Organization Structure Training Undertaken

at

RASHTRIYA ISPAT NIGAM LIMITED {VISAKHAPATNAM STEEL PLANT}

Submitted in partial fulfillment of the requirements for the award of the

Degree of Master of Business Administration
Of CHRIST (Deemed to be University)

By

Meera Joshy

Under the guidance of

Dr. Kavitha R Gowda

DEPARTMENT OF MANAGEMENT STUDIES

CHRIST (Deemed to be University)
BANGALORE
CERTIFICATE (from Company-Compulsory)
 CERTIFICATE

This is to certify that the project report, titled “An Organization Structure Training Undertaken
at Rashtriya Ispat Nigam Ltd.,” submitted to CHRIST (Deemed to be University), in partial
fulfillment of the requirements for the award of the Master of Business Administration, is a
record of original study undertaken by Meera Joshy, during the period 2019 – 2020 in the
Department of Management Studies at CHRIST (Deemed to be University), Bangalore, under
my supervision and guidance.

Date: Dr Kavitha R Gowda

 DECLARATION

I, Meera Joshy, hereby declare that the project report, titled “An Organization Structure
Training Undertaken at Rashtriya Ispat Nigam Ltd.,” submitted to CHRIST (Deemed to be
University), in partial fulfilment of the requirements for the award of the Degree of Master of
Business Administration is a record of original and independent study undertaken by me under
the supervision and guidance of Dr Kavitha R Gowda, Department of Management Studies.

Date:
Meera Joshy
 ACKNOWLEDGEMENT

The satisfaction that accompanies the successful completion of ant task would be incomplete
without mentioning people who made it possible and whose encouragement and constant
guidance crowned my effort with success.

I am grateful to external project guide Sri O. Ram Mohan Rao, Assistant General
Manager, Coordinator of student trainees HRD &Project Works in Visakhapatnam Steel Plant
for their cooperation and in providing the opportunity to do my project in their esteemed
organization.

I especially thank all those who have helped me directly or indirectly. I express my
profound thanks to my affectionate parents for their constant encouragement throughout my
educational career.

(Meera Joshy)
 STEEL INDUSTRY PROFILE

Global Steel Industry

The Global Economy has showed signs of recovery with Global Steel Capacity utilization ratio
showing improvement at 75.1 % in Dec ’09 (as compared to 58.1 % in Dec ’08). The financial
crisis in the previous year has affected many Nations. However, the Indian Economy showed
tremendous resilience and withstood the global volatility by maintaining the GDP Growth
relatively at a higher level as compared to the earlier period. The Indian steel industry has also
shown signs of improvement everywhere by a positive growth of 2.7% over the previous year,
while other developed countries showed a negative growth.
The consumption of Steel continues to be a major growth driver. The
consumption growth projected at 7% based on GDP growth rate of 7% to 7.5% and production
of 110 million tonnes much earlier than 2019-20 was projected as objectives in the National
Steel Policy.
Global Crude Steel production reached 1220 million tonnes. Further,
consolidation in the Industry has facilitated the growth and investor confidence. The
international prices have been high in the year helping the companies in India for improving
their margins. The World Steel Association forecasts an increase in the apparent use of Steel
finished products during 2010 and 2011 by 10.7% and 5.3% respectively. World Steel
Association also expects the apparent steel use for the year 2010 to reach 1.241 billion tonnes
compared to1.121 billion tonnes for 2009 and this is expected to rise to 1.306 billion tonnes in
2011. It is also predicted that Asia will lead in terms of Steel demand with a share of 66.2% of
the World Steel demand in 2010 and 65.5% in 2011. Emerging economies like India will drive
the growth and this augurs well for the industry.
Indian Steel Scenario
Iron & Steel making as craft has been known to India for a long time. However, its production
started only after 1900. In a short span of 3 decades or so that capacity was increased from 11
folds to about 16 Million tonnes by nineties. Progress in next 15 years was slow, just more than
double i.e. 34.821 million tonnes. China alone constitutes 25% of world steel production and
consumption. China has doubled its steel output from 90mt in 2000 to 320mt in year 2005. In
the first quarter of 2004 Indian steel export rose by 40% compared to last year. Presently India
consumes 85% of its production in the domestic market and exports the rest.
India has emerged as 5th largest producer and recorded a growth rate of 2.7%
and emerged as the largest sponge iron producer in the World. The Industry is looking forward
for expansion plans of the steel companies including PSUs and if implemented on schedule,
India could become the second largest crude steel producer in the world by the year 2016
The growth in infrastructure and other developmental activities arising out of
increased outlays in these sectors by Government of India have rejuvenated the steel market in
the country and the building of capacities to cater to the diversified demands is the main thrust
area now onwards. For the purpose of comparing steel production in India the following table
presented here.
Top 10 Steel Companies in India: 2018 Overview and Analysis

