AT JAGGAYYAPETA LIMESTONE MINESWith the reference of

RASTRIYA ISPAT NIGAM LIMITEDVISAKHAPATNAM STEEL PLANT

A Project Report Submitted to the JNTU University

In partial fulfillment of the requirement of the

Award of Degree in

MASTER OF BUSINESS ADMINISTRATIONBy

Ms. R.LAKSHMISRAVANTHIRegd.No: 08M81E0023

Under the guidance of Mr.Md.IRFAN Assistant Professor

SANA ENGINEERING COLLEGE. KODAD.(Approved by A.I.C.T.U, New Delhi, Affiliated to JNTU & OU, Hyd)

N.H.9, Kodad, Nalgonda(dist)-508206

DECLARATION

I R.LAKSHMISRAVANTHI, here by declare that the project titled

“WELFARE ACTIVITIES IN STEEL INDUSTRY” in, RASTHRIYA ISPAT

NIGAM LIMITED, VSP  (Jaggaiahpet Branch) Jaggaiahpet (M), Krishna (DT) is

being submitted by me the School of Management studies, JNT University,

Hyderabad partial fulfillment for the award of the degree of “MASTER OF

BUSINESS ADMINISTRATION” This is a bonafide work carried out by me under

the guidance and supervision of Mr.IRFAN,MBA

Our faculty member , Sana Engineering College , Kodad.

I also declare that this project work is the result of my own effort and

that it has not been submitted to any other university for the award of the degree or

diploma earlier.

Place Kodad

Date: (R.L.SRAVANTHI)

ACKNOWLEDGEMENT

Knowledge is a power for a management student this power of Knowledge

is UN attainable unless an element of practical observation and performance is not

only for an exhaustive Knowledge about the same.

The feeling of gratitude when experienced in words is only a fraction of

acknowledgment I feel over whelmed to express my gratitude to all those who

extended their consistent support guidance and encouragement to complete this task.

I take privilege to express my profound gratitude to our principal, SANA

ENGINEERING COLLEGE KODAD permitting me to under go the Project at

RASTHRIYA ISPAT NIGAM LIMITED, VSP (Jaggaiahpet Branch)) Jaggaiahpet

(M), and Krishna (DT).

I am heartily grateful to Sri Mr. CHS SASTRY AGM (Mines) Mr.

B.U.V.N.RAJU General Manager(Mines) Mr.SeenuRao HR MANAGER

(Company guide at RASTHRIYA ISPAT NIGAM LIMITED, VSP (Jaggaiahpet

Branch)Jaggaiahpet (M), Krishna (DT)), for his valuable support and guidance.

I extend my heart felt gratitude to my faculty guide Mr.MD.IRFAN and Head

of the Department Mr.MD.IRFAN for his consistent encouragement, benevolent

critism. Inseparable suggestions, which were the main reasons to bring out the work

to present shape. And I am also thankful to all faculty members for their support &

encouragement given through out my programmer.

Finally I would to express my deep sense of gratitude to my beloved parents,

as because without their support and encouragement I would not have been finished

this work. I also express my sincere thanks to my friends and well wishers too.

R.L.SRAVANTHI

CONTENTS

CHAPTER-1

INTRODUCTION Need of the studyScope of the studyObjective of the studyMethodology of the studyLimitations of the study

CHAPTER-2

INDUSTRY PROFILE

CHAPTER-3

COMPANY PROFILE

CHAPTER-4

THEORETICAL CONCEPT

CHAPTER-5

DATA ANALYSIS AND INTERPRETATION

CHAPTER-6

FINDINGS, SUGGESTIONS AND CONCLUSIONS

BIBLIOGRAPHY

1

INTRODUCTION

Human resource management (HRM) management defend by “the art of getting

things done through people .management is further defined as “that field of human

behavior in which managers plan organize. Staff, direct and control human physical and

financial resource in an organized effort. In order to a chive desired individual and group

objectives with optimum efficiency and effectiveness.

Human resource can be though of as the knowledge skills creative abilities talent

and aptitudes and beliefs of the individual’s involved the term human resource .can be

explained in the sense of that it is resource like any natural resource .It does mean that the

management can get and use the skill ,knowledge ability etc through the development of

skill’s.

Human resources are also regarded as a human asset human capital and the like.

Planning for human resource is more important than planning for any other resource As

demand for the latter depends upon the size and structure of the former whether it is in a

country or in an industry. Further management of human resource hardly begins from

human resource planning.

Management has been defined in many but for our purpose we define it as the

process of planning organizing and controlling of physical and human resources in order

to achieve the objectives of the company managers plan by setting objectives and goals

and selecting the best course of action to achieve the plan. The task necessary for

operational plans are organized and set up into homogeneous groups. The performance of

the work is controlled by setting performance standards and avoiding deviations from

standards.

Employees at lower levels in the organization usually perform relatively

monotonous tasks and have fewer opportunities for promotion or change .this is

particularly true in developing countries. In most countries, many Employees belong to

trade Unions. In order to maintain their work commitment and motivation the

organization must provide some welfare benefits such as medical insurance, disability,

insurance, and holidays and vocations.

2

Quality of work life programmes generally focus on the environment with in the

organization and include basic physical concerns such as heating and air conditioning,

lighting, and safety precautions; additional physical amenities such as food and beverage

facilities, recreation, and aesthetics; and psychological and motivational factors such as

flexible work hours, freedom to suggest changes or improvements, challenging work, and

varying degrees of autonomy. HRD systems focus on employee welfare and quality of

work life by continually examining employee needs and meeting them to the extent

feasible. Job-enrichment programmes, educational subsidies, recreational activities,

health and medical benefits, and the like generate a sense of belonging that benefits the

organization in the long run.

Safety is freedom from the danger of accidents .Accidents in industries are caused

by unsafe conditions or unsafe acts. Accidents are avoidable are it is the moral

responsibility of organization to remove potential causes of accidents and provide a safe

working environment.

Steel occupies the foremost place among the material in use today and

pervades all walks of life. All the key discoveries of human genius, for instance,

steam engine, railway, means of communication and connection, auto-mobile, aero

plane and computers are in one way or other, fastened together with steel and with its

sagacious and multifarious application. Steel is a versatile material with multitude of

useful properties, making it indispensable for the full of furthering and achieving

continual growth of the economy, be it construction, manufacturing, infrastructure of

consumables. The level of steel consumption has long been regarded as an index of

industrialization and economic maturity attained by a country. Keeping in view the

importance of steel, the integrated steel plants with foreign collaborations were set up

in the public sector in the post-independence era. 

The real need for welfare arises from the two basic conditions generally

known as the long aim of the job and the 'social invasion of the factory'. The Working

environment of any job in a factory or mine or a workshop imposes some adverse

effect on the workers due to the heat, noise, odder and fumes etc. involved in the

manufacturing process.

3

There are also occupational hazards and environmental problems inherent and

inevitable in the manufacturing process itself, which cannot be removed or reduced.

As protective devices the compensatory benefits have to be provided for the welfare

of the workers. This can be referred to as the 'Long aim of the job', which stretches

out its adverse effect on to the worker, long after his normal working hours, affecting

his physical and mental well-being. Hence, the need for welfare services within the

factory or work place is felt. 

Regarding the aspect of 'social invasion of the factory' when a worker comes

to the work place, he is not an isolated individual but a member of society having

family members. A worker needs to be satisfied with regards to his culture and living

environment. Hence, the imperative need to provide welfare services to satisfy his

personal and family needs is felt. 

4

THE OBJECTIVES OF STUDY

1. To understand the extent to which the welfare measures are provided by VSP,

towards the employees.

2. To know the level of awareness of employees about the various welfare

measures provided to them.

3. To study how the Welfare facilities provided help in increasing the

productivity and job satisfaction.

4. To learn how welfare services provided to employees help organization to

build up a stable work force by reducing absenteeism and labour turnover.

5. To offer useful suggestions for improving the effectiveness of welfare

measures. 

Expected Contribution from the study: -

The study is expected to have the following contribution for Visakhapatnam. 

To review VSP's welfare measures and their usefulness to the workers.

To recognize the importance of welfare measures for VSP employees to

achieve the organizational goals

5

NEED FOR THE STUDY

The Study is being taken up to understand the extent to which the welfare

measures are provided by Visakhapatnam Steel Plant VSP towards the employees,

to know the level of awareness of employees about the various welfare measures

provided to them, to measure the impact of the Welfare facilities in increasing the

productivity and job satisfaction along with building a stable work force for the

Organization.

By taking up the study, there is an opportunity for me to offer some useful

suggestions to the organization for improving the effectiveness of the welfare

measures being provided presently.

Aim of the Study: -

The aim of the study is to learn the welfare activities are partly humanitarian 

to enable workers to enjoy a fully and rich life and partly economic  to improve the

efficiency of the workers and also partly civic to develop among them the sense of

responsibility and dignity and thus make them worthy citizens of the nation. Another

objective of labour welfare is to fulfill the future needs and aspirations of work force

6

SCOPE OF THE WELFARE ACTIVITIES

Welfare is a very wide one and is more or less synonymous with conditions of

work as a whole. It may include not only the minimum standards of hygiene and

safety laid down in general labour legislation, but also such aspects of working life as

social insurance schemes, measures for the protection of women and young workers,

limitation of working hours , and paid vacation. In other cases, the definition is much

more limited, and welfare in addition to general physical working conditions, is

mainly concerned with the day-to-day problems of workers and the social

relationships at the place of work. 

