Introduction

In the field of Human resource management , a performance appraisal is a regular

review of an employee’s job performance and overall contribution to a company
.Also known as an “annual review,” “performance review or evaluation ,”or
“employee appraisal ,”a performance appraisal evaluates an employee’s skills,
achievements and growth, or lack therefore the field HRM ,concerns with
organizational activities which are aimed to bettering individual and group
performances in organizational settings.

The practice of HRM must be viewed through the prism of overall strategic goals for
the organization instead of a standalone tint that takes a unit based or a micro
approach. The idea here is to adopt a holistic perspective towards HRM that ensures
that there are no piecemeal strategies and the HRM policy enmeshes itself fully with
those of the organizational goals. For instance, if the training needs of the
employees are simply met with perfunctory trainings on omnibus topics, the firm
stands to lose not only from the time that the employees spend in training but also a
loss of direction. Hence, the organization that takes its HRM policies seriously will
ensure that training is based on focused and topical methods.

The process of reviewing results, arriving at a rating and then deciding upon the
bonus or salary hike is what performance management is all about. Before we look
at the topic sentence, it is important to understand what goes into the decision
making process and who is involved in the same.

The human resource management involves the criteria of evaluating the individual
employee for exaggerating the specifying involvement growth of the productivity
work

.
What is a ‘performance Appraisal’

A performance appraisal is a regular review of an employee’s job performance and

overall contribution to a company. Also known as an “annual review,” “performance
review or evaluation ,”or “employee appraisal ,”a performance appraisal evaluates an
employee’s skills, achievements and growth, or lack thereof. Companies use
performance appraisals to give employees big-picture feedback on their work and to
justify pay increase and bonuses ,as well as termination decisions. They can be
conducted at any time but tend to be annual, semi-annual or quarterly.

Performance appraisal is the systematic evaluation of the performance of employees

and understand the abilities of a person for further growth and development
.performance appraisal generally done in systematic ways which are as follows:

• The supervisors measure the pay of employees and compare it with targets
and plans.

• The supervisor analyses the factors behind work performance of employees.

• The employers are in position to guide the employees for a better

performance.

Performance appraisals also help employees and their managers create a plan for
employee development through additional training and increased responsibilities, as
well as to identify shortcomings the employee could work to resolve.

Ideally, the performance appraisal is not the only time during the year that managers
and employees communicate about the employee’s contributions. More frequent
conversations help keep everyone on the same page, develop stronger relationships
between employees and managers, and make annual reviews less stressful.
STEEL INDUSTRY

The iron and steel industries are most important industries in India. During 2014
through 2016, India was the Second largest producer of raw steel and the largest
producer of sponge iron in the world. The industry produced 82.68 m million tons of
total finished steel and 9.7 million tons of raw iron. Most iron and steel in India is
produced from iron ore. The Indian Ministry of Steel is concerned with: the
coordination and planning of the growth and development of the iron and steel
industry in the country, both in the public and private sectors; formulation of policies
with respect to production, pricing, distribution, import and export of iron and steel,
ferro alloys and refractories; and the development of input industries relating to iron
ore, manganese ore, chrome ore and refractories etc., required mainly by the steel
industry.

Most of the public sector undertakings market their steel through the Steel Authority
of India (SAIL). The Indian steel industry was de-licensed and de-controlled in 1991
& 1992 respectively.

STEEL PLANTS

There are two types of steel plants - mini steel plants and integrated steel plants.

Mini steel plants are smaller, have electric furnaces, used steel scrap and sponge
iron. They have re-rollers that use steel ingots as well. They produce Carbon steel
and alloy Steel of certain specifications. There are around 650 mini steel plants in
India.

Integrated steel plants are large, handle everything in one complex - from putting
together raw material to steel making, rolling and shaping. Iron ore, coke, and flux
are fed into the blast furnace and heated. The coke reduces the iron oxide in the ore
to metallic iron, and the molten mass separates into slag and iron. Some of the iron
from the blast furnace is cooled, and marketed as pig iron; the rest flows into basic
oxygen furnaces, where it is converted into steel. Iron and steel scrap may be added
to both to the blast furnace and to the basic iron furnace. There are about five
integrated SAIL plants in India.
 OBJECTIVES OF THE STUDY

 Provide employees feedback on their performance.

 Identify employees training needs.
 Document criteria used to allocate organizational rewards.
 Provide the opportunity for organizational diagnosis and development.
 To motivate employees through recognition and support.
 To improve performance through counseling, coaching and development.
 Identification and remedying short comings in civil servants performance
 Motivating staff for better performance
 Creating conditions for decisions making an promotions and pay increments
and training needs
 To maintain records in order to determine compensation packages, wage
structure, salaries raises, etc.
 To identify the strengths and weaknesses of employees to place right men on
right job.
 To maintain and assess the potential present in a person for further growth
and development.
 To provide a feedback to employees regarding their performance and related
status.
 To provide a feedback to employees regarding their performance and related
status.
 It serves as a basis for influencing working habits of the employees.
 To review and retain the promotional and other training programmes.
 Facilitate communication between employee and employer.
 To take decisions regarding the hike in employees pay, incentives etc.
SCOPE OF THE STUDY

 Considers meeting goals and developing mutually decided standards.

