It gives me immense pleasure in releasing the Second Sustainability Report of the company encapsulatingour performance during 2011-12 and 2012-13.

It is a matter of great pride for us, that we pioneered the adoption of concepts of Sustainable Development(SD) in the steel industry through green initiatives in various manufacturing processes during inception stageitself, and took up the motto of "One tree for every ton of steel" even before our project was commissioned.

Sustainability is a journey, and over the years it has been our constant endeavour to establish clear linkagebetween the aspects of SD and our business imperatives as we harnessed the green technologies at everystage of production and improved our operational efficiencies to create a competitive advantage. The thruston sustainability and business continuity saw adoption of novel and emerging approaches for comprehensiveaddress of various facets of SD through Annual Sustainability plans; deployment of Enterprise RiskManagement; product diversification; raw material securitization; and efforts towards growth & expandinggeographical presence, to name a few.

The years 2011-12 and 2012-13 were further characterised by diligent efforts towards long term sustainabilityof business, such as:

� Close follow up with various State Governments for allocation of Iron Ore mines resulting in LOI for anIron Ore mine in Bhilwara by the Govt. of Rajasthan.

� Physical completion of major units under the expansion programme to double the capacity to 6.3 mtpa;commencement of production from new Blast Furnace; commissioning of supporting facilities of expansionand finalization of initial activities for various modernisation schemes. The roll out of new productswould commence progressively from 2013-14 onwards, enhancing our presence in the steel market.

� MoU with Power Grid Corporation of India Ltd., for manufacture of transmission line towers; and MoUwith Indian Railways for manufacture of rail axles and wheels, to establish ready markets for valueadded products after current expansion & modernization.

Our benign belief has been that business has both an opportunity and an obligation to make the world better.Over the years, this belief has fuelled our investment not only for our business growth, but also for supportingthe communities around us. We have made notable progress in creating sustainable assets for the benefitof the society by making a meaningful difference in their life through our various CSR programmes. This isthe power of sustainability as it encourages engagement and, in turn, engagement breeds sustainability.

Our committed performance was well recognized by the various industries and Governmental bodies, as wewere bestowed with "3 Leaves Rating" by Centre for Science & Environment under the Green Rating Project;Leadership award for Green Manufacturing by Frost & Sullivan; "Strong Commitment" in CII-ITC Award forperformance on Sustainability; "Significant Achievement" in CII-EXIM Bank Award for Business Excellence2013; and capped with "Excellent MoU Rating" by the Govt. of India for the years 2011-12 & 2012-13. I amgrateful for the support, encouragement & cooperation of the various stakeholders in our journey towardssustainability.

Chairman-cum-Managing Director's Message

2

With these encouraging signs, I am sure that we would continue tomove forward swiftly in our quest for creating a sustainable future.Sustainability will be at the nexus of transformation in the years tocome. We need to achieve our bold goals by pushing ourselveswith aggressive targets and commitments, re-defining ourperformance guided by values of utmost safety, integrity,accountability, transparency and team work.

(P Madhusudan)Chairman-cum-Managing Director

3

The essence of our Vision is about

growth, competitiveness and satisfying

& exceeding the expectations of our

stakeholders, which are targeted

through focused Objectives and are

further broken down as initiatives with

timelines.

A study was conducted by external

consultants from M/s Dastur& Co and

M/s MECON to assess the growth

potential at Visakhapatnam Steel Plant

considering the availability of land and

layout of the plant and in line with the

same the Mission statement of the

company which earlier focused on

attaining 16 Mt of liquid steel was

revised during the year 2011-12 to

"attain 20 Mt" of liquid steel to reflect

its true potential for growth.

To be a continuously growing World Class company

We shall

� Harness our growth potential and sustain

profitable growth.

� Deliver high quality and cost competitive

products and be the first choice of customers.

� Create an inspiring work environment to

unleash creative energy of people.

� Achieve excellence in enterprise management.

� Be a respected corporate citizen, ensure clean

and green environment and develop vibrant

communities around us.Vision

Strengths

S1. Shore based location.

S2. Operational Efficiency.

S3. Diverse Customer base andextensive marketing network.

S4. Availability of Land.

S5. Image as quality producer.

S6. Strong credit worthiness.

S7. Committed manpower.

WeaknessW1. Lack of Captive Mines for Iron

Ore and Coking Coal.W2. Single Location Company

producing only Long Productsand exposed to cyclic markets.

W3. High Equity base.

4

To attain 20 Million ton

liquid steel capacity through

technological up-gradation,

operational efficiency and

expansion; augmentation of

assured supply of raw

materials; to produce steel at

international standards of cost

and quality; and to meet the

aspirations of the

stakeholders.

Mission

� Stabilise 6.3Mt by 2013-14 with the mission toexpand further in subsequent phases as perCorporate Plan

� Revamping existing Blast Furnaces to makethem energy efficient to contemporary levelsand in the process increase their capacity by0.5 Mt each, thus total hot metal capacity to7.5 Mt

� Achieve higher levels of customer satisfaction

� Vibrant work culture in the organization

� Be proactive in conserving environment,maintaining high levels of safety & addressingsocial concerns

Objectives

Threats

T1. Increased competition.

T2. Increasing Raw Material Prices.

T3. Oligopolistic coal supply side.

T4. Single iron ore supplier.

T5. Predominant secondary sector in longproducts.

T6. Slowdown in economic growth.

T7. Declining margins due to increasing costof production.

Opportunities

O1. Encouraging growthprojections.

O2. Huge infrastructurespending planned in 12thfive year plan.

O3. Improved availability of Ports& Logistics.

O4. Product diversification.

O5. Scope for improving balancesheet.

Initiatives during thereporting period

(2011-12 & 2012-13)

Expansion to 6.3 Mt, 7.3 Mt and beyond.

(Leverage: S4, S6, S7; Capitalise: O1, O2; Counter: T1, T5)

Efforts on developing export markets.

(Leverage: S1, S5; Capitalise: O3; Counter: T6)

Ramp up of production from expansion units.

(Strengthen: S5, S7; Counter: T1, T5, T6)

Expansion of domestic markets.

(Leverage / strengthen: S3, S5; Counter: T5)

Modernization projects taken up in all critical areas.

(Strengthen: S2; Counter: T7)

Initiation of 7.3 Mt expansion and

Commissioning of BF-3.

Increased focus on export markets.Iron & Steel exports grew by 44% in

2012-13 to ` 598 Cr.

Efforts made to realize 1 Mt of productionduring first year of BF-3 operation.

No. of Marketing outlets increased from 496in 2011-12 to 767 in 2012-13.

(2011-12:137 & 2012-13:356)

Finalised the order for BF-2 Capital Repairs.

Diversify into flats and niche products from / beyond 7.3 Mt.

(Capitalise: O1, O2, O4; Counter: W2, T1, T5, T6)

Strategic initiatives for acquisition / sourcing of

major raw materials (Counter: W1, T2, T3, T4,T7)

Capital restructuring.

(Counter: W3, Capitalise: O5)

Long term action plans

Entered into MoUs with Indian Railways andPGCIL for business diversification.

Iron ore mines allotted by Govt ofRajasthan at Bhilwara in Rajasthan.

Redeemed ` 1480.5 Cr of preferentialshares capital to GoI.

5

materials and also keeping in view the requirementof expansion units, the following measures havebeen taken during the reporting period:

� Long Term Agreement (LTA) with NMDC forsupply of 10.5 Mt of Iron Ores to meet therequirement upto 6.3 Mt. Efforts are also beingmade to develop other sources of supply likeOMDC, a subsidiary of RINL.

� LTA formulated with reputed suppliers likeBHP, Anglo and Peabody of Australia; Logan& Kanahwa and Alpha Coal of USA, SolidEnergy of New Zealand for supply of Coal.Besides this, one standing EOI has been kepton Company’s Website for exploring newsources of Coal supply.

� MOU signed with NMDC for Joint Venture toinstall 336 KM length Slurry pipeline fromJagdalpur to Visakhapatnam and to set up 4Mtpa capacity Pellet plant at Visakhapatnam.

� Mining lease applications in various States:RINL has been continuously taking up thematter of allocation of mines with concernedState Governments and Central Government.During 2012-13, the Company was allocatediron ore mines in Bhilwara, Rajasthan.

Critical equipment due for major revamps : Thecompany has charted out a roadmap fortechnological up-gradation of critical units like BlastFurnaces, LD converters and Sinter machines inthe existing facilities, which would not only infusefresh lease of life to the ageing equipment but wouldalso scale up efficiency and productivity tocontemporary levels. Major revamps and up-gradations would continue till 2015-16 in a phasedmanner. This revamping of equipment would alsoenhance production volume by 1 Mtpa at the hotmetal stage and also would help in adoption oflatest energy efficient and environment friendlytechnologies in the existing units of the plant.

Being a single location plant, with product mixexclusively of long products, handicapped due tolack of captive mines for major raw materials andequipment operating at above rated capacities sincemore than a decade now, RINL has a unique portfolioof risks and opportunities. Initiatives addressing thesame are crucial for company’s profitability in currenttime frame and also for sustainable performance inthe time to come. A brief on initiatives taken toaddress the significant risks and opportunities duringthe reporting period is as follows :

Significant Risks and Opportunities

� Sluggish market conditions� Volatile raw material prices.� Capital repairs / major revamps for critical

equipment.� Commissioning of 6.3 Mt stage� Power restrictions by APSEB.� Growth potential for RINL at

Visakhapatnam.

Sluggish market conditions :

Low growth cycles in Indian economy andassociated persisting down cycles in industry, hasemerged as key risk for steel producers in thecountry. Consumption of long products was hitadversely in 2012-13 and the company acted swiftlyto reorient its sales strategy towards exports andappropriate corrections in its product mix tomaximize the production of relatively highercontribution products from the Mills.

Volatile raw material prices :

Volatility in prices of key raw materials forsteelmaking i.e. Iron Ore and Coking Coal has beenan area of great concern for the company since2008. RINL’s financial performance hinges criticallyon input costs as it is the only main steel producerin India without captive mines for Iron Ore and Coal.In order to have a continuous supply of major raw

6

At RINL, leadership focus has always been onensuring alignment across the organization byevolving action plans and initiatives at every levelto achieve Company Objectives. This is donethrough an elaborate Sustainability Planningexercise carried out annually, that results indevelopment of 5 year Roll-on-Plan with emphasison initiatives for the current year.

In line with our efforts to integrate SustainableDevelopment with business strategy, theSustainability Plan addresses various aspects ofSustainable Development like expansion andtechnology up-gradation, energy, environment andsafety initiatives, initiatives for enhancing employeeinvolvement, market development, raw materialsecuritization, R&D plans and CSR initiatives apartfrom initiatives addressing profitability concerns ofthe organization during the year.

The Company continued its strategic initiatives,towards business diversification and raw materialsecuritization by signing MOUs with AndhraPradesh Mineral Development Corporation andIndian Railways.

Energy efficiency has been the strength of RINLsince inception, which has been made possiblethrough adoption of green technologies. In orderto further build on this strength, the companyadopted Energy Management Standard BSEN16001 in 2010-11 and migrated to ISO 50001 forEnergy Management in 2012-13 and RINL is thefirst in Indian Steel Industry to get this certification.This provides uniform thrust on energy audits andimprovement plans across the company.

Sustainable Development policy was formulatedduring the year 2012-13 so as to internalize DPEguidelines on SD. As part of the policy, frameworkaspects related to identification, implementation,review and evaluation of SD projects have beenaddressed and a three tier monitoring mechanismhas been put in place.

Commissioning of 6.3 Mt expansion facilities:Commissioning activities of major facilitiescommenced in 2012-13 with commissioning of thenew BF-3. Also, Ladle Furnace -1 and Caster 1 &2 of SMS-2 were commissioned. However, anaccident during the commissioning trials of LDconverter at SMS-2 on 13.06.12 in Oxygen line atPRS-3 derailed the commissioning sequence anddelayed the commissioning and production fromdownstream units by more than a year. This alsoresulted in throttling of Blast Furnaces to matchthe off-take at SMS-1, thus impacting theproductivity of furnaces and downstream facilitiesadversely.

Power restrictions by APSEB: Due to unforeseenpower crisis in the State of Andhra Pradesh in 2012-13, Power restrictions were imposed byAPTRANSCO as a result of which there was aproduction loss of nearly 3,24,000 t of saleablesteel. In order to counter this risk, various initiativesare being pursued. Power generation capacity of14 MW by utilizing waste heat in COB-IV wascommissioned in the year. Boiler-6 was lighted upin Jan 2013 and also works related to 67.5 MWTG-5 were expedited. Other initiatives includeexpediting 20.6 MW waste heat recovery turbinein Sinter Plant in collaboration with NEDO, Japanand 120 MW PP-2 that would run on lean by-product gas from Blast Furnaces.

Growth potential at Visakhapatnam: RINL hasa land bank of around 20,000 acres which issuitable for expansion upto 20 Mtpa atVisakhapatnam. The infrastructure of two majorports in the vicinity and connectivity by rail andNational Highway coupled with projected growthin infrastructural development in the country makesexpansion at Visakhapatnam a highly attractiveproposition. Expansion works for 7.3 Mt stage arealready under way and plan for next phase ofexpansion up to 11.7 Mt stage is being developed.

7

Rashtriya Ispat Nigam Limited (RINL)

- a Navratna Public Sector Enterprise

(PSE) with 100% ownership of GoI as

on 31.03.2013, is the corporate entity

of Visakhapatnam Steel Plant (VSP)-

India's first shore based integrated

steel plant located at Visakhapatnam

(single location), with a capacity of

3 Mtpa, currently being expanded to

6.3 Mtpa.

Scale of Operation

Gross sales ` 14,462 Cr ` 13,553 Cr

Market share of Bars & Rods 9% 8.7%

Saleable steel production 3 Mt 2.9 Mt

Capacity utilization 110% 109%

Manpower 18,079 18,072

� Executives 5,516 6,300

� Non-Executives 12,563 11,772

8

A pioneer in steel industry in adoption of system standards, VSP is accredited for all the three system

standards i.e. ISO 9001:2008, ISO 14001:2004 and OHSAS 18001:2007 and is the first Indian steel plant

to be certified with "Capability Maturity Model Integrated (CMMI) - Level 3" for its implementation of IT

systems and is also the first PSE to be certified for ISO 50001 for Energy Management System.

VSP has adopted the BF-BOF route for steel-making, the most common steel making process for an

integrated steel plant. Adoption of green technologies for steel production at every stage of operation has

been a major source of competitive advantage to the Company in the area of operational efficiency.

9

RINL has its integrated steel plant located in Visakhapatnam, Andhra Pradesh, India. Iron ore is sourcedthrough 100% tie-up with National Mineral Development Corporation (NMDC) from Bailadilla mines inChhattisgarh.

The company has no captive linkage for coking coal which is sourced from international markets -mainly Australia. RINL has captive mines for minor raw materials like Limestone, Dolomite and ManganeseOre in the State of Andhra Pradesh at Jaggayapeta, Madharam and Garbham respectively.

