1

Project Report on

WELFARE AMENITIES
IN RINL-VISAKHAPATNAM STEEL PLANT


Submitted to the TSR&TBK DEGREE & PG COLLEGE,
Visakhapatnam in partial fulfillment for the award of
MASTER OF BUSINESS ADMINISTRATION

Prepared by
Sneha Desaraju
Regd. No. 111134207010

Under the able support of
Shri O Rama Mohan Rao
AGM (HRD) &

Shri M.L SRINIVASA VARMA
Dy. Manager (HRD)


Under the guidance of
SHRI K SANJEEVA RAO
Assistant General Manager
Personnel Department
RINL, VISAKHAPATNAM STEEL PLANT
VISAKHAPATNAM






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CERTIFICATE

To whomsoever it may concern

This is to certify that the project work entitled, Welfare Measures in
Visakhapatnam Steel Plant is a bonafide work carried out by Ms.
DESARAJU.SNEHA (a student of BBM, Regd. No. 111134207010) under my
guidance for the partial fulfillment of the requirement for the award of the
Degree in BACHELOR OF BUSINESS MANAGEMENT from TSR&TBK
DEGREEE & PG COLLEGE

(SHRI K SANJEEVA RAO)
Asst. General Manager
Personnel Dept.
R I N L / VSP

Place: Visakhapatnam
Date: 28-5-2013


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DECLARATION

I hereby solemnly declare that this Project Report entitled Welfare measures
with reference to Visakhapatnam Steel Plant at Visakhapatnam, submitted
by me to the Andhra University in partial fulfillment for the award of the Degree
Bachelor of Business management is of my own and has not been
submitted to any other University /Institution for the award of any Degree.





Place: Visakhapatnam (SHENA DESARAJU)
Date: 28-05-2013



























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ACKNOWLEDGEMENT


At the very outset, I would like to thank Sri Y. R. Reddy, General
Manager (CP&C), Visakhapatnam Steel Plant for his valuable guidance and
timely advice during the study period for the successful completion of the
Project work. I also thank the executives of Welfare department of
Visakhapatnam Steel Plant who have given all the necessary support during
the study.



( SNEHA DESARAJU )








5


PROJECT CONTENTS


1. CHAPTER : Introduction 1

2. CHAPTER : Steel Industry Profile 7

3. CHAPTER : Vizag Steel Profile 13

4. CHAPTER : Conceptual profile 49

5. CHAPTER : Findings, Analysis,Interpretation 89

6. CHAPTER : Summary and Suggestions 113

7. CHAPTER : Bibliography 116

















1




1. CHAPTER INTRODUCTION
OBJECTIVES OF THE STUDY

NEED FOR THE STUDY

RESEARCH METHODOLOGY

SIGNIFICANCE OF THE STUDY

SCOPE OF THE STUDY

LIMITATIONS OF STUDY
























2

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.
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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.



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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 100 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.





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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, 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





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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.









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2. CHAPTER Steel Industry Profile




























8

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
developed markets and certain structural problems of the domestic industry notably
9

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 demand expectations for steel products
are rapidly growing for coming years. The shares of steel industries are also in a
high pace. 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
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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
Production During The Year
Of 2007-08 Country
Crude Steel Production
(mtpa)
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
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INDIA 32.6
ITALY 28.4



Indias crude steel output was 68.32 million tons during 2010. 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.
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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.
Realising it report card for the year 2010-11, the government said that the process of
drafting a new National Steel Policy has been initiated. A five year strategy paper
has been prepared for promotion of the steel sector. A policy paper on research &
development has also been prepared with special focus on beneficiation, coal ash
reduction and promotion of high grade value added steel in the country, it added.


























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3. CHAPTER Vizag Steel Profile



































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PARTICULARS OF ORGANIZATION, FUNCTIONS AND DUTIES
Particulars of Organization

Name of the Company Rashtriya Ispat Nigam Limited
Company Identification U27109AP1982GOI003404 Number (CIN)
Date of Incorporation 18th February 1982
Mode of Incorporation
Incorporated as a Government Company
under the provisions of the Companies Act,
1956
Administrative Ministry Ministry of Steel Govt. of India
Present Status
A Govt. Company within the meaning of
Section - 617 of the Companies Act, 1956
Address of Registered Office:
Rashtriya Ispat Nigam Limited
Visakhapatnam Steel Plant
Administrative Building
Visakhapatnam - 530 031
Website : www.vizagsteel.com


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HISTORY:
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. Dastur &
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:
Expenditure for the financial year 2009-10 Rs 1840 Crore
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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
CORE VALUES:
Commitment
Customer Satisfaction
Continuous Improvement
Concern for Environment
Creativity & Innovation
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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 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
18

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 Balacheruvu creak 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
18
th
February 1982 formed a new Company called Rashtriya Ispat 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.

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 labour productivity. Thus the plant capacity
was limited to 3.0 Million tonnes 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.
19

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 labour 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

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
20


Department
Annual
Capacity
(000 T)
Units(3.0 Mt Stage)
Coke Ovens 2,261 3 Batteries of 67 Ovens & 7 Mtrs. Height
Sinter Plant 5,256
2 Sinter Machines of 312 Sq. Mtr. Grate area
each
Blast Furnace 3,400 2 Furnaces of 3200 Cu. Mtr. Volume each
Steel Melt
Shop
3,000
3 LD Converters each of 133 Cu. Mtr. Volume
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

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

MAJOR DEPARTMENTS
Raw Material Handling Plant
VSP annually requires quality raw materials viz. Iron Ore, fluxes (Lime stone,
Dolomite), coking and non coking coals etc. to the tune of 12-13 Million Tonnes for
producing 3 Million Tonnes of 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
21

Handling Plant serves a vital function. This unit is provided with elaborate unloading,
blending, stacking & reclaiming facilities viz. Wagon Tipplers, Ground & Track
Hoppers, Stock yards Crushing plants, Vibrating screens, Single/ twin boom
stackers, wheel on boom and Blender reclaimers, Stacker . cum . Reclaimer (SCR).
In VSP peripheral unloading has been adopted for the first time in the country.

Coke ovens & Coal Chemical Plant (CO&CCP)
Blast Furnaces, the mother units of any Steel plant require huge quantities of strong,
hard and porous solid fuel in the form of hard metallurgical coke for supplying
necessary heat for carrying out the reduction and refining reactions besides acting
as a reducing agent. At VSP there are three Coke Oven Batteries, 7 Metre tall and
having 67 Ovens each. Each oven is having a volume of 41.6 cu. metre & can hold
upto 31.6 Tonnes of dry coal charge.

There are 3 Coke Dry Cooling Plants (CDCP) each having 4 cooling chambers.
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 MW each. The Coal chemicals such as Benzole (& its products), Tar (& its
products), Ammonium Sulphate etc. are extracted in Coal Chemical Plant from C.O.
Gas. After recovering the Coal chemicals the gas is used as a by product fuel by
mixing it with gases such as BF Gas, LD Gas etc. A mechanical, biological &
chemical treatment plant takes care of the effluents.

Sinter Plant
Sinter is a hard & porous ferrous material obtained by agglomeration of Iron Ore
fines, Coke breeze, Lime Stone fines, Metallurgical wastes viz. Flue dust, mill scale,
LD slag 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 Hot Metal produced. Hot Sinter discharged
from Sintering machine is crushed to +5 mm - 50 mm size and cooled before
dispatching to Blast Furnaces.



22

Parameters of Sintering Machines are

Total area - 312 Sq. metre
Effective Sintering area - 276 Sq. metre
Sinter bed height - 500 mm
Sinter Machine Capacity - 400 T P H each

The dust laden air from the machines are cleaned in scrubbers & electrostatic
precipitators to reduce the dust content to 100 mg/ m3 level before allowing to
escape into the atmosphere and thus helping in maintaining a clean & dust free
environment.

Blast Furnaces
SP has two 3200 cu. metre Blast Furnaces (largest in India) equipped with Paulworth
Bell less top equipment with conveyor charging. Rightly named as "Godavari" &
"Krishna" after the two rivers of AP, the furnaces will help VSP in bringing prosperity
to the state of Andhra Pradesh. Provision exists for granulation of 100% liquid slag at
blast furnace cast house and utilization of blast furnace gas top pressure (1.5-2.0
atmospheric pressure) to generate 12 MW of power in each furnace by employing
gas expansion turbines. The two furnaces with their novel circular cast house and
four tap holes each are rated to produce 9720 tonnes of Hot Metal daily or 3.4 Million
Tonnes of low sulphur Hot Metal annually. Record Performance of Blast Furnace
department:

Techno-Economics:

Productivity - 2.23 t/m3/day Feb .06
Power - 51.31 kwh/thm Feb .06
Fuel Rate - 509 kg/tom Jan .04
Heat cons. - 450 Mcal/thm Apr .05
Nut coke usage 56 kg/thm Mar .04



23

Production
Day Peaks Monthly Peaks
Blast Furnace-1 - 6820 Tons 23.03.06 Hot metal - 374419 Tons Mar .06
Blast Furnace - 2 - 6805 Tons 21.03.06 PCM Pouring - 107463 Tons Mar .93
Shop -
13325 Tons
10.02.06
Pig Iron Despatch - 110387 Tons Mar .94
PCM Pouring - 6723 Tons 31.03.93 G. Slag Despatch -
150942 Tons May
.02

Steel Melt Shop
VSP produces steel employing three numbers of top blown Oxygen Convertors
called LD Convertors or Basic Oxygen Furnaces / Convertors. Each convertor is of
133 cu. Metre volume, rated to produce 3 Million Tonnes of Liquid Steel annually.
Besides Hot Metal, Steel Scrap, Fluxes such as calcined lime or Dolomite form part
of the charge to the Convertors. Different grades of steel of Superior quality can be
made by this process by controlling the Oxygen blow or addition of various ferro
alloys or special additives such as FeSi, FeMn, SiMn, Coke Breeze, Aluminum etc.
in required quantities while liquid steel is being tapped from the convertor into a steel
ladle. Convertor / LD Gas produced as by product is used as a secondary fuel.

