The Visakhapatnam Steel Plant (VSP), operated by Rashtriya Ispat Nigam Limited (RINL), has recently implemented a Voluntary Retirement Scheme (VRS) to streamline its workforce and enhance productivity. The scheme, active from January 15 to January 31, 2025, invited applications from regular employees aged 45 and above with a minimum of 15 years of service.
The plant’s management has initiated the process, granting VRS approvals to 1,140 employees in the first phase. The management issued notices to the selected employees after receiving a total of 1,613 submissions. A special committee reviewed these applications and ultimately approved them. 1,140 while rejecting 386 due to ineligibility. Additionally, 87 senior officials, despite being eligible, have had their VRS implementation put on hold temporarily.
To facilitate financial settlements, the Union Ministry of Steel has allocated ₹500 crore for the 1,140 employees taking VRS. Payouts will be determined based on their tenure at the plant and the remaining service period.
Labor unions emphasize that the Voluntary Retirement Scheme (VRS) benefits employees nearing retirement, prompting many to choose the scheme.
To ensure a smooth transition, the management enforces strict leave guidelines for VRS applicants, limiting leave to four days and allowing up to three additional days only with the director’s approval.
The implementation of VRS at the Visakhapatnam Steel Plant (VSP) reflects Rashtriya Ispat Nigam Limited’s (RINL) strategic efforts to optimize its workforce, reduce operational costs, and enhance efficiency amid ongoing financial challenges.
For a deeper insight into RINL’s future and financial strategies, we recommend reading our article: Can Rs 11,440 Crore Save Visakhapatnam Steel?
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