1,000 VSP Employees Opt for VRS in Second Phase

 Visakhapatnam: Around a thousand employees, including executives and non-executives, have opted for the second phase of the Voluntary Retirement Scheme (VRS) at Visakhapatnam Steel Plant (VSP), also known as RINL, which is currently underway. This phase, which opened for online applications on June 16, aims to further reduce the workforce, including executives and non-executives who have completed 15 years of service and are 45 years of age. The application window closes on July 15, with a withdrawal period until July 18.

Labour unions emphasise that the Voluntary Retirement Scheme (VRS) benefits employees nearing retirement, prompting many to choose the scheme.

Additionally, younger employees have been leaving VSP for better opportunities in other steel plants across the country, adding to the workforce shortage.

Trade union leaders said the number of regular staff of VSP will be 10,267 by August 2025 when compared to 17,000 in the 2020-21 fiscal year when the Centre announced the strategic sale of the plant.

At least 700 employees, some of them rejected in the VRS-1 process, have applied for VRS-2. Many of them do not want to work in the current condition of the plant. In the VRS-1 process, applications of about 400 employees were rejected,” said RINL-VSP sources.

The VRS is a component of a larger plan to revitalise and expand VSP. While it may cause some short-term challenges, the long-term goal is to create a more efficient and productive steel plant with a significantly larger production capacity.

The management should at least take back the contract workers after the third blast furnace commenced operations on June 27, said CITU leader Ayodhya Ramu.