VRS Response Rises, Worry Mounts at RINL
Nearly 500 employees of Rashtriya Ispat Nigam Limited (RINL), the corporate entity of the Visakhapatnam Steel Plant, have applied for the third phase of the Voluntary Retirement Scheme (VRS), raising concerns over manpower loss and renewed calls to protect the public sector unit.
RINL introduced the latest VRS round to optimise human resources and cut costs. Employee groups and observers warn that the exit of experienced staff could affect production and quality.
Sources said some department heads are urging employees with health issues or minor workplace injury history to apply. The notification has also strengthened the “Save Vizag Steel” demand, with many linking the plant to Telugu pride.
Some experts have suggested merging RINL with the Steel Authority of India Limited, but no decision has been taken.
“Losing experienced employees will impact production and quality in the long run. The plant’s future will be secure only if the government releases full funding and stops the VRS,” a retired employee said.
RINL issued the third-phase notification on December 24, 2025. Online applications began on January 1, 2026, and close on January 27. The deadline was extended from January 20 due to poor response. Applicants can withdraw by January 31.
Eligibility requires at least 15 years of continuous service in RINL and a minimum age of 45 years. Contract, fixed-term staff and those on deputation are not eligible.
“Around 500 employees have applied so far. The management is expecting about 1,000 applications, which may be why the deadline was extended,” a VSP official said.
In the first phase, 692 officers and 631 non-executives opted for VRS. The second phase saw 377 officers and 464 non-executives leave. In total, 1,008 officers and 1,587 non-executives have exited under the scheme.
The plant’s regular workforce has fallen from 12,338 employees on January 1, 2025 to 9,311 as of January 1 this year, according to sources.
Trade unions, including the Visakha Ukku Parirakshana Porata Committee, said many young and middle-aged employees are choosing VRS due to salary delays, heavier workloads in critical operations like blast furnaces after staff cuts, uncertainty over disinvestment and lack of promotions.