Characteristics of VSP Convertors:

Capacity : 150 Tones per heat blow
Volume : 133 Cu. Metre
Convertor Sp. Volume : 0.886 Metre Cube per tonne
Tap to Tap Time : 45 mts - 60 mts
Liquid Steel produced in LD Convertors is solidified in the form of blooms in
continuous Bloom Casters. However, to homogenize the steel and to raise its
temperature, if needed, steel is first routed through, Argon rinsing station, IRUT (
Injection Refining & Up temperature ) / ladle Furnaces.




24

Continuous casting Department
VSP has six-4 strand continuous casting machines capable of producing 2.82 million
Tonnes / year Blooms of size 250 x 250 mm and 250 x 320 mm. Entire quantity of
molten steel produced (100%) is continuously cast in radial bloom casters which help
in energy conservation as well as production of superior quality products. Facilities at
continuous casting machines include a lift and Turn table for ladles, Copper mould,
oscillating system tundish, Primary & Secondary Cooling arrangement to cool the
steel bloom. Gas cutting machines for cutting the blooms in required lengths ( Av. 6
metres long ).

Rolling Mills
Blooms produced in SMS-CCD are shaped into products such as Billets, rounds,
squares, angles (equal & unequal), Channels, I-PE Beams, HE Beams, Wire rods
and reinforcements bars by rolling them in three sophisticated high capacity, high
speed, fully automated\ rolling mills, namely Light & Medium Merchant Mills (LMMM),
Wire Rod Mill (WRM) and Medium Merchant and Structural Mill (MMSM).

Light & Medium Merchant Mill (LMMM)
LMMM comprises of two units. In the Billet/Break down mill 250 x 320 mm size
blooms are rolled into Billets of 125 x 125 mm size. Billets are supplied from this mill
to Bar Mill of LMMM & Wire Rod Mill. The Bar mill is facilitated with temp core heat
treatment technology evaporative cooling system in walking beam furnaces,
automated pilling & bundling facilities, high degree of automation and
computerization. The mill is designed to produce 710,000 tons per annum of various
finished products such as rounds, rebars, squares, flats, angles, and channels
besides billets for sale.

Wire Rod Mill (WRM)
Wire Rod Mill is fully automated & sophisticated mill. The billets are rolled in 4
strand, high speed continuous mill having a Annual Capacity of 8,50,000 Tonnes of
Wire Rod Coils. The mill produces rounds in 5.5 - 14 mm range and rebars in 8, 10 &
12 mm sizes. The mill is equipped with standard and Retarded Stelmor controlled
cooling lines for producing high quality Wire rods in Low, Medium & High carbon
25

grade meeting the stringent National & International standards viz. BIS, DIN, JIS, BS
etc. and having high ductility, uniform grain size, excellent surface finish.

Medium Merchant & Structural Mill (MMSM)
This mill is a high capacity continuous mill. The feed material to the mill is 250 x 250
mm size blooms, which is heated to rolling temperatures of 1200 C in two walking
beam furnaces. The mill is designed to produce 8,50,000 tons per annum of various
products such as rounds, squares, flats, angles (equal & unequal), T bars, channels,
IPE beams I HE beams (Universal beams)
AUXILIARY FACILITIES
Thermal Power Plant
The average power demand of all units of VSP when operating at full capacity will be
around 230 MW. The captive Generation capacity of 286.5 MW is sufficient to meet
all the plant needs in normal operation time. In case of partial outage of Captive
Generation Capacity due to brake down/ shutdown/ or other reasons, the short fall of
power is availed from State Grid. The Captive Generation capacity comprises of
TPP : 247.5 MW (3 X 60 MW + 1 X 67.5 MW)
Back Pressure Turbines (C&CCD) : 2 X 7.5 MW
Gas Expansion Turbines (BF) : 2 x 12 MW
Power plant also meets the Air Blast requirement of Blast Furnaces through 3 Turbo
Blowers each of 6067 NM3/hr capacity. In addition to the above, Power Plant also
supply process steam, DM Water, Chilled Water, Soft Water to various units of VSP.

DNW Department
Distribution network (DNW) Department deals with receipt, transmission of electrical
power at Extra High Voltage (EHV) 220 KV level, distribution of High Tension (HT)
power at 33 KV, 11 KV and 6.6 KV level. Operation and maintenance of power
handling equipment at 220 KV and maintenance of equipment at 33 KV, 11 KV and
6.6 KV (except for shop HVMCC & contractors) is carried out by the department.
Operation of shop HT equipment and operation & maintenance of shop LT power
distribution equipment are in the scope of respective shops. DNW department also
coordinates with AP TransCo. and APEPDCL for export and import of power
respectively.

26

Traffic Department
A Steel plant of the size of VSP has to handle around 60-65 MT traffic comprising of
incoming traffic (different raw materials etc.), outgoing traffic (finished / saleable steel
products, pig iron, granulated slag, byproducts etc.) and in process traffic viz. Cast P
I, Mill scrap, Mill scale, hot metal, etc. Of this 50% is transported by belt conveyors,
45% by Rail Transport and 5% by Road. VSP has the distinction of having peripheral
unloading system for the 1st time in Steel Industry. To handle this huge quantities of
traffic, VSP has a fleet of 31 locomotives, Hot Metal ladle cars, Torpedo ladle cars,
Captive wagons of different types, 5 internal Railway stations, loco and wagon repair
shop, number of weigh bridges. Engineering shops & Foundry (ES & F) Engineering
Shops & Foundry department is set up to meet the requirements of spares, repair of
assembliesand reclamation of various jobs of different departments. This complex
consists of 1.Central Machine Shop (CMS) 2.Steel Structural Shop (SSS) 3.Foundry
4. Forge Shop (FS) 5.Utility Equipment Repair Shop (UERS).
CENTRAL MACHINE SHOP (CMS)
In Central machine shop, various spares like Gears, Shafts, Crusher liners,
hammers, machined castings and fabricated jobs are made. In addition to the
manufacturing spares, assembly and repair jobs like gear boxes, Crusher, bearing
housings, stands of SMS are taken up. Over 100 major machines including lathes,
milling, Plano milling, boring, slotting, shaping, grinding etc. are available to take up
machining of spares. 2 presses of 630 ton, 315 ton and dynamic balancing machine
of 25 ton capacity, are provided at CMS for repair of assemblies.

STEEL STRUCTURAL SHOP (SSS)
At Structural shop of ES&F, structural jobs of various departments like coke bucket,
ladle, SRC body, Wagons, Shells, ducts etc. are being fabricated or repaired as per
the requirement of departments. The equipments available are Bending machine-
25mm capacity, Shearing machine-25mm capacity, CNC profile gas cutting machine,
welding machines, gas cutting sets, other tools and tackles.

FOUNDRY
In Foundry, castings of Iron, steel and non-ferrous are produced based on the
projection of customer departments. 8 ton Arc furnace, 2nos of 5ton Induction
furnaces and 1 ton crucible furnace for non-ferrous jobs and sand plant for
27

preparation of sand for moulds are available for making castings. Major jobs like Hot
metal runners of 10 tons weight , Bottom funnel(5 ton), Emergency containers(7 ton),
lower mantle and Bowl liners(3 tons each) etc are produced.

FORGE SHOP (FS)
In Forge shop, preparation of raw materials for shafts, coupling flanges, gears etc
and also of forge shapes such as crusher hammer heads, V -hooks, drill rods with
the help of 0.5 ton, 2 ton, 3 ton pneumatic hammers, manipulators, heating furnaces
is carried out.

UTILITY EQUIPMENT REPAIR SHOP (UERS)
In Utility Equipment Repair Shop, repair of ventilation equipments, valves, fans and
impellers is carried out. Equipments like shearing machine, bending machine,
presses, lathes etc are provided to take up different repair and manufacturing
activities.

Field Machinery Department
FMD deals with operation and maintenance of Heavy Earth Moving Equipment,
Material Handling Equipment like Cranes, Fork lifts, Tractor trailers and Vehicles.
Our equipments are utilized for material transportation, maintenance jobs, house
keeping etc. FMD is one of the critical service department, whose services are
directly involved in operational activities at many production departments like Coke
Ovens, Sinter Plant, Blast Furnace, Steel Melting Shop etc.
In addition to the above, vehicles and fire tenders of VSP / CISF are maintained by
FMD. Central Maintenance Electrical Maintenance of all H.T motors, L.T motors and
DC motors of above 200KW. There are 810 such large rotating electrical machines
spread through out the plant including 3 Nos. of 60 MW Turbo-Generators, 1 No of
67.5M TG in TPP, 2 nos of Back Pressure Turbo Generators of 7.5 MW each and 2
Nos. of Gas Expansion Turbo- Generator of 12 MW each. The service provided are
as mentioned below.
Repairs, Maintenance and condition monitoring of all rotating Electrical machines of
the plant. The job includes transportation, Overhauling and re-erection with precision
alignment.
28

Maintenance of Electrics of all street lights, Tower lights and Weigh Bridges through
out the plant. Electro Technical Laboratory
Repairs all the defective electronic PCBs which are taken out from the equipment
during their functioning.
Procures and arranges spare PCB.s for the equipment of PLC.s and drive controls
for motors in the plant and also for UPS systems.
Involves in the plant modernisation activities and upgradation of equipment.

