:

The Equal Remuneration Act provides for payment of equal remuneration to men
and women workers for their work or work of a similar nature and for the prevention
of discrimination on grounds of sex, against women in the matter of employment.

8. CHILD LABOUR (PROHIBITION AND REGULATION ACT, 1976:

The action prohibits the engagement of children in certain occupation and recesses,
which are considered unsafe and harmful to child workers who are of a tender age,
and aims at regulating the conditions of work of children in certain other employment.

9. IRON ORE MINES. MANGANESE ORE MINES & CHROME ORE MINES WELFARE
FUND ACT, 1976:
The object of this Act is to provide for the financing of activities to promote the
welfare of persons employed in the Iron ore, Manganese ore and Chrome ore Mines.
Die Act provides for establishment of joint Iron Ore, Manganese
Ore and Chrome Ore Labour Welfare Fund for providing welfare facilities to the
workers employed in these mines. The fund is intended to supplement the efforts of
the employers to ameliorate the living conditions of labor engaged in Ore,
Manganese Ore and Chrome Ore mines.

10. A.P. LABOUR WELFARE FUND ACT, 1947:

The Act provides for the constitution of a fund for financing of activities to promote
welfare of labour in the State of Andhra Pradesh and for the establishment of a ward
for conducting welfare related activities.

40
11. THE BONUS AS PERTHE PAYMENT OF BONUS ACT, 1965.

Eligibility for Bonus (section-8):

Every employee shall be entitled to be paid the bonus by his employer in an
accounting year, in accordance with the provisions of this Act, provided he has
worked in the establishment for not less than thirty working days in that year.

Disqualification for Bonus (Section-9):

Not with standing anything contained in this Act, an employee shall be
disqualified from receiving bonus under this Act, if he is dismissed from service for
Fraud; or
Riotous or violent behavior while on the premises of the establishment; or
Theft, misappropriation or sabotage of any property of the establishment.

Payment of Minimum Bonus (Section 10):

Subject to the other provisions of this Act, every employer shall be bound to
pay to every employee in respect of counting year commencing on any day in the
year 1979 and in respect of every subsequent accounting year, a minimum bonus
which shall be 8.33 % of the salary or wage earned by the employee during the
accounting year or one hundred rupees, whichever is higher, whether or not the
employer has any allocable surplus in the accounting year.

Provide that where an employee has not completed fifteen years of age at the
beginning of the accounting year, the provisions of this section shall have effect in
relation to such employee as if for the words one hundred rupees, the words sixty
rupees were substituted.

Payment of Maximum Bonus (Section 11):

Where in respect of any accounting year referred to in Section 10, the
allocable surplus exceeds the amount of minimum bonus payable to the
employees under the Section, the employer shall, in lieu of such minimum
bonus, be bound to pay every employee in respect of that accounting year
bonus which shall be an amount in proportion to the salary or wage earned by

41
 the employee during the accounting year subject to a maximum of 20% of
such salary of wage.
In computing the allocable surplus under this section, the amount set on or
the amount set off under the provisions of section 15 shall be taken into
account in accordance with the provisions of that section.

42
NON STATUTORY WELFARE MEASURES

1.MEDICAL FACILITIES:
The company provides comprehensive health care scheme involving in-
patient and out-patient treatment in Company run hospitals and specialised
treatment at referral hospitals to the employees and their dependants.
Visakhapatnam Steel Plant has established a 160-bedded ultra modern hospital -
Visakha Steel General Hospital (VSGH) equipped with sophisticated equipment. In
addition to this, there are 4 Health Centers, i.e., one each at JLM and MDM
Mines, one at Ukkunagaram and one at Pedagantyada RH Colony. 2
Emergency Medical Care Units in the Plant premises to cater to the health needs of
the employees.
The Company also extends medical facilities and specialized treatment, if
required at reputed corporate hospitals like Apollo, Seven Hills, NIMS, CMC, Vellore,
etc. Some of the special features of VSGH are:

- Full-fledged Burns Unit, acclaimed to be best in the area.

- Radiology Department equipped with ATL Ultrasound Scanner, 800 mA X-
Ray machine with image intensifier and 500 mA X-Ray machine with
fluoroscopic facility.
- Well equipped Pathology Lab with Hematology, Micro-biology & Bio-
Chemistry Laboratory, Blood Bank facilities and Histopathology
Laboratory.
- ICU equipped with bedside feather touch polychromatic modular
monitoring with Central Monitoring system.
- Cluster-type wards with central Nursing Station System
- Operation Theatres equipped with special sliding trolleys, imported
operation tables with height adjustment facility and shadowless cold lights
to enable surgeons to have a clear vision of operating field.
- Well equipped Physiotherapy wing
- A separate Central Sterile Supply Department with modern equipment
- Automatic Laundry

43
 - Diet Counseling Clinic for providing nutrition advice to malnourished
children, diabetic patients, patients with hypertension, obesity, etc.
- Occupational Health Services and Research Centre takes several
measures in the area of preventive health care and attempts to ensure
good health of the employees by conducting cyclical examination of the
employees and constant monitoring of environmental conditions.

HIGHLIGHTAS ON MEDICAL SERVICES:

Medical camps were organised in and around the plant. Orientation on
First Aid, Emergency Care and Burns management is imparted to employees.
Special programmes like AIDS Awareness Week, Pulse Polio Immunisation
program, World Health Day, World Population Day, Anti-Malaria Week, Breast
Feeding Promotion Week, Mothers Meet, International Nurses Day, Free Family
Planning Operations, etc. were organized. Periodic medical checkup of employees
under Man Maintenance Programme are done to maintain and improve their health
status.