RINL has a subsidiary- Eastern Investment Ltd. which has mainly two mining companies - OMDC foriron ore and BSLC for limestone and dolomite. The Company was also allocated iron ore mines inBhilwara, Rajasthan recently.

MoUs are forged with Indian railways for setting up Forged Wheel Plant and the Axle Plant. This initiativewould help RINL in widening its geographical spread and diversify product portfolio with assured off-take at 7.3 Mt stage.

In the 6.3 Mtpa expansion phase, latest technologies are being adopted which will further strengthenthe product portfolio with entry into high end value added steels & will also help in maintaining thecompetitive advantage gained through operational efficiency.

Major Operations

10 11

Description

Coke Ovens

Sinter Machines

Blast Furnaces

Steel MeltShop(SMS)

Light and MediumMerchant Mill(LMMM)

Wire Rod Mill (WRM)

Medium Merchant &Structural Mill(MMSM)

Structural Mill

Special Bar Mill

Power Plants

Existing Units

3 x 67 ovens

2 x 312 Sq.M

2 x 3200 Cu.Mwith bell less topequipment & casthouse slaggranulation

3 x 133 Cu.M6 x 4 strand bloomcasters

1 x 0.7 Mtpa

1 x 0.85 Mtpa4 strand continuousmill with “Stelmor”cooling

1 x 0.85 Mtpa

-

-

3 x 60 MW &1 x 67.5 MW

6.3 Mtpa (Additional units)

1 x 67 ovens.

1 x 400 Sq.M with circular cooler, multi slit burners, etc. to produce3.25 Mtpa of sinter.

1 x 3800 Cu.M with water cooled hearth bottom, profilometer,copper staves, Pulverized Coal Injection, Top Gas RecoveryTurbine, etc to produce 2.5 Mtpa of Hot Metal.

2 x 150 Cu.M with combined blowing for better yield &quality,secondary fume extraction system for cleaner environment,etc.to produce 2.8 Mtpa Liquid Steel.

2 x 6 strand square billet casters & 1 Combi-casterwith auto mouldtechnology, electro-magnetic stirring for cleaner steel.

-

1 x 0.6 Mtpa high speed mill (105-110 m/s).

-

1 x 0.7 Mtpa with high speed roughing stands to produce 75-175mm structurals.

1 x 0.75 Mtpa mill for customized sizes with low tolerance.

1 x 67.5 MW.

Product MixRINL is an exclusive producer of long products

in the country, primarily catering to the domestic

markets. Principal products of RINL include

rounds, structural, bars and wire rods

A Navratna Company

12

Market ServedLong products market in the country is highly

fragmented with four major players accounting for

30% of the market share and the rest is made up

of small secondary producers creating lot of

volatility in the market place. RINL is a market

leader in bars & rods that are typically used by the

construction sector - its core business segment -

with a market share of 8.7% in the country.

Initially, the design capability of the plant was limited

to mild steel products, but sensing the growing

opportunity in value added steel segment,

innovative process improvements have been

carried out over the time and there is a constant

thrust on new product development and production

of value added steel products as a differentiation

strategy against secondary steel makers.

RINL is a registered vendor for supply of special

steel products to various OEMs like Meritor Troy-

USA, Wheels India-Chennai, Axles India-Chennai,

Automotive Axles-Mysore and Tata Motors-Pune for

forging grade steel and Indian Railways for Elastic

Rail Clips.

RINL has served the domestic markets through its

marketing outlets including Branches, Stockyards,

CSAs, DLDs, RDs, Retailers, etc. The number of

outlets has increased from 496 in 2011-12 to 767

in 2012-13 registering a growth of 55%. During

2012-13, RINL became the largest exporter of Pig

Iron from India with a share of 59% by exporting

2.44 lakh tonnes of Pig Iron.

13

Major Changes during the reporting period

Commissioning of Blast Furnace-3 and execution of 6.3 Mt stage expansion

The state of the art Blast Furnace-3 at RINL was commissioned on 24th April 2012 and more than 1 Mt

of production was realized during its first year of operation.

Raw material securitisation

With constant pursuance, the first ever Iron Ore lease was allotted to the Company in Bhilwara District of

Rajasthan with an area of about 946 Hectares.

Redemption of share capital

Preferential share redemption amounting to ` 1480.5 Cr out of the total liability of ` 2937.47Cr was made

during the reporting period (` 100 Cr in 2011-12 and ` 1380.5 Cr in 2012-13).

Certification for ISO 50001

VSP was the first plant in the Indian steel sector to implement BSEN 16001 standard for Energy

Management System in 2011. This was upgraded to international standard ISO 50001: 2011 in the year

2012.

Transmission Line Tower segment

JV with PGCIL for manufacturing Transmission Line Tower & Tower parts including Research &

Development, with a production capacity of 2 lakh tonnes per annum.

14

� "Rajbhasha Shield" for effective implementation of official language Hindi.� Greentech National HR Award 2012 - Gold Award for outstanding achievement in

Training arena.� First all women QC team won the top award ( 3 star) for the first time from India at the

International Convention on Quality Control Circles - 2012, at Kuala Lumpur in additionto 2 more top awards.

� National Vigilance Excellence Award by Vigilance Study Circle (VSC).� ''IIM National Sustainability Award 2011'', First prize amongst the integrated steel plants.� Excellent Energy Efficient Unit' Award by Confederation of Indian Industry.� "Indira Gandhi Rajbhasha Shield" (First Prize) for the first time for effective

implementation of Official language Hindi.� Recognition (third time in a row) as one among "India's best companies to work for" -

2011 study by Great Place to Work Institute & Economic Times. Special Categoryaward for 'The best companies in employee participation in CSR activities'.

Awards and Recognitions during the reporting period

RINL has been recognized byvarious national and internationalinstitutions, reiterating excellencein all facets of organizationalperformance and the awardsand recognitions achieved bythe company during the reportingperiod are given below:

15

Sustainable Development has always been an integralpart of the Company's strategy since the projectconceptualization stage in 1980s. This is accentuatedby the fact that RINL was the first Indian steel plant toadopt green technologies in its manufacturing processes.

The report highlights the efforts of the Company inintegrating sustainability with business strategy. This isthe second Sustainability Report being published byRINL covering the period April 1, 2011 to March 31, 2013in line with GRI Guidelines 3.1 and compiled inaccordance with GRI Application Level-A.

During the reporting period, major initiatives towardssustainable development included :

� Formulation of SD policy for the Company addressingenvironment, economic & societal facets ofSustainable Development during 2012-13.

� Migration to ISO 50001 Energy Management Systemin 2012-13.

� Obtaining host country approval for 5 CDM projectsduring 2012-13.

A Core Committee was formed with senior levelexecutives to work on the development of theSustainability Report. The report focuses on theCompany's practices and outcomes which are importantfor sustainable results for the Company and perceivedas important by the stakeholders.

The initiatives and indicators reported are prioritized bythe Core Committee, based on significance of economic/ environmental / social impacts, and their importancefor stakeholder's assessment and decisions, keeping inview, the Vision, Mission and Objectives of RINL.

The report primarily covers the production facility atVisakhapatnam. RINL's mining operation for minor rawmaterials like limestone, dolomite, manganese and sandare not included as a part of this report.

Our subsidiary EIL, as well as the subsidiaries of EIL -OMDC and BSLC, which was acquired during 2010-11and RINMOIL Ferro-Alloys Limited - the JV Companyformed by RINL with M/s Manganese Ore India Limited

(MOIL) which is yet to commence commercialproduction, have also not been included in thereport. Over subsequent reporting cycles,efforts will be directed towards uniformdeployment of sustainability initiatives in theseareas too.

Data presented in the report is based onvarious reporting standards / methodologiessuch as, financial indicators complying withIndian Accounting Standards, energy and CO2

calculations as per WSA methodology, variousenvironmental indicators are based onmeasurements assured by calibration as perrelevant Indian Standards, perceptionmeasures captured through employee andcustomer surveys, etc.

M/s CII-ITC have been rendering the requiredsupport and provided training to RINLexecutives in Sustainable developmentaspects. In order to enhance the confidencelevels of stakeholders on reliability andmateriality of the reported information, CII-ITCprovided necessary support and guidance forcompiling this report.

Clarifications on the report, if any, may besought from:

Ms.Anita IdicullaDGM (CSM)Visakhapatnam Steel Plant, RINLVisakhapatnam - 530031Phone: +91-891-2767194Email: anita.csm@vizagsteel.com

............................................................................................................

.................................................................................................................

Report

Parameters

A Navratna Company16

Corporate

GovernanceRINL developed a well-defined corporate structure to ensure transparency,disclosures and reporting that conforms fully with laws, regulations,guidelines, etc. and to promote ethical conduct throughout theorganization.

Corporate Governance structure at RINL is based on the guidelines issuedby the Department of Public Enterprises (DPE), Govt. of India onCorporate Governance. CMD is the Chairman of the Board comprisingof Functional Directors, nominee Directors of GoI and IndependentDirectors. As on 31.03.2013 the Board of Directors of the company hadFive Functional Directors, two nominee Directors of GoI and eightIndependent Directors.

The Vision, Mission and Values of the Company are being revisited inthe company in view of the change in external scenario and expansion /diversification plan.

Major strategic issues that were taken up by the Board for reviews andimprovements during the reporting period included execution of the 6.3Mtpa expansion project, technological up-gradation projects and othermodernization programmes, issues related to raw material security, IPOand options for product diversification etc. The Board level Committees /Sub Committees chaired by CMD / Functional Directors / IndependentDirectors addressing economic / social and environmental issues of thecompany are given below:

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

17

Sl.No.Name of Board

Level Committees Key functions of the Committee.

01. Audit Committee The scope of the Audit Committee is in conformity withthe guidelines issued by DPE for Corporate Governancein respect of unlisted Companies and 292 (A)of the Companies Act-1956.

02. Independent Ethics To oversee Company's Ethics Policy Implementation.Committee (IEC)

03. CSR & Sustainability � To approve CSR Projects (each case) valuing aboveDevelopment Committee. ` 100 Lakh and upto ` 200 Lakh and to review and

recommend CSR projects valuing above ` 200 Lakh.� To approve Sustainable Development Plan and to

oversee SD Performance.

04. Human Resources To oversee the efforts made by the Company withCommittee (HRC) regard to Manpower Utilization, Redeployment and

Skill Development and give guidance thereon.

05. Committee for Award of � To approve the contracts for operation valuing beyondContracts for Operations and ` 100 Cr. and upto ` 250 Cr.Expansion of Projects � Award of contracts / orders for expansion project /(CACOEP) expansion works valuing beyond ` 100 Cr. and

upto ` 500 Cr.

06. High Power Steering To oversee the implementation of 6.3 Mtpa Expansion and tomonitor the progress of implementation.

07. Committee on Marketing � To review marketing policy, performance and(BSCOM) channels of distribution, etc.

� Empowered to clear the product campaign budget.� To incorporate / modify the broad guidelines

approved by the Board depending upon market conditions.� Authorized to approve the detailed guidelines,

procedures & DOP on exports.� Empowered to clear the product campaign budget.� To incorporate/ modify the broad guidelines approved

by the Board depending upon market conditions.� Authorized to approve the detailed guidelines,

procedures & DOP on exports.

08. Committee for Raw Material To review efforts being made by the Company towardsSecurity & Joint Ventures and obtaining much needed Raw Material security & JointAcquisitions (including Fly Ash/ Ventures and Acquisitions and give necessary guidanceSlag based cement plant). and suggestions in this regard.

09. Committee of Management (COM) � To award contracts and approve capital expenditure,purchase orders for operational requirements forvalues above ` 50 Cr. and below ` 100 Cr.

� To award contracts relating to operations andmaintenance requirements for a period upto 7 (seven) years.

10. Board Sub-Committee for � To finalize and award the contracts of SPUs.Steel Processing Units (SPU) � Full powers to finalize and award the contracts of SPUs for

tenure of 10 years with an option for extension by additional2 years.

11. Remuneration Committee To oversee implementation of directives concerningimplementation of latest pay and perks on a continuous basis.

18

Code of Business Conduct :

Board members and senior management personnel of RINL are required to submit formal consent for

complying with the guidelines for Code of Business Conduct and Ethics on assumption of charge and also

on annual basis. There is no incidence of non-compliance by the company, penalties or strictures imposed

on the company by any statutory body, on any matter during the reporting period.

Selection procedure :

Selection of Chairman-cum-Managing Director and Functional Directors is done by Public Enterprise

Selection Board (PESB) through the selection process laid down by the Government of India. Appointment

is upon approval by the Appointments Committee of the Cabinet (ACC) of Government of India. Their

appointment is for a period of five years or till the age of superannuation, whichever is earlier. Appointment

of Independent Directors is made by ACC based on the selection by the Search Committee of Department

of Public Enterprises (DPE). Independent Directors are drawn from the eminent professionals having

distinguished experience in industry and public service to facilitate independent and rational decision-

making by the Board. There are eight Independent Directors in the Board.

19

Sl.No.Name of Board

Level Committees Key functions of the Committee.

12. Committee of Independent A forum to discuss matters pertaining to the affairs of theDirectors company without the presence of Functional Directors

of the Company.

13. Shareholders'/ Investors' � Redressal of shareholder's and investors' complaints.Grievance Committee � Allotment of shares, approval of transfer or transmission of

shares, debentures or any other securities.� Issue of duplicate certificates and new certificates

on split/ consolidation/ renewal, etc.� Non-receipt of declared dividends, balance sheets of the

Company, etc.� Carrying out any other function contained in the

Listing Agreement as and when amended from time to time.

14. COM for Share Transfers To approve present share transfers of RINL.

15. Steering Committee To monitor all actions for achieving the Vision, Mission andObjectives, customers delight, risk management, CSR andenvironment protection.

16. Grievance Redressal Committee To deal with the disputes and negotiate for out of court settlement

17. Committee on Broadening the To negotiate the price for procurement of coal succeeding inbase of Coal Suppliers pilot oven test for one trial shipment with a maximum quantity

of one panamax vessel. The negotiated price be put up toBoard for approval. On successful industrial trial of the cokingcoal supplied by the party, the same will be informed to EJCfor consideration of the party as a long term coking coal supplier.

18. IPO Committee To take all decisions and approve, negotiate, finalize and carryout all activities relating to the Initial Public Offering (IPO),as it may, in its absolute discretion, deem fit and proper in thebest interests of the Company.

19. Committee on Transit and Revisits the norms afresh and gives its recommendations toHandling Loss of Raw Materials the Board for its consideration and approval.

20 Committee on Gangavaram To examine the issues related to handling of cargo throughGangavaram Port Limited (GPL).

The changes in the RINL Board during the reporting period are given below :

Nominee Directors are appointed by the Governmentof India based on the recommendation of the Ministryof Steel. There were no women directors in the Boardof RINL during the reporting period. No remunerationis paid to Nominee Directors and an amount of upto` 20,000/- is paid to Independent Directors as sittingfee for each Board / Board Sub-Committee meeting.