Electrical Repair Shop (ERS)
ERS is a central repair shop to carry out repair activities like overhauling, rewinding,
testing etc., of various types of AC Motors, DC Motors, HT Motors, Submersible
pumps, Distribution transformers, Welding Machines, Control Transformers, Lifting
magnets, Coils etc., of the plant. The Main Functions of ERS are:
Overhauling of motors
Rewinding of motors, magnets, transformers, pumps, coils etc.
Testing of Electrical equipment
Emergency Site Repairs
Performance assessment of electrical motors

Utilities Department
Utilities dept. Consists of 1. Air Separation Plant 2. Compressor Houses 3. Chilled
water plants and Acetylene plants. The ASP is designed to meet the maximum daily
demand of gaseous oxygen, gaseous nitrogen and gaseous argon. Compressor
Houses ( CH ) produce Compressed Air required for the operation of pneumatic
devices, for instruments and controls, pneumatic tools and for general purpose in the
various production units of Steel Plants. Chilled Water plants ( 2 Nos ) produce
chilled water required for use in the ventilation and air conditioning system in areas
such as office rooms, electrical control room etc. Acetylene plant produces Acetylene
gas required for general purpose cutting and welding. Quality Assurance and
Technological Development (QA &TD) The QA & TD dept. has been set up to take
care of activities pertaining to Quality Control of Raw Materials, Semi finished
products and finished products. The QA & TD labs are provided at major department
like CO&CCP, SP, BF, SMS, Rolling Mills etc., in addition to Central Laboratory. The
department monitors the process parameters for production of quality products. QA
29

& TD carries out analysis, testing and final inspection including spark testing of
finished products and assigns grades to them.
Environment Management Department (EnMD)
The environmental parameters related to ambient air, stacks, effluents, work-zone
environment, sound, waste management, sub-soil water, marine water and the
fugitive emissions from the coke oven batteries are regularly monitored by the
Environment Management Department (EnMD) as stipulated under consent
conditions and statutory orders from APPCB/CPCB/MoEF. All these monitoring
activities are carried out as per frequency prescribed by the APPCB/CPCB/MoEF
and compliance with all norms is ensured.
R&D
R&D department has been created in 2005 to strengthen R&D activities. This
department takes up various improvement projects related to areas like Process
improvements, Product developments, waste utilization etc. R&D projects are carried
out internally and through joint research projects with the help of external agencies
viz., Research organizations and Educational Institutions like IITs, NITs, CSIR Labs,
Andhra University, etc.
Calcining & Refractory Material Plant
CRMP consists of two units - Calcining Plant & Brick Plant. In calcining plant
limestone & dolomite are calcined for producing lime & calcined dolomite which are
used for refining of steel in the converters.
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-II and
Area Repair Shop. The main activities 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.

30

Structural Engineering Department
The main objective of Structural Engineering Department is to maintain Steel
structures located inside the plant area including Boundary Lighting Towers & Watch
Towers and the main functions are as below:
Inspection of all steel structures and chimneys as per schedule of inspection.
Schedule of inspection is prepared for the whole year (April to March) and is
circulated to all bzones and Emergency inspection is being done as when required.
Also Inspection of roof sheeting works as per schedule of inspection.
Repair / Replacement of damaged steel structures and sheeting.
Arresting roof leakages in all structural buildings.
Repainting of structures as a Preventive Maintenance.
Removal of dust from roof and gutters of different units.
Plant Design
Major functions of this unit are
Development of detailed Manufacturing Drawing and Replacement Specification
drawings
Suggesting New Designs and detailing by doing elaborate engineering study and
Analysis
StandardizationnWorks Contracts Department
Processing for and obtaining administrative approval on receipt of contractual
proposal from indenting departments, tendering and awarding of work.
Convening tender Committee meetings and preparing recommendations for
awarding work.
Preparing COM / Board Note for decisions at those forum.
Participating in Claims and Arbitration proceedings and legal cases pertaining to
contracts.
Registration of agencies under various categories & classes of works regularly.

Safety Engineering Department
Safety Engineering Department advises and assists the management in the
fulfillment of obligation concerning prevention of accidents and maintaining a safe
working environment. SED imparts safety training as well as refresher safety training
to the regular employees as well as contractor workers. SED conducts safety
inspections, safety audits, mock drills and coordinatewith the departments for
corrective actions in respect of unsafe conditions and unsafe actions. SED conducts
safety campaigns and safety competitions amongst the employees to promote
31

safety. SED ensures that high quality safety appliances are procured and issued to
the employees. SED co-ordinates and liaison with AP Factories departments. Spares
Management Department
The main functions of SMD are:
Rationalized spares are procured by SMD department viz., Bearings, Electrodes
Conveyor belts, Idlers, Cables, etc., to cater to the needs of various departments.
All the indents viz., Operation, Mechanical, Electrical, Instrumentation, Refractory
etc., are processed thro. SMD department for procurement of necessary spares thro.
purchase department.
SMD department is coordinating pre dispatch inspection of spares for Works
departments, Refractory & Coke Oven Battery . IV, etc.
SMD department controls Inventory of spares, indenting & consumption budget.

Functions of Various Departments of RINL/VSP
Personnel Department
(Corporate Personnel, Central Employee Relations and Plant
Personnel)
Manpower Planning
Employees induction
Service matters, policy & rules
Industrial relations
Employees welfare
Corporate Social Responsibility (CSR)
Replies to parliamentary questions
Official Language implementation
Legal Affairs
Legal Affairs deals with all legal matters including arbitration, coordination with
Standing Councils, Legal Advices etc.
Management Services
Quality Circle
Suggestion Scheme
Incentive Scheme
Reward Scheme
Procedural Orders etc

32

Training & HRD
Leadership Training
Training on Motivation and Attitude
Team Building
Skill Training
Induction and Orientation
Plant Practice Lectures
Basic Engineering Lectures
Plant Specialized Training
Management Development
On the Job Training
Multi Skilling / SUPW and Mentoring

Corporate Strategic Management (CSM)
CSM is a .think tank. of the organisation. The Deparment is engaged in formulation
of VMO (Vision, Mission & Objectives) of the organisation and developing the
strategy to achieve VMO. It has various wings which inter-alia includes Knowledge
Management Cell (KM Cell). It has also developed the Corporate Plan of RINL. It
takes up strategic tasks of the organisation.
Town Administration & Administration
Matters relating to Land & State
Civil Maintenance
Electrical Maintenance
Water Supply
Roads and Drain Maintenance
Horticulture and Afforestation
Peripheral Development and
Public Health in Township (Ukkunagaram)
Interact with District Authorities for various welfare activities, land acquisition
matters etc.

Medical & Health Services
The Medical & Health Services Division of RINL consist of Visakha Steel General
Hospital (VSGH) & Peripheral Units viz. Pedagantrya Health Centre (PGHC), Health
Centre . II, Occupational Health Services & Research Centre (OHSRC), Emergency
33

Unit . I & II and Hospitals in Mines . Jaggayyapeta Limestone Mines and Madharam
Mines. The special features of Visakha SteelGeneral Hospital are:
Full fledged Modern American Designed ICU and MBU capable of treating 6 patients
at a time
Full fledged Modern Radiology with Central A/c systems
Well equipped Path. Lab with Blood bank facility
Cluster type Wards & Casualty with Central Nursing Station
Modern Operation Theatre comples with Shadowless cold lights and 100% bacterial
free A/c system

Directorate of Commercial
Marketing Department
VSP has 23 no of Branch Sales Offices all over India and five Regional Offices viz.
North Delhi, South - Chennai, West - Mumbai, East - Kolkata and Andhra -
Visakhapatnam. Main Activities of the Marketing are as follows :
Collecting Market feedback and Customers requirements for the preparation of
Annual Sales Plan in coordination with Works Department, for the sale of Pig Iron,
Steel and
Byproducts.
Prepration of Marketing Policies.
Finalisation of MOUs, Spot sale agreements etc, in Domestic and Export Markets.
Preparation of Monthly Rolling Plans in coordination with Works Department for
meeting the sale commitments.
Processing of Materials like straightening of coils, cutting, bending, bundling,
packaging etc. at the plant premises and in the branches to meet customers
requirements.
Dispatch of products to various stockyards by road or rail or to customers from the
plant on direct dispatch basis.
Operation of the contracts for transportation of products by road and stockyard
handling/ consignment agency contracts for domestic sales, stevedoring contracts
and third party inspection agency for exports.
Sale of products at branches, Headquarters and on direct dispatch basis to the
customers in domestic markets and on Ex-works and fob Visakhapatnam basis in
exports subject to tying up of commercial and financial terms and conditions. Ensure
documentation as per the procedures and as per the statutory requirements.
34

Rendering after sales services, obtaining customer feedback and Customer
Relations Management.
The details/information on the following aspects of Marketing are available in
.www.vizagsteel.com, Marketing Module.
a. Rolling Plan b. Products c. Prices d. Exports e. Network f. Customer
Relation
Further, five Consignment Sale Agencies are also functioning at Jamshedpur,
Raipur, Pondicherry, Jammu and Guwahati.

Materials Management Department
Procurement of all materials such as Raw-materials, Spares and consumables
required for the entire Plant Operations.
To enter into long term agreements for supply of major & minor raw-materials with
indigenous and imported suppliers.
To affect economy in the cost of materials by Purchasing materials of the right
quality, in the right quantity at the right time from the right source at the right place.
To arrange inspection of materials prior to handing over to Production Units to ensure
quality materials only are issued to Production Units.
Storage of materials & issue the same to the Production Units as per their
requirement.
To develop and encourage ancillary industries so that the availability of the materials
at right time is ensured.

Directorate of Finance & Accounts
Making arrangement for long term fund requirements.
Accounting of all monetary transactions and preparation of financial statement of
the company and getting the same audited as required under law.
Maintaining records with regard to the cost of products produced by the company.
Release of payments to suppliers/providers of goods and services.
Release of salaries to the employees.
According concurrence to proposals for investments & expenditure as per the
policies, procedures and the Delegation of Powers.
Conduct Internal Audits, Stock Verification and Statutory compliance.
Making working capital arrangements.
Submission of periodical reports to banks as per their sanctioned terms.
35

Organizing for payment of Central Excise, Sales Tax, Income Tax and other
statutory payments.
Co-ordination with statutory Auditors and Government Audit.
Generation of various MIS reports pertaining to F&A department for Management
Information and Control.
Payments.