MEDICAL REIMBURSEMENT:
Medical reimbursement towards expenses incurred on treatment is allowed to the
employees staying in city and places other than township. In case some medicines
are not available in VSGH, the expenses towards procurement of the medicines are
reimbursed.

2.EDUCATION FACILITIES:
VSP's philosophy towards educational facilities is not only to benefit the
children of employees but also to extend educational facilities to the wards of the
people dwelling in and around the Plant and also to act as a catalyst in promoting
quality education by encouraging reputed Educational Institutions like
KendriyaVidyalaya, DAVC Public School, Delhi Public School, etc. There are 9
English Medium Schools, 2 Telugu Medium Schools in and around Ukkunagaram
and two Junior Colleges. There is one JDAV Public School at each of the two
Mines at Jaggayyapeta and Madharam. Out of these schools, 3 schools are Aided,
3 are partialy aided, one self-run and the rest are self-financed & self-built run

44
schools. Among the above, 2 Telugu Medium Schools and 2 English Medium
Schools provide free education. As on date (for the academic year 2008-09), 16,215
children are availing Educational facilities in the above schools. For the all round
development of the children, the schools are functioning in spacious and well
designed school buildings with audio visual teaching aids, well equipped
laboratories, libraries and play grounds. Education in Computers is also being
imparted in these schools.
A sum of Rs. 4.6 Crores has so far been spent in creation of infrastructural facilities
for the schools.

REIMBURSEMENT OF SCHOOL FEE TO THE EMPLOYEES CHILDREN:

Class of study Rate per child per month

Nursery 200/-
Kindergarten 200/-
Class I to V 300/-
Class VI to X 400/-
Class XI to XII 500/-
500/-per annum per
Annual charges
child
All the employees whose children are studying in recognized Schools/Schools
registered under the registration of societys Act/Registered by any other statutory
Body are eligible for reimbursement of School Fee at the following rates:

Dr. B R Ambedkar Merit Recognition Scheme :

To encourage merit amongst the children VSP of employees 34 Nos. of
Awards shall be given annually under Dr. B.R.Ambedkar Merit Recognition Scheme
for professional category and physically/mentally challenged category of the
Company. The Scholarship amount varies from ` 750/- to ` 1,500/- p.m. depending
on the category of award.
In addition to the above, from the year 2005-06, Dr.Sarvepalli
Radhakrishnan Merit Cash Awards for the children of VSP employees who secure
admission and join IITs, IIMs , AIIMS, JIPMER, AFMC, IISc, ISI, ISM-Dhanbad,

45
National Law Universities and Col.C K Nayudu Sports Cash Awards for the children
of VSP employees who have represented the country in any event or who has won
1st place in the Nationals conducted by respective Federations of India, or
National School Games and Sports conducted by School Games Federation of
India or Ranji or Inter-State Cricket Matches conducted by BCCI was introduced. As
per these two schemes, an amount of @5,000/- each are awarded to the awardees.

25 lakhs budget is allocated by the Company annually for this purpose.

Year Dr. Col. CK

SarvepalliRadhakris Nayudu
hnan Merit Cash Sports
Awards Awards
2008-09 22 16
2009-10 27 22
2010-11 35 2
2011-12 57 11
2012-13 41 4
2013-14 42 7
2014-15 86 3
2015-16 51 5

3.HOUSING FACILITIES:
The Company has a well laid out township Ukkunagaram, consisting of
8,701 quarters with all modern amenities like water supply, underground sewerage,
schooling, recreation facilities, parks, shopping complexes etc. for its employees.
Various types of quarters were constructed according to BPE norms. Apart from
this, there are 386 quarters at our Captive Mines. These quarters are allotted to
employees on the basis of seniority and standard rent is charged from the
occupants. The housing satisfaction roughly works out to 55%. Employees who
have not been allotted quarters in township are paid House Rent Allowance (HRA).
Apart from providing subsidized accommodation, the Company also provides
subsidized electricity and free water to all quarters. The electricity subsidy is around
46
Rs.15.00 Lakhs per month and the water charges borne by the Company is to the
extent of Rs.4.20 Lakhs per month. The total annual maintenance expenditure of
Township is around Rs.6.00 Crores

4.WORK DRESS:
Consequent to the Tripartite Settlement dtd.05.08.1991 with the then
Recognized Union(SPEU affiliated to CITU) and as a Welfare measure, the Work
Dress scheme for all Non-executives of RINL-VSP including Trainees was
introduced from the year 1991-92 onwards in a phased manner. Later it was
decided to extend the benefit to the Executives and Ministerial employees also.
Initially an amount of Rs.540/- including the stitching charges was given to each
employee in lieu of Work Dress. Subsequently, the system of procurement and
distribution of Work Dress to the employees by the Company was started from 1995-
96 onwards. The Work Dress Scheme at a glance is as under:

Sl. Work Dress material per Stitching Charges

Employees
No. annum per annum
Two pairs of Work Dress
1. Male (Light Grey Shirting and Steel Rs.340/-
Grey Panting)
Two Sarees + Two Blouse
2. Female pieces(Lavender Sari & Navy Rs.100/-
Blue Blouse)

Total annual expenditure on Work Dress is around Rs.1.40 Crores for 2008-09.
Current average expenditure per employee towards Work Dress comes to
around Rs.980/-.