 This aspect focuses on maintaining professional relationships with co-workers
,subordinates ,managers.
 Emphasizes on the normative aspects of job ,including its skill and
competencies.
 Provide employees with a better understanding of their role and
responsibilities.
 Increase confidence through recognizing strengths while identifying training
needs to improve weaknesses.
 Improve working relationships and communication between supervisors and
subordinates.
 Increase commitment to organizational goals; develop employees into future
supervisors.
 Assist in personnel decisions such as promotions or allocating rewards.
 Allow time for self-reflection, self-appraisal and personal goal setting.
 Allow time for self-reflection.
 Work satisfaction.
 Increase harmony and enhance effectiveness, improve working relationship
and communication between supervisors and subordinates.
 The programme will help the employee in their personal group by improving
their knowledge as well as skill.
 The programme would help the organization in meeting it future personal
need.
 NEED FOR THE STUDY

 Introducing a performance appraisal system into your company helps

management to categorise employees into performers and non-performers.
 This is primarily done to help identity the strengths and weaknesses of
employees and help them to set developmental goals.
 An appraisal system will assess staff performance against a list of set of
objectives and will help to guide employees on a course of future
development.
 Most companies now run on an appraisal system of one sort or another.
 Providing information about the performance ranks on which decision
regarding salary fixation, promotion, etc. are taken.
 Review of the performance of the subordinates.
 Providing information that helps to counsel the subordinates.
 Getting information to diagnose deficiency in employees regarding skills,
knowledge, etc.
 To prevent grievance and in disciplinary activities.
 Evaluation of an employee’s performance helps to take management
decisions on transfers, promotions, increments etc.
 Performance appraisal helps to ascertain the training and development needs
of the employer.
 Performance appraisal. or an individual’s performance evaluation helps in
designing the reward system.
 The feedback presided after evaluating the performance of an individual acts
as a motivator.
 The Performance appraisal acts as a validation of the selection procedure.
 METHODOLOGY

Research is a word commonly says about the search knowledge. It can also be
defined as the systematic and scientific search for pertinent information on a specific
topic. Research is also known as an art of scientific investigation. And the word
Methodology is a systematic, theoretical analysis of a methods applied to a field of
study. It comprises the theoretical analysis of the body of methods and principles
associated with a branch of knowledge.

PRIMARY DATA

 The data which are collected from the fields under the control and supervision
of investigator gathered data from questionnaire.
 The Information is gathered from concerned employees. The employees and
manager of the financial department have provided the information needed for
the study.

SECONDARY DATA

 Secondary data is research data that has previously been gathered and can
be accessed by researchers. I gathered data from previous records and
company website.
 . The secondary data for the study have been gathered from the balance
sheets, profit and loss accounts, annual reports and other books and manuals
of the steel plant.
LIMITATIONS

 Due to the busy schedule of an organization i was unable to grasp the

precious words of the HRD manager.
 time duration is not sufficient for conducting a details study.
 The information provided may not be accurate.
 The suggestions provided may not be implemented.
 Halo effect is the superior appraises the person on certain positive qualities
only. The negative traits are not considered. Such an appraisal will no give a
true picture about the employee.
 Sometimes a very strict appraisal may affect the goodwill between senior and
junior.
 Similarly when different departments in the same company use different
methods of appraisal it becomes very difficult to compare employees.
 Unequal Performance Standards People differ from each other in the way
they perceive things. What is good for some may be bad for others.
 Therefore managers have different judgments in appraising their employees.
 Managers’ attitudes to their employees differ, so different managers will
appraise.
 The same people quite differently which could make appraisal system
subjective and manipulative.
 Culture has profound impact on the appraisal system as it should be in
consonance with the organizational culture.
 ‘Readymade’ performance review system imported from other organization
rarely function satisfactorily.
 CHAPTER-2
INDUSTRY PROFILE AND COMPANY PROFILE
On 17 April 1970, the Prime Minister of India, the Indira Gandhi, announced the
government's decision to establish a steel plant at Visakhapatnam. With the offer of
assistance from the government of the erstwhile USSR, a revised project evolved
some years later. A detailed project report for a plant with a capacity of 3.4 Mtpa was
prepared in November 1980 and in February 1981, a contract was signed with the
USSR for the preparation of working drawings of ovens, furnance and sinter plant.
The blast furnace foundation was laid, with first mass concreting, in January 1982.
The construction of the local township was also started at the same time. In the
1970s, Kurupam Zamindars donated 6,000 acres of land for Vizag Steel Plant. A
new company rashtriya isphat 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 is situated on 33,000 acres (13,000 ha), and
is poised to expand to produce up to 20 MT in a single campus. Turnover in 2011-
2012 was Rs 14,457 crores. On 20 May 2009, Prime Minister manmohan Singh
launched the expansion project of Visakhapatnam Steel Plant from a capacity of 3.6
MT to 6.3 MT at a cost of Rs. 8,692 crores. But the investment was revised to 14,489
crores with the following classification.

 Expenditure for the financial year 2009-10 Rs 1840 crores.