Linking compensation to company performance:

Linkage of compensation of functional Directors withthe performance of the company is ensured throughthe mechanism of Performance Related Pay (PRP)which is based on the level of achievement againstthe parameters covered in the annual MoU withMinistry of Steel.

Mechanism for avoidance of conflict of interest:

Conflict of interest is avoided in a transparentmanner, through mandatory disclosure of interest bythe Directors at the time of their appointment and onannual basis and also at the time of undertaking ofspecial assignments, which is also presented to theBoard, for information. There were no instances ofconflict of interest or transactions having potentialfor conflict with company's interest, during thereporting period.

Precautionary approach:

There are comprehensive mechanisms to handlerisks on proactive basis in the company which areelaborated below:

Implementation of Enterprise Risk Management(ERM) in the Company was initiated in 2009 for

developing a structured mechanism as a proactiveprecautionary approach for mitigating risks acrossthe organization. During 2012-13, 185 risks profiledacross 71 departments were reviewed with aquarterly periodicity through online system deployedfor the same.

Internal Audit is a multi-disciplinary function whichreports to Director (Finance) and undertakescomprehensive audit of practices across theorganization including out-station offices, forcompliance to the set procedures and policies. Theaudits are conducted by teams of experiencedChartered Accountants, Cost Accountants andEngineers. Periodicity of audits is based on volumeand nature of transactions and ranges from annualfor major/critical departments to 2-3 years for others.Findings of internal audit are appraised to the AuditCommittee of the Board for guidance to strengtheninternal controls.

The mechanism of Preventive Vigilance throughVigilance Department ensures timely studies onprocedures being followed in procurement, sales andaward of contracts of all departments includingexpansion area to bring in systemic improvements.The effectiveness of implementation of Integrity Pact(IP) is also monitored and extent of implementationachieved during 2012-13 was 93% of total value oftenders floated.

The robust process of Sustainability Planningexercise addresses key issues through 5-year Roll-on Plans and Annual Business Plans followed bycomprehensive review of the progress on quarterlybasis. This helps in identifying the gaps and tracking

FinancialYear

Appointment /Cessation

Particulars Effective Date

2011-12Appointment

Cessation

Shri A. P. Choudhary appointed as CMD

Shri PK Bishnoi Consequentto his superannuation

01 August 2011

30 July 2011

2012-13

Appointment

Shri NS Rao appointed as Director (Projects) 19 April 2012

Shri VS Jain appointed as Independent Director 14 May 2012

Shri AK Jain as Independent Director 14 May 2012

Prof Sushil appointed as Independent Director 14 May 2012

Prof. SK Garg as Independent Director 16 Oct 2012

Shri Lokesh Chandra as Independent Director 25 Oct 2012

Shri E Bharat Bhusan as Independent Director 15 Mar 2013

CessationShri S. Machendra Nathan, IASwithdrawn as Govt Nominee Director

14 May 2012

20

of emerging threats in the dynamic businessenvironment for formulation of corrective actions andmitigation strategies.

Target setting and performance evaluation :

Performance agreement in the form of MoU is signedby the company with Ministry of Steel on annualbasis, the process for which is facilitated by DPEthrough an independent taskforce. Performanceagainst the targets is monitored on monthly basisby the CMD and the same is appraised to the Boardon quarterly basis. Performance Related Pay ofexecutives is based on the evaluation of companyperformance against MoU targets. MoU is designedon the Balanced Score Card framework with clearlyidentified weightages for performance related tofinancials, environmental and social aspects apartfrom covering operational and other dynamicparameters.

Performance evaluation of Board :

While at present there is no formal mechanism ofassessing the performance of Independent Directors,the performance of the Functional Directors isevaluated by the Administrative Ministry.

All the relevant guidelines and policies issued by theGovernment and other statutory bodies are adoptedand complied with - like environmental norms byAndhra Pradesh Pollution Control Board (APPCB),DPE guidelines for Corporate Governance, forformulation of MoU, CSR policy, etc. In addition, thecompany complies with the system standards suchas QMS as per ISO 9001, EMS as per ISO 14001and OHSAS 18001 and has adopted ISO 50001 forEnergy Management and CMMI - Level 3 formanagement of IT processes.

RINL leadership views memberships in variousindustrial bodies / associations as an opportunity toshare their insights for the benefit of the industry andwidening the network for enhancing Company'simage and deriving benefits in the form of adoptionof learning from them. During the reporting period,RINL continued its patronage as a member ofindustrial associations like: Indian Institute of Metals,Computer Society of India, World Steel Association,Ceramic Society of India, World Steel Dynamics andGlobal Compact Network, etc.

21

Stakeholders

EngagementVarious mechanisms / fora have beendesigned over a period of time to ensuremeaningful engagement withstakeholders for understanding andmanaging their expectations. The learningfrom such engagement is helpful indevising related strategies for balancedoutcome for the company and thestakeholders.

22

Key outcomes duringthe reporting period

S.No StakeholderKey concern /expectation Engagement mechanism

2. � In Customer SatisfactionSurvey 2012-13, RINLachieved a satisfaction indexof 80.8 against 78 ofprevious year.

� New customer policy withthrust on customersatisfaction introduced in2012-13.

Customers � Availability� Quality� Service norms� Pricing� Flexibility in payment

� Cross Functional Teams' visit to customer'spremises.

� Customers meet.� Independent External Monitor (IEM)

reviews.� Customer Satisfaction Survey.� Complaint handling.� Annual Partnership Summit.

Stakeholders Engagement Mechanism

1. � Excellent MOU rating.� Commissioning of major

expansion units.

Shareholder(GoI)

� Sustainable performance� Capacity expansion� Faster decision making� Raw Material security

� Annual General Meeting.� Annual MoU meeting.� Quarterly Board meetings.� Quarterly Performance Review by MoS.� Quarterly review of expansion and other

major projects.� Planned interventions / continuous follow

up with related Government Agencies.� Overall Ministry coordination for any PMO /

VIP references.

3. � Quarterly and monthlypricing mechanism forImported Coking Coal.

� Sustained Business withMSMEs.

� LTAs for iron ore and cokingcoal to ensure additionalrequirement in view ofcommissioning of expansionunits.

Suppliers � Timely payments� Assured business� Transparent procedures� Vendor development

� Bimonthly review with SSI representativeby ED(MM).

� Annual evaluation and review of suppliersby Vendor Development Cell (VDC).

� Biannual National Level VendorDevelopment Program (NVDP) by VDC.

� Biannual State Level Vendor DevelopmentProgram (SVDP) by VDC.

� Annual Plant Level Committee meetingwith Commissioner of Industries to reviewissues related to local MSEs, chaired byCMD.

� Quarterly reviews of Independent ExternalMonitor (IEM).

� Quarterly Empowered Joint Committee(EJC) meetings.

4. � Rated amongst the "India'sBest Companies to Work for2013" - based on studyconducted by the GreatPlace to Work Institute Inc.and The Economic Times.

Employees � Health & Safety� Remuneration� Welfare amenities� Inspiring work culture

� CMD online.� Samalochana- held quarterly by all

departments.� Monthly safety meetings.� Departmental co-ordination meetings.� Other participative fora.� Employee Satisfaction Survey.

5. � Implementation of projectspertaining to Zero DischargeScheme.

� Alignment of CSR initiativewith DPE guidelines.

� Implementation of variousCSR projects.

Communities � Pollution Control� Community development� Health� Livelihood� Education

� Interaction with government officials,parliamentary / legislative committees,local bodies / municipalities.

� Meeting with Statutory bodies, NGOgroups etc.

23

24

Economic

Performance

25

2012-13 saw decline in growth rates inconsumption of long products in the country asapparent consumption of longs and moreparticularly bars & rods (flagship product line ofRINL) grew by 5.2% and 4.3% respectively onthe back of relatively healthier growth of 6% and5.7% respectively in 2011-12 (Fig. EC-a)

During 2011-12, the focus was on ensuringoptimum mix of markets and products tomaximize sales realizations by capitalizing uponopportunities in the market place. RINL registereda growth of 26% in gross sales and recorded its best ever gross sales of `14,462 Cr (Fig. EC-1 (i)).

During 2012-13, RINL explored export markets in view of sluggishness in domestic markets as steelprices declined by 12.5% (Fig. EC-b) and availability of higher quantity of pig iron due to commissioningof BF-3. Also product mix decisions leading to higher rolling of relatively higher contribution productshelped the company in minimizing the adverse impact of sluggish demand conditions.

Best ever Gross Sales of `14,462 Cr in 2011-12

Products of LMMM & WRM

26

Fig. EC-a : Apparent Steel Consumption (Growth %)

2012-13� Iron & Steel exports grew by 55% in volume.� RINL is largest exporter of Pig Iron in India with a share of 59%.

During 2012-13, RINL registered a gross sales of `13,553 Cr.,a decline of 6% from previous year(Fig. EC-1 (i)) Company ensured high share of value added steels (Fig. EC-1 (ii)) and Vizag TMTduring the year (Fig. EC-1 (iii)). Also, 8% increase in production of rebars in WRM & 12% in LMMMwhich gave almost 17% higher contribution was ensured even as the production in mills was hamperedseverely due to power restrictions imposed by APTRANSCO.

Margins (Fig. EC-1 (iv)) were essentially constrained in 2012-13 due to sluggishness in domestic marketsand lower productivity in plant due to commissioning of new units and constraints faced in ramping up ofproduction and lower production in mills due to power restrictions.

However, the real value that RINL as a PSE generates (Fig. EC-2) is through its contribution to exchequer,community investments, creating sustainable business for the up-stream supply chain, attractive valueproposition for the employees and supply of quality products to the customers. The company has contributedan amount of `25091.18 Cr. till 2012-13 to the exchequer (Fig. EC-3).

27

Fig. EC-b : Steel Price Trend during 2012-13 (` /t) (TMT (20/25mm), Faridabad)

Fig. EC-1 (ii) : VAS Production ('000t)Fig. EC-1 (i) : Gross Sales (` Cr)

Fig. EC-1(iv) : Profit After Tax (` Cr)Fig. EC-1(iii) : Sales of Vizag TMT(% of total sales in t)

Fig. EC-2 : Economic value generation and distribution (` Cr)

2009-10 2010-11 2011-12 2012-13

Direct Economic value Generated

a Revenues 11272 11946 14792 13919

Economic Value Distributed 9914 11757 13713 13420

b Operating Expenditure 7189 8886 10494 10332

(Raw Material cost, Spares, Power & Fuel, R&M, other exp.)

c Employees’ wages & benefits 1400 1273 1467 1469

d Payment to providers of fund (Dividend+ Interest) 363 436 381 496

e Payment to government 953 1150 1360 1107

(Income Tax, Wealth Tax &Excise Duty)

f Community Investments (Payment basis) 9.37 11.73 10.42 15.99

g Economic Value Retained 1358 190 1079 499

Fig.EC-3: Contribution to exchequer (` Cr)

Year Central Govt. State Govt. Gross Total

2009-10 1344.63 340.36 1684.99

2010-11 1477.70 333.49 1811.19

2011-12 1635.73 593.16 2228.89

2012-13 1587.33 598.85 2186.18

Commissioning of 6.3 Mtpa expansion project withfacilities for production of high end value added steelwill drive RINL’s growth till 2015-16, when its 7.3Mtpa stage will come on stream. Upstream capacityfor 7.3 Mtpa expansion will come from variousmodernization projects and major revamps plannedfor existing facilities from 2013-14 onwards. In thecourse of expansion and modernization projects,the competitive advantage of operational efficiencyof the plant will receive a huge boost throughadoption of latest technologies. Also, the expansionfacilities will have the capability to produce 100%value added steel products. The company did notavail any financial assistance from GoI for itsoperations & growth initiatives during the reportingperiod.

Implication of climate change

Opportunity

Government of India as a policy instrument towardsmeeting the objectives of National Mission forEnhanced Energy Efficiency (NMEE) - which is akey component of National Action Plan on ClimateChange (NAPCC) - has introduced an Energy

Efficiency Trading Scheme (EETS) called PerformAchieve Trade (PAT). Iron & Steel industry is oneamong the energy intensive industries identified inthe country and so steel companies would be ableto earn and trade Energy Saving Certificates forenergy efficient performance. RINL procured 100nos. of Renewable Energy certificates from IndiaEnergy Exchange through M/s PTC India as a tokenof purchasing Green Attributes.

As part of modernization and expansion RINL hastaken up several projects having potential forregistration under Clean Development Mechanism(CDM) to reduce Green House Gas (GHG)emissions by about 1.2 Mt annually. So far RINLobtained Host Country Approval for 11 CDMprojects, 6 projects are under validation and 4 moreprojects are under tendering stage for validation.

Risks

Market mechanism for energy and carbon tradingwill drive incorporation of energy efficienttechnologies, which would call for capitalinvestment. Also, failing to meet the energy targetsas part of PAT scheme would attract penalties.

28

Emergence of various policy guidelines to prevent

induced change in natural resources or mitigate the

risk of climate change will also have impact on

sourcing options for major raw materials for steel

making and Company may have to invest on

emerging and alternate technologies for more

efficient use of natural resources, at some point of

time in its future expansion plans.

In the last decade, there have been instances of

deficit rainfall in the catchment areas of Yeleru

reservoir, the source of water for Visakhapatnam

Steel Plant, causing alarming decline in inflow of

water to the plant. As a risk mitigating action, RINL

had taken up this issue with the State Government

and APIIDC and developed a scheme for pumping

water from Godavari River to Yeleru reservoir in the

year 2002. Various initiatives have since been taken

to improve efficiency of water usage in the plant as

well.

Employee benefits & welfare measures

In addition to statutory measures for employeebenefit and welfare, RINL has innovatively designedwelfare interventions to demonstrate people careand foster strong employee relations in the long run.

Consolidated list of statutory and other welfare andbenefit schemes deployed in the company arebrought out in Fig. LA-7 at page no. 51.

Contributory Provident Fund is paid @ 12% of thewage of the employees and the fund is managedby a Trust as per Section-17 of the Employees’Provident Fund and Miscellaneous Provisions Act1952. The Employees’ Pension Scheme 1995introduced by the Government of India has alsobeen implemented.

Employees are paid Gratuity as per the Paymentof Gratuity Act 1972 and as amended from time totime. Over and above the provisions of the Act,Gratuity is also paid in case of death of an employeebefore the qualifying service of five years shown atFig. EC-4.

The Company has introduced an Employees'Family Benefit Scheme as a special welfaremeasure for the employees.

1. As per this scheme, monetary benefit (last Basic+ DA) is provided to an employee on cessationof his employment on account of permanenttotal disablement, permanent medical unfitnessand to his nominee, in case of his death whilein service of the Company. For this, theemployee/nominee has to deposit an amountequivalent to Notional Provident Fund andGratuity.