Directorate of Operations
Mines
Brief about Captive Mines of Visakhaptanm Steel Plant
Madharam Dolomite Mine (MDM)
MDM is located at Madharam village in Singareni Mandal of Khammam District, A.P.
The mining lease is for exploitation of Dolomite covering an area of 384.46 Hectares
for about 20 years. The lease area is a captive source for Rashtriya Ispat Nigam Ltd
(RINL) / Visakhapatnam Steel Plant (VSP) for use of Dolomite in its Iron and Steel
making processes. The area is situated at a distance of 16 Km from the Ywellandu .
Mehaboobabad road taking diversion at Mukundapuram to the area. The present
mining lease is valid upto 13.07.2020. A railway line of 7.165 Km distance was
constructed from the lease area adjoining at Karepalli Junction. The lease is in
operation from 1989 onwards for transportation of Dolomite to VSP covering a
distance of 510 Km from the area. A township consisting of 225 dwelling units of all
categories with modern amenities was constructed with in the lease area. A DAV
School, hospital, hostel, Community Welfare Centre, Shopping Complex, Parks and
an Open Air Auditorium were also provided in the township. A Guest House of 4
rooms was also provided in the township. The capacity of the mine is to produce
7,80,000 tonnes of Dolomite per annum. The employee strength is 203 of different
categories. The present Dolomite reserve is 31.03 million tones. It is an open cast
mechanized mine of VSP to cater to the requirement of Dolomite.
Jaggayyapeta Limestone Mine (JLM)
Jaggayyapeta Limestone mine (JLM) is located 5 Km south . West of Jaggayyapeta
connected by a black . Top road in Krishna District, A.P. This is a captive mine of
VSP to cater to the requirement of BF Grade Limestone of VSP. The mining lease
has been granted by Govt. of A.P. covering an area of 1295 Hectares out of which
900 Ha is forest land and 395 Ha is acquired private lands. The lease is valid upto
36

07.08.2020. This mine is an open cast mechanized mine with a capacity of 4,50,000
tonnes of BF Grade Limestone per year. A Township having 226 quarters of all
categories with modern amenities was constructed. Schools hospital, hostel,
Community Welfare Centre, Shopping complex and an Open Air Auditorium were
also provided in the Township. A four . roomed Guest House was also provided. The
Limestone reserve of 130 million tones is occurring in the area. The total strength of
employees is 133. The Limestone is dispatched by a goods train covering a distance
of 450 Km to VSP from the lease area.
Garbham Manganese mine (GMM)
Garbham Manganese mine (GMM) is a captive source for manganese ore for VSP. It
is located 16 Km away from Garividi connected by the black . Top road in
Merakamududam Mandal, Vizianagaram District, A.P. There are two mining leases
adjacent to each other covering an area of 264.54 Hectares. The present reserve of
Manganese is 7,03,760 tonnes as on 01.01.2008 with a life of 46 years producing
15,000 tonnes per annum. The area is equipped with a store house, maintenance
shed and vocational training centre. The total employeesstrength is 31 including
contractual lab our. The total distance from the mine to VSP is 125 Km. the annual
production of the mine is @ 16,000 tonnes.
Saripalli Sand Mine (SSM)
This is a captive source for catering to the requirement of Silica sand for VSP. This is
located in Champavati River near Nellimarla Mandal of Vizianagaram District, A.P.
The sand is transported from this mine by trucks covering a distance of 95 Km from
the area to VSP. The requirement of sand is 50,000 per annum. Loading,
transportation and unloading is carried by contractual agency. Only one Junior
Officer is posted to look after the mining activities of Serially sand mine. The total
reserve of sand is 3,20,000 tonnes.
Production, Planning and Monitoring Department
Formulation of Annual and Monthly Production Plan.
Analyzing Plant performance against targets on a periodic basis and put up for
information.
Formulation of techno . economic norms and reviewing the same against targets
periodically.
Raw material requirement projection of Coal, Ore and fluxes.
37

Preparation of MIS on Inward and outward traffic w.r.t. incoming raw materials and
outward dispatches.
Research and Development
Identification of Technological Improvement scopes for various processes and plan
for adoption of them by acquiring design and know-how capability.
Indigenous development of technology involving laboratory investigation.
Development of new grades and products in coordination with Marketing dept.
Information Technology
Formulation of Organizational IT-Policy, IT-Security Policy and IT-Vision.
Identification of IT enabled projects for various processes and implement them.
Budget plan and control
Identification of Budget requirement under various heads.
Control of the Budget and Spares, Consumables & Raw Materials Inventory.
Systems and Procedures
Streamlining the contract management system to ensure consistency of approach
and adoption of sound principles of contract management.
Ensuring the implementation and maintenance of quality management system
requirements for ISO 9001:2000 Certificate.
Monitoring pollution control activities of the Plant and interaction with the State and
Central Pollution Control Board.

Project Division
Design & Engineering Department
Liaisoning with Consultants and Government Authorities in connection with designs,
specifications, approval of drawings and liaisoning work for various types of
clearances.
Preparation of drawings, design and specification for AMR and Non-AMR jobs.
Assisting indenting departments in technical discussion with parties and preparation
of technical recommendation.
Layout clearances of various facilities coming in the Plant and Township.
Operation of Consultancy contracts. Construction Department
Exercising supervision of work at site both for quality and quantity checks.
Preparation of contractors bills, processing of extra items and closure of contracts.
Liaisoning with suppliers, MM department, Design & Engineering Department and
Stores in connection with progress of work at site.
38

Arranging PAT/FAT will all concerned departments like works, design, consultants
and suppliers in terms of contract and handing over the unit to works department for
operation.

Contracts Department
Awarding of contract from the point on receipt of administrative approval from
indenting departments.
conducting commercial discussions with parties.
Arranging Tender Committee meetings and preparing recommendations for awarding
work.
Preparing COM/Board Note for decisions at those form.
Participating in claims and arbitration proceedings. Project Monitoring Department
To monitor the physical and financial progress of all the works executed by
Construction department.
To monitor the progress of works executed by D&E as well as Contracts department.
Preparation of various types of reports for information of Government and different
levels of Management.
Interaction with departments and consultant for updating the schedules and
networks for Project Monitoring.

RINL/VSP-CORPORATE SOCIAL RESPONSIBILITY (CSR)
In the RINL Boarding meeting held on 31
st
August, 2006, the allocation of budget for
CSR has been enhanced up to 2 % of the Net Profit (after setting off cumulative
losses and transfers etc) and accordingly it is learnt that Rs.6.8 crores is likely to be
allocated to the CSR Activities for the year 2006-07.
1. Villages have been adopted under Peripheral Development schemes to
improve the standards of life in neighboring villages.
2. Donation given to Charity Hospitals for purchase of equipments
3. Donation of Try-wheel Cycle for Orthopedically handicapped, Hearing
Machines for Hearing impaired and medical check and providing medicines to
the Physically Challenged persons
4. To construct community halls, school building, roads steel bulk cards etc.,
5. Donation of Ambulance to the Police Department to handle emergency cases.


39

VSP AND ITS OBLIGATIONS TOWARDS WELFARE
Visakhapatnam Steel Plant which has been set up under Public Sector category has
a wide range welfare measures to satisfy its employees both Statutory as well as
Non statutory. All those measures as envisaged under Law in different Acts are
found implemented for the benefit of employees. Besides that, extensive Non-
Statutory measures are extended to employees, which have unique satisfying
feature. VSP has been on the forefront in extending social security to employees on
all fronts. These aspects boost the morale of employees to the great heights while
they contribute their best for the plant. Although a delayed policy for promotions to
its employees has been formulated by VSP, the policy is well defined and
satisfactory both for Non-executives and Executives. In a nutshell, VSP is a giant
organization having representative features of all Management philosophies
concerning all branches. It is an open arena for making studies.
MANPOWER IN VSP:
The total manpower of the organization has been kept within sanctioned strength
given by the Ministry. The total manpower of the Organization as follows:
ADVENT OF CENTER FOR BUSINESS SYSTEMS (CBS) & CORPORATE
STRATEGIC MANAGEMENT (CSM):
The CBS was formulated to cater to the strategic needs of Vizag Steel. The focus of
CBS is to study world-class initiative and develop suitable framework for their
adoption and implementation on an organization-wide basic at VSP.
CBS was inaugurated on 18
th
December 2003. On this occasion, a booklet on
Strategies to achieve the Vision, Mission & Objectives of Vizag Steel was released.
VSPs Knowledge Management portal Gnana was launched on 26
th
July 2004,
basically to capture and share unique experience in day to day operations. CBS has
four teams to assist other departments in implementation of the initiatives identified
and thus guide VSP to a chive its cherished vision of becoming a world-class
integrated steel plant. The four teams are: Corporate Management; Technology &
Automation; Marketing Research; Intellectual Capital Development
The above teams initiate activities pertaining to implementation of various aspects of
the Business Excellence model, research on the latest technological developments
in the steel industry for suitable adoption and benchmarking, initiative leading to
improved customer satisfaction, knowledge sharing initiatives like Knowledge
Management etc, lf Groups of employees from different areas of common interest
40

called Communities of Practices (Cops) have been initiated which promote
collaboration, informationexchange and sharing of best practices among them. The
CBS has been merged with Corporate Planning department and renamed as
corporate Strategic Management (CSM) in order to suit the changing trends.

QUALITY, ENVIRONMENT AND OCCUPATIONAL HEALTH & SAFETY POLICY
We, at Visakhapatnam Steel Plant, are committed to meet the needs and
expectations of our customers and other interested parties, the occupational health
and safety of our work force and to preserve the environment. To accomplish this,
we will
Supply quality goods and services to customers delight.
Document, implement & periodically review the management Systems
including the policy, objectives and targets.
Use resources efficiently and reduce waste & prevent pollution.
Comply with all relevant legal, regulatory and other requirements Applicable to
products, activities and processes in respect of quality, Environment,
occupational health & safety and also ensure the same By contractors.
Continually improve quality, environment, occupational health and Safety
performance with respect to products, activities processes, Premises and
services.
Encourage development and involvement employees.
Maintain high level of quality, environment occupational health and safety
consciousness amongst employees and contract workers by Imparting
education and training.
ENVIRONMENT POLICY:
We at Visakhapatnam steel plant, while carrying out its operations reaffirm our
commitment to preserve the environment. To accomplish this, they will-
Document, implement, maintain and continuously review the environmental
management system.
41

Comply with all the relevant environmental legislations, regulations, and
prevention of pollution by minimizing the emission and discharge.
Maintain a high level of environmental consciousness amongst employees.
ENERGY POLICY:
We, at Visakhapatnam steel plant, are committed to optimally utilize various forms of
energy in a cost effective manner to effect conservation of energy resources. To
accomplish this, we will
Monitor closely and control consumption of various forms of energy through
an effective energy management system.
Adopt appropriate energy conservation technologies.
Maximize the use of cheaper and easily available forms of energy.
HR POLICY;
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.



42

CUSTOMER POLICY:
VSP will endeavor to adopt a customer focused approach at all times with
transparency.
VSP will strive to meet more than the customer needs and expectations pertaining to
products, quality, and value for money and satisfaction.
VSP greatly values its relationship with customers and would make efforts at
strengthening these relations for mutual benefit.