 Rs 5883 crores since inception of the project.
 Total commitment, including enabling works, steel procurement, consultancy,
spares, etc. is Rs 11591 crores as of 25 March 2010.
The expansion project is expected to become functional by 2012. Currently, the
steel plant has completed the expansion from 3.6 MT to 6.3 MT with a total
investment of Rs.12, 300 crore. The company has planned to expand its production
capacity further by one more MT which requires an investment of Rs.4,500 crore.
 India’s steel scenario:

Indian Steel industry has always remained isolated and protected by

Government, where the steel industry was never expected to generate profit from
business, but was expected to provide employment to the unemployed. Presently
India is operating with open-hearth furnaces. The existing equipment and labour in
Indian Steel industry are much low than the developed countries

Indian Steel industry generates a significant amount of waste materials, which

can cause environmental problems. The four aspects of “Waste Management”
namely – residue, reprocess, recycle and recovery do not hold much ground in the
Indian Steel Industry. The Indian companies cannot spend more for pollution control.
The energy consumption per tone is 50-100% higher than that of the International
norms

The Indian steel industry has developed a bit in the recent years. The production is
going on properly. Many techniques are being implemented in the steel industries.
The country’s aim is to sell Quality steel. The government is also helping the steel
industries in this basis.

The development of steel industry in India should be viewed in conjunction

with the type and system of government that had been ruling the country. The
production of steel in significant quantity is started after 1990. The growth of steel
industry can be conveniently started by dividing the period into pre and post
independence era. In the period of pre Independence, steel production was 1.5
million tonnes per year, which was raised to 9.0 million tones of target by the
seventies.
 PROBLEM OF STEEL INDUSTRY

Non-availability of good quality raw material is another problem faced by

iron and steel industry. The modern giant blast furnace needs high-grade iron ore
and good metallurgical coal.

Another problem faced by the steel industry related to the difficulty in

getting zinc supplies for the continuous galvanizing line.

GOVERNMENT CONTROL AND PRICING POLICY

Since 1941, India steel and iron industry was almost completely state
regulated. Both prices and distribution of steel were under the control of Govt. The
Govt. decided to remove statutory control over the price and distribution of all, but a
few categories with effect from 1st March 1964 the Govt., supervise the steel and iron
inducted according to the recommendation of Raj committee. But Raj committee in
fixing the steel price didn’t regulate the price of the raw materials.

LACK OF TECHNICAL PROBLEMS

Bhili had executed orders for shipment of rails to Iran, South Korea and
Malaysia. Because of technical limitations, Rourkela plant its unable substitute
aluminum of Zinc for the production of galvanized sheet apart from source internal
technical problems; our technology in the field of steel production is not a developed
one when compared to other advanced countries. For instance, Japan is production
quality steel in spite of importing raw material and additional material from other
country.
 Coke Ovens

 Sinter plant
 Blast furnace
 Calcining and Refractory Material Plant
 Steel Melt Shop and Continuous Casting
 Light Medium Merchant and Structural Mill
 Wire rod mill
 Steel melt shop
 THERMAL power plant

Functions of coal chemical plants

Coke Dry Cooling Plant
Gas Condensation Section
Ammonium Sulphate Section
Benzol Recovery
Final Gas Cooling and Naphthalene Washing
Dry Purification Unit
Tar Distillation Plant
From the store yard, the coking coal is sent to foreign material remove section to
remove foreign matter of above 150 mm size. Iron traps for ferromagnetic articles
and cylindrical screens are provided for this. 16 nos of bins each 800 tonnes
capacity are provided along with continuous action feeders of up to 100 tonnes per
hour capacity each. After blending the material is crushed to take care of
petrographic non-uniformity, high hardness and mineral content of crushed and
blended coal (74-78% of 3mm size is conveyed to two coal towers each of 4000 T
capacity. Weighbridges are provided under coal towers to weigh the coal charge.
System of pneumatic blow down of blend is provided in the coal tower to take care of
jamming of Coal.
 HISTORY OF STEEL:

Steel s discovered by the Chinese under the reign of the han dynasty in 202 BC till
220 AD. Prior to steel, iron was very popular metal and it was used all over the
globe. Even the time period of around 2-3 years before Christ is termed as iron age
as iron was vastly used in the each and every part of life. But, with change in time
and technology, people were able to find an even stronger and harder than iron
that was steel.

CHEMICAL FORMULATION OF STEEL PLANT:-

CARBON EQUIVALENT = (C+MN/6 + Cr+Mo+V/5 +Cu+Ni/15)

THE PROCESS OF STEEL STRUCTURE:

The steel structure formation is based on the above equation and the certifying
process of IS-2062 and by grading of equivalent are 8 grades and 4 sub grades to
formulate
The process of steel fabrication involves grinding, welding, cutting, bending,
drilling, punching, burning or melting and other general crafting methods using
various high-quality tools and CNC equipment. The entire steel fabrication process
is systematic and requires utmost planning, precision, and knowledge. Steel
fabricators are well aware of all the crucial steps and measures that need to be
taken care of in the fabrication process. Structural steel is usually fabricated to
create structures like beams, trusses, hollow sections, angles and plates.
These steel members must be accurately fabricated before assembling them
together. All component parts of these members are fitted-up temporarily with
rivets, bolts, or small amounts of welds. Various fastening methods are employed
to deliver different types of finishes. Finishing is generally performed by milling,
sawing or other suitable methods.
CONSTRUCTION NEEDS:
First and foremost, it’s crucial to know the type of structure you want to construct.
Commercial structures have a distinct designing process. Similarly, residential
structures are totally dissimilar from industrial structures. Hence, all the structures
demand different types of construction processes. Moreover, any and every type of
construction process requires unique structures varying in sizes, dimensions, and
designs. Each structure has to be specifically designed and fabricated before
constructing and assembling them together. For any joint to be site welded, the
members will have to be held securely in position such that the setup for welding is
accurate and rigid.

