NMDC Agrees To Absorb 100 RINL Executives In 1st Phase On Deputation

Visakhapatnam: NMDC has agreed to take 100 executives of Rashtriya Ispat Nigam Limited (RINL), the corporate entity of loss-making Visakhapatnam Steel Plant on deputation basis to the three million tonne integrated steel plant of NMDC Steel Limited (NSL) at Nagarnar in Bastar district of Chhattisgarh.

Interestingly, both NSL and RINL are listed for disinvestments while for the former EoIs have already been sought. For RINL, due diligence study for valuation is pending due to stiff opposition by the employees to January 21, 2021 Cabinet Committee on Economic Affairs’ in-principle clearance for 100 per cent privatisation. The unions had first demanded the merger of RINL with NMDC and SAIL and later after NMDC’s reluctance, sought amalgamation of RINL and SAIL as a solution to overcome working capital and raw material insecurity.

CITU-affiliated Visakha Steel Employees’ Union (VSEU) honorary president J Ayodharamu told Bizz Buzz on Monday that this was yet another attempt to cripple RINL, demoralise its 13,000 odd employees and hand it over on a golden platter to Adani or some other company.

He alleged that the RINL management has decided to send 500 employees to NSL, 2500 on voluntary retirement scheme and fire 3,000 contract employees to prune its staff size. NSL has agreed to take employees from Blast Furnace, Steel Melt Shop, coke oven, finance and other crucial departments in phases.

RINL employees perceive a threat to their future due to possibility of plant closure after shutdown of the two of the blast furnaces out of three BFs by drastically restricting its production to around 4,000 to 5,000 tonnes per day notwithstanding having a capacity to produce 20,000 tonnes a day. The reason for closure of two BFs is cited to be working capital crunch and shortage of coal.

In a letter dated September 15, 2024 addressed to RINL CMD AK Bagchi, NMDC CMD Amitava Mukherjee said they were envisaging deputation/loan of 100 executives. The company furnished a detailed factory/department-wise list of positions.

Mukherjee stated in the letter, “NSL would be offering a package consisting of the basic pay plus DA to the selected executives and paying them the remuneration directly. Further, statutory payment of PF contribution would be remitted by NSL to the designated account.” This will be without prejudice to RINL paying them any residual portion of their pay based on their current pay structure and austerity measures. Accommodation will be provided on a shared basis, NSL clarified. NSL also stated that with regard to other executives and non-executives, it is holding discussions with their organised unions and further details and way forward will be informed

subsequently.