As the subject of welfare facilities is a very broad one covering a wide field of

amenities and activities, limits cannot be rigidly laid down regarding its scope for all

industries and for all the times. In the final analysis, labour welfare services should

include all extra-mural and intra-mural welfare work, statutory and non-statutory

welfare facilities undertaken by the employers, government, trade unions or voluntary'

organizations. Social security measures also contribute to workers welfare such as

industrial health, insurance, provident fund, gratuity, maternity benefits, workmen's

compensation, and retirement benefits, and so on. More specifically, we may examine

the ways in which labour welfare is classified in order to obtaina clear understanding

of its scope. Labour welfare can be broadly divided into two categories. 

1) Statutory2) Non-statutory or voluntary. 

Statutory welfare consists of those provisions of welfare, which depend for

their implementation on the coercive power of the government. The government

enacts certain rules of labour welfare to enforce minimum standards of health and

safety of workers. The employers are required to fulfill the statutory obligations on

welfare.  

7

METHODOLOGY OF THE STUDY

The study / research was mainly based on two sources of the data viz. 

1) Primary data                  

2) Secondary data 

Primary data: -

  The primary source of data is applied for getting the required and relevant

information directly from the Department heads and in the course of discussion with

Executives. The following are the data collected through primary sources. 

a) Type of welfare measures provides by Visakhapatnam Steel Plant, RINL.

b) Refreshment courses conducted in the technical institute.

c) About the courses covered through discussion with the employees and through

Questionnaires. 

Secondary data: -

The secondary source of data was collected through records and files obtained

from the Administrative Department of VSP. And the institutional guide has given the

required necessary information and the staff relating to Administration has given all

the remaining necessary information to complete the study. 

 

8

LIMITATIONS OF THE STUDY

As the employees of the organization are busy with their work schedule it was difficult to collect detailed data.

Time was the major constraint as the mentioned period was not enough to collect the data in detail.

Survey was done with the sample size of 400 as the employees of the company work in shifts and as they are busy with their schedule.

Some were not properly answered the questionnaire due to lack of interest in filling.

 

9

10

STEEL INDUSTRY PROFILE

Steel comprises on of the most important inputs to all sectors of the economy.

Steel Industry is both a basic and a core Industry. The economy of any nation depends

on a strong base of Iron and Steel Industry in that nation. History has shown that the

countries having a strong potential for Iron and steel Industry have played a

prominent roll in the advancement in the civilization in the world. Steel is search has a

versatile commodity that every object we see in our day to day life has used for such

small items has nails, pins, needles etc., to surgical instruments, agriculture

implements, boilers, shifts, railway materials, automobile parts. The great investments

that has gone into the fundamental research in Iron and Steel Technology has helped

both directly and indirectly many modern fields of today’s science & technology.

Steel is versatile and in dispensable item. The versatility of steel can be traced mainly

of three reasons.

It is only metallic item, which can be conveniently and economically

produced in tonnage quality.

It has got very good strength coupled with malleability.

Its properties can be changed over a wide range. Its properties can be

manipulated to any extend by proper heat treatment techniques.

Iron and Steel making as a craft has been known to India for a long time.

However, its production in significant quantities only after 1900.

PRE-INDEPENDENCE ERA:

By 1950 total installed capacity for ingot steel production was 1.5 million

tones for year. In 1830 James heath constructed the first manufacturing plant at port

Nova in Madras presidency. But it was a financial failure.

In 1874 James Erskin founded the Bengal Iron works. It was passed on to M/s.

Hoare Hiller and Co. in 1882 and to M/s Martin and Co. in 1885. In 1899 Jamshedji

Tata initiated the scheme for an integrated steel plant.

11

In 1906 Sakhi in Bihar was chosen as the site for the “Tata Iron and Steel

Company”. The same place is known as Jamshedpur. In 1918 initially “Indian Iron

and Steel Company” was founded and the “Bengal Iron and Steel Company” was

merged it in 1920. TISCO produced Steel in 1939. Between 1940-50 formation of

major iron and Steel at Bhadravti In Karnataka owing to the pioneering effort of Shri

Visveswarayya in 1936 it started manufacturing steel and after 1945 adapted electric

reduction of Iron ore. It has also started manufacturing Ferro Alloys and special steel.

POST-INDEPENDENCE PERIOD:

After the independence the government has taken steps to improve the steel

industry from the Following five – year plans.

First Five year plan (1951-1956)

No new steel plant came up. The Hindustan steel Limited was born in the year

1954 with the decision of setting up three plants each with one million tones ingot

steel per year at Rourkela, Bhopal and durgapur, TISCO started its expansion

program.

Second five year plan (1956-1961)

A bold decision was taken up to increase the ingot steel output in India to six

million tones per year and the production at Rourkela, Bhilai and Durgapur Steel

Plant started. Rourkela steel plant was established with the collaboration of West

Germany, Bhilai steel plant with USSR and Durgapur steel plant with Britain.

Third Five year plan (1961-1966)

During the plan the 3 steel plant under Hindustan steel Limited (Rourkela,

Bhilai and Durgapur) Plants were expanded. In January 1964, Bokaro steel plant came

in to existence.

12

Fourth five year plan (1969-1974)

Salem steel plant started .Government of India gave permission for setting up

steel plant in south at Visakhapatnam. Steel authority of India Limited was formed

during this period on 24th January 1973.

Fifth five year plan (1974-1979)

The idea of setting up the 5th integrated steel plant, the Ore-based plant at

Visakhapatnam took a definite shape at the end of the 5th five-year plan, the total

Installed capacity from 6 integrated plants was 10.6 million tones

Annual plan (1979-1980)

The erstwhile Soviet Union agreed to help in setting up of the Visakhapatnam

steel plant.

Sixth five year plan (1980-1985)

The construction activities were stared at Visakhapatnam steel plant with a big

bang and top priority was accorded to start the plant .Schemes for modernization of

Bhilai steel plant, Rourkela steel plant, Durgapur steel plant and Tata Iron and steel

company were initiated. Capacity at the end of 6th five year plan from 6 integrated

plans stood 11.5 million tones.

Seventh five year plan (1986-1991)

Expansion work at Bhilai and Bokaro steel plant was completed .progress of

Visakhapatnam steel plant picked up and the rationalized concept has been introduced

to commission the plant with 3 million tonne capacity by 1990.

13

Eight five year plan (1992-1997)

The Visakhapatnam steel plant was commissioned in 1992. The plant started

its production and its cost became around RS .8, 755 crores .Modernization of other

steel plant was also duly envisaged.

Ninth five year plan (1997-2002)

Visakhapatnam steel plant had foreseen a7% growth during the entire plan

period

Tenth five year plan (2002-2007)

Steel Industry registers the growth of 9.9% Visakhapatnam steel plant high

regime targets achieved the best of them.

The technology revolution in steel making has lead to the problems of today.

Until the 1980’s barriers to entry in the industry were prohibitive. With new steel

making technologies, the structure of the industry changes in the mid-1980. With the

addition of new capacity through the mid-1990, supply exceeded demand for the first

time in the century, leading to severe competition in the world market.

The pricing structure in the past 20 years has grown increasingly

“competitive.” But with each passing year an ever rising number of steel mills the

world over have come to believe that their production actions make no difference

when it comes it pricing. The strategy has to maximize the out put as long as prices

remain above their marginal cost. Hence price competition has grown severe, even at

high operating rates.

With capacity additions becoming easier, surplus capacity particularly in

developing regions will be a problem in the coming years. The world steel market in

2001 moved largely down hill, with volume and prices sinking rapidly over the year

until early 2002.

14

Looking back to the mid -1990’s the global steel industry has suffered through

In 1995 a pricing “Death spiral “ when the global economy was rising

In 1998 a “death spiral” in the global economy was stagnant after the

Asian Financial Crisis.

In 2000, a “death spiral” when the global economy was booming

In the second half of 2001, after a moderate recovery in the first half of the

year, a renewed price collapse.

The world leaders in the steel production were the Erst –while Soviet Union,

the United Status, the United Kingdom, France and Germany. How ever over the last

25 years, there has been a shift from the western to the eastern hemisphere. Now

China is the largest producer in the world. India, with a capacity of 34 million tones

with an actual production of 30 million tones, continues to have unutilized capacity.

One exception is Rashtriya Ispat Nigam Limited which has raised its production by

10% with all major units exceeding the rated capacities with initiatives taken by the

Government in meeting infrastructure needs, the demand for steel has started showing

significant improving. At present India is the 10th largest producer of steel in the

world. In India, a major part of steel is consumed in engineering applications,

followed by automobiles and construction.

This recovery in the automobile sector is expected to benefit the steel industry.

Any step up in the Government expenditure on infrastructure projects is also likely to

benefit the steel sector.

Industry Classification:

The industry classification based on product categories and the major producers

can be divided into the following:

Iron ore – National Mineral Development Corporation [NMDC], Kundremukh Iron

Ore Co [KIOCL] and Sesa Goa [Sesa] are the major merchant producers of iron

ore .SAIL and Tata Steel have their captive.

15

Pig Iron–KIOCL, Sesa Goa and Usha Ispat. Apart from them there are many blast

furnace [MBF] pig iron producers and even integrated steel plants of SAIL and RINL

produce a significant amount of pig iron.Sponge Iron – Essar Steel, Ispat Industries,

Vikram Ispat [a division of Grasim] are the major producers of gas based sponge iron.

Flat Steel Products – SAIL, Tata Steel, Essar Steel, Ispat Industries and Jindal

Vijaynagar [JVSL] are the major producers of hot rolled coils [HRC]. SAIL, Tata

Steel, spat Industries, Jindal group of companies, Uttam Steel and Bhushan Steel are

the big producers of cold rolled coils/sheets [CRC] and galvanized sheets 9GP/GC.

Long products- RINL, SAIL and Tata Steel are the major producers of long products.