47
 5.ALLOWANCE TO EMPLOYEES:

A. WASHING ALLOWANCE:
Washing Allowances is given Rs.40/- along with the pay based on certification
by the controlling officer that the employee has been using the uniform while on duty
in clean and tidy condition.

B. NIGHT SHIFT ALLOWANCE:

Employees who work form 2200 hrs to 0600 hrs are paid Night Shift
Allowance as under:
Category Rate per day
Nonunionized Supervisory cadre and Rs.100/-
Executives up to E 7 Grade
Non executives Rs.90/-

C.MAGAZINE ALLOWANCE:
Executives including JOs& JSOs are allowed reimbursement of expenditure
towards membership fee for professional Bodies/Associations and cost of
subscribing to Periodical/Journal/Magazines of the following rates on submission of a
certificate annually:

Category Rate per month

Executives in the grade of E-1 and above Rs.250/-
Executives in E-O Grade/ JOs/JSOs Rs.150/-

D.ENTERTAINMENT ALLOWANCE:
Executive employees are reimbursed Entertainment expenses for treating
official guests as per the rates given as under based on certification:

48
 Grade Amount (Rs. Per month)
JO/JSO 150
E0-E3 350
E4-E5 450
E6 550
E7 650
E8 950
E9 1200

E.HOUSE RENT ALLOWANCE:

House Rent:
Employees who have been allotted a house by company will be charged
house rent at 10% of pay to standard rent whichever is lower, pay will include basic
pay, personal pay, special pay, and non practicing pay, if any.
House Rent Allowance
i. Employees who have not been allotted accommodation by company will be paid
House Rent Allowance at the following rates:

Classification of cities House Rent Allowance House Rent Allowance

(Executives) (Non Executives)
A - 1 (Delhi/ Chennai/ 30% 30%
Mumbai/ Kolkata
Other A 25% 25%
B 1 & B 2 15% 17.5%
C 10% 15%
Unclassified 10% 10%

49
Note:
1) Payment of house rent allowance is subject to the condition that the
employees bear the first 10% of their basic pay as house rent paid, and only
the balance shall be reimbursed up to the limits as indicated above.
2) HRA is reimbursed only on production of valid rent receipt from the owner of
the house or a certificate from the prescribed authorities on the rental value of
the house (In the case of employees residing in their own house).
ii. House Rent Recovery from the employees who have been allotted quarters by the
company will be at the following rates of standard rates.

A 50
B (without any garage) 77
B (with scooter garage) 80
B (with car garage) 86
C (with out car garage) 117
C (with car garage) 125
D 215
DB 1 344
DB 2 300
Executive Flats 50
MIG
A) HB colony 99
B) Autonagar 103
LIG
A) HB colony 45
B) Autonagar 50

50
F. CITY COMPANSATORY ALLOWANCE:
The selling in city compensatory Allowance for different classes for both
executives and no executives are as under:

Basic pay/month Classification of Cities

A 1 A B 1 B 2
Metro
Below Rs.4000/- 90 65 45 25
Rs.4001 5250/- 125 95 65 35
Rs.5251 6499/- 200 150 100 65
Rs.6500/- &above 300 240 180 120

G. MINING ALLOWANCE
Mining Allowance in respect of Executives including JO / JSOs and Non-
executives of RINL / VSP working in Madhraram (MDM), Jaggayyapeta (JLM),
Garbham (GMM) &Sarepalli SSM (Mines) but excluding exployees of F&A, MM,
Medical & Personnel working in theses mine locations as given under:

Category Rs. Per month

Non-executives 600
JO / JSOs / E-0 to E-4 800
E-5 and above 1000

H.HOUSE BUILDING ADVANCES:

Visakhapatnam steel plant has provided a well defined House Building Advance
Scheme for the employees to help them in building or purchasing a house. This
scheme is applicable to both executives and nonexecutives, except for trainees,
probationers, contract workers, casual, part time & daily wage workers. The
maximum limit of a house building advance is as follows, subject to availability of
funds from financial institution.
i. Sixty months, Basic pay plus DA at the time of application.

51
 ii. 80% of the total value of purchase/acquisition of land & house to be
constructed or 80% of purchase price of ready built house.
iii. Rs.8,00,000; whichever is less.
On House Building Advances amount interest @ 4% will be charged up to an
amount of Rs. 1,00,000; and if more to the interest charged by financial institution
will be levied.

I.VEHICLE ADVANCE FOR EMPLOYEE:

The Company, as a welfare measure, for enabling the employees to purchase
Cycle/Scooter/Car provides vehicle advance as follows:
-
Max. amount of Advance (in Rupees) Rate of Interest
Car Scooter
For the employees in S-9, 50000/- or price
up to ` 30000/- : 4%
S-10 & S-11 grades of the vehicle,
Car Advance is `3 lakhs whichever is
above ` 30000/- : 6%
(or) price of the vehicle less
Up to E4 grade : 3 lakhs
up to ` 3 lakhs : 6%
E5 & E6 grades : 5 lakhs
E7 grade & above: 6
above ` 3 lakhs : 9.5%
lakhs
(or) price of vehicle,
whichever is less

6.MOTIVATIONAL SCHEMES:

A.JAWAHARLAL NEHRU AWARD:

With a view to motivating and recognizing the outstanding performance
employees, the JAWAHARLAL NEHRU PURASKAR AWARDS scheme is being
operated in VSP every year. Up to February 2016, about 870 Non-executives and
634 Executive employees were honored with these awards. In addition to the award
certificate, Cash award of an amount of Rs.2000/- per Non-executives and
Rs.3000/- per Executives

52
B.SUGGESTION REWARDS:
Suggestion Reward Scheme under the name SrujanVikas was launched in
VSP in the year 1993 with the objective to provide a forum to encourage creative
thinking and accord recognition to the employees. The suggestions received are
evaluated by Zonal/Apex level committees and cash rewards ranging up to
Rs.18,000/- are awarded to the suggestors, depending on the merit of the
suggestion. Gold and Silver medals are presented to the two best suggestors who
have shown maximum saving through suggestions. Creativity awards are also
presented to the suggestors who have given maximum no. of rewarded suggestions.

