RINL rolls out VRS for employees, asks interested to apply by January 31

A view of the Visakhapatnam Steel Plant. File
| Photo Credit: K.R. DEEPAK

The Rashtriya Ispat Nigam Limited (RINL), the corporate entity of the Visakhapatnam Steel Plant (VSP), has announced a fresh ‘RINL Voluntary Retirement Scheme’, inviting interested employees to apply for the same by January 31, 2025.

The online platform for registering the applications will be opened on January 15.

Employees who have completed a minimum 15 years of service and have attained 45 years of age are eligible. The eligibility will be reckoned on the date of application of the employee opting for the VRS.

“The scheme is applied to the regular employees. The objective is to rationalise the existing manpower, achieve optimum human resource utilisation, cost reduction and improved productivity,” claims a circular of the HR Department of the RINL, a copy of which is available with The Hindu.

Compensation pattern

The department has clarified that an employee will be entitled to VR compensation as per the Gujarat pattern.

It comprises of salary of 35 days for every completed year of service and 25 days for the leftover service till superannuation. The compensation is subject to a minimum of ₹25,000, or 250 days of salary, whichever is higher.

However, the total compensation does not exceed the salary the employee draws at the prevailing level for the leftover service. The compensation amount will be paid on lumpsum basis.

The employees opting for VR have to repay outstanding loans with the accrued interest till the date of retirement. The employee opting for VRS will be given a notice period of 30 days by the company. The employee availing of VR will not be eligible for re-employment in RINL, or any of its subsidiaries or joint ventures.

Reacting to the VRS offer, Visakha Ukku Parirakshana Porata Committee leader J. Ayodhya Ramu says, “The RINL management should have to keep at least ₹250 crore to pay the pending salary arrears of employees and contract staff. It is unable to pay salaries due to lack of funds. When that is the case, how can it get money for VRS applicants?”