Alloy Steel products – Mukand, Mahindra Ugine [Musco] and Kalyani Carpenter are

some of the largest producers of alloy steel in country, which is primarily used, in

automotive and engineering applications.Based on the routes of production, the

industry and major producers can be classified into the following categories.

Integrated producers -SAIL, RINL, Tata steel and JVSL are the largest primary steel

producers. Secondary users – Essar Steel, Ispat Industries and Lloyd’s steel are the

largest producers of steel through the secondary route production.

THE MAJOR STEEL AND RELATED COMPANIES IN INDIA

1. Bharat Refactories Ltd.

2. Hindustan Steel Works construction Ltd.

3. Jindal Steel and Power Ltd.

4. Kundermukh Iron ore Company Ltd.

5. Manganese ore [India] Ltd.

6. Metal Scrap Trade Corporation Ltd.

7. Metallurgical and Engineering Consultants India Ltd.

8. National Mineral Development Corporation [NMDC]

9. Rastriya Ispat Nigam Ltd.

10. Sponge Iron India Ltd.

11. Steel Authority of India Ltd.

12. Tata Iron Steel Company.

16

2.5 GLOBAL SCENARIO

As per I ISI

In March’2005 world crude steel out put was 928 Mt when compared to march

2004 (872Mt),. The change in percentage was 6.5%.

China remained the world largest crude steel producer in 2005 also (275Mt)

followed by Japan (96Mt) and USA (81Mt). India occupied 8th position (42Mt).

USA remained the largest importer of semi finished and finished products in 2002

followed by China and Germany.

Japan remained the largest exporter of semi finished and finished steel products in

2002 followed by Russia and Ukraine.

Other significant recent development in the global steel scenario have been: Under

the auspices of the OECD (Organization For Economic Co-operation &

Development) the negotiations among the steel producing countries for a steel

subsidy agreement (SSA) held in 2003 with the objective to agree on a complete

negotiating test for the SSA by the Middle of 2004. It also set subsides for the

steel industry of a ceiling of 0.5% of the value of production to be used

exclusively for Research & Development.

The global economy witnessed a gradual recovery from late 2003 on words. China

has become one of the major factors currently driving the world economy.

As a result of these economic developments IISI has projected an increase by

6.2% or 5.3 Mt in 2004 in the global consumption of finished steel products .IISI

has split the growth into two separate areas, china and te rest of the world (ROW).

Steel consumption in china has been estimated to increase by a 13.1% or 31Mt in

2004.

USA has repealed the safeguard measures on import of steel as a result of a ruling

by a WTO dispute resolution panel, which held these measures to be illegal under

the WTO regime.

17

MARKET SCENARO:

The year 2004-05 was a remarkable one for the steel industry with the world

crude steel production crossing the one billion mark for the first time in the history of

the steel industry. The world GDP growth about 4% lends supports to the expectations

the steel market is all set for strong revival after prolonged period of depression. The

Indian economy also become robust with annual growth rates of 7-8% this will

provide a major boost the steel industry. With the nations focus on infrastructure

development coupled with the growth in the manufacturing sector, the Indian steel

industry all set for the north ward movement. The draft national steel police envisages

production of 60 Mt by 2012 and 110Mt by 2020, and annual growth rate of 6-7%.

All this should there foe augur well for the Indian steel industry.

PRODUCTION SCENARIO

Steel industry was de-licensed and decontrolled in 1991&1992 respectively.

India is the 8th largest producer of steel in the world.

In 2003-04 finished steel production was 36.193 Mt.

Pig iron production in 2003-04 was 5.221Mt.

Sponge iron production was 80.85 Mt during the year 2003-04

The annual growth rate of crude steel production in 2002-03 was 8% and in

2003-04 was 6%.

The last eight year production performance is as under:

(In Million tones)

YEAR PIG IRON SPONGE IRON FINISHED STEEL

2000-01 3.39 5.44 29.27

2001-02 4.08 5.44 30.63

2002-03 5.28 6.44 33.67

2003-04 3.76 8.09 39.12

2004-05 3.18 9.93 41.15

2005-06 3.20 9.00 41.20

2006-07 3.25 9.01 42.00

2007-08 3.26 9.01 42.50

18

19

VISAKHAPATNAM STEEL PLANT - AN OVERVIEW

VISION

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 the 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.

MISSION

To attain 10 million ton liquid steel capacity through technological up-

gradation, operational efficiency and expansion; to produce steel at international

standards of cost end quality and to meet the aspirations of the stakeholders.

OBJECTIVES

Expand plant capacity to 5 million ton by 2007-08 with the mission to attain 10 million ton capacity in two subsequent phases.

Wipe out accumulated losses by 2006-07.

Be amongst top five lowest cost liquid steel producers in the world by

2006-07.

Achieve customer satisfaction levels on par with world class organizations by 2006-07.

Make R1NL the employer of choice by caring for employees. Develop

people as knowledge workers by 2005-06 and achieve an improvement of

5 percentage points in employee satisfaction levels every alter to year.

Be ranked as an excellent business organization by 2006-07.

Ensure zero effluent discharge by 2005-06 June contribute to improving

quality of life (health, literacy and water) in at least one village every year.

20

VSP’s Special features:-

Some of the unique features of RINL/VSP are:

7 m tall Coke Oven Batteries with coke dry quenching

Biggest Blast Furnace in the Country

Bell less top charging system in Blast Furnace

100% slag granulation at the BF cast house

Suppressed combustion – LD gas recovery system

1st Integrated Steel Plant having 100% Continuous casting of liquid steel

`Tempcore’ & “Stelmor” cooling process in LMMM & WRM respectively

High Speed Rolling Mills

Extensive waste heat recovery systems

Comprehensive pollution control measures

Higher level of labour productivity

All products certified to ISO 9002 standards

ISO-9001: 2000 for Quality Management, ISO 14001:1996 for Environment

Management System and OHSAS 18001:1999 for Occupational Health and

Safety.

Commissioning of the Plant:-

The Plant was dedicated to the nation on 1st August 1992. The making of this 3

million tonne (MT) Steel Plant marked a giant step towards innovativeness and

excellence. VSP ushered in a new era of steel making in terms of the state-of-the-art

technology, improved techno-economics, energy conservation, automation,

environment management, high labour productivity etc.

Products:-

VSP produces long steel products. Its range of products includes Wire Rods,

Plain and Reinforced Bars, Light and Medium Structural, Rounds, Squares, Basic

Grade Pig iron and Coal Chemicals, etc. In addition to finished steel, the product mix

of VSP provides for production of semi-finished products like Blooms and Billets.

21

VSP caters to Construction Industry, Engineering Industry, Re-rolling Industry,

Automobile Industry, Wire Drawing Industry, and Railways etc. In a nutshell, VSP

products mainly cater to the infrastructure industries.

Focus on Quality:-

Right from inception, Quality has been the main focus in all spheres of

activities of the Company. VSP entered the market at a time when the new economic

policy initiatives were being introduced in the country. It meant increased competition

in the market place. Accepting the market competition and challenges as it did, VSP,

within a short time, could prove its worth and earn a name for itself in the Indian and

International steel markets.

Production Performance:-

During 2003-04 VSP produced 4.06 MT of Hot Metal, 3.51 MT of Liquid

Steel and 3.17 MT of Saleable Steel as against the rated capacity of 3.4 MT of Hot

Metal, 3 MT of Liquid Steel and 2.656 MT of Saleable Steel. Not only in production,

but also on all the techno-economic parameters, VSP achieved the distinction of

bettering some of the international benchmarks thereby becoming an efficient and

cost effective integrated Steel Plant in the Country. During 2003-04, all-time records

were established in majority of the techno-economic parameters.

Marketing:-

For the first time since inception, VSP has crossed the Rs.4000 cr. mark by

achieving a Sales Turnover of Rs.4081 crores in 2001-02. Suitable Marketing

strategies, strengthening of stockyard operations, better Customer Service and faster

decision-making have been responsible for improved performance levels. The total

turnover during 2003-04 was Rs.6174 crores, out of which, VSP registered Domestic

sales of Rs.5406 crores and Export sales of Rs.768 crores Domestic and Export sales

recorded growth of 22% and 23% respectively over that of 2002-03.

22

ISO Certification:-

During 2000-01, VSP was awarded the ISO 9001:2000 certificate for Quality

Management System. The company acquired the ISO 14001:1996 certificate for

Environment Management System (EMS) and OHSAS 18001:1999 certificate for

Occupational Health and Safety Management System during 2001-02. VSP is the only

integrated steel plant in the country to have acquired these three certificates covering

all areas.

Financial Performance:-

Production and Marketing performance along with cost reduction measures

have helped in achieving improved financial results. Operating Profit of Rs.2023

crores has been achieved during the year 2003-04 against Rs.1162 crores in 2002-03.

A Cash Profit at Rs.1972 crores in 2003-04 has more than doubled from Rs.975 cr. in

2002-03. The net profit recorded at Rs.1521 crores for the year 2003-04.

Laurels:-

During 2003-04, RINL won the Rolling Shield for Ecological Production

instituted by the Ministry of Information and Broadcasting; awarded 1st Prize in

National Energy Conservation from the Ministry of Power, GOI in 2002 & 2003; VSP

bagged National Award-NMDC Trophy as best Quality Circle Promoting

Organization amongst PSUs; won best suggestor award at 14th National Convention of

INSSAN; awarded Prime Minister’s Trophy for the best integrated Steel Plant for the

year 2002-03. RINL achieved an MOU Composite score of 1.00 for the year 2002-03

and also RINL’s score is the best amongst the PSES under the Ministry of Steel.

Manpower:-

RINL/VSP operates with a compact manpower of around 16,700, which is

much less as compared to other Public Sector Integrated Steel Plants of similar

capacity in the country. Out of this total manpower, 12,200 are in workmen category

and the balance is in executive and non-unionised supervisory cadres.