IT POLICY:
RINL/VSP is committed to leverage Information Technology as the vital enabler in
improving the customersatisfaction, organizational efficiency, productivity, decision
making, transparency and cost effectiveness, and thus adding value to the
business of steel making. Towards this, RINL shall
Follow best practices in process automation & business process through IT by
inhouse efforts/outsourcing and collaborative efforts with other organizations/
expert groups/institutions of higher learning, etc., thus ensuring the quality of
product and services at less cost
Follow scientific and structured methodology in the software development
processes with total user involvement, and thus delivering integrated and
quality products to the satisfaction of internal and external customers
Make the most out of the sate of the art technologies in the IT field while
going for the suitable cost effective IT infrastructure and software.
Ensure high level of date and information security across the organization.
Strive to spread IT culture amongst employees based on organizational
need, role and responsibility of the personnel and facilities the objective of
becoming a world class business organization.
Enrich the skill set and knowledge based of all related personnel at regular
interval to make employees knowledge employees.
43

Periodically monitor the IT investment made and achievements accrued to review
their cost effectiveness.
HRD GROUP KEY INITIATIVE:
Inhouse training progress
Nominations to external training programmes
Organization research, employees satisfaction surveys & voice of employees
index
Organization development
Membership with professional bodies
Performance appraisal initiatives
Human resource information system
Inplant training for management students
Lectures by eminent personalities
Corporate presentations
Interaction with professionals, academicians and consultants
Knowledge Management
Initiatives on Six Sigma
Emancipation of women through WIPS, women development programs (spring
board)
Thrust on Samalochana (internal communication exercise)
Pursuit of Business Excellence Model (BEM)
Chairman tho Maata



44

TRAINING & DEVELOPMENT:
RINL believes that the employees are its assets and strives to realize their potential
in full for mutual advantage. The Human Resources Development involves
development of the employees as a whole. The need of induction training, skill up-
gradation, unit training, computer related training, refresher training, foreign training,
faculty development etc., are attended by the Training & Development Center while
management development and attitudinal development are taken care at the Center
for HRD. Training in certain specialized areas like safety, fire prevention,
occupational health etc., is also taken up by departments specializing in respective
fields.RINL also provides learning opportunities to individuals by nominating them to
external training programmes for enhancing their knowledge. Employees are
sponsored for external training programmes including seminars and competitions
organized by various professional bodies and Institutes like. CII, IISI, NISSAN,
ASSOCHAM, INSDAG, AIMA, NIPM, LPAI, ISTD, ICWAI, CSI, SCOPE, VSC QCFI,
RDCIS (SAIL), ICA, ASCI, ESCI, XLRI, MDI, BVQI, WIPS, IIMS, CBI Academy, NPC
etc.Employees are sent to other steel plants on short duration tours to find solutions
to the various issues facing the company. Employees are also sent to suppliers
manufacturing units/training institutes to get specific training in identified areas.
MARKETING NETWORK:
The company markets its products through Headquarters Marketing office and a
network of Regional offices, Branch offices and stockyards located all over the
country. It also takes the help of Consignment Agents and Consignment Sales
agents for the marketing of its products. The exports are carried out by the export
wing of Marketing Division with the help of different agencies. The company is
recognized as "Star Trading House'" by the Director General of Foreign Trade,
Ministry of Commerce, Government of India.
The end users of the steel products manufactured at the plant include amongst
others, construction industry, automobile industry, engineering industry, re-rolling
industry, forging industry, cable industry, wire drawing industry, fastener industry,
electrode manufacturers and railways. The company is ideally located to serve the
southern Indian market and a potential export orientation due to its shore based
location. Regional Managers/Branch Managers and their teams provide the front
line sales force assessing the market situation and evolving suitable market
strategies for meeting sales targets.
45

HUMAN RESOURCE MANAGEMENT:
Human resource initiatives at VSP are closely linked to the corporate strategy of the
organization. VSP has harmonious industrial relations where the entire workforce
works as a well-knit team for the progress of the company. The productive
environment prevailing in the company fosters an atmosphere of growth -- both for
the employees and for the company. VSP has introduced multi-skill concept since
inception and the employees are trained to imbibe this. VSP has adopted a system
of over-lapping shifts - the first of its kind, in the industry. This system ensures
smooth change-over of the shifts and uninterrupted pace of operation of the plant
during the shift-change over. Another unique feature followed at VSP is the uniform
working hours for the ministerial and non-ministerial employees. The labor
productivity has crossed 414 tons/man/year unparalleled in the Public Sector steel
industry.


ACHIEVEMENTS & AWARDS
The efforts of Visakhapatnam Steel Plant have been recognized in various activities.
Some of the major awards received by Visakhapatnam Steel Plant are in the area of
Energy Conservation, Environment Protection, Safety, Quality, Quality Circles,
Official Language Implementation (Rajbhasha), MOU, Sports related awards and a
number of awards at the individual level.
SOME OF THE IMPORTANT AWARDS RECIVED BY VSP ARE INDICATED
BELOW:
ISO 9002 for SMS and all the downstream units-a distinction in the Indian Steel
Industry.
Indira Priyadarshini Vrikskha Mitra Award: 1992-93.
Nehru Memorial National Award for Pollution Control: 1992-93 & 1993-94.
EEPC Export Excellence Award: 1994-95.
CII (Southern Region) Energy Conservation Award: 1995-96.
Golden Peacock (1
st
Prize) National Quality Award-96 IIM in the National
Quality Competition 1996.
Steel Ministers Trophy for Best Safety Performance-1996.
Selected for World Quality Commitment Award-1997 of J*Ban, Spain.
46

Gold Star Award for Excellent performance in Productivity.
Udyog Excellence Gold Medal Award for Excellence in Steel Industry.
Excellence Award for outstanding performance in Productivity management,
Quality & Innovation.
Ispat Suresh Puraskar (First Prize) for longest Accident free period, 1991-94.
Best Labour Management Award for the Govt of A.P.
SCOPE Award for best turnaround for 2001.
Environment Excellence Award from Greentech Foundation for energy
conservation in 2002.
Best Enterprise award from Scope, WIPS for 2001-02.
Best Enterprise award from SCOPE for surpassing MOU targets 2003 04.
ISTD Award for Best HR Practices - 2002.
Prime Ministers trophy for Best Integrated steel plant 2002-03.
World Quality Commitment International Star Award in the gold category
conferred by Business Initiative Directions, Paris.
Organizational Excellence Award for 2003-2004 conferred by INSSAN
RINL has been bestowed with several national accolades in the year 2005-2006
significant among them being:
National Energy Conservation Award for the 6
th
time in succession.
National Award for Excellence in Cost management.
Viswakharma Rashtriya Puraskar Awards (6 out of 32 at the national level).
FAPCCI Best Industries Productivity Award.
INSAAN National Award for Organizational Excellence.
Best CEO Award.
Ranked among Top FIFTY Indias Best Companies to Work for 2009.
Ranked 2
nd
in Public Sector Enterprises.
Ranked 6
th
in Manufacturing & Production category
Ranked 5
th
in large organization category (with more than 10,000 employees).
The above Awards are besides a number of at the local, regional and national level
competition in the area of Quality Circles, Suggestion Schemes etc.
47

HALLMARK OF VIZAG STEEL AS AN ORGANIZATION:
Today, VSP is moving forward with an aura of confidence and with pride amongst its
employees who are determined to give their best for the company to enable to reach
new heights in organizational excellence.
At the same time, no single advantage accruing from a knowledge society is found
wanting by the neighborhood community with the growth & development of a
phenomenon called VIZAG STEEL existing so close to its proximity, futuristic
enterprises, academic activity, planned & progressive residential localities are but
few of the plentiful ripple effects of this transformation and each one of us take
immense pride to uphold the philosophy of mutual (i.e., individual and societal)
progress.
The remarkable performance on production front coupled with prudent financial
management has not only resulted in achieving significant net profits but also helped
RINL emerge as a NET POSITIVE COMPANY in January, 2008 by wiping out all its
accumulated losses during 2006- 07.























48

Statistical Information:
I. Production Performance (000 Tonnes)
YEAR HOT
METAL
LIQUID
STEEL
SALEABLE
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

II. Commercial Performance (Rs. Crs.)
YEAR HOT
METAL
LIQUID
STEEL
SALEABLE
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

III. Financial Performance (Rs. Crs.)
Year Gross Margin Cash Profit Net Profit
2000-01 504 153 -291
2001-02 690 400 -75
2002-03 1162 975 521
2003-04 2073 2023 1547
2004-05 2462 2451 2008
2005-06 2383 2355 1251
2006-07 2633 2584 1363
2007-08 3515 3483 1943
2008-09 1268 1183 934
2009-10 1282 825 796
2010-11 1045 825 797



49












4. CHAPTER Conceptual profile


















50

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 labour is regarded as an equal and responsible partner in industry.
NEED FOR WEFARE MEASURES:
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,
51

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 to employees of VSP is provided under statutory provisions .The prominent among
them are:
1. Factories Act, 1948.
2. Mines Act, 1952
3. Workmen's Compensation Act 1923.
4. Maternity benefits Act, 1961.
5. Employee's State Insurance Act, 1948.
6. Contract Labour (R & A) Act, 1970.
7. The Equal Remuneration Act, 1976.
8. Child Labour (Prohibition and Regulation) Act, 1986.
9. Limestone, Dolomite Welfare Fund Act, 1972.
10. Iron Ore Mines, Manganese Ore Mines & Chrome Ore Mines Welfare fund Act, 1976.
11. A.P. Labour Welfare Fund Act 1987.
12. Employee's Provident Fund and Miscellaneous Provisions Act, 1952.
13. Payment of Gratuity Act 1972.




52

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.
























53

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 ~ 18,000 employees at VSP, of which nearly 3,800 are executives and
remaining are non-executives. Of those, ~550 executives and ~600 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
54

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
55

8) Maternity Leave as per Maternity Benefit Act, 1961.
9) The Bonus as per Payment of Bonus Act, 1965.

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.

56

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

Statutory Welfare Measures

1. AS PER FACTORIES ACT, 1948:

a) 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 organised through the operation of 16 Canteens
eventhough the requirement under statute is to operate only 7 canteens. Out of
these, 14 are located inside the Plant and 2 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 for the last 5 years. Besides this, through a
57

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 127 extension
points at 55 locations through out the Plant. RINL/VSP has been extending
Canteen Subsidy to the employees @ Rs.18/- 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. The annual expenditure
on canteen subsidy payable to all employees comes to around Rs.9.00 crores.
Apart from this, an additional expenditure of Rs.90 lakhs per annum is being spent
for running and maintaining the 16 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.
Canteen Subsidy:
Year
Amount / Per
Annum
Extension canteen
expenditure Amount per
annum
2006-07 8.38 Crores 58,98,240/-
2007-08 8.40 Crores 58,98,240/-
2008-09 8.02 Crores 58,98,240/-

b) 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
58

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.

c) 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 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.

