Downsizing fears strengthened with RINL issuing circular on VRS survey

Visakhapatnam: The emphatic denial by Union Steel and Heavy Industries Minister HD Kumaraswamy on privatisation of cash-strapped Rashtriya Ispat Nigam Limited (RINL) notwithstanding, the management issued a circular on Golden Handshake Scheme on Tuesday as part of efforts to downsize triggering serious apprehensions among the employees on strategic disinvestment.

In Circular No. 10 dated October 22, 2024, the Human Resources Department (Policies & Rules) of RINL, the corporate entity of Visakhapatnam Steel Plant (copy of which is available with Bizz Buzz), the 13,000-odd employees and executives were intimated on a survey for Voluntary Retirement Scheme.

The circular stated “it is planned to ascertain the willingness of eligible employees of RINL to avail the VRS. In this regard, a module titled VRS has been created on the Employee Portal Support System (EPSS), featuring a sub-module titled ‘Survey for VRS.’

The circular clarified that the survey is applicable to all regular employees (executives and non-executives) of RINL. Employees must have at least 15 years of service at RINL and should attain 45 years as on 30 September, 2024. Eligible employees are only provided access for submitting willingness in EPSS. Employees may give their willingness in the screen available on or before 29.10.2024.”

It has been made very clear that the survey is only for assessing willingness for VRS and the same cannot be considered as an application for VRS. The notification of the circular was preceded by sending a few employees on deputation to Nagarnar Steel Plant of NMDC in Bastar district of Chhattisgarh and Forged Wheel Plant at Raebareli in Uttar Pradesh to Modern Coach Factory (MCF) of Ministry of Railway. MCF had acquired the plant from RINL sometime ago. A large number of contract workers, who were denied renewal of biometric passes, had to be taken back following a massive protest by the trade unions.

When contacted, a senior official acquainted with RINL affairs and retired recently, told Bizz Buzz “this appears to be an attempt for downsizing and ultimately privatisation. These measures will only lead to a saving of Rs 50 crore to Rs 70 crore per month.”

The controversial circular is viewed by the trade unions as yet another attempt to prune the employees’ size so as to create the ground to hand it over to private hands as part of a strategy. However, Kumaraswamy, responding to an update by Public Accounts Committee Chairman and Congress leader KC Venugopal on X, said: “I have also visited Vizag Steel Plant after taking over as the Minister for Steel and Heavy Industries. After holding discussions with the people’s representatives, officials and workers, it has been promised that all their concerns and problems will be looked into after holding discussions with the PM@narendramodiji and Finance Minister@nsitharaman ji.”

He termed as baseless the allegations made by Venugopal that the NDA government is trying to sell off the Vizag Steel Plant.

In a representation to the Prime Minister, Visakha Steel Employees’ Union (VSEU) general secretary Padi Trinadha Rao demanded a probe into premature withdrawal of employees savings from leave travel encashment of Rs 300 crore invested 12 years ago in SBI and LIC to clear dues to the vendors.