1. Rashtriya Ispat Nigam Limited (RINL): Rashtriya Ispat Nigam Limited, also known as
Vizag Steel is a Government of India undertaking company. This is also one of the top 10 steel
companies in India with its headquarters at Visakhapatnam. This best steel brand in India was
founded in 1982 and is one of the top 100 steel companies in India. Vizag Steel is one of the
top steel manufacturers in India and has an annual turnover of around $2 billion. Vizag Steel
was founded by the Government’s Steel Authority of India Limited (SAIL). It is ranked as one
of the most profitable ventures of the Indian government and is one of the most highly rated
steel suppliers in India today. Revenue: $2 Billion Ownership: Government of India
2. Tata Steel : Tata Steel is another top 10 steel companies in India and also one of the oldest
top 100 steel companies in India. The list of private steel plants in India is incomplete without
the mention of Tata Steel as it is also a global name for the steel industry in India. Tata Steel is
one of the leading steel manufacturers in India that was founded in 1907 by Dorabji Tata and
is headquartered in Mumbai. Tata Steel, one of the largest steel companies in India has an
annual revenue of around $20 billion with a massive steel production in India capacity of more
than 30 million metric tons in a year. Revenue: $20 Billion Ownership: TATA Group
3. JSW Steel : JSW Steel is one of the top 10 steel companies in India and is a subsidiary of
the JSW Group. JSW Steel is also one of the top 100 steel companies in India. JSW Steel was
founded in 1982 and is headquartered at Mumbai. This best steel brand in India has six lists of
private steel plants in India and has steel production in India with a capacity of around 15
million metric tons annually. The list of stainless steel manufacturers in India is never
completed with having JSW Steel on it. This leading steel companies in India has an annual
turnover of over $11 billion with a prominent visibility in the steel industry in India. Revenue:
$11 Billion Ownership: JWS Group
4. SAIL: Steel Authority of India Limited (SAIL) is another top 10 steel companies in India
and features high on the list of stainless steel manufacturers in India. SAIL is among the top
100 steel companies in India and was formed in 1954 in New Delhi, India. SAIL is one of the
top steel manufacturers in India of the steel industry in India has an annual production capacity
of around 5 million metric tons and has an annual turnover of approximately $7.5 billion to
rank as the best steel brands in India with more than 5 integrated steel plants across India.
Revenue: $7.7 Billion Ownership: Government of India
5. VISA Steel :VISA Steel is another top 100 steel companies in India from the steel industry
in India. This top steel supplier in India was established in 2003 and is headquartered out of
Kolkata. Currently, VISA Steel is in the leading list of top 10 steel companies in India has 3
steel manufacturing plants with a steel production in India capacity of over a million metric
tons. This leading list of private steel plants in India company has an annual turnover of more
than $3 billion and is ranked as one of the best steel manufacturers in India and is owned by
the VISA group of companies. Revenue: $3 Billion Ownership: Vishambhar Saran
6. Essar Steel: Essar Steel is one of the top 10 steel companies in India with massive steel
production in India plants. This leading steel suppliers in India ranks prominently on the list of
private steel plants in India with an annual turnover of around $2.5 billion with a steel
production in India capacity of more than 10 million metric tons annually. This top 100 steel
companies in India; Essar Group was founded in 1998 and is located at Mumbai. This best steel
companies in India has 6 steel production in India plants and various operational units across
the globe. Revenue: $2.5 Billion Ownership: Essar Group
7. Bhushan Steel: Bhushan Steel is one of the renowned top 10 steel companies in India and
one of the best steel manufacturers in India. This leading steel suppliers in India features
predominantly on the list of stainless steel manufacturers in India with its headquarters at New
Delhi and established in 2003. This leading steel brands in India of the steel industry in India
has an annual steel production in India with a capacity of more than 5 million metric tons and
a yearly turnover of under $2 billion approximately. Bhushan Steel in India has three
manufacturing plants for steel production in India. Revenue: $1.7 Billion Ownership: Brij
Bhushan Singal
8. Jindal Steel & Power: Jindal Steel & Power is one of the leading top 100 steel companies
in India with an annual production capacity of more than three million metric tons and a yearly
turnover of around $3 billion. Jindal Steel and Power is on the list of top 10 steel companies in
India and is regularly mentioned in the list of private steel plants in India. Jindal Steel has
various steel production in India plants across the country. This is one of the top steel suppliers
in India was founded by O P Jindal in 1952 and has its headquarters located at New Delhi.
Currently, Jindal Steel in India is headed by Naveen Jindal. Revenue: $3 Billion Ownership:
OP Jindal/ Jindal Group
9. Facor Steel: Facor Steel is one of the top 10 steel companies in India and a renowned steel
brand in India. This is one of the top leading steel companies in India was founded in 1956 by
Durgaprasadji Saraf and is headquartered in Nagpur, India. This top steel brands in India has
an annual turnover of more than $1.5 billion and a steel production in India capacity of around
2 million metric tons. This leading steel suppliers in India and top 100 steel companies in India
is also an established steel company in India exporting to many countries around the world.
Facor steel is one of the fastest growing steel producing companies in Asia. Revenue: $1.5
Billion Ownership: FACOR Group
10. MESCO Steel: MESCO Steel is also one of the top 10 steel companies in India with a
global presence from the steel industry in India. This is list as one of the top few leading steel
suppliers in India was founded in 1992 with collaborated on technology from Sino Steel, the
Chinese steel conglomerate. MESCO Steel is in the list of top 100 steel companies in India that
produces over 1000 tons of hot metal every day and operates from two steel production in India
plants. This major steel manufacturers in India is renowned as having the lowest debt-equity
ratio among several steel companies in India. MESCO steel is growing to become one of the
leading steel producers in India and the Asia-Pacific region. Revenue: $2 Billion Ownership:
Mesco Group
Few other top steel companies in India are Mahindra Ugine Steel, Welspun Corp, Ahmedabad
Steelcraft Ltd, Akashna Global Steel Ltd, Anil Special Steel Ltd, Ashirwad Steels & Industries,
Bajaj Steel industries, Bellary Steels & Alloys Ltd, and Bengal Steel Industries Ltd.
 COMPANY PROFILE

Rashtriya Ispat Nigam Limited, the corporate entity of Visakhapatnam Steel Plant is a
Navaratna PSE under the Ministry of Steel. Visakhapatnam Steel Plant fondly called Vizag
steel. It is the first shore based Integrated Steel Plant in the country and is known for its quality
products delighting the customers. It is a state -owned organisation, that is, a central
government organisation and public sector undertaking. It was formed on 18 February 1982
and its headquarters is located in Visakhapatnam, Andhra Pradesh. The present Chairman cum
managing director of RINL is Pardosh Kumar Rath. The main products of the company is wire
rods, TMT Re-bars, rounds, squares, flats, angles and channels. The main service of the
company is steel production. The company had a turnover of ₹20,844 crore (US$2.9 billion)
as per 2018-19 reports. The total assets of the company is ₹31,724 crore (US$4.4 billion). The
total equity of the company is ₹7,220 crore. The government of India is the owner of RINL.
The number of employees is 17617 excluding the 2018 outsource. The subsidiary companies
of the RINL is Eastern Investments Limited (EIL),The Orissa Minerals Development Company
Limited (OMDC) and The Bisra Stone Lime Company Limited (BSLC).