2. In case of death / permanent total disablementarising out of & in course of employment whileon duty or death / permanent total disablementarising out of accidents while coming to duty orgoing back from duty within one hour before orafter the end of the shift, the employee /dependents of such employee will have thefollowing options :

a. One of the dependents may opt for employment& he / she may be considered for regularemployment to any of the posts mentioned inthe scheme (or)

b. The dependent may opt for monthly paymentequivalent to last pay (Basic + DA) without beingrequired to deposit with the Company the amountequivalent to Notional PF & Gratuity (or)

c. The dependent may opt for a lump sum one timeamount equivalent to (b) above at a discount rateof 20% per annum without being required todeposit the amount equivalent to Notional PF &Gratuity with the Company.

Amount spent on Employee benefits was` 1466.67 Cr. in 2011-12 & ` 1469 Cr. in 2012-13.

Standard entry level wages

Basic pay for entry level at lowest grade for non-executive and executive of full time employees is`8,630 per month and `16,400 per monthrespectively. Entry level wages of contract workersis shown in Fig. EC-5.

Fig. EC-4: Gratuity payment

1st year of service 2 months emoluments

Before 5 years of service 6 months emoluments

On completion of 5 years of service 12 months emoluments

29

Fig. EC-5: Entry level wages of contract workers (`)

SkillLevel

Minimum wage stipulation(as on 31.03.2013)

Additional payment at RINLGrandTotalBasic Variable DA Total Adhoc Special

MiscellaneousAllowance

Unskilled 3900 2106 6006 300 1,000 7306

Semi-Skilled 4420 2392 6812 300 1,000 8112

Skilled 5200 2808 8008 300 1,000 9308

Encouragement to local Industries

With a view to developing the general economy ofthe region, local Micro and Small Enterprises areencouraged for both upstream side and downstreamside. As a part of support for development and forlarger involvement of Local Micro Small Industries inVSP purchases, the following Purchase PreferencePolicy is being followed. i.e.

Fig. EC-6: Orders placed on local MSEs (` Cr)

� If there are a minimum of five or more localmanufacturers (MSEs) available for any item /class of items and the tender value is ̀ 20 Lakhsor less, tenders are limited to such suppliers.

� If available local manufacturers (MSEs) are lessthan five for any item / class of items and in thetenders where local MSEs have to compete withoutstation firms, purchase preference is beinggiven to technically and commercially acceptableLocal MSE, if their offer is within 15% above L1price and upon their matching with L1 price.

� Also, their technological capabilities areassessed regularly and technical support isextended by VSP.

Efforts on encouraging local MSMEs, has resultedin substantial increase in business with MSMEswhich contributes in development of local economyas well. Trend of supplies by local MSMEs is shownat Fig. EC-6. Performance of local MSMEs wasadversely impacted during 2012-13 due to acuteshortage of power in AP.

Local hiring

Being a PSE, RINL complies with the Hon'bleSupreme Court directives for recruitment on all India

basis for full time employees. However, significantpercentage of employees belongs to the state ofAndhra Pradesh due to their own preference.Contract workforce comprises largely of people fromsurrounding areas of Visakhapatnam. As an equalopportunity employer, RINL follows GoI norms inrecruitment through reservation to SC, ST, Ex-Service men and PWD categories (refer page 27of Annual Report of 2012-13).

Investment on community infrastructure

RINL aligns its Corporate Social Responsibilityinitiatives with DPE's guidelines on Corporate SocialResponsibility for Central Public Sector Enterpriseswhich were first issued in April 2010 and have beenfollowed by subsequent amendments. CSRactivities are planned, based on identifiedcommunity needs and the expenditure isaccordingly committed. Expenditure on CSRactivities is given at Fig. EC-7, which is well abovethe minimum norms envisaged by DPE guidelines.Unspent amount earmarked for CSR activities fora specific year, if any, is carried forward to a non-lapsable account, so as to continue the thrust onsuch projects in the following years.

Fig. EC-7: Expenditure on CSR Activities

2009-10 2010-11 2011-12 2012-13

CSR expenditure (` Cr) 9.37 11.73 10.42 15.99

PAT (` Cr) 797 658 751 353

CSR expenditure as % of PAT 1.17 1.78 1.39 4.56

30

Community Infrastructure DevelopmentActivities taken up in 2012-13 :

� Construction of Road over Bridge onBalacheruvu Road near Visakhapatnam SteelPlant, in partnership with AP State Govt.

� Setting up of Industrial Training Institute (ITI).

� Introduction of Digital Class Room concept inVisakha Vimala Vidyalayam Schools benefitingaround 2500 children.

� Distribution of desktop computers to 25 brilliantstudents of Government/Aided schools in ruralareas of Uttar Pradesh.

� Construction of 4 nos. additional class rooms andLaying of road in backward areas.

� Providing 100nos. hand pumps in backwardareas.

� Provided Desk cum Benches (60nos.) & Teachertables and Chairs to Government Junior College,Islampeta.

Indirect economic impact of operations

RINL's operations at Visakhapatnam have createda multiplying effect on local economy and relateddevelopment. Expansion of existing facilities atVisakhapatnam has also given a fillip to theemployment levels in construction activities. Thiscoupled with outsourcing of non-core activities inproduction and logistics provides employment to

about 22,000 people in the form of contract workers,who are also trained on various skills based onrequirement and safety aspects.

In order to promote usage of quality steel ataffordable prices in rural areas, the scheme ofDistrict Level Dealerships (DLDs) was furtherextended to Panchayat level villages through theintroduction of Rural Dealership Scheme (RDS)(Fig. EC-8). As per the scheme, the cost oftransporting steel from the nearest branch to theDLD or RD is subsidized by the company.

Fig. EC-9 : Supplies to MSMEs (SSIC, NSIC and SSI's)('000t)

SSI / SSIC 2009-10 2010-11 2011-12 2012-13

SSIC 43.5 26.3 34.6 34.2

NSIC 32.3 29.6 44.7 40.2

SSI 476.2 342.4 470.5 451.2

31

Fig. EC-8 :Distribution Network

RINL also supports the business of Micro, Smalland Medium Enterprises (MSMEs) by way of supplyof steel through SSIC and NSIC as per thedistribution policy of Ministry of Steel (MoS). Supplyto MSMEs by RINL is given in Fig. EC-9.

Bridge on BC Road

32

Environmental

PerformanceAt RINL, environment protection has always beenintegrated with the Company strategy since inception. Aninitial investment of `468 Cr was made on environmentprotection systems at 3 Mt stage which was 5.5% of thetotal project cost and around ` 2,002 Crs was spent onvarious energy and environmental projects over the pastdecade.

Harnessing green technologies in production processeshas been a major driver for operational efficiency andprofitability right from inception through higher productivityand yields, efficient use of materials, waste utilization andrecycling.

33

34

Fig EN-1 : Green Technologies ( Existing)

COKE OVEN:Coke Dry Cooling Plant(CDQ)

� Elimination of fugitive dust emissions, discharges & toxic gaseous pollutantsduring cooling of red hot coke.

� Recovery of waste heat from the red hot coke for generation of power (2 X7.5 MW and 1 X 14 MW) and saturated steam (2.5 ata, 7 ata and 13 ata) forprocess use, resulting in

I. Reduction in CO2 emission per year: 6,89,586 tons.

II. Reduction in coal use per year: 4,08,668 tons.

III. Reduction in SO2 emission per year: 2917 tons.

BLAST FURNACES:Bell-less / belt conveyor chargingand Top Recovery Turbine (TRT)

� Elimination of fugitive dust emission during charging of raw materials, i.e.,coke, sinter, iron ore etc. into BF resulting in better work zone environment.

� Generation of power in gas expansion turbines (2 X 12 MW) from highpressure gas at BF top, resulting in

I. Reduction in CO2 emission per year: 1,27,152 tons.

II. Reduction in coal use per year: 75354 tons.

III. Reduction in SO2 emission per year: 518 tons.

STEEL MELT SHOP:Recovery of LD gas

� Utilization of LD gas as fuel by recovery of waste gases in converters,resulting in

I. Reduction in CO2 emission per year: 3,47,060 tons.

II. Reduction in coal use per year: 2,05,677 tons.

III. Reduction in SO2 emission per year: 1,414 tons.

ROLLING MILLS:Evaporative cooling systems &Waste heat recovery from furnace

� Generation of process steam (13 ata) by recovery of heat from the skids inreheating furnaces in LMMM & MMSM, resulting in

I. Reduction in CO2 emission per year: 72,814 tons.

II. Reduction in coal use per year: 43,152 tons.

III. Reduction in SO2 emission per year: 501 tons.

Other Green technologies being adopted

Waste heat recovery at SP 20.6 MW power generation

TRT at BF-3 14 MW power generation

New Power Plant 2 X 60 MW Power generation from waste gases

Other energy saving and waste heat utilization measures implemented at RINL are 100% continuouscasting of liquid steel into blooms, recuperators in the rolling mill furnaces for preheating the combustionair and pre-heaters & contact coolers in Calcining & Refractory Material Plant to pre-heat the air and feedmaterial.

RINL is the firstintegrated steel plantto setup 20.6 MWwaste heat recoverysystem on SinterStraight-line Coolerin Sinter Machines

35

The by-product gases such as Coke Oven gas, Blast Furnace gas and LD gas are used as fuel in various

processes, thus conserving significant quantity of natural resources. Trend of recovery of by -product

gases in various processes that are used as fuel gases in the plant are given below.(Fig. EN-2 (i), (ii) & (iii))

RINL's performance with respect to recovery of CO gas in coke making process, BF gas recovery in iron

making process and LD gas recovery in steel making process are among the best in the world. The LD gas

Recovery in 2012-13 was low as the job of seal repair in LD gas holder was undertaken from Aug '12 to

Jan '13.

In 2012-13, RINL procured 100 Nos. of Renewable Energy Certificates from India Energy Exchange throughM/s PTC India as a token of Support for renewable energy in the country.

Energy Management

Various energy conservation measures are identified during the Sustainability Planning exercise for

implementation by concerned department. Centrally, Energy Management Department with close

coordination with various process owners in manufacturing ensures sufficient thrust on improving energy

efficiency. Energy audits and accounting, regular Management Reviews of energy generation and utilization,

drive the organization towards effective energy management, which has ensured consistent performance

at low levels of specific energy consumption and CO2 emissions.(Fig. EN-3 (i) & (ii)).

RINL has about 15 energy auditors certified by Bureau of Energy Efficiency in addition to more than 150

engineers trained by National Productivity Council. Teams of these engineers work under the guidance of

certified energy auditors with focus on energy intensive units such as reheating furnaces, boilers, fan

system, sinter machine etc. Recommendations of audit teams are implemented and improvements are

continuously monitored. Various projects taken up to improve energy efficiency during 2012-13 are shown

at Fig. EN-4.

36

Fig. EN-3 (i):Specific Energy consumption ( G.Cal/tcs)

Fig. EN-3 (ii):CO

2 Emissions (t CO

2/tcs)

Fig. EN-2 (ii) :CO Gas Recovery (Nm3/t coke)

Fig. EN-2 (iii) :BF Gas Recovery (Nm3/thm)

Fig. EN-2 (i) :LD Gas Recovery (Nm3/tls)

Note: For initiatives taken during 2011-12, refer to Pg. No. 81-82 of Annual Report 2011-12.

The details of direct and indirect energy consumption are given at Fig. EN-5.

Fig.EN-5: Direct / Indirect energy consumption by primary source

2009-10 2010-11 2011-12 2012-13Unit Qty. 103 Gcal Qty. 103 Gcal Qty. 103 Gcal Qty. 103 Gcal

Electricity:

a)Purchased MWH 285430 245.5 336280 289.2 300082 258.1 318276 273.7(Net import fromAP TRANSCO)

b)Gross exported MWH 3166 3450 1524 1522

c) Imported MWH 288596 339730 298558 316754

d)Own generation -Through Steam Turbine MWH 1576607 1536909 1634127 1613665 /Generator-Through Back pressure MWH 113992 106870 105390 178846 Turbine Station-Through Gas Expansion MWH 88578 86014 85824 53675 Turbine Station

Coal consumption Boiler Coal (Wet)* t 1436200 3808 1334564 3348 1246551 3280 1270444 3550Coking Coal (Wet)* t 3805361 24828 3731364 24313 3960724 25181 3945442 25157Furnace oil consumption * Kl 1556 14.5 1898 17.7 461.45 4.3 570.671 5.3HSD Consumption * Kl 2154 21.5 2192 21.9 2252 22.5 2573.3 25.7BF Coke purchased t 0 0 0 0 0 0 Coke breeze purchased t 0 0 0 0 0 0

* Direct Energy Consumption by primary energy source

37

Fig. EN-4: Energy saved due to initiatives for improving energy efficiency during 2012-13

Installation of Waste Heat Recovery System in Stoves of Blast Furnace-3 M Kcal 35357.11

Replacement of Tubular air heater in Boiler-4 in thermal power plant M kcal 20355.84

Replacement of Air Recuperators in F/C-1& F/C-2 of LMMM M Kcal 7884.00

Replacement of Gas Recuperator at the reheating furnace of WRM M Kcal 985.50

Reduction of BF gas venting from 3.75 % to 2.95 % M Kcal 39367.22

To reduce significant Energy consumption of AHU by 8% by replacing MWH 79.73with new Energy efficient AHU.

To reduce significant Energy consumption of AHU by 13% by providing MWH 115.00Variable Speed drive for Fan.

To reduce significant Energy consumption of Package Air Conditioners by MWH 211.9012% by replacing with new Energy efficient AHU.

To install 120KVA Lighting Energy Saver in high-Bay lighting circuits MWH 21.00

To install 30nos of 28W Energy efficient tube lights in ASO-1. MWH 21.00

To install 20nos of 28W energy efficient tube light in ASO-2. MWH 0.89

Commissioning of 14 MW Steam Turbine at Coke Oven Battery-4 to utilize waste heat of coke MWH 0.60

Initiatives Unit EnergySavings

Raw Materials

RINL recognizes the importance of the depleting rawmaterial sources and is committed to optimum utilizationof raw materials.

High cost of input materials in view of lack of captive rawmaterial mines for the company makes efficient usageof raw materials a key business imperative. Variousinitiatives are taken up for maximizing yields and recyclingof metallurgical wastes to minimize consumption of rawmaterials and operate consistently at low levels of specificraw material consumption (Fig EN-6). Quantity of majorraw materials used in steel making is available at pageNo.101 in the Annual report 2012-13. Efforts towardsusage of metallurgical waste to replace primary rawmaterial to the extent possible in sinter making is evidentfrom Fig- EN-7.

Steel products are environmental friendly and do not poseany health or safety hazard during their use and arecompletely recyclable. RINL strives to produce productswhich are known for their quality and also to reducewastage for its end users as brought out at Fig. PR-2. Focus is also on reducing the adverse impact onenvironment by improving the efficiency of operations and energy conservation.

Water Management

Visakhapatnam Steel Plant meets its water requirements from Yeleru reservoir through a 153 KM longcanal. The canal caters to agricultural needs, apart from industrial water requirement and part drinkingwater needs of area under Greater Visakhapatnam Municipal Corporation (GVMC).