23

MAN POWER AT GALANCE

2006 – 2007 2007 - 2008

As on31-03-2007

As on31-03-2008

As on 31-05-2008

EXECUTIVES 3532 3870 3860

WORKS 2145 2365 2362

PROJECTS 225 269 263

MINES 54 55 56

OTHERS 1108 1181 1179

JUNIOUR OFFICERS 1105 813 814

WORKS 776 557 559

PROJECTS 27 18 18

MINES 22 22 22

OTHERS 280 216 215

NON – EXECUTIVES 11937 11736 11727

WORKS 10687 10542 10533

PROJECTS 68 64 64

MINES 281 273 273

OTHERS 901 857 857

TOTAL 16574 16419 16401

WORKS 13608 13464 13454

PROJECTS 320 351 345

MINES 357 350 351

OTHERS 2289 2254 2251

24

Labour Productivity:-

The overall Industrial Relations scenario in VSP is cordial and propitious for

high production and productivity. The average Labour Productivity during 2003-2004

stood at 262 tons/man/year. This is the highest Labour Productivity amongst the

integrated Steel Plants in India.

MAJOR SOURCES OF RAW MATERIALS:-

Iron Ore lumps & fines --- Bailadilla, M.P.

BF Lime Stone --- Jaggayyapeta, A.P.

SMS Lime Stone --- Dubai

BF Dolomite --- Madharam, A.P.

SMS Dolomite --- Madharam, A.P.

Manganese Ore --- Chipurupalli, A.P.

Boiler Coal --- Talcher, Orissa

Coking Coal --- Australia

WATER SUPPLY:

Operational water requirement of 36 Mgd is being met from the Yeleru water

supply scheme.

POWER SUPPLY:

Operational Power requirement of 180 to 200 MW is being met through

Captive Power Plant. The capacity of the power plant is 286.5 MW. VSP is exporting

60 MW power to APSEB.

25

MAJOR UNITS:-

DEPARTMENTS ANNUAL CAP(’000 T)

UNITS (3.O MT STAGE)

COKE OVENS 2,2613 Batteries each of 67 ovens & 7 Mts

Height

SINTER PLANT 5,2562 Sinter machines of 312 Sqm grate area

Each

BLASTFURNACE 3,400 2 Furnaces of 3200 cu m volume each

STEEL MELT SHOP 3,0003 LD Converters each of 150 Cum.

Volume and six 4 strand bloom casters

LMMM 710 4 Stand finishing Mill

WRM 850 2x10 stand finishing Mill

MMSM 850 6 Stand finishing Mill

VSP Technology: State-of-the-Art

7m tall Coke Oven Batteries with coke dry quenching

Biggest Blast Furnaces in the country

Bell less top charging system in Blast Furnace

100% slag granulation at the BF cast house

Suppressed combustion - LD gas recovery system

100% Continuous casting of liquid steel

"Tempcore" and "Stelmor" cooling process in LMMM & WRM

Extensive waste heat recovery systems

Comprehensive pollution control measures

26

BACK GROUND:-

To meet the growing domestic needs of steel, Government of India decided to

set up an integrated Steel Plant at Visakhapatnam. An agreement was signed with

erstwhile USSR in 1979 for co-operation in setting up 3.4 MT integrated Steel Plant

at Visakhapatnam. The foundation stone for the plant was laid by the then Prime

Minister on 20th Jan'71

The Project was estimated to cost Rs.3897.28 Crs based on prices as on 4th

Quarter of 1981. However, on completion of construction and commissioning of the

whole Plant in 1992, the cost escalated to around 8500 Cr. Unlike other integrated

Steel Plants in India, Visakhapatnam Steel Plant is one of the most modem steel

plants in the country. The plant was dedicated to the nation on 1st August' 1992 by the

then Prime Minister, Sri P V Narasimha Rao.

New technology, large scale computerization and automation etc., are

incorporated in the Plant. To operate the plant at international levels and attain such

labour productivity, the organizational manpower has been rationalized. The Plant has

a capacity of producing 3.0 MT of liquid steel and 2.656 MT of saleable steel.

With a view to give impetus to Industrial growth and to meet the inspirations

of the people from South India, Government of India decided to establish Integrated

Steel Plants in Public Sector at Visakhapatnam (AP) and Hospet (Karnataka) besides

a special Steel Plant at Salem (Tamil Nadu). The announcement was made in the

Parliament on 17th April' 1970 by the (hen Prime Minister of India late Smt. Indira

Gandhi.A site was selected near Balacheruvu creek near Visakhapatnam city by a

Committee set up for the purpose, keeping in view the topographical features, greater

availability of land and proximity to a future port.

The construction of the Plant started on 1st February 1982. Government of

India on 18th Feb 82 formed a new Company called Rashtriya Ispat Nigam Ltd.

(RINL) and transferred the responsibility of constructing, commissioning & operating

the Plant at Visakhapatnam from Steel Authority of India Ltd. to RINL.

27

Due to poor resource availability, the plant construction could not keep pace

with the plans which lead to appreciable revision of the plant cost. In view of the

critical fund situation and need to check further increase in the plant costs, a

rationalized concept was approved which was to cost Rs. 6849 crores based on 4th

Quarter of 1988.

CHANNELS OF DISTRIBUTION:-

- Network of 22 branches and stockyards

- Consignment agencies / consignment sales agencies / dealer major

customer categories.

- Project sales

- Engineering industry

- Rerolling industry

- Traders

- Exports

MARKETING INITIATIVES:

Strict adherence to quality

Thrust on exports

Focus on southern market

Thrust on special steels

Technical support to customers

Ensuring timely delivery

Regular customer meets

28

Objectives:-

Growth-Expand the plant capacity to 7 Mt by 2011 -12 and 10 Mt by 2019-20

Profitability-Achieve net profits from 2002-03 onwards with special emphasis

on enhancement of production of value added steels and cost reduction.

Employees-Make RINL the employer of choice. Upgrade the skills and

efficiency of employees through training and development and maintain high

levels of motivation and satisfaction.

Customers-Promote branding of products for quality and customer Preference

through effective customer relations management.

Suppliers-Develop a reliable and strong supplier base and ensure effective

supply chain.

Quality-Promote quality movement in all functions of the company through

quality management system.

Technology Upgradation and Productivity-Continuously upgrade technology

and practice benchmarking to achieve international efficiency levels. Adopt

latest developments in information and communication technology.

Knowledge Management-Become a knowledge based and a knowledge

sharing company.

Safety, Environment and Society- Continue efforts towards safety of

employees, conservation of environment and be a good corporate citizen.

Core Values:-

Commitment

Customer Satisfaction

Continuous Improvement

Concern for Environment

VSP takes all necessary actions for the fulfillment of regulatory requirements. It

has dedicated departments for this purpose. Energy conservation, environmental

preservation, safety in work place, and occupational health gets highest priority in the

company. Some of the policies in this regard are reproduced below:

29

Quality Policy:-

We, at Visakhapatnam Steel Plant, are committed to meet the needs and expectations of our customers and other interested parties. To accomplish this, we will

Supply quality goods and services to customers' delight.

Achieve quality of the products by following systematic approach

Through planning, documented procedure and timely review of quality

objectives

Continuously improve the quality of all materials, processes and products..

Maintain an enabling environment which encourages team work and active

involvement of all employees with their involvement

Environment policy:-

We, at Visakhapatnam Steel Plant, while carrying out its operations reaffirm our commitment to preserve the environment. To accomplish this, we will-

Document, implement, maintain and continuously review the environmental

management system.

Comply with all the relevant environmental legislations, regulations and other

requirements.

Ensure continual improvement in the environmental performance and

prevention of pollution by minimizing the emissions and discharges.

Maintain a high level of environmental consciousness amongst employees.

Review the environmental objectives and targets on a continuous basis.

Energy Policy:-

We, at Visakhapatnam Steel Plant, are committed to optimally utilize various forms of energy in a cost-effective manner to effect conservation of energy resources. To accomplish this, we will -

Monitor closely and control the consumption of various forms of

energy through an effective Energy Management System.

Adopt appropriate energy conservation technologies

Maximize the use of cheaper and easily available forms of energy

30

OSHAS Policy:

We, at Visakhapatnam Steel Plant, are committed to occupational health and

safety of employees and contract workers. To accomplish this, we will -

Document, implement, maintain and periodically review the occupational

health and safety management system including the policy.

Comply with all the relevant occupational health and safety legislations,

regulations and other requirements.

Ensure continual improvement in the environmental performance and

prevention of pollution by minimizing the emissions and discharges.

Maintain a high level of environmental consciousness amongst employees.

Review the environmental objectives and targets on a continuous basis.

HR Policy:

We, at Visakhapatnam Steel Plant, believe that our employees are the most important

resources. To realise the full potential of employees, the company is committed to:

Provide work environment that makes the employees committed and

motivated for maximizing productivity

Establish systems for maintaining transparency, fairness and equality in

dealing with employees.

Empower employees for enhancing commitment, responsibility and

accountability

Encourage team work, creativity, innovativeness and high achievement

orientation

Provide growth and opportunities for developing skill and knowledge

Ensure functioning of effective communication channels with employees.

31

HRD Policy:-

We, at Visakhapatnam Steel Plant, are committed to create an organizational

culture which nurtures employees' potential for the prosperity of the organization. To

accomplish this, we will –

Identify development needs of the employees on a regular basis,

Provide the necessary training and continually evaluate and monitor the

effectiveness of the training so that the quality of the training also gets

upgraded.

Provide inputs to the employees for developing their attitude towards

work and for matching their competencies with the organizational

requirements.