Major plant facilities:

The production facilities in the Visakhapatnam steel plant are most modern amongst the steel
industry in the country. The know-how and the technology have been acquired from different
parts of the world from the reputed and established sources. Some of the novelties of the
Visakhapatnam steel plant are:

• 7meter height coke ovens of VSP are the tallest so far built in the country. Dry quenching of
coke has been adopted which will not only improve the quality of coke and economics of coke
production, but also contribute significantly to the reduction of environmental pollution.

• Base mix yard for sinter plant introduced for the first time in the country helps in excellent
blending of the feed material to the sinter machine and production of consistent good quality
sinter.

• 3200 cubic meters two blast furnaces with bell less top charging equipment and 100% cast
house slag granulation. The granulation of the entire molten slag arising at the furnace cast
house avoids the need to transport molten slag and optimizes utilization of slag.

• 100% continuous casting of liquid steel into blooms result in less and better quality of blooms.
• The VSP have three sophisticated and large rolling mills with the latest features of automation
and optimization.

• The operations of blast furnace, steel melting shop and rolling mills have been entirely
computerized to ensure consistent quality and efficient performance.

The major production departments of Visakhapatnam steel plant are the raw materials handling
system, coke ovens, sinter plant, blast furnace, and steel melting
shop and rolling mills.

Extensive facilities have been provided for repair maintenance as well as manufacturing of
spare parts. There is a Central machine shop, Structural shop, forge shop, foundry, wood
working shop and loco repair shop. Visakhapatnam steel plant has got its own Air separation
plant for production of oxygen and acetylene plant for production of acetylene gas. A captive
power plant has also been provided for power generation with 4 Units, each of 60MW
generation capacity.

Major Sources Of Raw Materials:

 HISTORY OF THE ORGANISATION

On 17 April 1970, the Prime Minister of India, the Indira Gandhi, announced the government's
decision to establish a steel plant at Visakhapatnam. With the offer of assistance from the
government of the erstwhile USSR, a revised project evolved some years later. A detailed
project report for a plant with a capacity of 3.4 Mtpa was prepared in November 1980 and in
February 1981, a contract was signed with the USSR for the preparation of working drawings
of coke ovens, blast furnace and sinter plant. The blast furnace foundation was laid, with first
mass concreting, in January 1982. The construction of the local township was also started at
the same time. In the 1970s, Kurupam Zamindars donated 6,000 acres of land for Vizag Steel
Plant. A new company Rashtriya 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 is situated on 33,000 acres
(13,000 ha ) and is poised to expand to produce up to 20 MT in a single campus. Turnover in
2011-2012 was Rs14,457 crores. On 20 May 2009, Prime Minister Manmohan Singh launched
the expansion project of Visakhapatnam Steel Plant from a capacity of 3.6 MT to 6.3 MT at a
cost of Rs8,692 crores. But the investment was revised to 14,489 crores with the following
classification:

 Expenditure for the financial year 2009-10 Rs1840 crores.

 Rs5883 crores since inception of the project.

 Total commitment, including enabling works, steel procurement, consultancy, spares,

etc. is Rs11591 crores as of 25 March 2010.

The expansion project is expected to become functional by 2012. Currently, the steel plant has
completed the expansion from 3.6 MT to 6.3 MT with a total investment of Rs12,300 crore.
The company has planned to expand its production capacity further by one more MT which
requires an investment of Rs4,500 crore. RINL was wholly owned by the Government of India
previously but due to huge loss government sold its share so it is now Public. In November
2010, the company was granted the Navratna status by the Government of India. In September
2011, the government announced plans to divest 10% of its stake in RINL via an initial public
offering.
 PROFILE OF THE PRODUCTS AND BY-PRODUCTS