C. INCENTIVE SCHEMES: The following are the various schemes introduced by the
Management from time to time to motivate employees to strive towards excellence
and achieve social security with job satisfaction.
a) Incentive scheme for acquiring professional qualifications
b) Incentive scheme for promoting small family norms
c) Special Performance rewards connected to production
d) Performance Linked Benefit Schemes

53
7.EMPLOYEE CONSUMER COOPERATIVE STORES:
Visakhapatnam Steel Plant Employees Consumer Cooperative Stores has been
established in 1983 under the AP cooperative society Act 1964 to cater the needs of
residents of Ukkunagaram and rehabilitation colonies. It is providing services to
about 17,600 steel plant employees. The services are like essential commodities
including LPG, Stationery items, Gift items, Clothing & all basic amenities. This will
run on No profit No Loss basis. Hence, the members are getting the items less than
the market price. The discount price is ranging from 10% to 30%. This will be run by
a managing committee consisting of 9 members elected for every 5 years. Out of
them, 3 are nominated by Visakhapatnam Steel Plant management and remaining
are elected by members of the Store. The Store is having 29 outlets and the annual
turnover is around 16 cores per annum. As a welfare measure, Visakhapatnam Steel
Plant management is providing the facilities like allotment of shop on nominal rent
basis i.e.Rs.1/- per month, subsidized electricity, fee water supply etc. the
Committee purchases the items from the dealers/manufacturers on credit basis and
makes the payment within 1520 days. Hence, there is no working capital in
Visakhapatnam Steel Plant.

A. CO-OPERATIVE THRIFT & CREDIT SOCIETY:

The society was established in the year 1989 to provide financial aid to meet
the expenses like purchase of home appliance, schooling, medical and other
religious functions. The maximum loan amount you are providing is 1.5 lakhs & that
will be recovered in 72 monthly installments.
The rate of interest is 10.75%. It may vary from time to time. The society also takes
as a fixed on term deposits with 9% interest. The annual turnover is highest monthly
sales is 1.49 crores and the yearly sales is 16.74 crores. As a welfare measure VSP
management is providing the facilities like allotment of office premises of Rs.1/- per
month, subscribed electricity, free water supply.

8.RECREATIONAL FACILITIES:
Ukkunagaram, the Township built for the employees of Visakhapatnam Steel Plant, is
a fast emerging as polychromatic cultural centre in the region sustaining and promoting
cultures of different regions of the country symbolising "Unity in Diversity". People from

54
almost all the regions in the country and professing different religions, live in VSP's
Township in peace, amity and brotherhood. VSP has been endeavouring to make
Ukkunagaram a truly Cosmopolitan Cultural Centre by encouraging and promoting various
cultural activities and fine arts like music, dance, theatre, literature etc. Towards this, the
Company has taken various initiatives and some of which are listed below:

A.COMMUNITY WELFARE CENTERS (CWCs):

For the recreation of employees and their families and for encouraging social
interactions amongst employees during off-duty hours, the Company has established
a total of 9 (Nine) Community Welfare Centres located at different locations at
Headquarters and its two Captive Mines with a total cost of around Rs.1.43 Crores.
An amount of Rs.6.17 Lakhs is being collected annually towards membership fee
from the employees residing in the respective areas of CWCs and the same is
placed at the disposal of the respective CWC Committees to pursue various
activities. In addition, annually an amount of Rs.6.17 Lakhs is being given to the
CWCs as special grants for organizing the sports and cultural activities. With a view
to meet the additional needs of the recreational and cultural facilities, approval has
been accorded to construct CWC-2 at Ukkunagaram with an estimated expenditure
of about Rs.3.21 Crores. Additional facilities are also in anvil to construct an Open
Air Stage at Krishna Grounds and to provide more facilities at CWC-1 at
Ukkunagaram.

B) LIBRARY:
A separate Library-cum-Reading Room, built at a cost of Rs.4.50
Lakhs named after BharatRatnaDr B R Ambedkar was inaugurated on 17.08.1997,
as part of the Golden Jubilee Celebrations of our Country's Independence for the
use of Township residents.

C) UKKUNAGARAM CLUB AND STEEL CLUB::

There is a well-equipped Ukkunagaram Club, which was constructed
with an expenditure of Rs.89.00 Lakhs in the year 1984. The Club is having the
facilities like Multi Purpose Hall, Library, Multi-Gym, Swimming Pool, Billiards room,
etc. One more club viz; Steel Club was established during the year 2003 in the
township to improve the Socio-Cultural & Recreational activities.