Create an environment of learning and knowledge sharing by

Providing the means and facilities and also access to the relevant information

and literature

Facilitate the employees for continuous development of their

Knowledge base, skills, efficiency, innovativeness, self-expression and

behaviour so that they contribute positively with commitment for the growth

and prosperity of the organization while maintaining a high level of

motivation and satisfaction.

Prepare employees through appropriate development programmes for

taking up higher responsibilities in the organization.

Fulfill social obligations by providing training to the students of

Educational institutions and to the trainees of other organizations.

32

Marketing Network:-

The company markets its products through headquarter marketing office and a

network of regional offices, branch offices and stockyards located all over the

country. It also takes the help of consignment agents and consignment sales agents for

the marketing of its products. The exports are carried out by the export wing of

marketing division with the help of different agencies. The company is recognized as

"Star Trading House'" by the Director General of Foreign Trade, Ministry of

commerce, Government of India.

The end users of the steel products manufactured at the plant include amongst

others, construction industry, automobile industry, engineering industry, re-rolling

industry, forging industry, cable industry, wire drawing industry, fastener industry,

electrode manufacturers and railways. The company is ideally located to serve the

southern Indian market. Regional Managers/Branch Managers meet at Head Quarters

regularly to assess the market situation and market strategies.

POLL UTION CONTROL AND ENVIRONMENTAL PROTECTION:

Generally, integrated steel plant is seen as a major contributor to

environmental pollution as it discharges volume of waste products. Elaborate

measures have been adopted to combat air and water pollution in VSP. In order to be

echo friendly, VSP has planted more than 3 million trees over an area of 35 Sq kms

and incorporated various technologies at a cost of Rs.460 Crs towards pollution

control measures.

HUMAN RESOURCE MANAGEMENT:

Human resource initiatives at VSP are closely linked to the corporate strategy

of the organization. VSP has exemplary industrial relations where the entire

workforce works as a well knit team for the progress of the company. The productive

environment prevailing in the company fosters an atmosphere of growth, both for the

employees and for the company.

33

VSP has introduced multi skilled concept since inception and the employees

are trained as per this concept. VSP has adopted a system of overlapping shifts, the

first of its kind, in the industry. This system ensures smooth change over of the shifts

and uninterrupted pace of operation of the plant during the shift change over. Another

unique feature followed at VSP is the uniform working hours for the ministerial and

non ministerial employees.

TRAINING & HUMAN RESOURCE DEVELOPMENT:-

Training and HRD are given due emphasis at RINL. Each year, a minimum of

one third of the employees undergo various training sessions either at Training &

Development Centre or at Centre for HRD for sharpening their skills on the technical

and management related issues. Training is also given in the area of safety, fire

prevention, and occupational heath besides on the job at the shop floor.

HRD Group - Key Activities:

In-House Training Programs

Nominations to External Programs

Organization Research

Organization Development

Membership with Professional bodies

Performance Appraisal for Executives

Human Resource Information System

In-plant training for Management Students

Lectures by eminent personalities

Corporate presentations

Interactions with professionals, academicians and consultants

34

Achievements & Awards:-

The efforts of VSP have been recognized in various foray. Some of the major

awards received by VSP are in the area of energy conservation, environment

protection, safely, Quality, Quality Circles, Rajbhasha, MOU, sports related awards

and a number of awards at the individual level.

Total quality, latest technology, sophisticated equipment, up to date

knowledge, high skills, cost consciousness, production with less cost and customer

satisfaction have become the hallmark of VSP

Today, VSP is moving forward with an aura of confidence and with pride

amongst its employees who are determined to give their best for the company to

enable it to reach new heights in organisational excellence.

35

ORGANIGATION CHART

Managing Director

Director

HR Production Account Testing Operation Sales

Department Department Department Department Department Department

HR Production Chief A/c’s Lab Lab Sales

Manager Manager Manager Technitions Incharge Manager

Accountant Supervisor Surpervisor

Clerks Operator

36

INTRODUCTION:jm

Jaggayyapeta Limestone Mine is a captive Mine of Visakhapatnam Steel

Plant. It was acquired and developed by Visakhapatnam Steel Plant to meet the BF

grade Limestone requirement of the Steel Plant. The particulars of Mining lease area

is given below:

01. Area of Mining lease - 1295 Hec.

02. Date of Execution - 08-08-1980 (Initial)

03. Period of lease - 20 Years (Renewed)

04. Date of Expiry of lease - 08-08-2020

PRODUCTION & DESPATCHES SINCE INCEPTION

YEAR PRODUCTION DESPATCHES1989-90 57568 476931990-91 128273 1312361991-92 72894 691341992-93 182307 1744351993-94 226874 2192141994-95 348463 2871741995-96 354116 2948971996-97 222659 2061051997-98 288178 2458901998-99 118019 2074631999-00 215827 2091502000-01 263156 2831132001-02 304146 2529312002-03 358448 3368432003-04 369101 3435152004-05 380826 3593122005-06 410326 4036112006-07 436876 4298532007-08 457620 4541322008-09 431517 3966212009-10 418004 400105

37

From 2002-03 onwards achieved ever highest production and dispatches by

surpassing all previous year figures with less man power and also by maintaining less

than the budgeted cost.

All time Annual Record Production of 4,57,620 Tons & Despatch of 4,54132

achieved during the financial year 2006-07.

Average grade of Limestone is as follows:

CAO MGO SIO2 AL2O3 FE203

49.00% 0.30% 7.0% 0.5% 0.5%

OTHER ACHIEVEMENTS

During the recent Safety Week Celebrations , the following prizes were won

among Group-A1:

Publicity & Productivity & Innovations I Prize

Hazard Identification & Risk Management I Prize

Lighting & Electrical Installations II Prize

First Aid Trade Test among workers I Prize

38

LOCATION OF THE MINE / INFRASTRUCTURE

LOCATION

Jaggayyapeta Limestone Mine is situated in Jaggayyapeta Mandal of Krishna

Dist. in Andhra Pradesh. The Mining lease area comprises of 12.95 Sq.KM. The

Mining lease area is situated about 5 KM South West of Jaggayyapeta Town and it is

connected with a metal road. Jaggayyapeta town is located 3 KMS away from

Hyderabad – Vijayawada National High Way. It is well connected to all parts of the

State by well weathered asphalt roads. Jaggayyapeta is located 90 KM away from

Vijayawada (chief trading center in Coastal Andhra Region) and 200 KM away from

Hyderabad, the State Capital.

INFRASTUCTURE:

A Railway Line (BG) of 32 KMs joining Motumarri to Jaggayyapeta

Limestone Mine was constructed by the Railways and is in operation.

POWER: 10.5 KMS HT line was constructed by APSEB for 33 KV HT

supply to the Mining area. The Mine receiving Sub-Station

(33KV/3.3KV/440V) was constructed by lessee and is in operation.

It has a beautiful township consisting of 226 houses of ‘A’, ‘B’ & ‘C’ type and

barracks with modern amenities including school, hospital, hostel, Social

Centre, Shopping Centre and open air auditorium. There is a branch Post

Office located in the Township.

39

HISTORY OF JLM LAYOUT SINCE INCEPTION IS AS FOLLOWS

SCALE OF OPERATION:

Initially Dustur & CO., in their revised feasibility study on Mining schemes of

JLM projected annual raising of ROM estimated at about 5.0 Lakh T based on 300

working days per year, a production of about 1667 T per day is planned and the layout

of the quarry and sizing Plant and Equipment have been provided accordingly. The

quarry is decided to operate in single shift per day. Man Power requirement of JLM

has been estimated taking into account the operational maintenance requirements, that

time prevailing Mining regulations / mining practices adopted in the mechanized

mines in the Country and the total estimated man power is 350 personnel on Pay

Rolls. However, from the time of initial operation to till date the man power engaged

at highest on Pay Roll in JLM was 232 in 1992 and as on date existing man power is

133 (29 Executives and 104 Non-Executives) respectively.

Although, Dastur & Co., in their revised feasibility of Mining Scheme,

subsequently, depending on the requirement of Production targets of Main Plant and

Depends on the availability of HEMM and proportionate to the targets man power

also reduced from time to time but, at the same time if we look into Production and

Despatch man power was gradually reduced resulting in increase of OMS and

reduction in overhead cost.

40

GEOLOGY OF THE AREA

PHYSIOGRAPHY:

On a regional scale, Jaggayyapeta area is situated in Palnad basin where it

merges with the broad southern slopes of Nalagonda Khammam Plateaus.

The area has a gentle rolling topography with elevation ranging from 56 meters and

an average elevation of 70 Mtrs. MSL. Most of the area is covered with Limestone

out crops. The Limestone area which falls part of Budawada Reserve Forest area and

part of Jaggayyapeta is devoid of any significant forest growth and is dominantly

occupied by low shrubs, thorny bushes and predominantly cactus growth.

GEOLOGY:

The litholocial units of Jaggayyapeta and adjacent areas comprises Limestone,

shale, quartzites and phyllite which belong to the Pre-Cambrian sedimentary

formation constituting the North Eastern part of the Palnad basin. They are flanked in

West, North & East by the granite and gneisses of Archean age.

The rock types at Jaggayyapeta are shale overlain by Limestone and

intercalated argillaceous Limestone. The shale in General are purple in colour, well

laminated and fragile. The Limestone is predominantly gray in colour but shades of

White, Yellow buff purple and green are also seen. Argillaceous partings, quartz and

calcite veins are present at places where a higher compact and breaks with conchoidal

fracture.

The general trend of Limestone in the North Block is East-West with minor

rolls along with strike and dip. The overall inclination of the beds is about 2 to 5 deg.

Towards south. The South Block, the general trend of rock is N-S with Gentle rolling

dip of 2 to 5 deg. towards East.