Raw water is received into Kanithi Balancing Reservoir (KBR) which was originally designed for storage ofwater for 45 days requirement. With reduced water consumption through water conservation measures,the present storage volume is sufficient to meet 90 days requirement of the plant. Water consumption forthe last four years has been given below in Fig. EN-8.

Fig.EN-6: Trend of Raw material consumption (t/ tss)

Fig. EN-7: Usage of Metallurgical waste inSinter making (Lakh ton)

Fig. EN-8: Water consumption

Water Consumption (Million Gallons)Inflow (Million Gallons)

YeleruYear Other

sourcesTotal Plant Township KBR losses Construction

waterConstruction

waterTotal

09-10 9397 Nil 9397 6570 867 1487 709 9628

10-11 5570 Nil 5570 6217 642 1467 649 8976

11-12 10675 Nil 10675 6761 685 1532 1209 10188

12-13 9118 Nil 9118 6465 676 1674 688 9503

Water conservation is one of the key areas of integrated water management approach and is a part offunctions in RINL right from the start of the plant operations. RINL adopted three pronged strategy for waterconservation i.e.

� Reduction/ elimination of wastages in recirculation water systems and increasing cycles of concentration( COC) ,

� Reduction in F&D water consumption and

� Reclaiming waste water or water meant to be discharged to drains.

38

Recirculation System :

Cooling water / process water requirements are met with individual recirculation systems. The quantity ofrecirculation system is as high as 1.5 lakhs Cu M / hour (Fig. EN-9). Clear and contaminated waterrecirculation systems are under special chemical treatment for maintaining water quality and high cycles ofconcentrations (COC).

Various rain water harvesting measures have beenimplemented in the Company, details of which are shownat Fig.EN-12. Additionally, 260 more percolation pits arebeing provided in the expansion area with a potential tosave 5,520 million litres of water per year.

With various conservation measures listed at Fig. EN-10 - the Specific water consumption in RINL ismaintained at low level as indicated in Fig. EN-11 which is on par with international benchmarks.

Fig.EN-9: % Recirculation water

2009-10 2010-11 2011-12 2012-13

97.70 97.82 97.81 97.98% recirculation water

Fig. EN-12: Rain Water Harvesting

Percolation pits 94 Nos

Earthen Check-dams 01 Nos

Masonry Check-dams 09 Nos

Recharge Wells 18 Nos

39

Fig.EN-10: Water conservation measures Fig.EN-11 Sp. Water Consumption (Cum/tcs)

Special chemical treatment for recirculation water covering11 areas in the plant, resulting in improvement in COCfrom 2-3 to 4-5.

1500cum/hr

Treatment of oil and scale contaminated water pertainingto SMS and Mills

250 cum/hr

Teritiary treatment of plant and township sewage water foruse as make up water in SMS and Mills

250 cum/hr

Reclamation of waste / drain water 600 cum/hr

WaterConserved

Measures

Water Treatment Plant

Afforestation:

RINL's philosophy of managing operations inharmony with nature has its roots in the motto "Onetree for every ton of steel capacity", which has beenfollowed meticulously since inception. Out of thetotal land bank of 8100 Ha, 3600 Ha has beenidentified for afforestation. Cumulative trend of treeplantation is shown at Fig EN-13.

Afforestation efforts by RINL not only help in partlycompensating GHG emitted during plant operationsbut also, in minimizing the adverse impact onecosystems, landscapes and species in thesurroundings. Man-made forests in and around theplant area and other areas earmarked for thepurpose have also helped in creating a conduciveenvironment for local flora and fauna includingdiverse micro-organisms to thrive. Properplantation, regular follow-up, care and adherenceto maintenance practices resulted in achievingmore than 70% survival rate.

RINL has phased out chilling, refrigerating and aircondition units that use ODS. Thereby, equipmentusing more than 12,000 kgs of R11 and R12 havebeen replaced at a cost of about ` 19 Crs withequipment using non-ODS refrigerants. It is nowin the process of replacing 3885 kgs of Halons usedin firefighting systems with Energen systems. Thiswould cost ` 6.0 Cr. to the company.

RINL is not adjacent to any protected areas and itsoperations do not have any adverse effect on thebio-diversity and no-habitats are protected orrestored at present. Hence, no species listed inIUCN red list and national conservation list areaffected by operations of RINL.

There is no significant impact of activities andproducts and services of RINL on biodiversity dueto the extensive pollution control measures takenup in the process and Environment friendly natureof steel.

Environmental Monitoring

RINL has installed state- of- the- art monitoringsystems for continuous monitoring of Ambient AirQuality (4 nos.) and Continuous Stack EmissionsMonitoring Systems (20 nos.) and is the firstintegrated steel plant in India to go for suchextensive on-line environmental monitoringsystems. These stations have already beenuplinked to APPCB website. EnvironmentalMonitoring is being extensively carried out at RINLwith multifarious intent to not only assessenvironmental status within the plant, but also toidentify other possible impacts to the surroundingareas. Salient features of measuring theenvironmental indicators and minimizing theirimpact are as shown in Fig. EN-14.

Fig.EN-13: Green Cover - No. of Trees (Lakhs)

Fig. EN-14 : Salient features of monitoring mechanisms for environmental indicators

� Regular Bio-Assay tests carried out, to assess impact of effluents discharge into sea, on marine life.

� Engaged National Institute of Oceanography to assess impact of treated effluent discharged into sea on marine life.

� Automated re-cycling and treatment system provided to ensure desired quality of trade effluent is discharged into channel.

� Sampling of ground water at 4 villages, surrounding the plant every month to assess influence of solid waste dumps onground water.

� Close monitoring of hazardous waste disposal

40

RINL is continuously monitoring the impact of operations on environment and ensures that environmentalparameters achieved are much better than the norms and the trends of environmental parameters aregiven at Fig. EN-15 & EN -16.

Fig. EN-15.: Ambient air quality (Microgram / m3)

Location Parameter APPCB Norm 2009-10 2010-11 2011-12 2012-13

RSPM 100 66.4 49.59 62.9 61.03

Main Gate SO2 80 6.65 6.39 6.10 9.95

NOX 80 5.22 10.81 7.10 4.49

RSPM 100 60.93 47.09 41.8 46.76

Township SO2 80 11.01 14.44 16.7 15.47

NOX 80 22.75 27.19 32.1 26.29

Fig. EN-16 : Stack emissions (Milligram / Nm3)

Location Parameter APPCB Norm 2009-10 2010-11 2011-12 2012-13

CO Battery 1 to 3 SPM 50 39.1 43.5 42.26 42.6

Blast Furnace SPM 115 * 86.5 79.3 81.95 73.4

Sinter Plant SPM 115* 82.0 79.2 88.50 84.6

TPP SPM 115* 89.2 94.8 93.73 92.8

SMS SPM 115* 49.4 48.4 55.6 52

* Norm changed from 115 to 50 - the process of upgradation of related APC eqpt.is under progress at a CAPEX of ` 292 Cr.

As a result of continuous thrust on process controls and monitoring systems, there has been a reducingtrend in emissions as measured through specific loads of SPM, SO2 and hazardous wastes as given inFig.EN-17.

Fig.EN-17: Emissions

Description Unit 2009-10 2010-11 2011-12 2012-13

Specific SPM load kg/tcs 0.71 0.61 0.58 0.60

Hazardous waste recycled (%) 100 100 100 100

41

Facilities for treatment of contaminated water from plant and domestic sewage from township are shown atFig. EN-18.

Fig. EN-18: Initiatives for treatment of Contaminated Water

SN System Nos. Capacities Purpose

1. Mechanical Biological & 1 200 cu.m/hr For treatment of CokeChemical Treatment Plant Oven effluents

2. Effluent Treatment Plant 1 280 cu.m/hr For treatment ofplant sewage and effluent

3. Sewage Treatment Plant (Township) 1 300 cu.m/hr For treatment oftownship sewage

4. Waste Water Treatment Plants 8 Dust laden water from For treatment and recyclingSMS (approx. 1700 cu.m/hr, of sludge water generatedwith 6000 ppm dust content), from Coke Ovens,BF (approx. 2300 cu.m/hr, Sinter Plant, Blast Furnaces,with 1000 ppm dust content) Steel Melting ShopRolling Mills (approx. and Rolling Mills3500 cu.m/hr with 500 ppmdust content & approx.5500 cu.m/hr with200 ppm dust content)is treated independently.At coke ovens about300 cu.m/hr of water is treated.

5. Spillage Recycling Systems 8 - For recycling of toxicspillage at CO & CCPat TDP, BDP, BRP, ASP,CPH, NAFC, CPU, TOS

6. Ash-pond with ash handling pump houses 1 - For handling ashand recycling of water

Total 20

Trends in total effluent load (pollutants such as TSS, O&G, Phenol, Ammoniacal nitrogen) (Fig. EN-19) arereported by the industry as pollutants in discharged water per ton of crude steel (Fig. EN-20). Nitrification/ de-nitrification process is being taken up in the upgraded MBC plant for further treatment of effluents.

Fig.EN-19 : Effluent monitoring (Milligram / Litre)

Location Parameter APPCB &CPCB Norms

2009-10 2010-11 2011-12 2012-13

pH 6.0-9.0 7.6 7.5 7.5 7.3

Plant effluent TSS 100 79.6 76.4 77.5 86.6

treatment plant O&G 10 7.3 7.2 9.8 7.1

outlet Phenol 1 0.7 0.7 0.7 0.49

COD 250 228.9 228.9 245.1 232

BOD 30 26.7 26.7 28.9 26.7

Boundary wall Ammoniacal N2 50 43.0 43.0 47.7 37.3

Quality of discharged water is monitored, so as to reduce its impact on surrounding environment and theSpecific effluent discharge is given in Fig.EN-21. The water is treated and discharged into the sea andthere is no significant impact on marine environment as per the study conducted by National Institute ofOceanography.

42

Solid waste utilization has been a thrust area in the plant and accordingly various initiatives were taken upto improve the same. Sinter making facility in the plant offers flexibility for agglomeration of iron ore fineswith metallurgical wastes and other wastes in the plant as feedstock for iron making in the BF. Some of thepractices for solid waste management in the company are highlighted at Fig. EN-22. There was no instanceof significant spill while handling and storage of hazardous waste during the reporting period.

Fig. EN-22: Solid Waste Management

� Briquettes made from lime dust from CRMP is charged in SMS for steel-making.

� Granulated BF slag is sold to cement plants as a substitute for lime.

� Utilization of LD slag has been a challenge for the Company. However, all efforts are made to recycle +30 to -50mm sizemetallic component in SMS & BF (as a substitute for lime) and also to use it as ballast in railway tracks. The -8mm size isrecycled in sinter plant as a substitute for lime.

� Dust recovered through DE systems is unloaded from the hoppers into closed dumpers for recycling in sinter-making.

� Mills scales are recycled in sinter making process.

� Wet sludge from other WTPs is sun-dried and recycled in Sinter Plant.

� Steel scrap from different shops is charged into the LD converters.

� Packing of Dry lime dust in bags.

� Recycling Coke breeze in Sinter Plant.

� Usage of refractory bricks for making ramming mass and for carrying out repairs of LD converter and for relining theemergency containers in SMS.

Details of generation and utilization of solid wastes in 2012-13 is shown at Fig.EN-23 (i) and that of hazardouswaste is shown at Fig.EN-23 (ii)

Fig.EN-23 (i): Solid Waste Utilization for the year 2012-13

SolidWaste

Totalgeneration(t/year) (a)

Recycled orReused

(t/year) (b)

Sold(t/year)

(c)

utilized inconstruction

activities

Stack(t/year)

(d)

%UtilizationFor 2012-13={{b+c)/a}*100

Remark

2012-13

Dust from 249085 196611 56629 0 -4155 101.67 Addl.1893 tESP's, DE of SludgeSystems recycled from

prev. stock.

Sludge from 240532 335060 0 0 -94528 139.30 Addl.152596tWater of SludgeTreatment recycled fromPlants prev. stock.

BF Slag 1397080 0 1495596 19295 -117811 108.43 -

LD Slag 410673 150971 0 0 259702 36.76 -

Total 2297370 682642 1552225 19295 43208 98.12 -

43

Fig.EN-21: Specific effluent discharge (m3/tss)

2009-10 2010-11 2011-12 2012-13

0.713 0.756 0.63 0.631

Fig.EN-20.: Total Water Pollutant (kg/tcs)

Fig.EN-23 (i) Solid Waste Utilization for the year 2011-12

Solid WasteTotal

generation(t/year) (a)

2011-12%Utilization ={{b+c)/a}*100 RemarksRecycled or

Reused(t/year) (b)

Sold(t/year)

(c)

Stack(t/year)

(d)

Dust from 353590 300098 53492 100.00 Addl. 4,558 t of DustESP’s,DE recycled fromSystems previous stock.

Sludge from Water 228495 228495 100.00 Addl.73,671 t ofTreatment Plants Sludge recycled from

previous stock.

BF Slag 1369718 1072163 297555 78.28 Addl. 39,520 t of BFSlag utilized in theConstruction activitiesfrom previous stock.

LD Slag 341263 341263 100.00 Addl. 2,3,323 t ofLD Slag recycled fromprevious stock.

Total 2293066 869856 1125655 297555 87.02 -

Fig. EN-23 (ii): Hazardous Waste Utilization (in Tonnes)

Descriptionof waste

ETP sludge(MBC & ETP)

UsedLead acidbatteries

Mixednon-

ferrousmetalscrap

Used oil /waste lub. oil /

trans. oil /sludge

Tarsludge &

tankbottomsludge

Acid tarfromASP

BenzolsludgefromBDP

Containersof Hazard-ous Wastes

Calciumcarbidesludge

Method ofdisposal

Beingcharged intoCokeOvenbatteriesalong withcharge coal

Partlyrecycledafterreclamationand balancesold toauthorizedparties

Being charged into CokeOven batteries along withcharge coal

Sold to authorized parties

2011 - 12

Generation 235.6 174.07 2465.85 401.13 457.55 16.16 9.7 31 1184

Recycled 48.67 131.67 2235.24 157.34 418.11 0 0 0 0

Sold 0 0 0 0 0 8.84 114.25 40 1336

Qty. of 300 320 3300 480 300 90 50 - -generation asper consent

Generation 214.4 275.82 2378.2 442.89 413 4.51 0 9.5 0

Recycled 460.19 138.05 1855.39 575.46 320 0 0 0 0

Sold 0 172.3 0 0 0 4.31 61.7 9.5 0

Qty. of 300 320 3300 480 300 90 50 - -generation asper consent

2012 - 13

44

The Company complied with environmental norms,laws and regulations and was not implicated by wayof fines and non-monetary sanctions on this accountduring the reporting period.

Steel is completely recyclable and hence has noadverse impact on the environment. Steel productsproduced by RINL are compactly packaged usingsteel straps and the same is not reclaimed fromcustomers.