55
D)PARKS:
The Company has developed seven major parks in the Steel Township, which
are located at different Sectors. The Parks have been provided with adequate play
equipment for the benefit of the children of employees. The parks also serve as an
important place for social interaction amongst the employees and their families.
Recently, the following park and additional facilities in existing parks have been
developed with children play equipment especially for the benefit and enjoyment of
children:
i) BalaUdyan at Sector-II Shopping Complex

ii) 2 Jet Fountains and Boat Club at Indira Gandhi Park

9. SPORTS FACILITIES:
VSP provides sports facilities to all their employees and their children. Sports
departments consists of Administration Department which looks after the
maintenance of sports and a Sports Council was formed as committee which takes
up decisions in selecting teams and members of the teams and sending those teams
outside competitions/tournaments. Visakhapatnam Steel Plant Sports Department
consists of two stadiums and one indoor stadium facilitating cricket, volleyball, throw
ball, tennis, badminton etc. It also provides special summer camp for children in
cricket, athletics and also yoga for all the ages.

VSP Management has provided the following infrastructural facilities for sports
persons to improve their skills and standards.

A)SPORTS COMPLEX:
A big Sports Complex was built with an expenditure of Rs.1.70 Crores, which have
the facilities of big ground with Pavilion, three main turf (Cricket) wickets, three
practice turf wickets, one football ground, Hockey field, one floodlit Volleyball court,
one floodlit Tennis Play Court, one floodlit Basket Ball Court, 8 lane 400 mts track,

56
etc. There is also an Indoor stadium developed for playing Volleyball, Badminton
and other games. Besides the above, a very good cricket field has been developed
with two turf wickets and two practice wickets and a Foot Ball field at TrishnaGround,
located outside Stadium Complex. One Multi Gym has been provided for the benefit
of residents of Ukkunagaram.

B)HOSTAL GROUNDS:
The following sports facilities were provided in the premises of Hostel Grounds:
- Two floodlight volleyball courts
- Beach volleyball court
- Ball Badminton court
- Indoor Table Tennis court
With the above measures, VSP is identifying hidden talents in the employees and
training them to bring laurels to VSP. The annual expenditure towards sports
facilities is around Rs.5.00 Lakhs.
C)NATIONAL DAY CELEBRATIONS:
The Company has been organising the following National Day and
Ceremonial functions every year in a grand manner by incurring an expenditure of
Rs.3.00 Lakhs:
- Republic Day Celebrations
- Independence Day Celebrations
- RINL Formation Day Celebrations on 18th February
- Dr B R Ambedkar&BabuJagjeevan Ram Jayanthi Celebrations,
etc.

57
10. EMPLOYEES FAMILY BENEFIT SCHEME:
The Company has introduced an Employees' Family Benefit Scheme as a
special measure of welfare for the employees w.e.f. 01.08.1995. Under the
Scheme, the last pay drawn of the employee is extended till the notional date of
superannuation subject to depositing Provident Fund and Gratuity amounts accruing
to the employee, on cessation of his employment on account of permanent total
disablement or permanent medical unfitness and to his nominee and in case of the
death of employee while in service of the Company.

However, in case of death/permanent total disablement of an employee

arising out of and in course of employment while on duty or death/permanent total
disablement arising out of accidents while coming to duty or going back from duty
within one hour before or after the end of the shift, the employee/ dependants of
such employee will have the following options:
a) One of the dependants (wife/husband, son, unmarried daughter) may opt for
employment and he/she may be considered for employment at the intake point of
recruitment depending on age, qualification, experience etc.
(OR)
b) The dependent may opt for monthly payment equivalent to the last pay drawn
(Basic + DA) till the notional date of superannuation of the deceased employee
without requiring to deposit with the Company PF & Gratuity amounts earned.
(OR)
c) The dependent may opt for a lumpsum one-time amount equivalent to (b)
above at a discounted rate of 20% per annum without requiring depositing PF &
Gratuity earned by the employee with the Company. The Employees Family Benefit
Scheme with the above benefits is a unique social security scheme in the Country.
Benefit : In case the Provident Fund and Gratuity amounts are deposited within three
months from the date of death / permanent total disablement / permanent medical
unfitness of the employee, such monthly payment shall commence from the day
following the date of death / permanent total disablement/ permanent medical
unfitness of the employee. The Scheme is with effect from 01.08.1995.

58
Total No. availing Memberships 1217
Total No. of Running Memberships as on date 41
Out of the availing cases, IOD Cases 55
Out of the availing cases, closing cases 14
Amount of monthly benefit released by the Company to the Rs.2,3776756
Members of EFBS per month.
Total Amount of PF & Gratuity deposits with the Company Rs.103545082562
under EFBS as on 30-04-2016

11.RINL EMPLOYEES SUPERANNUATION BENEFIT FUND:

The scheme was introduced from 01.11.1995 as a special measure of
employees welfare. Under the Scheme, employee who joins this Fund shall
contribute a sum @ 2% of his monthly salary (i.e., Basic pay + dearness allowance)
and in addition, the sum received by him as monthly payment towards incentive
under the Performance Linked Benefit Scheme (PLBS). The benefits will be in
the shape of annuity to be purchased out of the fund standing to the credit of the
concerned retiring member of the fund. The benefit shall be payable to the
employee or to the nominee as the case may be in the following situations:
a) on superannuation
b) on retirement/resignation
c) on becoming incapacitated prior to superannuation and on death.

A) FAMILY BENEFIT SCHEME (DEATH BENEFIT FUND):

This is a voluntary Scheme. In case of death of an employee during service,
the dependents of the deceased are entitled to receive an amount of Rs.3,60,000/-
(approx.), which is contributed by the employees @ Rs.20/- from the FBS members.