41

GEOLOGICAL RESERVES

The total geological reserves estimated in 12.95 Sq.KM area by GSI on

preliminary prospecting area given below:

Sl.No. Category In-situ reserves(in MT)

Mineable Reserves(in MT)

1 Proved(North Block) 20.95 19.72

2 Probable 50.23 45.21

3 Possible 27.44 24.69

Total 98.44 89.62

Detailed Drilling investigations were further carried out through MECL, on

the basis of which 24.73 MT of Limestone were proved in North Block presently

under Mining Operations. Reserves in North Block as on 31st March 2002 is 20.4

Million Tons.

Average grade of Limestone proved in the area:

Cao Mgo Sio2 Al203 Fe203

49.44 1.65 8.24 1.59 0.61

STATUS OF MINING

42

Taking into consideration the factors such as nature of the occurrence of the

topography, the structural configuration of Limestone deposit, the development of

Jaggayyapeta Limestone Deposit has envisaged by open cast Mechanised method.

The Mine is fully mechanized and designed for a peak production of 4,80,000

Tons per year. The open cast quarry operation consists of four major operations and

they are described below. Mine is designed to work in two benches. Bench average

height is 8 meters and benches are developed across the strike of the deposit.

A) Drilling:

Presently Drilling is carried out by 1 No. of Crawler mounted 100/115mm

DTH drills (ICM-20 Ingersoll-rand make). The following pattern of drilling is

generally adopted for 8 meters bench height.

i) Burden - 3.00 Mt

ii) Spacing - 4 Mt

iii) Sub-grade Drilling - 0.8 mt.

B) Blasting: The following explosive is used in our Mine:

i) Large dia cartridge explosive 83MM, Cap. Sensitive, Class-2 Slurry

Booster charge-High Energy-Anjana Blast 83MM.

ii) Large dia cartridge Explosive 83MM, Non-Cap. Sensitive, Class-2

Slurry, Column charge-High Energy-Anjana Gel-83MM.

iii) Detonating Fuse

iv) Safety Fuse

v) Cord Relays 26 Milli Seconds

One Magazine building with a storage capacity of 10 T provided for storage of

explosives as required under various statutes.

C) Excavation / Loading:

43

Presently, we are having 2 Nos. of Hydraulic Shovels i.e BE 650 BEML make

and CK 300 of L&T make are provided for Excavation work.

D) Haulage of Transport:

03 no.s of 35T Cap. BH-35-2 and 02 no.s of GMMCO make Dumpers are

provided for transportation of ROM Limestone from Mining Block West to Ore

Handling Plant, and for dumping of Fines from ore Handling Plant.

E) Drainage:

Paleru river is skirting the ML area on the North and East. The topography of

he land is slopping towards North and East and the existing Nallas carry rain water to

the river freely. Adequate culverts are provided to the pit road for free flow of water.

The Mining lay out of the quarry is planned in such a way that no nallas are disturbed.

Only two benches have been planned to work. Seepage of water is expected only

below the second bench. Since the Mine is designed only two benches, only the rain

water which may flow into the quarry will have to be pumped out. For dewatering

purpose two pumps Cap. 50 HP each in 2nd bench have been provided. One check-

Dam in the Nalla East of the Mining Block has been provided.

F) Pollution Control:

Monitoring of Air, Dust, Vibration Level and water is being conduced in all

Seasons in our Mine. Presently, this monitoring job awarded to a private agency for

monitoring the above quarterly once for submitting the said reports to various

statutory authorities.

07 no.s of Dry Dust Extraction Systems are installed along with High pressure

water spray systems were installed for avoiding dust problem.

CRUSHING & SCREENING PLANT

44

PRIMARY CRUSHING SECTION:

Process Details of the BF Grade Limestone:

-1000MM Run of Mines blasted material is fed into the Primary Crusher

Hopper which is having capacity of 100 Tons by 35 T Haulpak Dumpers. This

material is excavated by a Hydraulic Excavator of BEML make and material is

transported through 2 Nos. of 35 T Haulpak Dumpers.

The material i.e ROM is fed into the Hopper and passes through 280 Tons

capacity RBDT Jaw Crusher of MBE make through Apron Feeder and Grizzly. –

40mm material will be separated while passing through Grizzly and will be

discharged to the Main conveyor C-1. The Crusher out put is –150mm and is

discharged to 800mm width conveyor Belt (C-1) and is fed to Surge Bin.

SECONDARY CRUSHER & SCREENING SECTION:

The primary crushed material will be sent to Secondary Cone Crusher of 550

T per hour capacity of Symons make through the vibratory Feeder. The Crusher out

put is conveyed to double Deck Screens through 1000mm width conveyor Belt (C-2).

+70mm will be separated and recycled through C-3, C-4 & C-5 conveyors to

Secondary Crusher through Surge Bin for further crushing to the required size. –

6mm will be separated and conveyed to Fines Bin through C-7 Conveyor and it is

separately collected as rejection by Dumpers. The Main Product is +6mm to –70mm

and this is conveyed through C-8, C-9, C-10, C-11 Conveyors to Stock Pile.

CIVIL ENGINEERING SECTION

45

Water Supply

Initially the water was supplied to township as well as to the plant from the

infiltration well constructed in the Paleru river. Later due to scanty rainfall the river

was fully dried and with a view to continue to supply the water to the township

inmates and plant, the management sanctioned total three bore wells and presently we

are supplying water from those two bore wells located in township area. The water is

being pumped from the bore wells to the Filtration / Chlorination plant. The said

treated water from the plant is being supplied to the township inmates for drinking

purpose.

NOTE: The said water sample was collected and analysed by AP Pollution Control

Board, Vijayawada and given their report as suitable for drinking but the analysis

report says that hardness and calcium percentages are more in the said water.

Because of this high calcium and hardness there is lot of demand from all the

employees that Mineral Water Plant to be installed at JLM at the earliest and this is

under process. For the time being, Purified water of 20 Liters can is being supplied to

the residents of the township on every alterative day.

Township Maintenance

One Civil complaints booth is maintained at Township Pump House where

complaints are registered by the township inmates. The same is attended by the Civil

Dept. through a maintenance contractor.

Parks

Two parks are being maintained namely Dr Ambedkar Park, and N S Bose

Park at Twonship. In addition one afforestation park namely Tenneti Viswanathan

Park is developed in Plant area.

Roads

46

We are maintaining 6.5 Kms R & B road running from our Township Main

Gate to Budawada Village for the accessibility of the village people.

Afforestation

A TOTAL OF 1,70,000 plants were planted and maintained in Township,

Plant, Mines and ML Area.

47

RECREATION & WELFARE FACILITIES FOR EMPLOYEES

a) Community Welfare Centre equipped with facilities like in-door games and

outdoor games, TV Room, Library Room is provided. Play ground is

available for outdoor games, children play equipment have been installed.

b) Two parks are being maintained in the heart of the township. A Temple and a

church has been constructed and maintained by the employees.

c) Recently, a new set of Children Playing Equipment were procured and

installed near JDAV Public School .

d) GYM fully provided with all equipments is established in the township,

e) A Health Centre with Sr.Medical Officer and medical staff, which includes a

pharmacist, are provided in the township. In addition to this Health Centre

facility, we have empanelled Five Hospitals i.e three at Vijayawada and Two

at Khammam. If necessary on emergency basis patients also referred for

treatment to Multi Super Specialty Hospitals situated at Hyderabad.

f) Canteen is provided in the Mines area for meeting the requirements of

employees which is operated by a private agency.

g) Vocational Training Centre as prescribed under Mines vocational Training

Rules, 1966 is provided in the Mining complex.

h) First Aid Center with male nurse is provided in the Mining Complex. During

the working hours of the Mine an Ambulance is provided for meeting any

emergency. The said ambulance is provided on contract basis.

48

DAV PUBLIC SCHOOL

JDAV School, fully funded by the Company has been established in the heart of the

township, which can accommodate 500 pupils in an academic year. The school has earned a

reputation for its educational standards in and around Jaggayyapeta. Further the school

Building is extended with modern teaching aids like computers and 16 Nos. of well qualified

Teachers and 4 Non-teaching staff. The school is also catering the educational needs of the

surrounding cement Industries like Madras Cements Ltd., Vishnu Cements Ltd. M/s. Kakatiya

Cements Ltd. And Jaggayyapeta Town on payment basis. Our students also have bagged

number of laurels in the academics and also in the extra curricular activities at State and

National Level.

I R PROFILE

In general, I R problems at JLM are very cordial and conducive at JLM. The

following are the functioning Unions at JLM:

INTUC (Recognized)(INDIAN NATIONAL TRADE UNION)

AITUC (ALL INDIA TRADE UNION COUNGRACE)

CITU (CENTERAL OF INDIAN TRADE UNIONS)

B M S (BHARATHIYA MAZUDHUR SUNG)

Mine Employees Staff and Workers Union

49

WELFARE MEASURES IN VSP

Rashtriya Ispat Nigam Limited, Visakhapatnam Steel Plant, considers human

resources as the most important of all the resources in the Company. Its development

and welfare have been given the utmost emphasis in the overall policy of Human

Resources Management of the Company. Pursuant to this policy, VSP has taken

several initiatives for introducing and implementing Statutory as well as Non-

Statutory Welfare schemes which together impart and propagate the feeling that the

“Company cares for its employees”. In addition, as a Social Security measure,

Employees Family Benefit Scheme was introduced w.e.f. 01.08.1995. Amongst these,

the details of important welfare measures that are being implemented in RINL/VSP

are as follows:

STATUTORY WELFARE MEASURES:-

A) Canteen facilities:

Canteen facilities in VSP have been organized through the operation of 16

Canteens even though the requirement under statute is to operate only 7 canteens.