ERECTION PROCESS:
Mobile Elevating Work Platforms (MEWPs) and cranes are predominantly used in
the erection of steel structures for buildings and bridges. However, there various
other techniques that are sometimes used for constructing steel bridges. Cranes
are usually divided into two broad categories, mobile and non-mobile cranes. Truck
mounted, crawler and all-terrain cranes are included in the first category, while
tower cranes are included in the second category.
The MEWPs can be used both on the ground and on the partly erected steel
structure, in order to erect lighter steel elements. These MEWPs are used to
access the steelwork during erection to bolt up the pieces lifted by the crane.
Important measures need to be taken before using the MEWPs such as first
checking if the steel structure can support the weight of the MEWP and then
determining whether they should be used on the ground or on the erected
structures.
 STEEL ERECTION:

There are four primary tasks that need to be considered before the steel erection
process.
– It is extremely important to establish the foundations and confirm if they are
suitable and safe for erection to commence.
– With the help of cranes or sometimes by jacking, lifting and placing components
into position is essential. Additionally, to secure the components in place, bolted
connections are made but they may not be fully tightened. Similarly, bracings may
not be fully secured.
– Aligning the structure is essential, principally by checking that column bases are
lined and leveled and columns are plumb. To allow column plumb to be adjusted,
packing in beam-to-column connections may need to be changed.
– Last but the least, bolting-up is required, which means completing all the bolted
connections to secure and impart rigidity.

Steel fabrication and erecting steel structures are a lengthy process and they
require immense skills, knowledge, and practice. Our steel fabricators at Northern
Weld arc use the best steel fabrication tools and equipment to ensure that the
fabrication and erection processes of steel structures are done with accuracy and
perfection.
 STEEL INDUSTRY IN INDIA:
Steel has been the key material with which the world has reached to a developed
position. All the engineering machines, material tools and most importantly building
and construction structures like bars, rods, channels, wires, angles etc are made of
steel for its feature being hard and adaptable earlier when the alloy of steel was not
discovered, iron was used for the said purposes but iron is usually prone to rust
and is not so strong. Steel is a highly wanted alloy over the world. All the countries
need steel for the infrastructural development and overall growth.
Steel has a variety of grades i.e. above 2000 but is mainly constituted in to
divisions-steel flat and steel long, depending on the shape of steel manufactured.
Steel flat includes steel products in flat, plates, sheet or strip shapes the plate-
shaped steel products are usually 10 to 200mm and thin rolled strip products are of
1 to 10mm in dimension. Steel flat is mostly used in contraction, shipbuilding, pipes
and boiler applications. Steel long category includes steel products in long, bar or
rod shape like reinforced rods made of sponge iron. These steel long products are
required to produce concrete, blocks, bars, tools, gears and engineering products.

The most recent addition is a 3 mt integrated steel plant with modern technology at
Visakhapatnam. SAIL accounts for over 40% of India’s crude steel production.
SAIL comprises of nine plants, including five integrated and four special steel
plants .of this one was nationally and two were set up in collaboration with foreign
companies. SAIL also owns mines and subsidiary companies.
After independence, successive governments placed great emphasis on the
development of an Indian steel industry. In financial year in 1991, the 6 major
plans, of which 5 were in the public sector, produced 10 million tons. The rest of
indian steel production, 4.7 million tons, came from 180 small 29 plans, almost all
of which were in the private sector. India’s steel production more than doubled
during the 1980’s but steel did not meet the demand in the mid -1990’s,the
government was seeking private-sector investment in new steel plant. Production
was projected to increase substantially as the results of plans to set up 1 million
tons steel plant and three pig iron plans totaling 600,000 tons capacity in west
Bengal, with Chinese technical assistance and financial investment.
 DEMAND OF STEEL IN INDIA:-

Driven a booming economy concomitant demand levels, consumption of steel has

grown by 12.5% during the last three years well above the 6.9% envisaged in the
national steel policy. steel consumption amounted to 58.45 empty in 2006 – 2007
compared to 50.27 empty in 2005 – 2006, recording a growth rate of 16.3%, which
is higher than the world average, during the first half of the current year , steel
consumption is grown by 16%. As study done by the credit Sussex group says that
indian steel consumption will continue to grow by 17% annually till 2012 fuelled by
demand for construction projects worth QSS 1 trillion

The scope for raising the total consumption of steel in the country’s huge ,as the per
capita steel consumption is only 35 kgs compared to 150 kg in the world and 250 kg
in china.ith this surge in demand level, steel producers have been reporting
encouraging results. For example, the top 6 companies which account for 70% for
the total production capacity, has recorded a year on year growth rate of 13.4%
,15.7% and 11.7% in net sales , operating profit and net profit respectively ,during
the second quarter of 2007- 2008 we expect strong demand growth in India over the
next five years, driven by a boom in construction ( 43%- plus of steel demand in
India). Soaring demand by sectors 30 like infrastructure, real estate and
automobiles, at home and abroad, has put indian steel industry on the world steel
map.
 SUPPLY OF STEEL IN THE INDIAN MARKET:-

 Over the past ten years, India’s crude steel output rose nearly 7% per year to
55.3 million tons, while global crude steel output increased by 4% (germany
managed an increase of just under 1% p.a.). Although India is the world’s
eighth largest steel producer, the its 3%-plus share of global steel output is
still very low; it is roughly the same as ukraine’s share of world steel
production. China, the world’s biggest steelmaker, produces nearly ten times
as much as India. In 2005 India’s crude steel output of 46.5 million tons was
8% higher than in 2004; only in china was the growth rate considerably higher
at 15%. By contrast, production volumes fell in the US and the EU-35 by early
5% and roughly 4% respectively. In the first five months of 2006 Indian steel
production continued to expand determining attain 10%. We forecast a
significant increase in output by the Indian steel industry medium range. The
entire industry’s contribution to the gross domestic product should rise at the
extravagently years to more than 30%- compared to just fewer than 37% at
present . the growth derives at the expanding client industries automotive
engineering(production up to 16% between 2000 and 2005), mechanical
engineering(up 10% p.a.) and construction (up 6% p.a.).