59
 B) GROUP SAVINGS LINKED INSURANCE SCHEME (GSLI):
Under this Scheme, employees are to contribute at specified rate to the GSLI
which will be recovered through salary and remitted to LIC. At the time of
retirement/resignation/death, the amounts received from LIC will be paid to the
employee/dependents. The amount of benefit ranges between Rs.0.40 Lakhs to
Rs.1.60 Lakhs depending on the grade of the employee.

C) EMPLOYEE DEPOSIT LINKED INSURANCE SCHEME (EDLI):

Under the Life Cover Scheme (in lieu of EDLI), the dependents of an
employee are entitled to receive an amount of Rs.62,000/-

D) GROUP PERSONAL ACCIDENT INSURANCE SCHEME (GPAI):

As a welfare measure, VSP has introduced Group Personal Accident
Insurance Policy for the benefit of its employees covering the risks of accidental
Death/Disablement arising out of accident. Under the scheme, an employee can opt
for a sum insured amount upto 60 times of Basic + DA, and the risk includes
payment of compensation at the specified rates (ranging from 2% to 50% of capital
sum insured depending on the extent of disability) in case of disability or 100%
amount of capital sum insured in case of death due to accident. Risk covers round
the clock for 24 hours and it could cover anywhere in the World. As on date, 16,600
employees are covered under the policy.

E)FUNERAL EXPENSES:
In case of death of an employee, the dependents are paid Rs.10,000/- towards
assistance for funeral expenses.

F) TRAVELLING/TRANSPORT EXPENSES:
An employee on retiring from service is entitled to settle anywhere in India and
entitled to receive the expenditure for traveling and also for transportation of his
belongings to that place.

60
G) MEDI-CLAIM INSRUANCE POLICY FOR RETIRED EMPLOYEES:
The benefit of Hospitalisation Charges of Rs.3 lakhs per member and 6 lakhs
per couple. which is inclusive of 8000/- per member and domiciliary
hospitalization benefits of Rs.13,500/- per member.
The OPD treatment amount is Rs.8,000/- per member and with clubbing facility
between the retired employee and spouse (ie. Rs.16,000/-).
Clubbing facility has been provided between the retired employee and spouse
on the ceiling of Rs.13,500/- per member per policy period on
Domiciliary/Hospitalization benefit. In case of couple Rs.27,000/-
The scope of Mediclaim Insurance Scheme is extended by including the
category of mentally/Physically challenged children of employees separated on
account of superannuation, death, total permanent disablement and Voluntary
retirement. The coverage would be the same as it is for the retired employee
Annual enrolment fee is Rs.250/- to Rs.1300/- per person.
Medi-claim Insurance Policy is extended to the retired employees and their
spouses, in addition to the treatment that they may avail in the Company run
Hospital free of charge.
An expenditure of Rs.7,36,77,768/- incurred to cover the retired employees,
their spouses, Medically unfit employees,spouses of deceased employees
and mentally retarded children of all the above. So far 1392 couples and 477
singles members have been covered under this scheme.

H) LONG SERVICE AWARD:

On completion of 25 years of service, 150 gms. of Silver medal and a
Certificate from the Chairman-cum-Managing Director will be awarded through Head
of Department concerned. Till February, 2016 , about 870 Non-executives and 634
Executive employees have been honoured with this award.

I) FAREWELL TO SUPERANNUATED EMPLOYEES:

Gold coin weighing 10 gms. with a purity of 999.99 will be given to the
superannuated employee along with the cheques for final settlement.

61
The T&D Center has the following facilities:

1. A modern four storied building with office rooms, class rooms, laboratories,
drawing halls, library, conference hall etc.
2. A well laid out modern workshop having different sections, such as machine shop,
fitting and assembly shop welding and fabrication shop, and material handling
section and conveyor model.
3. A fully air conditioned auditorium with a seating of about 310 persons.
4. A Central Library is catering to the library and information needs of the entire
organization. This library is using modern scientific system for classifying various
books and documents.

Training Programmes includes:

Foreign training. Employee Development Programme.
Language classes
Human Resources Development
Building Motivational climate
Cultural building.

AFFORESTATION
Conservation of Environment is one of the core values of VSP. In order to create a
safe and healthy environment for the inhabitants of the township and surrounding
neighborhood, a comprehensive plan was prepared to afforest an area of 3,600 ha
i.e., 41% of its total land area of 8827 Hectares. This isl above the prescribed
national norm of 33.33%. The afforestation areas constitute block plantations inside
the Plant and Township (1,630 Ha) and a peripheral green belt of 500m wide along
the VSP land boundary (1,970 Ha).

62
 CHAPTER- 5

FINDINGS, ANALYSIS & INTERPRETATION

63
 QUESTIONNAIRE

1. Quality of food, neatness& hygiene in the canteen?

VERY GOOD GOOD SATISFIED POOR TOTAL

NUMBER OF
RESPONDENTS 3 42 35 20 100
PERCENTAGE 3 42 35 20 100

QUALITY OF FOOD

VERY GOOD
GOOD
SATISIFIED
POOR

INTERPRETATION:
.
3% of the employees felt that the canteen facilities are Very Good.
42% of employees felt that the provisions of the company are good.
35% of the employees felt that canteen facilities are satisfied.
20% of employees felt that the provisions of the company are Poor.

64
 2. Safety provisions of the company

VERY GOOD GOOD SATISFIED POOR TOTAL

NUMBER OF
RESPONDENTS 27 43 24 6 100
PERCENTAGE 27 43 24 6 100

SAFTY PROVISIONS

VERY GOOD
GOOD
SATISIFIED
POOR

INTERPRETATION:

27% of employees felt that the provisions of the company are Very good.
43% of employees felt that the provisions of the company are good.
24% of employees agreed that safety provisions of the company are
Satisfied.
6% of employees felt that the provisions of the company are Poor.