1) Ins. by Act 25 of 1954, S.9.
2) Subs. by ibid. For original sub section (2)
1) Subs. by Act 94 of 1976 (w.e.f. 26-10-1976)
2) Renumbered for (3) by Act 25 of 1954, s.9.
3) Subs. by Act 94 of 1976 (w.e.f. 26-10-1976)
[And those facilities shall always be made readily available during the working hours
of the factory.]

The Royal Commission on Labour recommended that, in the case of all factories
where mechanical power is used, a First Aid box of prescribed standard, which need
59

not involve any great outlay, should be provided and maintained in different
departments according to the number of workers employed on the basis to be laid
down by local governments.
In the Plant, Central First Aidcum-Occupational Health Centre with required
facilities is in operation. In addition to this, there is one more First Aid and Gas
Rescue Station near the Coke Ovens Deptt. One Ambulance in each of these First
Aid Centres and one in Steel Melting Shop is available round the clock. Adequate
number of First Aid Boxes with the required contents like Plaster, Scissors, Cotton
rolls, Tincture Iodine, Bandage Rolls, Eye & Ear drops, local antiseptic cream,
Paracetamol tablets etc. have been provided in each Shop Floor in the Plant. The
boxes are under the supervision of personnel trained to give First Aid and they are
regularly replenished with the required materials.

d) 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.

e) 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).
60


f) Safety officers (section 40b):
In every factory
i) Wherein, 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.
g) 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.
To look after welfare amenities.
61

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.

h) 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.

62

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.

i) 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.

j) 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
63

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.

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.
(a) 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.


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(b) 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.

(c) 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.

(d) 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
specialised treatment outside, full expenses are borne by the Company.
(e) Contract Labour 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.

(f) Conservancy (Section 20):
There shall be provided separately for males and females in every mine, a
sufficient number of latrines and urinals as prescribed


65

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.3.50 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.

6. 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 labour 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 labour 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.

66

7. MATERNITY LEAVES AS PER MATERNITY BENEFIT ACT, 1961:
Maternity Leave for 12 weeks with full pay is extended to the women employees
during confinement and in case of miscarriage or abortion, the entitlement of leave
shall be six weeks from the date of miscarriage or abortion.

8. 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.

9. 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.

10. 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.

11. 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.





67

12. THE BONUS AS PERTHE PAYMENT OF BONUS ACT, 1965.
(a) 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.

(b) Disqualification for Bonus (Section-9):
Notwithstanding 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.

(c) 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.

(d) 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
the employee during the accounting year subject to a maximum of 20% of
such salary of wage.
68

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.
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 Centres, 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 specialised 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 Haematology, 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.
69

- Well equipped Physiotherapy wing
- A separate Central Sterile Supply Department with modern equipment
- Automatic Laundry
- 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.

Highlights 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.

Total annual expenditure on Medical facilities for the year 2008-09 (upto January-
2009) is Rs.30 Crores approximately.

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. Towards this, the company spends an amount of about Rs.13.28
Crores.





70

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 Kendriya Vidyalaya,
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 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. In addition to the above, as on date, the Company incurs a
recurring expenditure of more than Rs.9.86 Crores per annum on different activities
like operational expenditure of schools Rs.5.78 Crores, reimbursement of school fee
Rs.2.92 Crores, maintenance of school buildings Rs.5.09 Lakhs, transportation of
school/college going children Rs.1.10 Crores, etc., during the year 2008-09 by VSP.










71

STUDENTS STRENGTH FOR 2012-13
Sl.No Name of the school
Total Strength
Children of
Steel Plant
employees
Children of
outsiders
Total
(A) Fully Aided Schools
1 Kendriya Vidyalaya, Steel Plant 226 1075 1301
2 Visakha Vimala Vidyalayam (UN)

Telugu Medium School 64 1054 1118
English Medium School 3 162 165
3 Visakha Vimala Vidyalayam (BC Road)

Telugu Medium School 13 342 355
English Medium School 67 812 879
(B) Partially Aided Schools
4
DAV C Public School,
UNagaram
951 739 1690
5 JDAV Public School, Madharam 54 242 296
6
JDAV Public School,
Jaggayyapeta
21 516 537
(C) Self Run Schools
7
Delhi Public School,
Ukkunagaram
1473 333 1806
8 Jyothi Bala Vihar (3 Branches) 380 353 733
9 Arunodaya Special School 51 42 93
(D) Self Built Run Schools
10 De-Paul School, Ukkunagaram

ICSE 938 843 1781
AP State 16 48 64
11 Chaitanya Public School, Ukkunagaram
AP State 1553 439 1992
12 Sri Aurobindo Ideal Public School
AP State 101 663 764
13 Little Angels School, Ukkunagaram
AP State 20 199 219
72

Sl.No Name of the school
Total Strength
Children of
Steel Plant
employees
Children of
outsiders
Total
CBSE 53 302 355
14 Siva Sivani Public School, Ukkunagaram
AP State 71 372 443
GRAND TOTAL 6055 8536 14591

REIMBURSEMENT OF SCHOOL FEE TO THE EMPLOYEES CHILDREN:

Class of study Rate per child per month
Nursery 70/-
Kindergarten 90/-
Class I to V 110/-
Class VI to X 140/-
Class XI to XII 140/-
Annual charges 250/-
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:


3. 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, 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
73

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. Sarvepalli
Radhakrishnan Merit
Cash Awards
Col. CK
Nayudu Sports
Awards
2005-06 14 10
2006-07 11 15
2007-08 14 3
2008-09 22 16
2009-10 27 22
2010-11 35 2
2011-12 57 11

4. HOUSING FACILITIES:
he Company has a well laid out township Ukkunagaram, consisting of 8,696
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 subsidised accommodation, the Company also provides
subsidized electricity and free water to all quarters. The electricity subsidy is around
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


74


5. WORK DRESS:
Consequent to the Tripartite Settlement dtd.05.08.1991 with the then Recognised
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.
No.
Employees
Work Dress material per
annum
Stitching Charges
per annum
1. Male
Two pairs of Work Dress
(Light Grey Shirting and Steel
Grey Panting)
Rs.340/-
2. Female
Two Sarees + Two Blouse
pieces(Lavender Sari & Navy
Blue Blouse)
Rs.100/-

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/-.

6. ALLOWANCE TO EMPLOYEES:

(i) 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.
(ii) 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
Executives up to E 7 Grade
Rs.45/-
75

Non - executives Rs.45/-

(iii) 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/-


(iv) Entertainment Allowance
Executive employees are reimbursed Entertainment expenses for treating official
guests as per the rates given as under based on certification:









(v) House Rent Allowance Rules
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:

Grade Amount (Rs. Per month)
JO/JSO 150
E0-E3 350
E4-E5 450
E6 550
E7 650
E8 950
E9 1200
76


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
Classification of cities House Rent Allowance
(Executives)
House Rent Allowance
(Non Executives)
A - 1 (Delhi/ Chennai/
Mumbai/ Kolkata
30% 30%
Other A 25% 25%
B 1 & B 2 15% 17.5%
C 10% 15%
Unclassified 10% 10%
77

B) Autonagar 50
(vi) City Compensatory 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
Metro
A B 1 B 2
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


(vii) 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:





7. 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.
ii. 80% of the total value of purchase/acquisition of land & house to be
constructed or 80% of purchase price of ready built house.
Category Rs. Per month
Non-executives 600
JO / JSOs / E-0 to E-4 800
E-5 and above 1000
78

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.

8. Vehicle Advances to Employees:
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,
S-10 & S-11 grades
Car Advance is `3 lakhs
(or) price of the vehicle
50000/- or price
of the vehicle,
whichever is
less
up to ` 30000/- : 4%

above ` 30000/- : 6%
Up to E4 grade : 3 lakhs
E5 & E6 grades : 5 lakhs
E7 grade & above: 6
lakhs
(or) price of vehicle,
whichever is less







up to ` 3 lakhs : 6%

above ` 3 lakhs : 9.5%




So far 16,753 employees have availed Scooter advances amounting to Rs.1943.12
Lakhs and 2472 employees have availed Car advances amounting to Rs.3228.52
Lakhs. Company provides reimbursement of Local Travelling Expenses to its
employees. The rate of Local Travelling Expenses (LTE) ranges from Rs. 250/- to
Rs. 450/- for two wheelers (other than cycles) and Rs.1,350/- to 1,500/- for four
wheelers. Employees who do not claim reimbursement of Local Travelling Expenses
are being reimbursed Travelling Expenses @ Rs.6/- per day subject to a minimum of
Rs.90/-per month.

9. MOTIVATIONAL SCHEMES:
(I) JAWAHARLAL NEHRU AWARD: With a view to motivating and recognising the
outstanding performance employees, the JAWAHARLAL NEHRU PURASKAR
AWARDS scheme is being operated in VSP every year. In the year 2009, 64
employees were honoured with these awards. In addition to the award certificate,
79

Cash award of an amount of Rs.2000/- per Non-executives and Rs.3000/- per
Executives
II) Suggestion Rewards: Suggestion Reward Scheme under the name Srujan
Vikas 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.

III. 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

10. 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 17,000 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, subsidised electricity, fee water supply etc. the
80

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.

11. COOPERATIVE THRIFT & CRDIT 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.



12. 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 almost all the regions in the country and professing
different religions, live in VSP's Township in peace, amity and brotherhood. VSP has
been endeavoring to make Ukkunagaram a truly Cosmopolitan Cultural Centre by
encouraging and promoting various cultural activities and fine arts like music, dance,
Year Turn over
(lakhs)
Net profit
(lakhs)
sales Audit
classification
2003-2004 1171.15 2077 8.36 A
2004-2005 1505.20 1.68 11.81 A
2005-2006 1534.25 1.01 13.43 A
2006-2007 1572.96 1.21 11.92 A
2007-2008 1674.18 3.00 12.24 A
2008-2009 1755.81 4.13 20.29 A
81

theatre, literature etc. Towards this, the Company has taken various initiatives and
some of which are listed below:

a) Community Welfare Centres (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 organising 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 Trishna 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 Bharat Ratna Dr 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 & 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.