RINL has synergized the adjacent deep draft portby transportation of imported coking coal directlythrough conveyors into the raw material storagefacility in the plant premises, which has replacedthe movement of imported coking coal from

Visakhapatnam Port Trust by rail. In-bound logisticsare being further optimized by exploring thepossibility of deploying multi cargo cape sizevessels. Out-bound logistics are being optimizedwith transport of products in larger trucks and alsoregular follow up with Indian Railways for increasedtransport by rail (Fig. EN-24).

Fig. EN-24: Transport of products

2011-12 2012-13

% of rail road ratio

Qty. through rail (Mt)

1.75

2.05

1.74

1.83

45

46

RINL has a longstanding commitment to address theneeds of the society and attaches a great deal ofsignificance while discharging its responsibility towardsimproving the quality of life of the community. CSR footprint of the Company covers Environmental care,Education, Health, People care, Peripheral development,Cultural efflorescence, as a responsible corporate citizen& help during natural calamities.

Social

Performance

47

RINL is a Life Member of United Nations Global Compact (UNGC), the largest voluntary CSR initiative in theworld. Being a member, RINL publishes "Communication on Progress" every year and the same is uploadedon the global compact's website. Also, through various CSR projects, RINL strives to contribute for fulfilmentof Millennium Development Goals.

Even today RINL supports developmental and welfare activities in the four rehabilitation colonies atAganampudi, Dibbapalem, Pedagantyada and Vadlapudi which have a combined population of around 1.5Lakhs. These colonies were set up to rehabilitate 54 villages that were displaced during land acquisition 3 to4 decades back.

In order to create a focused approach for CSR, RINL formulated its CSR policy in the year 2006 incorporatingCSR as an important management function in the organizational structure of the Company. The policyenvisages allocation of upto 2% of its distributable profits for CSR activities every year.

In order to identify and implement CSR projects in different areas/domains, more than 30 specialized agenciesincluding Govt. depts., SC/ST Welfare, Tribal Welfare, CPWD etc. are engaged. Details of activities undertakenand impact created during the reporting period is given at Fig.SI-1.

During 2012-13, RINL formed Solar Energy Group under Corporate Social Responsibility in 2012-13 to meetthe electricity requirements of the villages in interior places which are not connected by roads. RINL andNew Renewable Energy Development Corporation of AP (NEDCAP) jointly surveyed the villages inaccessibleto electricity and identified 25 villages for covering under this initiative. About 1400 Solar Lanterns weredistributed to the people in identified villages & hostels and existing bay yard roof (CGI Sheets) of thehouses in the villages were replaced with Polycarbonate sheets to use day lighting.

48

Fig. SI-1 : CSR initiatives & impact

Details of Initiatives undertaken No. of beneficiaries impacted

Mobile cancer detection van 'Sanjeevan' for LionsCancer Hospital to organize mobile camps in ruralareas

Free Eye Camps through M/s Sankar Foundation.

Installation of Hand pumps and distribution ofSmokeless Choolas in rural villages

3134 Mosquito nets to 20 Tribal welfare Ashramschools

Medical Camps through Doctors from VSGH

Education

Project Surya - Towards utilizing alternate energysources

'Saksham' - Women Literacy programs

Distribution of school bags, Educational Kit andother items in Government/Aided schools

Free education to poor students

Peripheral Development

Road over Bridge near BC Road, Vizag

Construction of community welfare centers,function hall for SC community etc

Support extended by supplying steel to Fire victimsat Bheemunipatnam, Visakhapatnam Dt.

Vocational training

Environmental care

Jaladhara to provide safe drinking water to9 tribal villages

Project Green Visakha

Other activities include :� Providing free education to poor children� Distribution of solar lanterns, artificial limbs,

school kits etc� Conducting empowerment & skill development

programmes, medical camps etc.� Help during natural calamities

Total

Investment(` Lakhs)

Investment(` Lakhs)

People & Health care2011-12 & 2012-13 2011-12 2012-13

6807 people tested

6346 people tested, 1436 cataractsurgeries were carried out

100 nos of pumps and 310 choolas

Benefiting 6268 students

Benefiting 2522 people

About 200 people benefited

375 women benefited

400 poor children benefited

About 1500 children benefited

5000 commuters per day

2000 people benefited

29 Tonnes of Steel supplied to thevictims for reconstruction of 56houses

Training imparted to 725 women

9 tribal villages benefiting 3000villagers

Plan to plant 5 lakh trees in a periodof 5 years, More than 25,000 plantsplanted in 2012-13

168 263

491 769

103 166

21 184

279 218

1062 1600

49

As a PSE, RINL is an equal opportunity employerand has contributed in generation of employmentand development of human resources. The focusof HR strategy to create a vibrant work culture inthe organization is driven by employee engagementthrough involvement, empowerment, skilldevelopment, safety, health and welfare.

With ongoing expansion project, RINL banks onjudiciously planned redeployment scheme coupledwith recruitment of right talent to enhance laborproductivity

Employee base of RINL comprises of 35%executive and 65% non-executive workforce. Trendof total manpower and by break-up by gender isshown at (Fig. LA-1 & LA-2)

Fig LA-1: Man power (No. of Employees)

Fig LA-2: Employee Profile by Gender as on 31.03.13

Executive Non-Executive

Total

Men

Women

Total

5935

365

6300

11595

177

11772

17530

542

18072

RINL has long surpassed the designed labourproductivity of 231 t/m/y (which was an internationalbenchmark then) and has now achieved a level of363 t/m/y in 2012-13 (Fig. LA-3). Expansion to 6.3Mtpa, with only 10% increase in manpower providesan opportunity to rationalize the man power throughtraining and redeployment to achieve higher levelsof labour productivity.

Keeping in view the expansion requirement, thefocus was on infusion of fresh talent in the last 3years (Fig. LA-4). Also details of employee separations and comparison of recruitment and turnoverrates are provided at Fig LA-5 & Fig LA-6.

Fig LA-3: Labour productivity (t/man year)

Fig LA-4: Trend of New Recruits during FY 2011-12

Age Group Gender

<30 30-50 >50 Male Female

Executive 294 2 0 258 38

Non-executive 170 61 0 219 12

Total 464 63 0 477 50

Trend of New Recruits during FY 2012-13

Age Group Gender

<30 30-50 >50 Male Female

Executive 293 5 0 277 21

Non-executive 11 13 0 22 2

Total 304 18 0 299 23

Fig LA-5: Separations

2011 - 12 76 1 36 132 6 251

2012 - 13 109 4 39 133 4 289

GrandTotal

Separationyear

Death Dismissal Resignation Superannua-tion

Termination

50

Fig. LA-6 : Hiring and Turnover Tates

2011-12 2012-13

New Employee Hire Rate 2.91 1.78

Employee Turnover Rate 1.39 1.60

RINL has figured prominently amongst 'India's Best Companies to Work for' in annual study conductedby the Great Place to Work Institute and The Economic times since 2008.

Employee welfare - key driver for long term employee relations:

Employee welfare measures are targeted to enhance employee motivation and drive long term employeerelations, which has emerged as a key factor in attracting and retaining talent. RINL has gone beyond thestatutory requirements and has put in place, innovative welfare schemes to address employees' immediateneeds and future concerns. RINL provides a number of statutory as well as non-statutory welfare benefits toits full-time employees as detailed below (Fig. LA-7):

Fig. LA-7: Employee welfare measures

Statutory Welfare Non-statutory Welfare

� Welfare amenities as perFactories Act

� Welfare amenities as per MinesAct

� Common Welfare facilities forcontract labour inside plant

� First aid and emergency care

� PF & Gratuity

� Employee Compensation

� Maternity Leave

� Occupational Health Care

� Crèche facility

� Canteens

� ESI for contract labour

� Employee Pension Scheme

� Comprehensive medical facilities

� Educational facilities

� Housing facilities

� Conveyance allowance

� Festival advance

� LTC / LLTC

� Leave encashment

� Work dress

� Employee Family Benefit Scheme

� Group Savings Linked InsuranceScheme

� Group Personal Accident InsuranceScheme

� Life Cover Scheme (EDLI -Employees Deposited LinkedInsurance-)

� Financial & Non-FinancialMotivation Schemes

� Dr. B R Ambedkar MeritRecognition Scheme forProfessional Stream andPhysically/Mentally ChallengedStream

� Dr.Sarvepalli Radhakrishnan MeritCash Awards and Col C K NayuduSports Cash Awards

� Yoga for Township residents

� Recreation facilities likeCommunity Welfare Centers,Clubs, Parks, etc.

� Promotion of sports and games

� Facilities like gym, libraries,swimming pools, stadium etc. in thetownship

� Soft loans for house / Interestsubsidy to non-executives forhouse loan

� Soft loan for vehicle

� Soft loan for furniture

� Pre-retirement counseling

� Traveling expenses onsuperannuation

� Employees' SuperannuationBenefit Fund

� Group Mediclaim Insurance Policyfor retired employees

� Post retirement free medicalfacilities at company's hospitals

� Death Relief Scheme

� Employees' Cooperative Stores

� Employees' Thrift Society

� Promotion of cultural and trekkingactivities

� Long Service Award for employeeswho have completed 25 years ofservice - 150 gms Silver Medallion

� Farewell Memento - 10 gms GoldCoin

51

Participative management :

Employee involvement and empowerment are keyelements for fostering a climate of participation,collaboration, developing mutual understanding andmaintaining harmonious industrial relations. 21Recognized Unions in the plant ensurerepresentation of non-executives in collectivebargaining. Recognized Union elected through bi-annual elections, represents the cause of non-executive workforce to the Management andbipartite agreements are forged on major issues.Effective date of implementation is also recordedin the agreement, so as to ensure shared

understanding of the timeframe in which thechanged procedure / scheme would beimplemented. Unions represent 100% of the non-executive workforce in RINL. Harmonious industrialrelations at RINL can be assessed from the factthat there have been no strikes / lockouts in thecompany during the reporting period.

The mechanism of participative management (Fig.LA-8) is effectively deployed to deal with variousoperational issues that affect the plant’sperformance and employee satisfaction across theorganization to ensure high levels of employeeengagement.

Fig. LA-8: Management participative fora

Name of the Forum Periodicity of the meetingS.No.1 Apex Information Forum Quarterly

2 Central Safety Committee Quarterly

3 Central Welfare Committee Monthly

4 CSR Committee Bi-monthly

5 CWC Committees - 7at HQ + 2 at Mines Monthly or as and when required

6 HR information Forum Monthly

7 Marketing & Finance Information Sharing Committee Bi-monthly

8 Medical Committee Monthly

9 Mines Coordination Committee Quarterly

10 PF Trust Committee Monthly

11 Plant Level Production & Productivity Committee Quarterly

12 Project Works Committee Quarterly

13 SFCC & SFSC - 32 Committees each Monthly

14 Canteen Managing Committee As and when required

15 Superannuation Benefit Fund Trust Monthly

16 Town Development Committee Bi-monthly

17 Sports Council Bi-monthly

52

Steel Executive Association for executive workforcerepresents 100% of the executives acting as a nodalagency for taking up emerging concerns with theManagement.

Safety

Various safety and Occupational health relatedissues are settled through bipartite agreementbetween the recognized Union and theManagement. However during the reporting period,there were no such issues from either side whichrequired settlement through a formal agreement.Health and safety related issues like availability andusage levels of PPEs, unsafe practices, unsafeconditions, incidents, etc. are proactively taken upby Shop-Floor Safety Committees (SFSC), whichare chaired by respective HODs along with 5 to 7representatives from Management side and Unionrepresentative. Safety and Occupational Healthrelated issues / incidents are deliberated and actionplans are charted and implementation is monitored.The working of SFSC provides crucial inputs forCentral Safety Committee at plant level which is astatutory requirement.

Implementation of OHSAS 18001 throughcombination of various safety management

practices, maintenance practices, rigorous trainingand development of employees ensures a safe workculture in the organization. Safety is given utmostimportance and continuous efforts are made toimplement safety standards. Along with this,continuous monitoring of safety risks and otherproactive measures has resulted in reduction /elimination of potential hazards (Fig. LA-9). Severalmeasures are being taken up to achieve zeroaccident rate.

All efforts are made at RINL through a combinationof various safety management practices,maintenance practices, rigorous training anddevelopment of employees to inculcate a safe workculture in the organization.

On-site emergency plan and mock drills areconducted to test the emergency preparedness forfire, electric shock, gas leak, rescue from heights,burn injuries, etc. More than 144 nos. of fire mockdrills were organized and all the deficiencies wereaddressed and other observations made during thedrills were complied with.

For further details on initiatives related to safety referto page no. 32 of the Annual Report 2012-13 of thecompany.

Fig LA-9 : Safety statistics

REGULAR TotalYEAR

CONTRACTOR FR IR SRNR Re F Total NR Re F Total NR Re F Total

2009-10 1 26 01 28 1 16 02 19 2 42 3 47 0.87 2.09 386.83

2010-11 4 19 1 24 -- 15 2 17 4 34 3 41 0.67 1.61 366.53

2011-12 1 20 - 21 - 7 1 08 1 27 1 29 0.5 1.2 139.04

2012-13 1 11 13 25 -- 21 14 35 1 32 27 60 0.75 1.8 2099.2

Re - Reportable F - Fatal

53

There was an explosion in the oxygen line nearPressure Reducing Station-2 during commissioningtrials in SMS-2 on 13th June, 2012 in which 19 liveswere lost. In-depth studies were done to assesspossible causes and corrective actions have beeninitiated by way of improving upon the design ofoxygen valve station and also developing a safetyprocedure for commissioning of any new unit.

In addition to the statutory and other entitledpayments, ` 25 Lakhs was paid as compensationto the deceased RINL employees. It was alsoensured that an amount of `10 Lakhs was paid asex-gratia to the deceased contract employees bytheir respective agencies.

Occupational Health :

The statutory Occupational Health needs of theemployees are taken care of through a well-equipped Occupational Health Center sinceNov.1992. It is the first OHS unit in steel industry toreceive ISO-9001, ISO-14001 and OHSAS18001-2007 certifications.

Periodical Medical Examination (PME) ofemployees at OHS&RC is carried out through aprocess shown in Fig LA-10.

Fig. LA-10 : Periodical medical check-up

Health of employees in monitored at set frequency depending on the nature of work under the ManManagement Programme (MMP) and the employee records are managed online through OccupationalHealth Management System. Various initiatives like health education and heath checkup programmes arebrought out below at Fig. LA-11.

Fig. LA-11 : Occupational Health Initiatives

MMP Coverage IndustrialHygiene Surveys

Years Crane OperatorsEye Examination

No. of EmployeesCovered under

Health Education

2010-11 9722 225 1318 8548

2011-12 9479 327 1271 4718

2012-13 8924 356 1173 6191

2010-11: Special drive of HIV-AIDS Campaign was conducted which includes training of master trainers and peer educators.2012-13: Shop floor health education classes conducted on Prevention and control of Diabetes, Hypertension and Heart disease.

Employee development :

RINL takes various initiatives to improve and enhance the skills, capabilities & performance levels of itsworkforce. Training needs of the employees are identified through:

� Performance Appraisals

� Annual Training Needs Survey

� Training Advisory Committee reviews

� Training Coordinators Workshops

� Specific needs of the departments

Trend of training man-days and training effectiveness is shown in Fig. LA-12 & Fig.LA-13.