Products:
Production at VSP comprises mainly of long steel products, such as plain wire rods, rebars,
rounds and structurals, and semi-finished steel products, such as billets and blooms. The
products are made with 100percent virgin steel, and we have adopted modernized technology
to help improve product quality.
Blooms:
Blooms are semi-finished products used for the manufacturing of long steel products. VSP
produces blooms at the steel melt shop, which are then rolled to produce billets. Blooms not
used by VSP are sold to downstream steel producers, who further process them into steel
products that are utilized in a wide variety of construction and manufacturing sectors.
Billets:
Billets are one of the first steel products produced in the steel manufacturing chain. They are
semi-finished products used in the manufacturing of long steel products, such as bar products,
rods and wires. Billets can be used as feedstock for rolling mills for the production of long
products. Steel billets are also used extensively in forge shops and machine shops for the
production of engineering goods.
VSP manufactures billets for further rolling into bars and plain wire rods. It sells its non-
rollable billets to downstream steel producers who further process them into steel products that
are utilized in a wide variety of construction and manufacturing sectors.
Plain Wire Rods:
Plain wire rods are a type of long steel product with a wide variety of functions such as making
wires for welded mesh, nails, hangers, screws, chain link fencing, wire nets and barbed wires.
Plain wire rods are produced both in the mild steel (a type of carbon steel) and value-added
steel categories. VSP sells plain wire rods to a broad range of large, medium and small-scale
users, who in turn use them for wire drawing, bright bar, fastener and construction purposes.
Plain wire rods are also used in the manufacturing industry.
Rebars:
Rebars are long steel products used for reinforcement in construction and infrastructure
projects. They provide tensile strength to concrete sections subject to a bending load, and they
normally have ribbed profiles on their surface to improve bonding with concrete. VSP have
adopted the quenching and self-tempering technology for making our thermo-mechanically
treated rebars, which are marketed under the registered trademark of “VIZAG TMT”. We
produce rebars in our Wire Rod Mill and Light and Medium Merchant Mill, depending on the
size of the rebar. Rebars are mainly sold to project users.
Structurals:
Structurals are long steel products that include angles, channels and beams. Like rebars,
structural products are mainly used in the construction and infrastructure sectors.
Rounds:
Rounds are a type of long steel bar product used mainly in the engineering and automobile
industries. VSP produce rounds in our Light and Medium Merchant Mill and Medium
Merchant and Structural Mill, depending on the size of the round. VSP sell rounds to a broad
range of large, medium and small -scale users, many of whom further reroll the rounds to their
desired sizes.
Squares:
Squares are a type of long steel product used for rerolling and forging. VSP produce squares in
our Medium Merchant and Structural Mill. Our Company sells squares to a broad range of
large, medium and small-scale users.
Pig Iron:
VSP produce hot metal from high grade iron ore and low ash coke. Surplus hot metal produced
from blast furnaces is cast into pig iron. Our Company sells pig iron to steel manufacturers as
well as foundries. Our installed production capacity for pig iron is 0.6 MTPA.
RINL products grades:
•BLOOMS : Mild Steel/Low, Medium & High Carbon Steel, Forging Quality
•BILLETS : Mild Steel, Low, Medium & High Carbon, Spring Steel, High Mn & Forging
Quality Steels.
•ROUNDS : Mild Steel, Low, Medium Carbon, Bright Bar & Forging Quality
•REBARS : Thermo Mechanically Treated (TMT) bars of different yield strengths.
•STRUCTURALS : Structural Steel and High Tensile Steel.
•WIRE RODS : Low Carbon, Wire drawing, Bright Bar, Electrode Quality, Cold Heading
Quality, Tyre-bead and other High Carbon Grades.

By-products:
 Nuts Coke
 Granulated Slag
 Coke Dust
 Lime Fines
 Coal Tar
 Ammonium Sulphate
 Anthracene Oil
 HP Napthalene
 Benzene
 Toulene
 Zylene
 Wash Oil
 MISSION, OBJECTIVES AND STRATEGIES OF THE
ORGANISATION

VISION 2025
To be the most efficient steel maker having the largest single location shore based steel plant
in the country

Core Values

I Initiative Have a self-propelled & proactive approach.

D Decisiveness Decide with speed & clarity.

E Ethics Be consistent with professional & moral values.

A Accountability Take responsibility for actions.

L Leadership Lead by example.

S Demonstrate swiftness and efficiency in

Speed
everything we do.

Mission of RINL:
To attain 16 million tonne (Mt) 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 of RINL:
  Achieve Gross Margin to Turnover ratio > 10%.
 Plan for finishing mill to integrate with 7.3 Mt capacity and commission the same
by 2017-18.
 Achieve rated capacity of new & revamped units by 2017-18.
 Capture markets for high-end value added products by focusing on sector specific
applications and customer needs.
 Achieve leadership in Energy consumption by achieving 5.6 Gcal/tcs by 2017-18.
 Globalisation of operations through acquisition of mines and setting up of
marketing network abroad.
 Diversify through operationalizing of Bhilwara Mines, setting up of Pelletization
plant, DRI-EAF unit, Wheel & Axle Plants.
 Create a high performance and safe work culture by nurturing talent and
developing leaders.
 To grow in harmony with the environment & communities around us.

Strategies introduced:
 RINL-VSP has formed a joint venture company with Manganese Ore India Limited
– RINMOIL FERRO ALLOY Pvt. during 2009-10.This will help VSP to meet its
Ferro Alloys requirements.
 RINL-VSP acquired 51% stake in M/s EIL, the holding company of OMDC &
BSLC (Bird group of Companies) during 2011.
 ORGANISATION CHART

FUNCTIONAL DIRECTORS
Chairman-cum-Managing Director- Shri Pradosh Kumar Rath
Director (Commercial) - Shri P Raychaudhury
Director (Personnel) - Shri Kishore Chandra Das
Director (Finance) - Shri. V. V. Venu Gopal Rao
Director (Projects) – At present no one
GOVERNMENT DIRECTORS
SS&FA, Ministry of Steel - Shri Saraswati Prasad
Joint Secretary(STEEL), Ministry of Steel - Ms. Ruchika Chaudhry Govil
INDEPENDENT DIRECTORS
Independent Director, RINL - Shri Sunil Gupta
Independent Director, RINL - Shri S K Mishra
Independent Director, RINL - Shri. Ashwini Mehra
Company Secretary – Shri M Jagadeeshwara Rao
Executives
E9 Executive Director
E8 General Manager
E7 Deputy General Manager
E6 Assistant General Manager
E5 Senior Manager
E4 Manager
E3 Deputy Manager
E2 Assistant Manager
E1 Junior Manager
AE Assistant Executive (non - unionised supervisor)
JO Junior Officer (non - unionised supervisor)
Non Executives
Cluster C
S10 Senior Foreman
S9 Foremen
S8 Foreman
S7 Senior Chargeman
S6 Chargeman
Cluster B
S9 Senior Chargeman
S8 Senior Chargeman
S7 Chargeman
S6 Chargeman
S5 Master Technician
S4 Senior Technician
S3 Technician
Cluster A
S7 Additional Technician
S6 Joint Technician
S5 Deputy Technician
S4 Assistant Technician
S3 Junior Technician
S2 Senior Khalasi
S1 Khalasi