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
82

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) Bala Udyan at Sector-II Shopping Complex
ii) 2 Jet Fountains and Boat Club at Indira Gandhi Park
13. 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. The budget allotted to the current
year is Rs.15 lakhs while it was Rs.7 lakhs in the previous year.
VSP Management has provided the following infrastructural facilities for sports
persons to improve their skills and standards.
i) 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,
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 Trishna
Ground, located outside Stadium Complex. One Multi Gym has been provided for
the benefit of residents of Ukkunagaram.
ii) Hostel Grounds:
The following sports facilities were provided in the premises of Hostel Grounds:
- Two floodlight volleyball courts
- Beach volleyball court
- Ball Badminton court
83

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.
f) 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 & Babu Jagjeevan Ram Jayanthi
Celebrations, etc.
14. 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
84

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 07-03-2007


15. 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.


Total No. availing Memberships 635
Total No. of Running Memberships as on date 603
Out of the availing cases, IOD Cases 21
Out of the availing cases, closing cases 63
Amount of monthly benefit released by the Company to the
Members of EFBS per month.
Rs.58.42 Lakhs
Total Amount of PF & Gratuity deposits with the Company
under EFBS as on 28.03.2009
Rs.24.67 Crores
85

16. 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.85,000/-
(approx.), which is contributed by the employees @ Rs.5/- from the FBS members.

17. 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.

18. 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/-

19. 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.
20. FUNERAL EXPENSES: In case of death of an employee, the dependents are paid
Rs.2,500/- towards assistance for funeral expenses.

21. 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.


86

22. MEDI-CLAIM INSRUANCE POLICY FOR RETIRED EMPLOYEES:
The benefit of Hospitalisation Charges is increased from Rs.1.5 lakhs per
member to Rs.3 lakhs per member per policy period (inclusive of domiciliary
hospitalization benefits) and with clubbing facility between the retired employee
and spouse (ie. Rs.6 lakhs)
The OPD treatment amount is enhanced from Rs.4,000/- to 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 has been enhanced from 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.50.00 Lakhs incurred during 2008-09 to cover the retired
employees (Medi-claim Policy holders) upto 28.02.2009. So far 894 retired
employees and their spouses have been covered under this scheme.

23. 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.
24. FAREWELL TO SUPERANNUATED EMPLOYEES:
A 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.



87

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.

PERIPHERAL DEVELOPMENT:
VSP as a responsible corporate citizen is conscious of its social responsibilities and
has taken care to develop its surrounding areas. The premises of VSP is
surrounded by 4 Rehabilitation (RH) Colonies and 18 identified villages, amongst
which, two villages, namely Dibbapalem and Devada, have been taken up for
developing as Model Villages.
The Peripheral Development Cell at VSP identifies the needs of the Peripheral areas
and prepares plans for implementation of the requirements in a phased manner.
Besides providing civic amenities, VSP has been undertaking schemes for
economic upliftment of the population by organizing various training programs and
installation of cottage industries, thereby helping the villagers to enhance their
income generation. Social and cultural activities are also undertaken in the
peripheral areas to develop a sense of oneness amongst the residents. In addition,
care is also taken to formulate and implement Schemes under the Special
Component Plan for SC/ST population and Sub-Plan for the women in line with the
9
th
Five Year Plan. Further, as a part of Peripheral Development programme, VSP
started imparting Vocational Training in tailoring through Jan Sikshan Samsthan to
88

the women of four RH Colonies at a cost of Rs.50,000/-. In this programme, nearly
90 women from the RH Colonies have been covered. This training programme will
help the economic upliftment of the women by making them self-supporting. Orders
are placed by VSP on the Cottage Industry established by VSP on a regular basis,
thus creating self-employment to the women-folk of the village. So far, an amount of
Rs.170 lakhs has been spent on various activities under Peripheral Development
Programs of the Company, both at the RH Colonies and two Model Villages.

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).

The afforestation programme was launched in 1986 with an annual target of one lakh
plants. But subsequently, the annual targets were enhanced and so far 34.17 lakh
plants have been planted covering in an area of 3176 Hectares including the Natural
Green Cover of 226 Hectares.










89










5. CHAPTER Findings, Analysis, Interpretation















90

QUESTIONNAIRE:
1. Quality of food, neatness & hygiene in the canteen?
QUESTION
NO
1
STRONGLY
AGREE AGREE NEUTRAL DISAGREE
STRONGLY
DISAGREE TOTAL
NO. OF
RESPONDENTS 20 25 35 15 5 100
PERCENTAGE 20 25 35 15 5 -




INTERPRETATION:
35% of the employees strongly agreed that the canteen facilities are hygiene
way.
25% of the employees are agreed with the canteen facilities
20% of the employees felt that canteen facilities are good.
15% of the employees are disagreed with the quality of food in the canteen.
5% of the employees are strongly disagreed with the hygiene in the canteen.


20%
25%
35%
15%
5%
Canteens
STRONGLY AGREE
AGREE
NEUTRAL
DISAGREE
STRONGLY DISAGREE
91

2. Accessibility to first-aid facility at different departments admin building, T & DC,
town admin., Agro forestry, etc?
QUESTION NO
2
STRONGLY
AGREE AGREE NEUTRAL DISAGREE
STRONGLY
DISAGREE TOTAL
NO OF
RESPONDENTS 20 18 40 12 10 100
percentage 20 18 40 12 10 -


INTERPRETATION:
60% of the employees strongly agreed that the first aid at the different
departments is very good.
28% of the employees felt that the first aid facility in the departments are good
12% of the employees felt that the first aid facilities in the departments are not
good.


















20%
18%
40%
12%
10%
First-aid
STRONGLY AGREE
AGREE
NEUTRAL
DISAGREE
STRONGLY DISAGREE
92

3. Safety provisions of the company
QSTN NO 3
STRONGLY
AGREE AGREE NEUTRAL DISAGREE
STRONGLY
DISAGREE TOTAL
NUMBER OF
RESPONDENTS 35 25 20 15 5 100
PERCENTAGE 35 25 20 15 5 -





INTERPRETATION:
60% of employees felt that the provisions of the company are very good.
36% of employees agreed that safety provisions of the company are
better.

35%
25%
20%
15%
5%
Provisions
STRONGLY AGREE
AGREE
NEUTRAL
DISAGREE
STRONGLY DISAGREE
93

4. Pension scheme
QUSTION NO 4
STRONGLY
AGREE AGREE NEUTRAL DISAGREE
STRONGLY
DISAGREE TOTAL
NO. OF
RESPONDENTS 5 13 17 23 42 100
percentage 5 13 17 23 42 -



INTERPRETATION:
65% of the employees are satisfied with the pension scheme
17% of the employees are agreed with this scheme
18% of the employees are strongly dissatisfied with this scheme




















5%
13%
17%
23%
42%
Pension Scheme
STRONGLY AGREE
AGREE
NEUTRAL
DISAGREE
STRONGLY DISAGREE
94

5. Medical personnel proficiency service?
QSTN NO 5
STRONGLY
AGREE AGREE NEUTRAL DISAGREE
STRONGLY
DISAGREE TOTAL
NUMBER OF
RESPONDENTS 15 20 37 17 11 100
PERCENTAGE 15 20 37 17 11 -




INTERPRETATION:
57% of the employees are strongly agreed with the medical personnel
proficiency service
17% of the employees agreed with the medical personnel proficiency service
done in the company.
26% of employees are dissatisfied with this scheme
.
















20%
13%
37%
10%
20%
Medical
STRONGLY AGREE
AGREE
NEUTRAL
DISAGREE
STRONGLY DISAGREE
95


6. Quality of education at steel plant?

QSTN NO 6
STRONGLY
AGREE AGREE NEUTRAL
STRONGLY
DISAGREE DISAGREE TOTAL
NO. OF
RESPONDENTS 20 30 36 14 20

PERCENTAGE 20 30 36 14 20 -




INTERPRETATION:
55% of the employees are strongly agreed with the Quality of education at
steel plant
17% of the employees agreed with the Quality of education at steel plant
28% of employees are dissatisfied with this scheme.














10%
11%
24%
25%
30%
Education
STRONGLY AGREE
AGREE
NEUTRAL
STRONGLY DISAGREE
DISAGREE
96


7. Interest subsidy scheme, house building advance?
QSTN NO 7
STRONGLY
AGREE AGREE NEUTRAL DISAGREE
STRONGLY
DISAGREE TOTAL
NUMBER OF
RESPONDENTS 20 25 22 18 15 100
PERCENTAGE 20 25 22 18 15 -



INTERPRETATION:
49% of the employees are strongly disagreed with the Interest subsidy
scheme, house building advance
30% of the employees disagreed with the Interest subsidy scheme, house
building advance
21% of employees are satisfied with this scheme


















10%
11%
24%
25%
30%
Interest subsidy
STRONGLY AGREE
AGREE
NEUTRAL
STRONGLY DISAGREE
DISAGREE
97


8. Service & amenities provided by cooperative societies?
QSTN NO 8
STRONGLY
AGREE AGREE NEUTRAL DISAGREE
STRONGLY
DISAGREE TOTAL
NUMBER OF
RESPONDENTS 10 11 24 25 30 100
PERCENTAGE 10 11 24 25 30 -


INTERPRETATION:
55% of the employees are strongly agreed with the Service & amenities
provided by cooperative societies
21% of the employees disagreed with the Service & amenities provided by
cooperative societies
24% of employees are satisfied with this scheme



















10%
11%
24%
25%
30%
Service
STRONGLY AGREE
AGREE
NEUTRAL
STRONGLY DISAGREE
DISAGREE
98

9. Amount of vehicle advances given to the employees by the company?
QSTN NO 9
STRONGLY
AGREE AGREE NEUTRAL
STRONGLY
DISAGREE DISAGREE TOTAL
NUMBER OF
RESPONDENTS 20 13 27 18 22 100
PERCENTAGE 20 13 27 18 22 -



INTERPRETATION:

49% of the employees are strongly agreed with the Amount of vehicle
advances given to the employees by the company.
38% of the employees disagreed with the Amount of vehicle advances given to
the employees by the company.
13% of employees are satisfied with this scheme













6%
14%
36%
20%
24%
Vehicle
STRONGLY AAGREE
AGREE
NEUTRAL
DISAGREE
STRONGLY DISAGREE
99

10. Motivational schemes like JN awards etc implementation?
QSTN NO 10
STRONGLY
AAGREE AGREE NEUTRAL DISAGREE
STRONGLY
DISAGREE TOTAL
NUMBER OF
RESPONDENTS 44 15 21 7 13 100
PERCENTAGE 44 15 21 7 13 -



INTERPRETATION:

65% of the employees are strongly agreed with the Motivational schemes like
JN awards etc implementation
15% of the employees agreed with Motivational schemes like JN awards etc
implementation
20% of employees are satisfied with this scheme
.