54

Fig. LA-12: Training Indicators

Employee trained Nos. 13677 13996 13472

Percentage of employees trained % 80 80 77

Training Man hours / employee 103.84 104 104

Training Expenses incurred ` Crores 3.12 3.6 3.15

Training Expenses incurred ` Crores 3.92 3.63 9.40for Foreign Training

Foreign training Nos. 102 105 262

2012-13Parameter Unit 2010-11 2011-12

Effectiveness of training programs is objectively evaluated and the outcome is used for retraining the employeeand for redesigning the training programs. Execution of training plans is reviewed by TAC on quarterly basiswith a view to ensure adequate resources for training, new training interventions and redesign of the trainingprograms as required.

Fig. LA -13 : Effectiveness of training programs

1 Reaction 85.40 85.00 86.20 86.20

2 Learning 83.72 80.15 81.56 81.41

3 Behavior 75.00 74.25 75.00 75.00

2012-13S.No. Training evaluation 2010-11 2011-122009-10

There has been significant thrust on lifelong learning and improvement of employability through varioustraining programs (Fig. LA-14) which helps in upgrading employees' knowledge and capabilities. Thesetrainings are conducted through in-house programs and external training programs at reputed institutes inthe country. With expansion projects progressing at brisk pace, employees were also imparted training onnew technologies being adopted in the expansion projects.

Fig. LA-14: Training Interactions to support Life Long Learning & Employability in 2012 - 13

1 Assertiveness & inter-personnel skills 10 214

2 Personnel effectiveness for growth 8 211

3 Communication & Presentation skills 12 220

4 Health Education 38 943

S.No. Program No of participantsNo of programs

Performance appraisal is the mechanism throughwhich departmental objectives are translated intomutually agreed tasks and targets for executives.These are reviewed during mid-term reviews toidentify constraints in implementation and thrustareas for future. All the executives in the companyhave their performance appraised through objectiveassessment of individual’s performance andidentification of development plans, which arebridged through in-house and external training.

Diversity and equal opportunity:

Various measures are taken to provide a conduciveworking environment wherein the womenemployees can realize their full potential. There isa special forum for women – Women in PublicSector (WIPS) - to provide an environment

integrated growth of women and to enhance theireffectiveness in employment.

RINL does not indulge in any discrimination bygender in any walk of organizational life andcompensation is based on grade and performanceonly.

During the reporting period, women employees hadentitlement for maternity leave of 12 weeks. Twentywomen employees had availed maternity leaveduring the period of reporting and have joined backand continuing in service.

SC/ST Cell in the Company ensures engagementwith SC/ST Association and monitors variouswelfare measures for SC/ST employees and theirfamilies.

55

Human rights

The company believes in right to human dignity,

social protection, right to rest and leisure which is a

worker’s fundamental human right and the same is

ensured through compliance with Factories Act and

other relevant laws in the country.

As a principal employer, RINL also ensures payment

of wages, which is more than the statutory minimum

wages (refer Fig. EC-5) also ensures compliance

with various statutory provisions for contract

workers. Some of these measures include:

� Provision of food through subsidized canteens,

washrooms, rest rooms, drinking water etc.

which are meant for regular employees of the

company are being extended for contract

workers also.

� Ensuring employer’s contribution of PF at the

rate of 12%.

� Payment of bonus at the rate of 8.33% of his /

her wage.

� Gratuity for contract workers who have put in

more than 5 years of service.

� Compliance to Workmen’s Compensation Act

by depositing requisite amount with

Commissioner for Workmen’s Compensation in

case the contractor fails to deposit the same to

ensure payment of compensation within

stipulated period of 30 days.

� Provision of ex-gratia payment of ` 5.00 Lakh

in case of fatal accident to contract workers. This

is in addition to the payment as per Workmen’s

Compensation Act.

� Payment of notice pay, service pay, leaves pay

and bonus at the end of contract period by the

contractor.

� Safety training to all contract workers and also

on the job training as per the requirement. Usage

of Personal Protective Equipment (PPEs) is

stringently monitored by the Engineer I/c.

In addition, RINL has taken up the issue of coverage

of ESI for contract workers with ESI Corporation

and Government of Andhra Pradesh. At present, it

is ensured that contractors bear the expenses of

medical treatment of contract workers in case of

any accident.

Though company ensures adherence to all

applicable Acts regarding dignity of labor in the case

of service contracts through various policies and

monitoring of compliance by Engineer – I/c , there

is no mechanism in place to ensure compliance to

the same in case of supply contracts.

Right to collective bargaining is ensured through

21 registered trade Unions in the company that

enable non-executive employees to voice their

concerns. The Unions also represent the contract

workers.

Minimum age limit for recruitment in the company

is 18 years. All contractors are regularly exhorted

to comply with the Child Labor regulation and

surprise checks are conducted by RINL to ensure

compliance. No incident of engagement of child

labor, any form of forced and / or compulsory labor,

grievances related to violation of Human Rights was

reported in the company during the reporting period.

Grievance Redressal Mechanism

At RINL, there are separate channels for formal and

informal grievance handling for redressal of

grievance of employees. In the formal Grievance

Procedure for non-executives, a workers’

representative is present in the Committee. Further,

both executives and non-executives grievance

handling systems have a fixed time frame to redress

the grievances. Grievances of employees pertaining

to pay, promotion, allotment of quarters etc. are

resolved through informal grievance redressal

system. A senior officer at the level of General

Manager is designated as OSD (Public Grievances)

to deal with public grievances.

56

Society :

The Company has commissioned an expert agency to make exhaustive study on impact of plant operationon environment and surrounding areas (Fig. SO-1)

Fig. SO-1:Environment impact studies

Study Brief conclusions of the study Remarks

Rapid Environment ImpactAssessment Study in 2005by M/s M N Dastur& Co.

� Ground Level Concentrations at core boundaryand buffer zone of Respirable dust, Sulphurdioxides, Oxides of nitrogen much below norm.

� Total Environmental Attributes adjudged: 22(Insignificant impact or no impact : 15Beneficial impact : 3Marginal adverse impact : 4)

� No objections from communitymembers or media during the publichearing conducted at Collector officefor expansion of VSP.

� Environmental Clearance obtainedwithin 7 months for expansion of VSP.

Rapid Marine ImpactAssessment Study in 2006by National Institute ofOceanography, GoI

No impact on marine life due to discharge of effluentsfrom VSP.

� A two month study done for assessingimpact on marine life by VSP'soperations.

� No complaints from vigilant and activefishing communities, media or anyNGOs.

Monitoring of chemical andbiological parameters in themarine environment offAppikonda and toxicologicalstudies of the treatedeffluent of VSP in 2010 byNational Institute ofOceanography, GoI

No impact on marine life due to discharge of effluentsfrom VSP off Appikonda.

57

RINL has designed a robust mechanism forcapturing environment incidents, identifying anyundesirable trend and proactively initiatingcorrective action. Inspections are carried outregularly by Environment Management Department.If any deviations are observed, it is immediatelybrought to the notice of the concerned HODs andEnvironment incident note is raised by EnvironmentManagement Department, and the same is sent tothe department concerned and also to higherManagement for their information. Corrective actionis monitored and deliberated upon duringEnvironment Review Meeting, for adequacy of themeasure to eliminate possibility of occurrence ofsimilar incidents in future.

Anti-corruption measures

Being a public sector enterprise, RINL is committedto fostering an ethical and corruption free businessenvironment. Guidelines issued by Central VigilanceCommission (CVC) are adhered to by timelyupdation of related procedures in the company.RINL has entered into an MoU with TransparencyInternational for adopting an Integrity Pact (IP) asa tool to fight corruption by bringing in transparencyin procurement processes – right from pre-selectionstage, bidding, contracting, and implementation tillcompletion.

Implementation of IP is monitored by IndependentExternal Monitors (IEM) through independentreviews with suppliers, contractors and customersto ascertain and address emerging concerns andthe feedback is shared with CMD on quarterly basis.

The risk of corruption is mitigated throughpreventive vigilance activities in sensitive areas byVigilance Department and recommendations forsystemic improvements which are implemented inall related areas. Employees are also sensitized oncorruption related issues through publication of in-house magazine and specific training programmes

Regular training programme covering contractmanagement and preventive vigilance is conductedfor regular employees. The details of sessionsconducted during the reporting period is shown inFig.SO-2.

System improvements are also taken up in case ofoccurrence of incidents of corruption and suitablepunitive action is initiated in cases where maliciousintentions are found.

RINL does not encourage any kind of politicallobbying and has not made any contribution to anypolitical party during the reporting period.

There are no legal actions against RINL for any kindof anti-competitive / anti-trust or monopolisticpractices and there was no instance of non-compliance with laws & regulations.

Fig. SO-2 : Vigilance trainings

Training details 2011-12 2012-13

No. of Sessions conducted 9 10

No. of participants 320 511

Shri B. Siddhartha Kumar, IFS, CVO,RINLaddressing the gathering on the occasion of

Vigilance Awareness Week

58

Product responsibility

Steel products produced by the Company areenvironmental friendly and do not pose any healthor safety hazard during their use and are completelyrecyclable. Further, RINL produces products whichare known for their quality and also reduceswastage for its end users through close tolerances.Bundling and automatic tying / strapping of productsminimize chances of damage during transportationof products.

The steel products of the company find applicationin construction and engineering sectors, whichrequire strict compliance with product specifications.Stringent internal quality control mechanisms andclose dimensional tolerances ensure adherence tothe required product specification. In order toenhance the confidence level of the customers,product test certificates are also issued to thecustomers along with delivery orders.

Based on the customer requirement, new products/grades are developed through in-house R&D. thetrend of new products developed is given atFig. PR-1.

Decreasing trend in new product development wasdue to the extreme sluggish condition prevailing inthe market with manufacturing sector - main driverfor new product development - witnessing negativegrowth for most part of the reporting period.

RINL's focus on production of steel products as peremerging market requirement that are required bysociety has helped in development of 'special steels'of various grades. These steels are lighter andstronger. Moreover they are more corrosionresistant. Some of such grades are mentioned atFig. PR-2.

Fig. PR-1: New products development

59

Branding of products meant for direct end use forconstruction and fabrication purpose facilitates indifferentiation by the customer through ease inrecognition and eliminates any scope for duplicationby others. Product features are communicated topotential customers through various productbrochures and also publicized through RINLwebsite.

Customer satisfaction survey for major steel plantsin the country is conducted by Ministry of Steel(MoS) on annual basis which provides meaningfulinsights into the relative position of variouscompanies on various attributes. RINL also getsCustomer Satisfaction Survey conducted by anexternal agency every year which is specifically

designed for customer segments of RINL. Basedon the same, branch wise action plans aredeveloped to enhance customer satisfaction levels.

There were no instances of non-compliance withregulations related to product and serviceinformation, marketing communications includingadvertising, promotion and breaches of customerprivacy / loss of customer data during the year.

Online Quality Complaint System provides easyaccess to the customers for lodging their complaintswhich can also be tracked online for earlysettlement. Learning from review of such complaintsduring MR meetings helped in evolving correctiveand preventive actions that resulted in reduction ofthe quality complaints.

Fig. PR-2: Development of special grade steel

S.No Product Name Special Property Beneficial Impact

1. VIZAG - TMTFE 500

� 14% reduction in steel use in similar application

� When applied they help reduce CO2 emissions over the life cycleof the product

2. VIZAG - TMTFE 550

� 19% reduction in steel use in similar application

� When applied they help reduce CO2 emissions over the life cycleof the product

3. VIZAG - TMTCRM andHS CRM

Helps reduce CO2 emissions over the life cycle of the product dueto longevity

4. PC 115 � Excellent alternative to timber

� Counters deforestation

5. VIZAG TLT � Heavy structures for transmission lines etc can be made withless steel

� When applied they help reduce CO2 emissions over the life cycleof the structure

Higher strength overconventional reinforcement

Higher strength overconventional reinforcement

Higher resistance tocorrosion over traditionalsteels, in industrial andmarine environments

Special wire for using in PCsleepers in railway lines

Offers higher strength toweight ratio over traditional

60

GRI CONTENT INDEX

GRI Description Page

No.Status

Strategy & Analysis

1.1 Statement from the most senior decision-maker of the organization.

1.2 Description of key impacts, risks, and opportunities.

Organisation Profile

2.1 Name of the organization.

2.2 Primary brands, products, and/or services.

2.3 Operational structure of the organization, including main divisions, operating companies, subsidiaries, and joint ventures.

2.4 Location of organization’s headquarters.

2.5 Number of countries where the organization operates, and names of countries with either major operations or that are

specifically relevant to the sustainability issues covered in the report.

2.6 Nature of ownership and legal form.

2.7 Markets served (including geographic breakdown, sectors served, and types of customers/beneficiaries).

2.8 Scale of the reporting organization.

2.9 Significant changes during the reporting period regarding size, structure, or ownership.

2.10 Awards received in the reporting period.

Report Parameters

3.1 Reporting period (e.g., fiscal/calendar year) for information provided.

3.2 Date of most recent previous report (if any).

3.3 Reporting cycle (annual, biennial, etc.)

3.4 Contact point for questions regarding the report or its contents.

3.5 Process for defining report content.

3.6 Boundary of the report (e.g., countries, divisions, subsidiaries, leased facilities, joint ventures, suppliers). See GRI

Boundary Protocol for further guidance.

3.7 State any specific limitations on the scope or boundary of the report (see completeness principle for explanation of scope).

3.8 Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can

significantly affect comparability from period to period and/or between organizations.

3.9 Data measurement techniques and the bases of calculations, including assumptions and techniques underlying

estimations applied to the compilation of the Indicators and other information in the report. Explain any decisions not

to apply, or to substantially diverge from, the GRI Indicator Protocols.

3.10 Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such

re-statement (e.g.,mergers/acquisitions, change of base years/periods, nature of business, measurement methods).

3.11 Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report.

3.12 Table identifying the location of the Standard Disclosures in the report.

3.13 Policy and current practice with regard to seeking external assurance for the report.

Governance, Commitments, and Engagement

4.1 Governance structure of the organization, including committees under the highest governance body responsible for

specific tasks, such as setting strategy or organizational oversight.

4.2 Indicate whether the Chair of the highest governance body is also an executive officer.

4.3 For organizations that have a unitary board structure, state the number of members of the highest governance body

that are independent and/or non-executive members.

4.4 Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body.

4.5 Linkage between compensation for members of the highest governance body, senior managers, and executives

(including departure arrangements), and the organization’s performance (including social and environmental

performance).

4.6 Processes in place for the highest governance body to ensure conflicts of interest are avoided.

4.7 Process for determining the composition, qualifications, and expertise of the members of the highest governance body

and its committees, including any consideration of gender and other indicators of diversity.