POLICIES AND PROCEDURES FOLLOWED

Code of business conduct policy:

The purpose of this code is to enhance ethical and transparent process in managing the affairs
of the company. This code was originally formed and come into force with effect from 13
november,2007 and subsequently revised in compliance to the Companies Act ,2013.The
code is further divided into two:
General moral imperatives
 Contribute to society and human well being
 Be trustworthy and practice integrity
 Be fair and take action not to discriminate
 Honour confidentiality
 Pledge and practice
Specific professional responsibilities
 Strive to achieve the highest quality, effectiveness and dignity in both the process
and products of professional work
 Acquire and maintain professional competence
 Compliance with laws
 Accept and provide appropriate professional review
 Manage personnel and resources to enhance the quality of working life
 Be upright and avoid any inducements
 Observe corporate discipline
 Conduct in a manner that reflects credit to a company
 Be accountable to company’s stakeholders
 Prevention of insider trading
 Identify, mitigate and manage business risks
 Protest properties of the company
CUSTOMER POLICY:
The main objective of customer policy is to be the best company to do business. The main
features of this policy are:
 To remain continuously committed to meet the needs and expectations of the
customers.
 To maintain transparency in all our dealings with customers.
 To continuously strive to improve the quality of products and services.
 To treat customers in our business and growth.
 To bring customers’ delight in supply of materials and meet the contingent
requirement of customers.
 To create a healthy business environment and work towards win-win situation with
customers.
 To strive for enhancing value for the money and value the relationship with complete
care and the concern.
HR POLICY
RINL is committed to attain optimum utilisation of human resources by unleashing the full
potential of employees. To accomplish this RINL shall
 Strive to be the employer of choice by attracting the best available talent and establish
a competitive workforce
 Promote a learning and development eco system
 Adapt a fair and transparent mechanism to ensure proper governance across the
organization
 Reinforce consistent efforts to enhance the motivational levels of all employees
 Kindle creativity and innovation by providing opportunities for achieving higher level
of excellence
 Lead to achieve high performance
 Enliven a healthy and safe work culture by following best.
POLICIES & RULES OF RINL/VSP
SUBJECT
I. Service Rules
 Service Rules for Executives
 Conduct, Discipline & Appeal Rules
 Leave Rules for Non -executive Employees
 Recruitment Policy
 Certified Standing Orders
II. Promotion Policy and Rules
 Promotion Policy and Rules for Executives
  System of Probation and Confirmation of Executives
 Policy for Promotion to Non-Unionised Supervisory Cadre & Executive Cadre
 Policy & Rules for Promotion of Non-Executives
 Procedure for Dealing with Promotion/Confirmation of Non-executives pending
Enquir7y/Disciplinary Proceedings and thereafter.
 Performance Appraisal System for Executives
 Annual Confidential Report for Non-Executives
III. Wage Structure
 Executive Salary Structure, Non-Executive Salary Structure & Stipend rates for
Trainees
 Annual Increment Rules
IV. Allowances
 Travelling Allowance Rules
 City Compensatory Allowance
 Reimbursement of Local Travelling Expenses
 Grant of Conveyance Allowance to Blind and Orthopaedically Handicapped
Employees
 House Rent and House Rent Allowance
 Night Shift Allowance
 Split Duty Allowance
 Entertainment Allowance
 Magazine Allowance
V. Advances
 House Building Advance Rules (including Scheme of Interest Subsidy on House
Building Loans)
 Grant of Advance for Purchase of Motor Vehicle
 Grant of Advance for the Purchase of Bicycle
 Grant of Advance for Medical Attendance & Treatment
 Festival Advance
VI. Employees' Motivation & Welfare Scheme
 Incentive Scheme for acquiring Professional Qualifications
 Jawaharlal Nehru Award Scheme for Executives
  Jawaharlal Nehru Award Scheme for Non-Executives
 Incentive Scheme for promoting Small Family Norms among Employees
 Encashment of Leave
 Medical Benefits
 Grant of Assistance towards Funeral Expenses of Employees who die while in Service
 Family Benefit Scheme
 House Allotment Rules
 Forcible Leave Travel Concession
 Reimbursement of School Fees to Employees' Children
 Grant of Scholarships to the children of Employees
 Scheme for grant of Scholarships to the children of Employees belonging to
Scheduled Castes and Scheduled Tribes
 Scheme for grant of Scholarships to Physically Handicapped Children of Employees
VII. Retirement Benefits
 Provident Fund Rules
 Procedure for final Settlement of Dues of Retiring Employees
 RINL Superannuation Benefit Fund Scheme
 Employees' Family Benefit Scheme
 Scheme for farewell to Retiring Employees
VIII. Miscellaneous Rules
 Determination of Date of Birth
 Change of Name
 Appointment of deputationists in the Company
 Procedure for Leave Book and Leave Card System
 Foreign Travel
 Issue of Verification Certificate to Employees for obtaining Passport
 Forwarding Applications of Employees for Outside Employment
 Transfer Benefits to Executives joining VSP on appointment from Central
Government / Public Sector Undertakings & vice - versa
 Executive Grievance Redressal Procedure
  Formal Grievance Procedure for Non - Executives Details on the above subjects can be
obtained from Personnel Manual available for reference in the Central Library,
Technical Training Institute, Visakhapatnam Steel Plant.
QUALITY POLICY:
• Supply quality goods and services to customers delight.
• Document, implement, maintain and periodically review the management systems including
the policy, objectives and targets.
• Focus on conversation of natural resources and energy with concern environment.
• Comply with relevant legal, regulatory and other requirements applicable to products,
activities and processes in respect of quality and safety and also ensure the by contractors.
• Use resources efficiently and reduce waste & prevent pollution.
• Continually improve quality, safety and occupational health environment performance.
•Encourage development and involvement of employees
•Maintain high level of quality, environment, occupational health and safety consciousness
amongst employees and contract workers by imparting educational & training.
HARASSMENT AGAINST WOMEN AT WORKPLACE POLICY:
Sexual harassment is a serious criminal offence which can destroy human dignity and
freedom. In an effort to promote the wellbeing of all women employees at the work place the
following code of conduct has been prescribed:
1. It shall be duly of the employer to prevent or deter the commission of any act of
sexual harassment at the work place.
2. Sexual harassment will include such unwelcome sexually determined behaviour by
any person either individually or in association with other persons or by any person in
authority whether directly or by implication such as:

i. Eve – teasing
ii. Unsavoury remarks
iii. Jokes causing or likely to cause awkwardness or embarrassment
iv. Innuendos and taunts
v. Gender based insults or sexiest remarks
vi. Unwelcome sexual overtone in any manner such as over telephone and the like
vii. Touching or brusing against any part of the body and the like
viii. Displaying pomographic or other offensive or derogatory pictures, cartoons,
pamphlets, or sayings
ix. Forcible physical touch or molestation
x. Physical confinement against one’s will and any other act likely to violate one
privacy and includes any act or conduct by a person in authority and belonging
to one sex which denies or would deny equal opportunity in pursuit of career
development or otherwise making the environment at the work place hostile or
intimidating to person belonging to the other sex, only on the ground of
 3. It shall be the duty of the employer to prevent or deter the committing of any act of
sexual harassment at the work place.
4. Appropriate working conditions should be provided in respect of work, leisure, health
and hygiene to ensure that there is no hostile environment.
IT POLICY:
RINL/VSP is committed to leverage Information Technology as the vital enabler in improving
the customer-satisfaction, 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 Processes through IT by in-house
efforts / outsourcing and collaborative efforts with other organizations / expert groups /
institutions of higher learning, etc, thus ensuring the quality of product and services at least
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
• Install, maintain and upgrade suitable cost-effective IT hardware, software and other IT
infrastructure and ensure high levels of data and information security
• Strive to spread IT-culture amongst employees based on organizational need, role and
responsibilities of the personnel and facilitate the objective of becoming a world-class business
organization
• Enrich the skill-set and knowledge base of all related personnel at regular intervals to make
employees knowledge-employees
• Periodically monitor the IT investments made and achievements accrued to review their cost
effectiveness.
INFORMATION SECURITY POLICY
We, at Rashtriya Ispat Nigam Limited(RINL), Visakhapatnam Steel Plant(VSP), within the
defined scope and boundaries, are committed
To protect all IT Information Assets of RINL from unauthorized access, disclosure or
modification and to prevent loss or interruption to IT related services provided by RINL to all
its users.
To accomplish this, we shall
 Conform to the Information Security Management System by implementing
Information security policy and its constituent policies within RINL.
 Comply with the requirements of the policy as documented in the Information Security
Policy Manual.
 Maintain the Confidentiality, Integrity and Availability of all IT Information Assets
 Ensure a safe, secure and trusted environment through enhanced accountability,
auditability and transparency of all IT Information Assets.
FUNCTIONS OF VARIOUS DEPARTMENTS AND THEIR
MANAGERS

SWOT ANALYSIS OF THE ORGANISATION

Strengths:
 Shore based location
 Well established marketing and customer network in India
 Availability of land
 Image as quality producer
 Committed and experienced manpower/managerial skills
 Strong environmental and social commitments
Weaknesses
 Lack of captive mines for iron ore and coal
 Single location company and only long products , exposed to cyclic markets
 High leveraged balance sheet
 Lack of investible surplus
Opportunities
 Export of products to developing economies
 Availability of new facilities
 Enhanced production potential
 Secondary metallurgy for high end value added steels
 Robust domestic economy
Threats
 Increased competition and predominant secondary sector in long products
 Volatility in supply and prices of cooking coal
 Excessive dependence single iron ore supplier

KEY RESULT AREAS OF THE ORGANISATION

Key Result Areas refer to general areas of outputs for which the department’s role is
responsible. Key result areas (KRAs) capture about 80% of the department’s work role. The
remainders are usually devoted to areas of shared responsibility.
Various key result areas of Human Resource:
 Motivation tip
 Harmonious employee relations
 Counselling trouble makers
 Effective grievances handling
 Training and quality circle
 Performance appraisal
 Handle issues like staff, production &salary
Various key result areas of Marketing:
 Product promotion
 Sales
 Customer care
Various key result areas of Finance:
 Audit
 P&L statements
 Balance sheet
 Financial analysis
The key result areas of Production are:
 Manufacturing
 Quality control
 Purchase of raw material

SIGNIFICANT FACTORS FOR SUCCESS

In any organization to implement change is a very difficult process as it requires the
collaboration between various departments and persistence to drive the change initiative
forward. These change initiative within the organizations are more commonly known as
organization development (OD).
1.Thoughtful and workable strategy
2.Customer-centricity
3.Insightful talent management
4.Focus on innovation
5.Flexibility as an important value
6.Change leadership
7.Focus on High Performance Work System & people engagement
8.Alignment of all functional areas
9.Speed (That is higher than the speed of change in the business environment)
10.Planning
11.Skillful workers
12.Long term relationship with customers
13.Organization Widening
14.Increased organization health and effectiveness