Out of these, 14 are located inside the Plant and 2 outside the Plant. These Canteens

cater to the needs of employees by providing breakfast, tea, lunch and evening snacks

at fixed rates which have been in vogue for the last 5 ½ years. Besides this, through a

system of extension points, tea and snacks are made available to the employees in

different shifts in the Shop Floor itself. For this purpose, there are 127 extension

points at 55 locations through out the Plant. RINL/VSP has been extending Canteen

Subsidy to the employees @ Rs.18/- per day of actual attendance (50% of the price of

specified food items i.e. one meal, one snack, one coffee and one tea per day), subject

to a minimum of Rs.80/- per month, as per the terms of the Tri-partite Agreement

entered into with the Recognized Union. The annual expenditure on canteen subsidy

payable to all employees comes to around Rs.9.00 crores. Apart from this, an

additional expenditure of Rs.90 lakes per annum is being spent for running and

maintaining the 16 canteens on the existing rates and for providing services at the

extension points.

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The affairs of the canteen are managed by a bi-partite committee (Canteen

Managing Committee) consisting of five representatives from the Recognized Union

and five from the Management. Canteens of VSP have been assessed under

Occupational Health & Safety Management System and found to be in accordance

with the requirements of the standards of OHSAS 18001:1999.

C) First Aid Facilities:

In the Plant, Central First Aid–cum-Occupational Health Centre with required

facilities is in operation. In addition to this, there is one more First Aid and Gas

Rescue Station near the Coke Ovens Dept. One Ambulance in each of these First Aid

Centres and one in Steel Melting Shop is available round the clock. Adequate number

of First Aid Boxes with the required contents like Plaster, Scissors, Cotton rolls,

Tincture Iodine, Bandage Rolls, Eye & Ear drops, local antiseptic cream, Paracetamol

tablets etc. have been provided in each Shop Floor in the Plant. The boxes are under

the supervision of personnel trained to give First Aid and they are regularly

replenished with the required materials.

D) Water Coolers:-

Adequate number of Water Coolers for drinking water & facilities for washing

have been provided on the Shop-Floor in the Plant..

E) Leave:-

In matters of Leave, RINL leave rules provide 10 days additional EL, over and

above the maximum ceiling prescribed under the Factories Act subject to the

employee qualifying to earn the leave. Apart from Earned Leave, the Company

provides Casual Leave, Half Pay Leave/ Commuted Leave, Special Casual Leave,

Quarantine Leave, etc.

51

F) Maternity Leave:-

The object of the Maternity benefit Act 1961. is to provide for Maternity

Benefit and certain other benefits 3 women employees working in factories and other

establishments. Leave with pay of 12 weeks for the purpose of maternity related

confinement and six weeks for miscarriage/ abortion is required to be given by the

employer to women employees, under this Act.

G) Factories Act:-

Rest-rooms, sitting arrangement, latrines, safety provisions, appointment of

Welfare Officers, Safety Officers, etc are also provided as per provisions of Factories

Act.

H) Gratuity:-

Employees are paid Gratuity in terms of the Payment of Gratuity Act 1972 and

as amended from time to time. Over and above the Gratuity Act, in case of death of

an employee before the qualifying service of five years Gratuity is paid as follows:

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

For all other cases at the time of separation from the Company, a maximum of

Rs.10 Lakhs amount calculated based on the service rendered by the respective

individual, whichever is less, is being released towards Gratuity.

The cheques for Provided Fund and Gratuity are given to the employees on the

very next date of his retirement.

Contributory Provident Fund is paid @ 12% of the wages of the employees

and the fund is managed by a trust as per section 17 of the Employees' Provident Fund

and Miscellaneous Provisions Act 1952. The Employees' Pension Scheme 1995

introduced by the Government of India has been implemented.

52

I) Workmen’s Compensation:-

Workmen's Compensation is being paid within the stipulated time to all the

entitled employees as per the Act. As against the half monthly payment, envisaged as

compensation for temporary disablement under the Workmen's Compensation Act, an

employee who gets injured by accident arising out of and in the course of his

employment is given leave with full pay for the period of disablement. Further, free

medical treatment is given in the Company run Hospital. In case of referral for

specialized treatment outside, full expenses are borne by the Company.

J) Contract Labour Welfare:-

The welfare facilities like Canteens, Rest Rooms, Washing Places, Urinals,

Latrines, Drinking Water, Creche, etc. provided by the Company are also available for

the Contract labour.

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NON-STATUTORY WELFARE MEASURES

A. Facilities for Education:-

VSP's philosophy towards educational facilities is not only to benefit the

children of employees but also to extend educational facilities to the wards of the

people dwelling in and around the Plant and also to act as a catalyst in promoting

quality education by encouraging reputed educational Institutions like Delhi Public

School, Kendriya Vidyalaya, DAV Public School, etc. There are 9 English Medium

Schools, 2 Telugu Medium Schools in and around Ukkunagaram and one Junior

College. There is one DAV School at each of the two Mines at Jaggayyapeta and

Madharam. Out of these schools, three schools are fully aided and three are partly

aided. The rest are self-financed and self-built schools. Amongst them, two Telugu

Medium Schools and Two English Medium Schools, namely, Kendriya Vidyalaya

and DAV provide free education.

The schools existing in the Ukkunagaralu township are:-

S.No Name of the School Location

1. Kendriya Vidyalaya Sec. I

2. Delhi Public School Sect. II

3. DAV Centenary School Sect III

4. JyothiBalaVihar (KG) Sect III

5. Visakha Vimala Vidyalayam Sect

6. DAV Public School Madharam mines

7. Chitanya Public School Opp. Sect. II

8. Depaul School Opp. Sect. VIII

9. Arbindo Centenary School Near Nehru Park

The schools Exits at JPT township is 1) Jaggaiahpet DAV School.

54

B) Scholarships:-

Scheme of Interest Subsidy on House Building Loans:

It has been decided to amend the scheme of interest subsidy on house Building Loans as under:

EXISTING AMENDEDSCOPE AND ELIGIBILITY: SCOPE AND ELIGIBILITY: For an employee to become eligible for subsidy of interest this scheme, the provisions of the existing HBA rules with regard to the amount of the HRA loan, base rates of interest , eligibility period of service, etc. as in force from time to time will all be applicable and operative.

For an employee to become eligible for subsidy of interest under this scheme, the provisions of the existing HBA rules with regard to the amount of the HBA loan edibility, etc, as in force from time to time will all be applicable and operative.

EXTENT OF SUBSIDY AND COMPUTATION OF SUBSIDY AMOUNT:

EXTENT OF SUBSIDY AND COMPUTATION OF SUBSIDY AMOUNT :

The company will reimburse the difference between the rates of interest as provided from time to time in the HBA rules for different categories of employees and the rate of interest charged by the approved financial agencies subject to a maximum limit of 15%, on housing loans taken by the employees with the prior permission of the company.

The company will grant interest subsidy to the employees who avail the housing loans from any of the approved financial institutions @ Rs.30/- (Rounding off to the nearest rupee based on 8.75% existing interest rate as per MoU, i.e., three percentage points below state bank advance rate (SBAR) on on 240 months of repayment schedule on a loan amount of Rs. Lakhs as computed in the work sheet at Annexure – 1) per rupees ten thousand per month of qualifying amount in the case of fresh loan and the outstanding principal loan amount or the qualifying amount whichever is less in the case of existing loan.

55

The amount of interest subsidy will be computed on the basis of the Equated Monthly installment (EMI) as charged by the lending institution at its rate of interest subject to a maximum ceiling of 15% and the EMI at the rates of interest provided under the Company’s HBA rules computed on the same basis / method as followed by the lending agency.

Computation of the subsidy amount mentioned at 4.1 will be done for evey financial year subsequently, based on a floating rate at three percentage points below the state bank advance rate (SBAR) prevailing on 1st April of that financial year.(Note: The amount of Rs.30/- may vary in accordance with the interest rate as modified by SBI)

In Respect of loans drawn from LIC etc., where only the interest is repaid every year and in such cases where a different method other than that followed by HDFC is adopted by the lending agency for computing the EMI, the amount of interest subsidy will be decided on the basis of adopted by HDFC . the interest subsidy will thus be constant throughout the repayment period irrespective of the quantum of interest each month and the method of EMI computation followed by different agencies.

Irrespective of the total amount of loan sanctioned and the number of installments allowed by the financial institution to the employee. Interest subsidy will be payable for thae least of the following: Period:

a) No. of months in repayment terms b) The date of cessation of emplacement with RINL/VSP.c) 240 months.

ELIGIBLE AMOUNT : Qualifying amount rounded off to the nearest rupees ten thousand.Outstanding Principal loan amount rounded off to the nearest rupees ten thousand in case of existing loan.Rs. 8 Lakhs Rs.4 lakhs in case of enlarging living accommodation of existing house.

Where, on account of drawal of loan in installments, payment of interest by the employee to the lending agency arises before of EMI (Consisting of Principal and Interest ). The difference in the simple interest calculated at the interest rates provided in the HBA rules and those of the leading institution will be reimbursed to the employee on producing necessary receipt and other documentary evidence of having made such interest payment. This reimbursement will however, be made only once on a consolidated claim submitted by the employee just before commencement of EMI.

In the vent of EMI being less than the subsidy amount, it will be restricted to the amount of EMI.

56

The amount of loan qualifying for interest subsidy will be the loan entitlement as per the HBA rules of the company or the actual amount of loan drawn, whichever is less.

The amount of loan qualifying for interest subsidy will be the entitled amount or the actual amount of loan drawn whichever is less.