2 �

4 �

8 �

12 �

10 �

8, �

8 �

8 �

13 �

8 �

14 �

15 �

16 �

16 �

16 �

16 �

16 �

16 �

16 �

- -

16 �

- -

16 �

61 �

16 �

17 �

17 �

17, 20 �

23 �

20 �

20 �

19 �

61

Back Cover

GRI DescriptionPage

No.Status

GRI CONTENT INDEX

4.8 Internally developed statements of mission or values, codes of conduct, and principles relevant to economic,

environmental, and social performance and the status of their implementation.

4.9 Procedures of the highest governance body for overseeing the organization’s identification and management of

economic, environmental, and social performance, including relevant risks and opportunities, and adherence or

compliance with internationally agreed standards, codes of conduct, and principles.

4.10 Processes for evaluating the highest governance body’s own performance, particularly with respect to economic,

environmental, and social performance.

4.11 Explanation of whether and how the precautionary approach or principle is addressed by the organization.

4.12 Externally developed economic, environmental, and social charters, principles, or other initiatives to which the

organization subscribes or endorses.

4.13 Memberships in associations (such as industry associations) and/or national/international advocacy organizations in

which the organization: * Has positions in governance bodies; * Participates in projects or committees; * Provides

substantive funding beyond routine membership dues; or * Views membership as strategic.

4.14 List of stakeholder groups engaged by the organization.

4.15 Basis for identification and selection of stakeholders with whom to engage.

4.16 Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group.

4.17 Key topics and concerns that have been raised through stakeholder engagement, and how the organization has

responded to those key topics and concerns, including through its reporting.

Economic

Disclosure on Management Approach EC

Economic performance

EC1 Direct economic value generated and distributed, including revenues, operating costs, employee compensation,

donations and other community investments, retained earnings, and payments to capital providers andgovernments.

EC2 Financial implications and other risks and opportunities for the organization's activities due to climate change.

EC3 Coverage of the organization's defined benefit plan obligations.

EC4 Significant financial assistance received from government.

Market presence

EC5 Range of ratios of standard entry level wage compared to local minimum wage at significant locations of operation.

EC6 Policy, practices, and proportion of spending on locally-based suppliers at significant locations of operation.

EC7 Procedures for local hiring and proportion of senior management hired from the local community at significant

locations of operation.

Indirect economic impacts

EC8 Development and impact of infrastructure investments and services provided primarily for public benefit through

commercial, in-kind, or pro bono engagement.

EC9 Understanding and describing significant indirect economic impacts, including the extent of impacts.

Environmental

Disclosure on Management Approach EN

Materials

EN1 Materials used by weight or volume.

EN2 Percentage of materials used that are recycled input materials.

Energy

EN3 Direct energy consumption by primary energy source.

EN4 Indirect energy consumption by primary source.

EN5 Energy saved due to conservation and efficiency improvements.

EN6 Initiatives to provide energy-efficient or renewable energy based products and services, and reductions in

energy requirements as a result of these initiatives.

EN7 Initiatives to reduce indirect energy consumption and reductions achieved.

4, 17 �

18 �

21 �

20 �

21 �

21 �

23 �

23 �

23 �

23 �

26 �

28 �

28 �

29 �

28 �

30 �

30 �

30 �

30 �

31 �

33 �

38 �

38 �

37 �

37 �

37 �

36 �

37 �

62

GRI Description Page

No.Status

GRI CONTENT INDEX

Water

EN8 Total water withdrawal by source.

EN9 Water sources significantly affected by withdrawal of water.

EN10 Percentage and total volume of water recycled and reused.

Biodiversity

EN11 Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of high

biodiversity value outside protected areas.

EN12 Description of significant impacts of activities, products, and services on biodiversity in protected areas and

areas of high biodiversity value outside protected areas.

EN13 Habitats protected or restored.

EN14 Strategies, current actions, and future plans for managing impacts on biodiversity.

EN15 Number of IUCN Red List species and national conservation list species with habitats in areas affected by

operations, by level of extinction risk.

Emissions, effluents and waste

EN16 Total direct and indirect greenhouse gas emissions by weight.

EN17 Other relevant indirect greenhouse gas emissions by weight.

EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved.

EN19 Emissions of ozone-depleting substances by weight.

EN20 NOx, SOx, and other significant air emissions by type and weight.

EN21 Total water discharge by quality and destination.

EN22 Total weight of waste by type and disposal method.

EN23 Total number and volume of significant spills.

EN24 Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the Basel

Convention Annex I, II, III, and VIII, and percentage of transported waste shipped internationally.

EN25 Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly affected

by the reporting organization's discharges of water and runoff.

Products and services

EN26 Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation.

EN27 Percentage of products sold and their packaging materials that are reclaimed by category.

Compliance

EN28 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with

environmental laws and regulations.

Transport

EN29 Significant environmental impacts of transporting products and other goods and materials used for the

organization's operations, and transporting members of the workforce.

Overall

EN30 Total environmental protection expenditures and investments by type.

Social

Disclosure on Management Approach LA

Social: Labor Practices and Decent Work

Employment

LA1 Total workforce by employment type, employment contract, and region.

LA2 Total number and rate of employee turnover by age group, gender, and region.

LA3 Benefits provided to full-time employees that are not provided to temporary or part-time employees, by major

operations.

LA4 Return to work and retention rates after parental leave, by gender.

Labor/management relations

LA4 Percentage of employees covered by collective bargaining agreements.

38 �

38 �

39 �

40 �

40 �

40 �

40 �

40 �

36 �

41 �

35 �

40 �

41 �

42, 43 �

43, 44 �

42 �

44 �

40 �

38 �

45 �

45 �

45 �

33 �

47 �

50 �

51 �

51 �

55 �

52 �

63

LA5 Minimum notice period(s) regarding significant operational changes, including whether it is specified in collective

agreements.

Occupational health and safety

LA6 Percentage of total workforce represented in formal joint management-worker health and safety committees

that help monitor and advise on occupational health and safety programs.

LA7 Rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities by

region.

LA8 Education, training, counseling, prevention, and risk-control programs in place to assist workforce members,

their families, or community members regarding serious diseases.

LA9 Health and safety topics covered in formal agreements with trade unions.

Training and education

LA10 Average hours of training per year per employee by employee category.

LA11 Programs for skills management and lifelong learning that support the continued employability of employees

and assist them in managing career endings.

LA12 Percentage of employees receiving regular performance and career development reviews.

Diversity and equal opportunity

LA13 Composition of governance bodies and breakdown of employees per category according to gender, age group,

minority group membership, and other indicators of diversity.

LA14 Ratio of basic salary of men to women by employee category.

Disclosure on Management Approach HR

Social: Human Rights

Investment and procurement practices

HR1 Percentage and total number of significant investment agreements that include human rights clauses or that

have undergone human rights screening.

HR2 Percentage of significant suppliers and contractors that have undergone screening on human rights and actions

taken.

HR3 Total hours of employee training on policies and procedures concerning aspects of human rights that are

relevant to operations, including the percentage of employees trained.

Non-discrimination

HR4 Total number of incidents of discrimination and actions taken.

Freedom of association and collective bargaining

HR5 Operations and significant suppliers identified in which the right to exercise freedom of association and collective

bargaining may be violated or at significant risk, and actions taken to support these rights.

Child Labor

HR6 Operations and significant suppliers identified as having significant risk for incidents of child labor, and measures

taken to contribute to the effective abolition of child labor.

Prevention of forced and compulsory labor

HR7 Operations and significant suppliers identified as having significant risk for incidents of forced or compulsory

labor, and measures to contribute to the elimination of all forms of forced or compulsory labor.

Security practices

HR8 Percentage of security personnel trained in the organization's policies or procedures concerning aspects of

human rights that are relevant to operations.

Indigenous rights

HR9 Total number of incidents of violations involving rights of indigenous people and actions taken.

Assessment

HR10 Percentage and total number of operations that have been subject to human rights reviews and/or impact

assessments.

Remediation

HR11 Number of grievances related to human rights filed, addressed and resolved through formal grievance

mechanisms.

GRI DescriptionPage

No.Status

GRI CONTENT INDEX

52 �

53 �

53 �

54 �

54 �

55 �

55 �

55 �

55 �

55 �

56 �

56 �

56 �

56 �

56 �

56 �

56 �

56 �

- -

56 �

56 �

56 �

64

GRI CONTENT INDEX

Public policy

SO5 Public policy positions and participation in public policy development and lobbying.

SO6 Total value of financial and in-kind contributions to political parties, politicians, and related institutions by country.

Anti-competitive behavior

SO7 Total number of legal actions for anti-competitive behavior, anti-trust, and monopoly practices and their outcomes.

Compliance

SO8 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws

and regulations.

Disclosure on Management Approach PR

Social: Product Responsibility

Customer health and safety

PR1 Life cycle stages in which health and safety impacts of products and services are assessed for improvement,

and percentage of significant products and services categories subject to such procedures.

PR2 Total number of incidents of non-compliance with regulations and voluntary codes concerning health and safety

impacts of products and services during their life cycle, by type of outcomes.

Product and service labelling

PR3 Type of product and service information required by procedures, and percentage of significant products and

services subject to such information requirements.

PR4 Total number of incidents of non-compliance with regulations and voluntary codes concerning product and

service information and labeling, by type of outcomes.

PR5 Practices related to customer satisfaction, including results of surveys measuring customer satisfaction.

Marketing communications

PR6 Programs for adherence to laws, standards, and voluntary codes related to marketing communications, including

advertising, promotion, and sponsorship.

PR7 Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing

communications, including advertising, promotion, and sponsorship by type of outcomes.

Customer privacy

PR8 Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data.

Compliance

PR9 Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and

use of products and services.

GRI Description Page

No.Status

58 �

58 �

58 �

58 �

59 �

59 �

59 �

59, 60 �

60 �

60 �

60 �

60 �

60 �

60 �

� Fully Reported � Partially Reported - Not Reported

65

Disclosure on Management Approach SO

Social: Society

Community

SO1 Percentage of operations with implemented local community engagement, impact assessments, and development

programs.

SO9 Operations with significant potential or actual negative impacts on local communities.

SO10 Prevention and mitigation measures implemented in operations with significant potential or actual negative impacts

on local communities.

Corruption

SO2 Percentage and total number of business units analyzed for risks related to corruption.

SO3 Percentage of employees trained in organization's anti-corruption policies and procedures.

SO4 Actions taken in response to incidents of corruption.

57 �

57 �

41, 57 �

41, 57 �

58 �

58 �

58 �

ACC Appointments Committee of the Cabinet

AHU Air Handling Unit

APPCB Andhra Pradesh Pollution Control Board

APSEB Andhra Pradesh State Electricity Board

APTRANSCO Andhra Pradesh Transmission Corporation.

ASP Ammonium Sulphate Plant

BF Blast Furnace

BF-BOF Blast Furnace - Basic Oxygen Furnace

BDP Benzol Distilation Plant

BOD Biological Oxygen Demand

BRP Benzol Recovery Plant

BSLC Bisra Stone Lime Company Limited

BSY Bloom Storage Yard

CACEP Committee for Award of Contracts relating

to Project Expansion contracts

CDM Clean Development Mechanism

CDQ Coke Dry Quenching

CII Confederation of Indian Industry

CMD Chairman cum Managing Director

CMMI Capability Maturity Model Integrated

COD Chemical Oxygen Demand

CoM Committee of Management

CPH Condensate Pump House

CPU Condensate Polishing Unit

CRMP Calcining & Refractory Material Plant

CSA Consignee Sales Agents

CSR Corporate Social Responsibility

DE Dust Extraction

DGM Deputy General Manager

DLDS District Level Dealerships

DM De-Mineralized

DOP Delegation of Powers

DPE Department of Public Enterprises

ED Executive Director

EETS Energy Efficiency Trading Scheme

EIL Eastern Investments Limited

EJC Empowered Joint Committee

EMS Energy Management System

EOI Expression of Interest

ERM Enterprise Risk Management

ESP's Electrostatic Precipitator

G ETS Gas Expansion Turbine Station

G.Cal/tcs Giga Calories per tonne of crude steel

GHG Green House Gas

GM General Manager

GoI Government of India

GRI Global Reporting Index

GVMC Greater Visakhapatnam Municipal

Corporation

HOD Head of Department

HR Human Resources

HRC Human Resource Committee

HSD High Sulphur Diesel

IEC Independent Ethics Committee

IEM Independent External Monitor

IP Integrity Pact

IPO Initial Public Offer

ISO Indian Standards

IT Information Technology

JV Joint Venture

kg/thM Kilograms per tonne of hot metal

Kl Kilo litre

LMMM Light & medium merchant mill

LTC / LLTC Leave Travel Concession / Long Leave

Travel Concession Long Travel

Compensation /

MBC Mechanical, Biological and Chemical

MC & HC Medium Carbon and High Carbon

Mgd Million gallons per day

MLD Million Litres per Day

MM Material Management

MMP Man Management Programme

MMSM Medium merchant & structural mill

Glossary

66

MOIL Manganese Ore India Limited

MoS Ministry of Steel

MoU Memorandum of Understanding

MSE Micro and Small Enterprises

MSME Micro, Small and Medium Enterprises

Mt Million tonne

Mtpa Million tonne per annum

MTT Management Trainee -Technical

MW Mega Watt

MWH Mega Watt-Hour

NAFC Napthalene and Anthracene Fractional

Crystallization

NAPCC National Action Plan on Climate Change

NEDO New Energy and Industrial Technology

Development Organization

NGO Non-Governmental Organization

NMDC National Mineral Development

Corporation

NMEE National Mission for Enhanced Energy

Efficiency

NR Non Reportable

NSIC National Small Industrial Corporations

ODS Ozone Depleting Substances

OEM Original Equipment Manufacturer

OHS Occupational Health Service

OHSAS Occupational Health and Safety

Assessment Series

OHSRC Occupational Health Services &

Research Center

OMDC Orissa Mineral Development Company

Limited

PAT Perform Achieve Trade

PF Provident Fund

PGCIL Power Grid Corporation of India Limited

PH Physically Handicap

PP Power Plant

PPE Personal Protective Equipment

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67

PRP Performance related Pay

PRS Pressure Reducing Station

PSE Public Sector Enterprise

QC Quality Circles

QMS Quality Management System

R&D Research &Development

R&M Repair & Maintenance

RDS Rural Dealership Scheme

Re Reportable

RINL Rashtriya Ispat Nigam Limited

RINMOIL Joint venture company of RINL & MOIL

SC Schedule Caste

SFCC Shop Floor Coordination Committee

SFSC Shop Floor Safety Committee

SMS Steel Melt Shop

SP Sinter Plant

SPU Steel Process Unit

SSIC State Small Industrial Corporations

ST Schedule Tribe

t Tonne

t/tcs Tonne per tonne of crude steel

TAC Training Advisory Committee

TB Turbo Blower

TDP Tar Distillation Plant

TG Turbo Generator

TOS Tar and Oil Storage

TPP Thermal Power Plant

TSS Total Suspended Solids

VAS Value Added Steel

VSGH Visakha Steel General Hospital

VSP Visakhapatnam Steel Plant

WIPS Women In Public Sector

WRM Wire Rod Mill

WTP Water Treatment Plant