6%
14%
36%
20%
24%
JN awards
STRONGLY AAGREE
AGREE
NEUTRAL
DISAGREE
STRONGLY DISAGREE
100


11. Recreational facilities like clubs CWCS parks etc maintenance & services?
QSTN NO 11
STRONGLY
AGREE AGREE NEUTRAL DISAGREE
STRONGLY
DISAGREE TOTAL
NUMBER OF
RESPONDENTS 9 4 27 17 43 100
PERCENTAGE 9 4 27 17 43 -


INTERPRETATION:

70% of the employees are strongly agreed with the Recreational facilities like
clubs CWCS parks etc maintenance & services
26% of the employees agreed with Recreational facilities like clubs CWCS
parks etc maintenance & services
4% of employees are satisfied with this scheme


















6%
14%
36%
20%
24%
CWCS parks
STRONGLY AAGREE
AGREE
NEUTRAL
DISAGREE
STRONGLY DISAGREE
101


12. Sports facilities coaching ground maintenance etc?
QSTN NO 12
STRONGLY
AGREE AGREE NEUTRAL DISAGREE
STRONGLY
DISAGREE TOTAL
NUMBER OF
RESPONDENTS 4 20 8 28 40 100
PERCENTAGE 4 20 8 28 40 -



INTERPRETATION:
68% of the employees are strongly agreed with the Sports facilities coaching
ground maintenance etc is good.
28% of the employees agreed with Sports facilities coaching ground maintenance
etc.
4% of employees are satisfied with this scheme




6%
14%
36%
20%
24%
Coaching ground
STRONGLY AAGREE
AGREE
NEUTRAL
DISAGREE
STRONGLY DISAGREE
102

13. Operation of employee family benefit scheme?

QSTN NO 13
STONGLY
AGREE AGREE NEUTRAL DISAGREE
STRONGLY
DISAGREE TOTAL
NUMBER OF
RESPONDENTS 5 15 49 11 20 100
PERCENTAGE 5 15 49 11 20 -



INTERPRETATION:
49% of the employees are strongly agreed with the Operation of employee family
benefit scheme
40% of the employees agreed with Operation of employee family benefit scheme
11% of employees are satisfied with this scheme



















6%
14%
36%
20%
24%
employee family benefit scheme
STRONGLY AAGREE
AGREE
NEUTRAL
DISAGREE
STRONGLY DISAGREE
103



14. Operations of group personal accident insurance?
QSTN NO 14
STRONGLY
AGREE AGREE NEUTRAL
DISAGREE
STRONGLY
DISAGREE
TOTAL
NUMBER OF
RESPONDENTS 8 18 26 22 26 100
PRECENTAGE 8 18 26 22 26 -



INTERPRETATION:
60% of the employees are strongly agreed with the Operation of group personal
accident insurance.
40% of the employees disagreed with Operation of group personal accident
insurance.
6% of employees are satisfied with this scheme


6%
14%
36%
20%
24%
Operations of group personal
accident insurance
STRONGLY AAGREE
AGREE
NEUTRAL
DISAGREE
STRONGLY DISAGREE
104

15. Employee children merit award amount no. of awards, reservations?
QSTN NO 15
STRONGLY
AGREE AGREE NEUTRAL DISAGREE
STRONGLY
DISAGREE TOTAL
NO OF
RESPONDENTS 18 16 16 18 32 100
PERCENTAGE 18 16 16 18 32 -



INTERPRETATION:
50% of the employees are strongly agreed with the Employees children merit
awards amount no. of awards, reservations.
34% of the employees disagreed with Employees children merit awards amount
no. of awards, reservations
16% of employees are satisfied with this scheme


















6%
14%
36%
20%
24%
Employee children merit award
STRONGLY AAGREE
AGREE
NEUTRAL
DISAGREE
STRONGLY DISAGREE
105

16. Dress code for executives & non executives?
QSTN NO 16
STRONGLY
AGREE AGREE NEUTRAL DISAGREE
STRONGLY
DISAGREE TOTAL
NUMBER OF
RESPONDENTS 6 20 36 28 10 100
PERCENTAGE 6 20 36 28 10 -



INTERPRETATION:
60% of the employees are strongly agreed with the Dress code for executives &
non executives
40% of the employees disagreed with Dress code for executives & non
executives.
6% of employees are satisfied with this scheme

6%
14%
36%
20%
24%
Dress code for executives & non
executives
STRONGLY AAGREE
AGREE
NEUTRAL
DISAGREE
STRONGLY DISAGREE
106

17. Water & electricity available?
QSTN NO 17
STRONGLY
AGREE AGREE NEUTRAL DISAGREE
STRONGLY
DISAGREE TOTAL
NUMBER OF
RESPONDENTS 17 11 28 23 21 100
PERCENTAGE 17 11 28 23 21 -


INTERPRETATION:
28% of the employees are strongly agreed with the Water & electricity.
44% of the employees agreed with Water & electricity
28% of employees are satisfied with this scheme




















6%
14%
36%
20%
24%
Water & electricity available
STRONGLY AAGREE
AGREE
NEUTRAL
DISAGREE
STRONGLY DISAGREE
107

18. Transport facility to employees children from ukkungaram to city?
QSTN NO 18
STRONGLY
AGREE AGREE NEUTRAL DISAGREE
STRONGLY
DISAGREE TOTAL
NUMBER OF
RESPONDENTS 11 17 37 13 22 100
PERCENTAGE 11 17 37 13 22 -



INTERPRETATION:
59% of the employees are strongly agreed with the Transport facility available
to employees children from ukkungaram to city.
30% of the employees agreed with Transport facility available to employees
children from ukkungaram to city.
11% of employees are satisfied with this scheme














6%
14%
36%
20%
24%
Transport facility
STRONGLY AAGREE
AGREE
NEUTRAL
DISAGREE
STRONGLY DISAGREE
108

19. Library facilities in township?
QSTN NO 19
STRONGLY
AGREE AGREE NEUTRAL DISAGREE
STRONGLY
DISAGREE TOTAL
NUMBER OF
RESPONDENTS 8 13 38 14 27 100
PERCENTAGE 8 13 38 14 27 -
.


INTERPRETATION:
38% of the employees are strongly agreed with the Library facilities provided in
township
41% of the employees agreed with Library facilities given in township
21% of employees are satisfied with this scheme



















6%
14%
36%
20%
24%
. Library facilities
STRONGLY AAGREE
AGREE
NEUTRAL
DISAGREE
STRONGLY DISAGREE
109

20. Baby crche maintenance & hygiene?
QSTN NO 20
STRONGLY
AGREE AGREE NEUTRAL DISAGREE
STRONGLY
DISAGREE TOTAL
NUMBER OF
RESPONDENTS 6 14 36 20 24 100
PERCENTAGE 6 14 36 20 24 -



INTERPRETATION:
36% of the employees are strongly agreed with the Baby crche maintenance &
hygiene.
44% of the employees agreed with Baby crche maintenance & hygiene.
20% of employees are satisfied with this scheme



















6%
14%
36%
20%
24%
Baby crche
STRONGLY AAGREE
AGREE
NEUTRAL
DISAGREE
STRONGLY DISAGREE
110


21. Incentive scheme?
QSTN NO 21
STRONGLY
AGREE AGREE NEUTRAL DISAGREE
STRONGLY
DISAGREE TOTAL
NUMBER OF
RESPONDENTS 10 17 21 31

21 100
PERCENTAGE 10 17 21 31

21 -




INTERPRETATION:
52% of the employees are strongly agreed with the Incentive scheme provided in
the company.
38% of the employees agreed with Incentive scheme provided in the company.
10% of employees are satisfied with this scheme
















10%
17%
21%
31%
21%
Incentive scheme
STRONGLY AGREE
AGREE
NEUTRAL
DISAGREE
STRONGLY DISAGREE
111

22. RINL superannuation benefit fund?
QSTN NO 22
STRONGLY
AGREE AGREE NEUTRAL DISAGREE
STRONGLY
DISAGREE TOTAL
NUMBER OF
RESPONDENTS 4 11 14 21 50 100
PERCENTAGE 4 11 14 21 50 -


INTERPRETATION:
50% of the employees are strongly agreed with the RINL superannuation benefit
fund
35% of the employees agreed with RINL superannuation benefit fund provided in
the company.
15% of employees are satisfied with this scheme



















4%
11%
14%
21%
50%
RINL superannuation benefit fund?
STRONGLY AGREE
AGREE
NEUTRAL
DISAGREE
STRONGLY DISAGREE
112

23. Procedure for grievance redressed?
QSTN NO 23
STRONGLY
AGREE AGREE NEUTRAL DISAGREE
STRONGLY
DISAGREE TOTAL
NUMBER OF
RESPONDENTS 8 12 22 36 22 100
PERCENTAGE 8 12 22 36 22 -



INTERPRETATION:
58% of the employees are strongly agreed with the Procedure for grievance
redressed
34% of the employees agreed with Procedure for grievance redressed
8% of employees are satisfied with this scheme




















8%
12%
22%
36%
22%
Procedure for grievance redressed
STRONGLY AGREE
AGREE
NEUTRAL
DISAGREE
STRONGLY DISAGREE
113












6. CHAPTER Summary and Suggestions











114

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.

115

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.




116








7. CHAPTER Bibliography















117

BIBLIOGRAPHY

VIZAG STEEL MANUAL & DOCUMENTS
VSP Personnel Manual
VSP Welfare Documents


TEXT BOOKS
Personnel Management by Arun Monappa, 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