EXPORT AND IMPORT OF STEEL FROM INDIA:

The steel exports of India over the decade have the growth of annual growth rate of
22.27% against CAGR of imports of steel, which accounted 14.20% in the respective
period. In 1991-1992, very inception of the liberalization, the steel exports amounted
to 368 thousand tons, which increased year by year and reached to 5221 thousand
tonnes in 2003-2004. It accounted for the thirteen-fold increase over the period.

The annual growth rates of exports of steel for the period showed the fluctuating
trend, which ranged between -14.41% in 1994-1995 and 101.36 in 1992-1993. In
2003-2004, the growth rate was 15.87%.
 EXPORTS OF IRON AND STEEL:

 Iron and steel re freely exportable.

 Advance licensing scheme allows duty free import of raw material for exports.
 Duty entitl
 ement pass book scheme (depb) introduced to facilitate exports. Under this
scheme exporters on the basis of entitlement rate are granted due credits
which would entitle them to import duty free goods. The DEPB benefit on
export of various categories of steel item scheme has temporarily with drawn
from 27th march 2008, to increase availability in the domestic market.

ECONOMIES OF SCALE AND OLIGOPOLGY

An oligopolgy is a market form in which there are only few sellers of similar
products. Low costs of production (cost per unit or the average cost) only can be
achieved if firm is producing an output level that constitutes a substantial level
portion of the total variable market . this in turn, leads to the small number of firms in
the industry, each supplying the portion of the total market of the demand.
 PRODUCTION FUNCTION AND INPUTS:

Production of a product(or set of a products generally based on the technological

relationship- amounts of a certain factors of production (inputs) are converted into
product based on some technological constraints. the technological relationships are
termed by the economists as the “production function”. In more technical terms, the
production function can be defined as the function that shows the most output that
existing technology permits the manufacturing for firm to extract from each quantity
of inputs. The production function which summarizes the characteristics of the
existing technology at a given time. For example, suppose Better Steel Corporation
decides to produce a certain quantity of steel. It can do so in many ways it can
choose from among available technological choices: it can use open- 34 hearth
furnaces basic oxygen or electric furnances similarly, Better Steel Corporation can
choose from various types of iron ore, coal. Given that Better Steel has decided to
produce a certain quantity of steel, which production technique will it use; that is,
what particular combination of inputs will it decide on? An economists’ answered to
this question is : The one that maximum firm’s cost’s and maximum its profits .given
that a technology has been choosen, in general, as inputs used in the production of
a commodity increase the total output increases as well it is useful to understand
different kinds of inputs.
 RASHTRIYA ISPAT NIGAM LIMITED:

Rashtriya Isphat Nigam Ltd, (abbreviated as RINL), also known as Vizag Steel, is
a Public steel producer based in visakhapatnam, .Rashtriya Isphat Nigam Limited
(RINL) is the corporate entity of Visakhapatnam Steel Plant (VSP), India’s first
shore-based integrated Steel Plant built with state-of-the-art technology and a
prime producer of long steel products in the country having extensive market in
infrastructure, construction, automobile, electrical and forging industry. With an
annual turnover of around `20,000 crores, VSP is gearing up production to achieve
rated capacity of 7.3 Mtpa liquid steel having three Captive Mines and 25 Marketing
Branches Pan India. Forged Wheel Plant is another unit of RINL being set up at
raerbaelli, Uttar Pradesh

Making of steel and Sri Tenneti viswanadham was one such personality. Struggle
of thousands of such personalities has paved a way for establishing such a big
steel plant. The activities kicked off by appointing site selection committee in June
1970 and subsequently committee report was approved for site. In January 1971,
then PM of India has 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 in April 1974. 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 government of erstwhile USSR's
offer for assistance, a revised project concept was evolved. DPR for a plant
capacity of 3.4 MTPA was prepared by M.s M.N.Dastur&Co in November 1980. In
February 1981 contract was signed with Soviet-Union 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.

RINL was wholly owned by the Government of India previously but due to huge
loss government sold its share so it is now Public. In November 2010, the company
was granted the Navratna status by the Government of India. In September 2011,
the government announced plans to divest 10% of its stake in RINL via an initial
public offering

THE RINL PRODUCTS ARE AS FOLLOWS:-

  PRODUCT MIX

BILLETS GRADES

 SPECIAL STEEL

LMMM ROUNDS BILLETS

 EXPORTS

 WIRE RODS:

For cold heading, tyre- bead, concrete amourning.

 TMT REBARS

 STRUCTURALS

 PLAIN ROUNDS(structural, spring steel, case hardening steel)

 BY PRODUCTS

1. Ammonium sulphate

2. Crude coal

3. Tar

4. Coal tar fuel

5. Hot pressed naphthalene

6. Drained naphthalene oil

7. Phenol reactions

8. Toluene

9. Anthracine oil

10. Heavy crude oil

RINL BLAST FURNANCES:

The facilities are

 Two blast furnaces of 3200 cum.