65
3. How Pension scheme works in RINL-VSP ?

VERY GOOD GOOD SATISFIED POOR TOTAL

NO. OF
RESPONDENTS 09 11 8 72 100
percentage 09 11 8 72 100

PENSION SCHEME

good
satisfied
poor

INTERPRETATION:
09% of the employees felt that the pension scheme is Very Good.
11% of the employees felt that the pension scheme is Very Good.
08% of the employees felt that the pension scheme is satisfied.
72% of the employees felt that the pension scheme is poor.

66
4. Quality of education at steel plant?

VERY GOOD GOOD SATISFIED POOR TOTAL

NUMBER OF
RESPONDENTS 34 49 17 0 100
PERCENTAGE 34 49 17 0 -

QUALITY OF EDUCTION

VERY GOOD
GOOD
SATISIFIED
BAD

INTERPRETATION:
34% of the employees felt that the Quality of education at steel plant is very
Good
49% of the employees felt that the Quality of education at steel plant is Good
17% of the employees felt that the Quality of education at steel plant is
satisfied.

67
5. Interest subsidy scheme, house building advance?

VERY GOOD GOOD SATISFIED POOR TOTAL

NUMBER OF
RESPONDENTS 4 22 46 28 100
PERCENTAGE 4 22 46 28 100

INTREST SUBSIDY SCHEME

VERY GOOD
GOOD
SATISIFIED
POOR

INTERPRETATION:

4% of the employees felt that the Interest subsidy scheme, house building
advance are very good.
22% of the employees felt that the Interest subsidy scheme, house building
advance are good.
46% of the employees felt that the Interest subsidy scheme, house building
advance are satisfied
28% of the employees felt that the Interest subsidy scheme, house building
advance are Poor.

68
6. Amount of vehicle advances given to the employees by the company?

VERY GOOD GOOD SATISFIED POOR TOTAL

NUMBER OF
RESPONDENTS 43 51 06 0 100
PERCENTAGE 43 51 06 0 100

VEHICLE ADVANCE

VERY GOOD
GOOD
SATISIFIED
POOR

INTERPRETATION:

43% of the employees felt that the Amount of vehicle advances given to the
employees by the company are very good.
51% of the employees felt that the Amount of vehicle advances given to the
employees by the company are good.
6% of the employees satisfied with the Amount of vehicle advances given to
the employees by the company.

69
7. Motivational schemes like JN awards etc implementation?

VERY GOOD GOOD SATISFIED POOR TOTAL

NUMBER OF
RESPONDENTS 28 44 16 12 100
PERCENTAGE 28 44 16 12 100

MOTIVATIONAL SCHEMES

VERY GOOD
GOOD
SATISIFIED
BAD

INTERPRETATION:

28% of the employees felt that the Motivational schemes like JN awards etc
implementation is very good.
44% of the employees felt that Motivational schemes like JN awards etc
implementation is good
16% of employees are satisfied with this scheme
12% of the employees felt that the Motivational schemes like JN awards etc
implementation is Poor.

70
8. Recreational facilities like clubs CWCS parks etc maintenance & services?

VERY GOOD GOOD SATISFIED POOR TOTAL

NUMBER OF RESPONDENTS 11 63 17 9 100

PERCENTAGE 11 63 17 9 100

RECREATIONAL FACILITIES

VERY GOOD
GOOD
SATISIFIED
BAD

INTERPRETATION:

11% of the employees felt that the Recreational facilities like clubs CWCS
parks etc maintenance & services are very good.
63% of the employees felt that Recreational facilities like clubs CWCS parks
etc maintenance & services are good.
17% of employees are satisfied with this scheme
9% of the employees felt that Recreational facilities like clubs CWCS parks etc
maintenance & services are poor.

71
9. Operation of employee family benefit scheme?

VERY GOOD GOOD SATISFIED POOR TOTAL

NUMBER OF
RESPONDENTS 52 41 7 0 100
PERCENTAGE 52 41 7 0 100

EMPLOYEE FAMILY BENFIT SCHEME

VERY GOOD
GOOD
SATISIFIED
BAD

INTERPRETATION:

52% of the employees felt that the Operation of employee family benefit
scheme is very good
41% of the employees felt that Operation of employee family benefit scheme is
good
7% of employees are satisfied with this scheme

72
10. Operations of group personal accident insurance?

VERY GOOD GOOD SATISFIED POOR TOTAL

NUMBER OF
RESPONDENTS 24 59 17 0 100
PRECENTAGE 24 59 17 0 100

ACCIDENT INSURANCE

VERY GOOD
GOOD
SATISFIED
BAD

INTERPRETATION:

24% of the employees felt that the Operation of group personal accident
insurance is very good.
59% of the employees felt that Operation of group personal accident insurance
is good.
17% of employees are satisfied with this scheme

73
11. Employees children merit awards amount no. of awards, reservations?

VERY GOOD GOOD SATISFIED POOR TOTAL

NUMBER OF
RESPONDENTS 15 48 27 10 100
PERCENTAGE 15 48 27 10 100

CHILDREN MERIT AWARDS

VERY GOOD
GOOD
SATISFIED
POOR

INTERPRETATION:

15% of the employees felt that the Employees children merit awards amount
no. of awards, reservations are very good.
48% of the employees felt that Employees children merit awards amount no. of
awards, reservations are good.
27% of employees are satisfied with this scheme
10% of the employees felt that the Employees children merit awards amount
no. of awards, reservations are poor.