System of accounting followed

Significant accounting policies:
General:
Financial statements are prepared under the historical cost convention in accordance with
fundamental accounting assumptions and generally accepted accounting principles (GAAP)
in India.
Fixed assets:
•Fixed assets are stated at historical cost less depreciation.
•Contributions made by the company towards the cost of fixed assets owned by the company.
•State / Central Government are grouped together with similar assets owned by the company
with appropriate disclosure thereof.
•Expenditure attributable / relating to construction, to the extent not directly identifiable to
any specific Plant Unit, is kept under ‘Expenditure During Construction’ for allocation to
Fixed Assets and is grouped under ‘Capital Work-in- Progress’.
Investments:
•Current investments are carried at lower of cost and fair value.
•Long term investments are carried at cost. Diminution in value, other than temporary, is
provided for.
Inventories:
•Inventories are valued at lower of cost and net realizable value.
•The basis of determining cost is:
Finished / Semi-finished goods - Weighted Average cost
Raw material, Stores & Spares, Loose Tools - Monthly weighted average cost and those in
transit at cost.
Revenue Recognition:
•Sales are recognized when all significant risks and rewards of ownership have been to the
buyer.
•Export incentives under various schemes are recognized as Income on certainty of
realisation.
CLAIMS:
Claims against outside agencies are accounted on certainty of realisation.
FOREIGN CURRENCY TRANSACTIONS:
•Foreign currency monetary items are recorded at the closing rate.
•Exchange differences arising on account of settlement / conversion of foreign currency.
•Monetary items are recognised as expense or income in the period in which they arise.
EMPLOYEE BENEFITS:
•Actuarial gains and losses on defined benefit plans are recognized during the year.
DEPRECIATION AND AMORTISATION:
•Depreciation is provided on straight line method (SLM), up to full value of the cost of asset
over the specified period derived in accordance with the provisions of Schedule
•XIV of the Companies Act, 1956, except the following:
i. Assets costing up to Rs.5000/- are fully depreciated in the year of capitalisation.
ii)Depreciation on the following categories of assets is provided up to full value of the cost of
asset on SLM over the period of their useful life based on the management’s estimate given
in brackets.
iii)Photo Copiers & Fax Machines, Telecom Equipment (5 years); Cranes, Slag Pot Carriers,
Audio & Visual Equipment (10 years); Other Office Equipment, Earth Moving Equipment,
iv)Forklift Trucks, Air Conditioners, Refrigerators, Water Coolers, air coolers, freezers.(7
years); Cars (6 years); Safety Equipment, Other light vehicles (8 years); Computers

BORROWING COSTS:
•Borrowing costs incurred for obtaining assets which take more than 12 months to get ready
for its intended use are capitalised to the respective assets wherever the costs are directly
attributable to such assets and in other cases by applying weighted average cost of
borrowings to the expenditure on such assets.
•Other borrowing costs are treated as expense for the year.
PRIOR PERIOD ADJUSTMENTS:
•Items of Income / Expenditure which arise in the current period as a result of errors or
omissions in the preparation of Financial Statements of one or more prior periods.

PRODUCT PROMOTIONAL MEASURES

In order to increase the sales, the organization needs to promote the product at various places
and in various types.
Brand promotion
A brand promotion campaign has been launched by the company to increase consumption of
steel in the country. The Company has chosen to promote its brand image through renaming
of Hazrat Nizamuddin - Visakhapatnam Samta Express Train to Vizag Steel Samta Express
in collaboration with the Indian Railways. As the train is running through 5 states, the brand
is getting popularity in those places. The Company has roped in Ms PV Sindhu, the first
Indian Silver Medallist in Badminton in the Olympics, as the Brand Ambassador of Vizag
Steel. There are further advertisements being done in various print and electronic media are
being intensified to ensure enhanced awareness about its products. The Company is also
incentivizing rural marketing to increase the consumption of steel in rural areas.
Existing Marketing Network of RINL:
1)Currently, RINL has a network of 5 regional offices, 23 branch sales offices and22
stockyards spread across the country.
2)It also takes the help of Consignment Agents and Consignment Sales for the marketing of
their products.
3)The exports are carried out by the export wing of marketing division with the help of
different agencies.
4)The company is recognised as ‘Star Trading House’ by the director general of foreign
trade, ministry of commerce, government of India.
5)Regional mangers/ Branch managers meet at headquarters regularly to discuss the market
situation and market strategies.
6)RINL has appointed about 150 Retailers. These Retailers purchase and sell the RINL’S
products.

CAREER PLANNING AND PROMOTION POLICY OF EMPLOYEES

The Vizag steel plant is a huge platform to provide various career opportunities to fresh
talented people. It requires high qualifications from candidates who wish to make a career for
themselves in the executive staff. However, for the post of a non- executive staff a minimum
of ITI or diploma in engineering from any recognized college is required. For candidates
acquiring educational qualification of a lower level there is scope in the plant as workers.
The career planning process at steel plant is however an impressive one as the employees can
choose to uplift their career by possessing additional qualification with the help of the
organization and qualifying in the internal exams conducted every 7years by the organization.
It is a platform for developing skill and knowledge where merit is recognized and rewarded.
There are various policies for the support and growth of the employees
•The system indicates smooth change of the plant over the shifts and uninterrupted pace of
the operation of the plant during shifts.
•Free Medical facilities for the employee family.
•Performance based benefits scheme for all the employees.
•Retirement benefits for the employee.
•Leave Travel Concession (LTC) benefits for the employee and to his family.