  One blast furnance of 3800 cum useful volume.
Features of 1 & 2 furnance

 Charging of blast furnance

 Circular cost house with four tap holes& no slag notch.
 Cast house slag generation plant.

EXPANSION OF RINL:

 Physical work for all units are done except 2 mills.

 Special bar mill & structural mix.
 COMPANY PROFILE

The government of India has decided to set up an steel integrated plant at

Visakhapatnam steel plant was the effect of the persistent demands and mass
movements. It IS another step towards. increasing the country’s steel production.
The decision of the government to set up an integrated steel plant was laid down by
the then prime minister smt.Indira Gandhi. The prime minister laid the foundation
stone on 20th January 1971.

The consultant, M/S M N Duster &co (pvt) ltd. Submitted a techno-economic

feasibility report February 1972, and detailed project report for the plant, with an
annual capacity of 3.4 million tons. of liquid steel.

The government of India and USSR signed an agreement on 12th June 1979 for the
co-operation in setting up 3.4 million tonnes integrated steel plant. The project was
estimated to cost to Rs.3, ation897.28 cores based on prices as 4th quarter of 1981.
However, on completion of the construction and commissioning of the whole plant in
1992, the cost escalated to Rs.8, 755 cores based on prices as on 2nd quarter of
1994. Unlike other integrated steel plant in India, Visakhapatnam steel plant is one of
the most modern steel plant is one of the most modern steel plants in the country.
The plant was dedicated it the nation on 1st august 1992 by the then prime minister,
sri.P.V.Narasimha Rao. New technology, large-scale computerization and
automation etc, are incorporated in the plant at the international levels and attains
such labor productivity; the organizational manpower has rationalized. The
manpower in the capacity of producing 3.0 million tons of saleable steel.

It has set up two major blast furnaces, the Godavari and Krishna, which are the envy
of any modern steel making complex. The economy of a nation depends on acre
sector industries like iron and steel. Steel is the basic input importance of steel the
following integrated steel plant with foreign collaborations was constructed or
construction, machines building and transport industries. Keeping in view the in the
public sector in the post-independence era.
 Background:

The Government of India has decided to set up an integrates Steel Plant at

Visakhapatnam to meet the growing domestic needs of steel. Visakhapatnam Steel
Plant was the effect of the persistent demands and mass movements. It is another
step towards increasing the country’s steel production.

The consultant, M/s M N Dastur & co (Pvt) Ltd. submitted a techno-economic

feasibility report in February 1972, and detailed project report for the plant, with an
annual capacity of 3.4 million tones of liquid steel.

The economy of a nation depends on core sector industries like iron and
steel. Steel is the basic input for construction, machines building and transport
industries. Keeping in view the importance of steel the following integrated steel
plant with foreign collaborations was constructed in the public sector in the post-
independence era.

VSP Technology: State-of-the Art

 7 meter tall Coke Oven Batteries with coke dry quenching

 Biggest Blast Furnaces in the country
 100% slag granulation at the Bf Cast House
 Bell-less top charging system in Blast Furnace
 Suppressed combustion – LD gas recovery system
 Extensive waste heat recovery systems
 “Temporal” and “Stemcor” cooling process in LMMM & WRM respectively
 Comprehensive pollution control measure
 VISION - 2025

To be the most efficient steel maker the country. having the largest single location
shore based steel plant in.

We shall:

a. Hardness our growth potential and sustain profitable growth.

b. Deliver high quality and cost competitive products and be the first choice of
customers.

c. To create an inspiring work environment to unleash the creative energy of people.

d. Achieve excellence in enterprise management.

e. Be a respected corporate citizen, vibrant communities around. Clean and green

environment and development.

MISSION:

 To attain 10 million tone liquid steel capacity through technological up

gradation, operational efficiency and expansion, to produce steel at
international standards of cost and quality, and to meet the aspirations of the
stakeholders.
OBJECTIVES:

 Achieve Gross Margin to Turnover ratio > 10%..

 Plan for finishing mill to integrate with 7.3 Mt capacity and commission the
same by 2017-18.
 Achieve rated capacity of new and revamped units by 2017-18.
 Capture markets for high-end value added products by focusing understand th
c in the context of rinl to study focusing on sector specific application and
customer needs.
 Achieve leadership in Energy consumption by achieving 5.6 G.Cal/tcs by
2017-18
 Globalization of operations through acquisition of mines and setting up of
marketing network abroad.
 Diversify through operational of Bhilwara Mines, setting up of Pelletization
Plant DRI-EAF unit, Wheel & Axle Plants
 a high Create performance and safe work culture by nurturing talent and
developing leaders.
 To grow in harmony with the environment and communities around us.
 CORE VALUES:

I– Initiative: Have a self-propelled & proactive

Approach

D- Decisiveness: Decide with speed and clarity

E-Ethics: Be consistent with professional

And moral values

A-Accountability: Take responsibility for actions

L-Leadership: Lead by example

S-Speed: Demonstrate swiftness an

THE MANPOWER STATUS AS FOLLOWS:

 EXECUTIVES: 6299
 NON-EXECUTIVES: 12085
 TOTAL MAN POWER:18384
 MAJOR DEPARTMENTS

Raw material handling plant( RMHP):

Visakhapatnam Steel Plant requires quality materials viz, Iron Ore, fluxes (lime
stone, dolomite), coking and non-coking coals etc, for producing liquid steel. To
handle such a large volume of incoming raw materials received from different
sources and to ensure timely supply of consistent quality of feed materials to
different VSP consumers, raw material handling plant serves a vital function. This
unit is provided with elaborate uploading, blending, stacking& reclaiming facilities viz.
wagon tipplers, ground and track hoppers, stock yards crushing plants, vibrating
screens, twin boom stickers and blender re claimers.
Coke ovens &coal chemical plant:

Blast furnaces, the mother units of any steel plant require huge quantities of
strong, hard and porous solid fuel on the form of hard metallurgical coke for
supplying necessary heat for carrying out the reduction and refining reactions
besides acting as a reducing agent.