74
12. Dress code for executives & non executives?

VERY
GOOD GOOD SATISFIED POOR TOTAL
NUMBER OF
RESPONDENTS 16 43 34 7 100
PERCENTAGE 16 43 34 7 100

DRESS CODE

GOOD
SATISFIED
POOR
BAD

INTERPRETATION:

16% of the employees felt that the Dress code for executives & non executives
Very Good.
43% of the employees felt that the Dress code for executives & non executives
Good.
34% of employees are satisfied with this scheme
7% of the employees felt that the Dress code for executives & non executives is
poor

75
13. Water & electricity available?

VERY GOOD GOOD SATISFIED POOR TOTAL

NUMBER OF
RESPONDENTS 74 19 7 0 100
PERCENTAGE 74 19 7 0 100

WATER & ELECTRICITY

VERY GOOD
GOOD
SATISFIED
BAD

INTERPRETATION:

74% of the employees felt that the Water & electricity facilities are very good.
19% of the employees felt that Water & electricity facilities are good
7% of the employees felt that Water & electricity facilities are good

76
14. Library facilities in township?

VERY GOOD GOOD SATISFIED POOR TOTAL

NUMBER OF
RESPONDENTS 56 33 10 1 100
PERCENTAGE 56 33 10 1 100

LIBRARY FACILITIES

VERY GOOD
GOOD
SATISFIED
BAD

INTERPRETATION:

56% of the employees felt that the Library facilities provided in township are
very good
33% of the employees felt that the Library facilities given in township are good
10% of employees are satisfied with this scheme
1% of the employees felt that the Library facilities provided in township are
poor.

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15. Incentive scheme?

VERY GOOD GOOD SATISFIED POOR TOTAL

NUMBER OF
RESPONDENTS 22 62 11 5 100
PERCENTAGE 22 62 11 5 100

INCENTIVE SCHEME

VERY GOOD
GOOD
SATISFIED
POOR

INTERPRETATION:

22% of the employees felt that the Incentive scheme provided in the company is
very good.
62% of the employees felt that the Incentive scheme provided in the company is
good.
11% of employees are satisfied with this scheme
5% of the employees felt that the Incentive scheme provided in the company is
poor

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16. RINL superannuation benefit fund?

VERY GOOD GOOD SATISFIED POOR TOTAL

NUMBER OF
RESPONDENTS 13 76 11 0 100
PERCENTAGE 13 76 11 0 100

SUPERANNUATION BENEFIT FUND

VERY GOOD
GOOD
SATISFIED
BAD

INTERPRETATION:

13% of the employees felt that the RINL superannuation benefit fund is very
good
76% of the employees felt that RINL superannuation benefit fund provided in
the company is good.
11% of employees are satisfied with this scheme

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 CHAPTER-6

SUMMARY AND SUGGESTIONS

80
 FINDINGS

Most of the respondents are very satisfied with the following things:

Quality of food & hygiene in the canteen.

First aid at the different departments
Safety provisions of the company
Medical personnel proficiency and service
Education in the steel plant schools.
Amount of vehicle advances given to the employees by the company
Service & amenities provided by cooperative societies
Implementation of Motivational schemes like JN awards
Recreational facilities like clubs CWCS parks etc maintenance & services
Sports facilities, coaching ground &maintenance etc
Operation of Employee Family Benefit Scheme & Group Personal Accident
Insurance
Employees children merit awards amount, no. of awards, reservations etc
Availability of Water & electricity
Interest subsidy scheme, house building advance

However, the respondents are not that happy with the following things:
Library facilities in township
Baby crche maintenance & hygiene.
Incentive Scheme provided in the company.
Work Dress for non executives
RINL Superannuation Benefit Fund provided in the company.
Procedure for grievance redressed provided in the company.

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SUGGESSION:

1. Most of the employees are happy with existing Statutory Welfare Measures of
the organization.

2. Respondents felt that the Non-Statutory Welfare Measures are also

beneficiary to the employees as well as their family members

3. However, employees felt that there is a need for improvements in the

following areas

Most of the employees felt that the Interest Subsidy Scheme should be
given to executives also.

The employees felt that GPAI should be paid by the company.

RINL Superannuation Benefit Fund provided by the Company should

provide more fund at the time of separation

Pension Scheme needs review

To maintain quality for Work Dress

Incentive Scheme to be Increased

Performance Related Pay may be given to Junior Level executives

Grievance redress should be more transparency & should be in time.

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 CHAPTER -7
BIBLIOGRAPHY

83
 BIBLIOGRAPHY

VIZAG STEEL MANUAL & DOCUMENTS

VSP Personnel Manual
VSP Welfare Documents

TEXT BOOKS
Personnel Management by ArunMonappa, Tata Mc Graw-HILL
Dynamics of Industrial Relations in India, Dr. C B Memoria, Himalaya Pub
Dynamics of Personnel Administration, MN Rudrabarava Raju, Himalaya Pub
Personnel Management & Industrial Relation, RS Davr, Vikas Pub
Personnel Management & Industrial Relation , Tripathi, Sultan Chand & Sons

JOURNALS
Iron & Steel Technology, Association for Iron & Steel Technology
Steel Times International, Dmg World Media (UK), Ltd, England
Iron & Steel Review, ISR Informedia, Kolkata
Steel Scenario, , Spark Steel & Economy Research Centre Pvt. Ltd.,
Steel & Metallurgy, Nirmalya Mukherjee, Kolkata

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