RINL introduces new VRS amidst criticismInvites eligible employees to apply by January 31

The Rashtriya Ispat Nigam Limited (RINL), the corporate entity of the Visakhapatnam Steel Plant (VSP), has launched a new Voluntary Retirement Scheme (VRS) aimed at streamlining its workforce. The scheme invites eligible employees to apply by January 31.
According to a circular issued by the HR Department of RINL, the primary goal of the scheme is to rationalise the current workforce, optimise human resource utilisation, reduce costs, and enhance productivity. “The scheme is designed to provide a smooth transition for our employees while also helping the company to optimise its workforce and improve operational efficiency,” said a RINL spokesperson.
However, the announcement has drawn criticism from the Visakha Ukku Parirakshana Porata Committee, led by J. Ayodhya Ramu. Ramu expressed concerns about RINL’s financial health, pointing out that the company currently struggles to pay pending salary arrears for both employees and contract staff.
“The RINL management should allocate at least Rs 250 crore to clear the pending salary arrears that have accumulated over time. This outstanding amount is due to employees and contract staff, many of whom are facing financial hardships because of the delayed payments. The inability of the company to meet its basic obligations, like paying salaries on time, raises serious concerns about its financial stability. If the company is struggling to pay its workforce the salaries they are rightfully owed, how can it possibly manage to set aside the necessary funds to provide compensation for employees opting for the Voluntary Retirement Scheme (VRS),” Ramu questioned.
Despite the opposition, RINL’s management hopes the VRS will help in optimising its workforce and improving operational efficiency at the Visakhapatnam Steel Plant. The scheme is expected to be an important step in RINL’s ongoing efforts to reduce costs and enhance productivity in a challenging economic environment.
Eligible employees can register for the VRS through an online platform starting January 15. To be eligible, employees must have completed a minimum of 15 years of service and be at least 45 years old.
The compensation package includes 35 days’ salary for every completed year of service and 25 days for any remaining service period until superannuation.
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