Coke is manufactured by heating of crushed coking coal (< 3mm) in absence

of air at temperature of 1000 degrees centigrade and above for 16 to 18 hours. A
coke oven comprises of two hollow chambers namely coal chamber and heating
chamber a gaseous fuel such as blast furnace gas; coke oven gas etc is burnt. The
heat so generated is conducted through the common wall to heat and carbonize the
coking coal placed in the adjacent coal chamber.

At VSP there are FOUR coke oven batteries, 7mt tall and having 67 ovens each.
Each oven is having a volume of 41.6cu.mt & can hold up to 31.6 tons of dry coal
charge. The carbonization takes place at 1000-1050 degree centigrade in absence
of air for 16 to 18 hours.

Red hot coke is pushed out the oven and sent to coke dry cooling plants for
cooling to avoid its combustion. There are three dry cooling plants (CDCP) each
having a 4 cooling chambers.

The capacity of each cooling chamber is 50 to 52 TPH. Nitrogen gas is used

as the cooling medium. The heat recovery from nitrogen is done by generating
steam and expanding in two back pressure turbines to produce 7.5 power each. The
coal chemicals such as Benzol, tar, ammonium sulphate etc are extracted in coal
chemical plant from CO gas. The gas is used as by product fuel by mixing it with
gases such as BF gas, LD gas etc.
Sinter plant:

Sinter is a hard porous ferrous material obtained by agglomeration of iron ore

fines, coke breeze, and lime stone fines, metallurgical wastes etc.

Sinter is a better feed-material to blast furnace in comparison to iron ore

lumps and its usage in blast furnaces help in increasing productivity, decreasing the
coke rate &improving the quality of the hot metal produced. Sintering is done in 3
sinter machines of Dwight Lloyd type by heating the prepared feed on a continuous
metallic belt made of pallets at 1200-1300 deg c.

Hot sinter discharged from sintering machine is crushed to +5mm-50mm size

and cooled before dispatching to blast furnaces. The dust laden air from the
machines are cleaned in the scrubbers and electro static precipitators to reduce the
dust contents to 100mg/m3 level before allowing to escape in to the atmosphere and
thus helping in maintaining a clean and dust pre environment.

Blast furnance:

Hot metal is produced in blast furnaces which are tall vertical furnaces. The
furnace is named blast furnace as it runs with blast with high pressure and
temperature. Raw materials such as sinter/iron ore/ lumps, fluxes and coke are
charged from the top and hot blast at 1100 deg c – 1300 deg c and 5.75 kg pressure
is blown almost from the bottom. The furnaces are designed for 80% sinter in the
burden.
VSP has THREE 3800 cu. meters. Blast furnaces equipped with Paul worth
bell less top equipment with conveyor charging named as Godavari and Krishna
after the two rivers of A.P.
Steel melting shop:

Steel is an alloy of iron with carbon up to 1.8%, hot metal produced in blast
furnace contains impurities such as carbon silicon manganese silver and phosphorus
is not suitable as a common engineering metal. To improve the quality the impurities
are to be eliminated by oxidation process.

VSP produces steel employing of top blown oxygen converters called L.D.
Liquid steel produced in L.D. converters is solidified in the form of blooms in
continuous bloom casters. To homogenize the steel and to raise its temperature if
needed steel is first routed through, organ releasing station input (injection refining
and up temp) / ladle furnaces. VSP has at present, 5 LD Converters .

Light and medium merchant mill:

LMMM comprises of two units. in the billet down mill 250 x 320mm size
blooms are rolled into billets of 125 x 125 mm size. After heating them into two nos.
of beam furnaces of 200 tones capacity each. These billets are supplied from this
mill to bar mill of LMMM and wire rod mill.

The billets for rolling in bar mill or LMMM are first heated in two strand roller
earth furnace of 200 t/h capacities to temp. Of 1150 deg c to 1200 deg c. the mill is
facilitated with temp. Core heat treatment technology evaporative cooling system in
walking beam furnaces, automated piling and bundling facilities and computerization.
This mill designed to produce 7, 10,000 tons per annum of various finished
products such as rounds, rebars, squares, flats, angles, channels.
Wire rod mill:

Wire rod mill is a four strand, 25 strands; fully automated and sophisticated
mill. The mill has a four zone combination type reheating furnace for heating the
billets received from billet mill or LMMM or rolling temp. of 1200 deg c. the mill
produces rounds in 5.5 – 12mm range and re bars in 8-12mm range. The mill is
equipped with standard and retarded stelmore lines for producing high quality wire
rods in low medium and high carbon grade meeting the stringent national and
international standards.