TRAINING MEASURES
•The needs of induction training, skill up gradation, unit training, computer related training,
refresher training, foreign training, faculty development etc are attended by training and
development centre while management development and attitudinal development are taken
care at the centre for HRD.
•It is the initiative of the HRD group to provide In-house training programs.
•Employees are also sent to suppliers manufacturing units/training institutes to get specific
training in identified areas.
•In-plant training for management students
•It is the initiative of the HRD group to provide In-house training programs

HRD MEASURES
Employees are in a way an asset to RINL and for this reason they are made to realise full
potential thereby helping both the organization and the individual. The HRD involves
development of the employee in whole and following are the measures taken by the HRD for
development of the employees:
•In-house training programs
•Nomination to external training programs
•Organisational research, Employees, satisfaction surveys and voice of employees’ index
•Organizational development
•Membership with professional bodies
•In-plant training for management students
•Lectures by eminent personalities
•Corporate presentation
•Interaction with professionals’ academicians’ consultants
•Emancipation of women through WIPS, Women Development programs
•Thrust on “Samalochana”
•Sending employees to other steel plant for short duration to find issues facing the company.
•Employees are also sent to training institutes to get training in identified areas

WELFARE MEASURES
Human resources being the most important resources of all their development and welfare is
given utmost priority in overall policy of the Human Resource Management. The company is
implemented many statutory and non-statutory welfare schemes which shows how much the
company cares for its employees.
STATUTORY WELFARE MEASURES
•CANTEEN FACILITIES: The VSP has 17 canteens with 16 of them being inside the plant
and 1 outside the plant. These canteens provide breakfast, tea, lunch and evening snacks
which at fixed rates and have been in vogue since 01-12-1996.
•BABY CRECHE: A Baby Creche for infants of women employees is provided in the plant
which has some trained personnel to look after the needs of the baby.
 •FIRST AID FACILITITES: There is a first aid cum occupational health centre in operation
in the plant and each first aid centre has an ambulance.
•WATER COOLERS: A total of 305 water coolers are provided in the plant for drinking
water.
•LEAVE: RINL provides 10 days of earned leave above the maximum ceiling prescribed
under factories act. Apart from earned leave the company also provides casual leaves,
quarantine leave, commuted leave, etc.
•MATERNITY LEAVE: 180 days of maternity leave is given to the women employees at the
time of conceiving.
•PROVISIONS: Rest rooms, sitting arrangement, safety officers, etc are provided as per
factories act.
•MINES ACT: By this act a consolidated law is provided relating to regulation and safety of
labour in mines.
•CONTRACT LABOUR WELFARE: The welfare facilities like canteen, urinals, creche, etc.
are also provided to contract labour.

PERFORMANCE APPRAISAL SYSTEM

Performance Appraisal System (PAS) was introduced in RINL in the early eighties and has
been modified as per need. Today RINL exists in a world that is substantially different from
what it used to be in eighties and nineties. In tune with the changing world, lessons learnt
from excellent companies all over the world, new opportunities and challenges of
globalization and the need to have a uniform approach for assessment of executives in the
CPSEs under the Ministry of Steel, it has been decided to review the appraisal system of
RINL.
POLICIES
SCOPE:
The Performance Appraisal System is aimed at performance and development planning and
assessing the performance, potential, competencies and values of all executives, including
supervisory cadres and deputationists up to E-7 grade. In respect of executives in E-8 and E-9
grades, the format as circulated by PESB will remain in vogue.
OBJECTIVES:
1)To enable employees to plan their work, utilize their capabilities and maximize their
contributions.
2)To create a performance culture through continuous performance improvements of
individual employees, teams and the organization.
3)To identify and develop leadership talent for future.

FINANCIAL HIGHLIGHTS OF VSP

2015-16 2016-17 2017-18
 Operating results (Rs Crs)
Turnover 12271 12706 16618
Turnover (excl. trial run) 10059 12317 14460
Gross income 10482 12679 14872
Gross expenditure 11248 13602 15846
Gross profit (PBIIT) (766) (923) (973)
Profit before tax (1417) (1690) (1911)
Net profit after tax (1421) (1263) (1369)
Year-end financial position (Crs)
Share capital 4890 4890 4890
Reserves and surplus 4983 3680 2331
Capital employed 7575 6620 8687
Net worth 9866 8570 7221
Gross block 21152 22935 27110
Cumulative depreciation 9288 10007 10327
Net block 11864 12928 16783
Inventory 3908 2344 2411
Profitability & other ratios
1. Percentage of
Gross profit to sales (7.6) (7.5) (6.7)
Net profit to sales (14.1) (10.3) (9.5)
Gross profit to net profit (7.8) (10.8) (13.5)
Net profit to net worth (14.4) (14.7) (19.0)
Gross profit to capital employed (10.1) (13.9) (11.2)
Net profit to capital employed (18.8) (19.1) (15.8)
Gross profit to share capital (15.7) (18.9) (19.9)
Inventory sales 38.8 19.0 16.7
2. Ratio of
Current assets to current liabilities 0.6 0.5 0.5
Quick assets to current liabilities 0.3 0.2 0.1
Sales to capital employed 1.3 1.9 1.7

Advantages and drawbacks of the organization

Advantages:
1.Tall organisation structure helps in easy flow of command.
2.Authority and responsibility can be delegated easily as it is a simple Structure.
3.Chances of rumours is less as the organisational structure is straight.
Disadvantages
1.Flow of command is time consuming which can lead to delay in decision making.
2.Authority to take the decision is at a very high level.
3.Infrastructure need to be improved, increased and technology must be upgraded by times.
 Recommendations to overcome the drawbacks
The following suggestions will improve the financial position of the VSP.
PRODUCTION:
1.Need for continuous upgradation of technology for speeding up and better process.
2.Effort must be done in cost saving, particularly in spare parts and electricity.
Finance:
Improve financial leverage ratio for better results.
Personnel:
1.Rationalization of existing man power for effective training for future expansion of plant.
2.Providing better motivation.
3.Improving efficiency through better HRD measures.
Marketing:
1.Continuously monitoring the indigenous sale, export sale ratio to capture the best of market.
2.Increasing the net realization by selling in most profitable region.
3.Identifying new markets and new application of the company product.
Improving realization by identifying value added products and providing feedback to
production management.