Medium merchant &structural mill:

This mill is a high capacity consisting of 20 strands arranged in three trains.

The feed material to the mill is 250 x 250 mm size bloom which is heated to rolling
temp. of 1200 deg c in two walking beam furnaces. The mill is designed to produce
8, 50,000 tones /annum of various products such as rounds, squares, flats, angles,
channels, t-bars, IPE beams/he beams.
Roll shop & repair shop:

Roll shop & Repair shop is in the complex of Rolling mills catering to the
needs of mills in respect of roll assemblies, guides few maintenance spares and roll
pass design. Geographically this dept. is in three areas as Roll shop-1, Roll shop-2
and Area Repair Shop. The main activity of this shop is Roll pass Design,
grooving of rolls, assembly of rolls with bearings,

Preparation of guides and their service and manufacture/repair of mill

maintenance spares.

For the first time in the country, VSP has adopted CNC technology for
grooving of steel rolling mill rolls. High constant respective accuracy, higher
productivity, use of standard tool for any groove turning, elimination of the use of
different templates, easier to incorporate groove modification etc., are some of the
advantages of CNC lathes over the conventional one.

The Roll Pass design section takes care of design of grooves for
development of new sections, modification of existing pass designs for
improving the productivity and quality. Preparation of rolling schedules, groove
detail and distribution and template drags, part programming for grooving of
rolls on CNC lathes. This section also looks after procurement of rolls,
establishment and improvement of their performance, failure analysis of rolls etc.
Special bar mill

The special bar mill will produce about 7,50,000 tons per year of plain rounds in the
straight length and in coil from in about 5200 hours

The bar size shall be in the range of 20mm to 45mm with a provision to roll 16 mm
and 18 mm rods.

The mill will be kept in the mill for producing 9,00,000 tons per year of special bars
when the market demand increases.

HRD PHILOSOPHY IN VISAKHAPATNAM STEEL PLANT

 In Visakhapatnam Steel Plant, believe that there 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.
 To establish systems for maintaining transparency, fairness and
equality in dealing the employees
 Empower employees for enhancing commitment, responsibility and
accountability.
 To encourage teamwork, creativity, innovativeness and high
achievement orientation.
 To provide growth and opportunities for developing skill and knowledge
 To ensure functioning of effective communication channels with
employees.
 QUALITY POLICY OF VISAKHAPATNAM STEEL PLANT:

Employees of steel plant are committed to supply are committed to supply their
customers\quality products and services. To accomplish this Visakhapatnam steel
plant will:

 Manufacture products as per specification and standards agreed with the

customer.
 Follow clearly documented procedures for achieving expected quality
standard of products and services.
 Continuously strive to improve quality of all material, processes and products.
Maintain an enabling environment, which encourages actives involvement of all
employees to pursue continuous improvement of quality.

TECHNOLOGICAL HIGHLIGHTS OF VIZAG STEEL

First shore based integrated steel plant.

Selective crushing with pneumatic separation of coal blend.

7 meter tall coke ovens.

100% continuous casting of liquid steel.

Use of no twist rolling and controlled cooling “Stelmore” of wire rods.

first integrated steel plant to receive ISO 9002 certification for all its products.

High capacity, high speed, computer controlled multi-line mills.

Sub lance measurement of dynamic blowing control with computer.

Main products produced in steel plant:

S.No Steel products By products

1. Angles Nut coke

2. Billets Coke dust

3. Channels Coal tar

4. Beans Anthracene oil

5. Squares H P napthalene

6. Flats Benzene

7. Rounds Toluene

8. rebar’s Zylene

9. Wire rods Wash oil

MARKETING NETWORK OF VISAKHAPATNAM STEEL PLANT:

The products are being sold through 35 marketing centers all over the country with
four stockyards at Mumbai, Kolkata, Chennai, and Hyderabad. And in other places,
consignment agencies have been control contracted.

Pollution and environmental protection:

Elaborate measures have been adapted to combat air and water pollution in
Visakhapatnam

Steel plant. In order to be eco-friendly Visakhapatnam steel plant has planted more
than 3million

Trees in area of 35 sq km and incorporated various technologies at a cost of as

4with 60 stores and control measures.

WELFARE AMENITIES OF VISAKHAPATNAM STEEL PLANT

Modern township with amenities’ has been developed with 8032 quarters to house
the plant employees other agencies in 11 sections. The township is having best
facilities in terms of drinking water supply, drainage, roads, modern’s hospital,
community center, parks, schools, shopping complexes, recreational facilities etc..,
to cater to the needs of the employees.

PROCESS IMPROVEMENTS:

The structure of formulation of annual plans in the company was revised with the
introduction of the concept of Roll-on plan and accordingly Sustainability Plan 2009-
10 & Roll-on Plan till 2013-14 were finalized. This was done with a view to maintain
thrust on important aspects without compromising on the long term goals and also to
carry forward unfinished agenda in the plan to subsequent year after due
corrections.
SWOT ANALYSIS

Strength:

1. Availability of iron ore and coal.

2. Low labor wage rates.

3. Abundance of quality manpower

4. Mature production base

Weaknesses:

1. Unscientific mining.

2. Low productivity.

3. Coking coal import dependence.

4. Low R&D investments.

5. High cost of debt.

Opportunities:

1. Unexplored rural market

2. Growing domestic demand

3. Exports

4. Consolidation

Threats:

1. China becoming net exporter.

2. Protectionism in the West.

3. Dumping by competitors.