PROCEDURE: PROCEDURE An Employee desirous to avail the interest subsidy for housing loan will submit an application to the advances section in the personnel department, as per the Performa given at Annexure - 1

The employees will be required to seek your written permission in the prescribed form (Annexure – 11) from the company before applying for a fresh housing loan or in the case of existing loan from any of the agencies enumerated at Clause 3.1 of the scheme.

The advances section of personnel deptt. Shall scrutinize the applications with regard to the approval of the building plan, cost of estimates, whether the loan can be accommodated within the limit set for the financial year, etc. and .a "ter obtaining the approval of the Competent Authority (which will be the same as applicable for HBA under the HBA rules), issue a letter of permission to obtain the loan. A copy of the permission, indicating that VSP would not undertake any liability except to recover the monthly installments from the pay of the employee and remit to the lending institute, will be endorsed to the Financial Institution concerned.

After getting written permission from the company, the employee will apply for interest subsidy in the prescribed from (Annexure – III) along with Xerox copies of the following documents:

a) Permission letter from Personnel Deptt.b) Sale Deedc) Municipal/Panchayat Plan Approval withd) proceedingse) Estimate by Architect/Engineerf) Loan sanction letter from Bank/Agencyg) Outstanding Principal loan amounth) certificate issued by the lending Institutioni) concerned, in case of existing loan

57

After grant of loan by the lending institution to the employee, the lending institution would intimate VSP about the sanction of loan, the terms of repayment, number of installments of recovery, interest rates, etc. Based on such intimation. Personnel Department would issue .;n order for sanction of Interest Subsidy to tre employees with a copy to Finance Deptt. Tli s communication will also contain the amount cf installment recoverable, period of recovery an the subsidy amount payable to the employee, etc.

After scrutiny, a sanction order will be issued by Personnel Department – Advances Section as per the Performa placed at Annexure- IV.

At the end of Financial Year, the employee has to submit to the Pay Section of Finance department by 31s' May. proof of payment of EM! issued by the Financial Institution concerned in the prescribed format placed at Annexnre-V

EXTENT OF LIABILITY TO THE COMPANY: EXTENT OF LIABILITY TO THE COMPANY:

The company will neither guarantee nor be a surety for the loan and will not accept any financial liability whatsoever in this regard. In case the employee sells the house against which Interest Subsidy is drawn and purchases another house, the same amount of Interest Subsidy first sanctioned or the Interest Subsidy amount calculated tinder these rules on the loan amount taken for the new house, whichever is j less, will be paid to the employee, provided the gap between the sale of the house and purchase of 2nd house : is not more than two months. The term for which Interest Subsidy was sanctioned for the house remains unaltered.

In case the employee sells the house against which Interest Subsidy is drawn or pre-closed the loan, he/she has to inform the Company of the same immediately. He/she will cease to get Interest Subsidy.

58

Where both husband and wife are employees of the Company, only one of them will be eligible to avail Interest’ Subsidy on a housing loan, provided neither of them has availed NBA or Interest Subsidy from the Company on a" housing loan earlier. Interest levied by (he Financial Agency for defaults will not be subsidized. Employees are permitted to switch over from one Lending Institution to another, subject to the following conditions: Lending Institution to Which the employees want to switch over should also be the approved Housing Finance Agency.

It will be the responsibility of the employee to ascertain the willingness of both the Lending Institutions involved.

The Company will not accept any extra liability, financial or otherwise, arising out of such transactions. The total Interest Subsidy payable to the employee in any case will not be more than what would have been payable to him had-he not switched over.

The Company will not stand guarantee qr-surety for any such transaction not even for the intervening period from the drawl of loan from one Lending Institution till the remittance of the same with the other Lending Institution.

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Scholarships under general category:

Under this category, there are three groups as per the details given below:

GROUP QUALIFYING EXAMINATION COURSE IN WHICH ADMISSION IN SOUGHT

AMOUNT OF SCHOLARSHIPS

NO. OF SCHOLARSHIPS

I Intermediate/ 12th Std. Exam. In Science Stream

Degree Course in Engineering/ Architecture / Medical / Veterinary/ Agricultural Sciences.

Rs. 1500/- per month for the full duration of the course.

10 (Ten)

II 12th Class/ Intermediate Exam. In Arts/ science / Commerce/ Humanities.

Diploma courses in the areas of Group- I above or Degree or Diploma courses in pure sciences/ Social Sciences/ Commerce/ Business / Personal Administration / Humanities.

Rs. 750/- Per month For the full duration of the course

6 (Six)

III S.S.C or Equivalent Higher Secondary Course (i.e., plus two stage in General or Vocational Stream)

Rs. 400?- per month for the full duration of the course

10 (Ten)

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GROUP QUALIFYING EXAMINATION COURSE IN WHICH ADMISSION IN SOUGHT

AMOUNT OF SCHOLARSHIPS

NO. OF SCHOLARSHIPS

I Intermediate/ 12th Std. Exam. In Science Stream

Degree Course in Engineering/ Architecture / Medical / Veterinary/ Agricultural Sciences.

Rs. 1500/- per month for the full duration of the course.

4 (Four)

II 12th Class/ Intermediate Exam. In Arts/ science / Commerce/ Humanities.

Diploma courses in the areas of Group- I above or Degree or Diploma courses in pure sciences/ Social Sciences/ Commerce/ Business / Personal Administration / Humanities.

Rs. 750/- Per month For the full duration of the course

4 (Four)

III S.S.C or Equivalent Higher Secondary Course (i.e., plus two stage in General or Vocational Stream)

Rs. 400?- per month for the full duration of the course

4 (Four)

GROUP QUALIFYING EXAMINATION COURSE IN WHICH ADMISSION IN SOUGHT

AMOUNT OF SCHOLARSHIPS

NO. OF SCHOLARSHIPS

I Intermediate/ 12th Std. Exam. In Science Stream

Degree Course in Engineering/ Architecture / Medical / Veterinary/ Agricultural Sciences.

Rs. 1500/- per month for the full duration of the course.

2 (Two)

II 12th Class/ Intermediate Exam. In Arts/ science / Commerce/ Humanities.

Diploma courses in the areas of Group- I above or Degree or Diploma courses in pure sciences/ Social Sciences/ Commerce/ Business / Personal Administration / Humanities.

Rs. 750/- Per month For the full duration of the course

2 (Two)

III S.S.C or Equivalent Higher Secondary Course (i.e., plus two stage in General or Vocational Stream)

Rs. 400?- per month for the full duration of the course

2 (Two)

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Applicable For Criteria for Selection Amount of Scholarships No. of scholarshipsChildren of Employees who are having the following Disabilities:BlindnessHearing Impairment Locomotors Disability Mental Retardation Mental illnessCerebral PalsyAnd who are prosecuting studies in any course in a RECOGNIZED school/ College/ General or Vocational Institute.

Nature and extent of Disability of the child and the extent to which the training/ education would help in rehabilitation of the child, as assessed by the Committee

Rs. 750 /- per month for a period as recommended by the Committee

6(Six)

Group Name of the Scheme Eligibility Amount of Cash Award 1 Col.C.K.Nayudu Sports Cash

AwardsChildren of the VSP Employees who represent the country in any event.Who secure 1st place in national’s school games and sports conducted by school Games Federation of India or Rajiv or Inter – State Cricket Marches conducted by Board of Control for Cricket in India (BCCI).The applicant should have participated in the events mentioned above during the year 2007-08.

Rs. 5,000/-(Lump Sum)

II Dr. Sarvepalli Radhakrishnan Merit Cash Awards

Children of VSP Employees who secure admission and join Indian Institute of Technology (IITS), Indian Institute of Management (IIMS), Indian Institute of Science (IISC)- Bangalore, Indian statistical Institute (ISI)- Kolkata, All India Institute of Medical Sciences (AIIMS)- New Delhi, Armed Forces Medical College ( AFMC) – Pune or Jawaharlal Nehru Institute Post Graduate Medical Education and Research (JIPMER)- Pondicherry.The applicant should have been admitted in the above mentioned courses during the year 2008-09.

Rs. 5,000/-(Lump Sum)

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To encourage merit amongst the children of employees, VSP awards 50 Scholarships

annually under the various Scholarship Scheme of the Company.

In addition to the above, since the year 1991, commemorating the birth

centenary celebrations of Bharat Ratna Dr. BR Ambedkar, an annual Merit one-time

Cash Awards for students belonging to SC/ST category have been introduced. There

are two merit cash awards i.e., Rs.500/- and Rs.250/- for the first and second students

who secured highest marks in Xth Class Public Examination in each school of VSP.

C) Medical Facilities:-

The company provides comprehensive health care scheme involving in-patient

and out-patient treatment in Company run hospitals and specialised treatment at

referral hospitals to the employees and their dependants.

Visakhapatnam Steel Plant has established a 160 bedded ultra modern hospital

-Visakha Steel General Hospital (VSGH) equipped with sophisticated equipments. In

addition to this, there are 4 Health Centres, i.e., one each at JLM and MDM

Mines one at Ukkunagaram and one at Pedagantyada RH Colony. 2 Emergency

Medical Care Units in the Plant premises to cater to the health needs of the

employees. The Company also extends medical facilities and specialised treatment,

if required at reputed corporate hospitals like Apollo, Medwin, CMC, Vellore, etc.

Some of the special features of VSGH are:

Full-fledged Burns Unit, acclaimed to be best in the area.

Radiology Department equipped with ATL Ultrasound Scanner, 800 mA X-

Ray machines with image intensifier and 500 mA X-Ray machines with

fluoroscopic facility.

Well equipped Pathology Lab with Hematology, Micro-biology & Bio-

Chemistry Laboratory, Blood Bank facilities and Histopathology Laboratory.

ICU equipped with bedside feather touch polychromatic modular monitoring

with Central Monitoring system.

Cluster-type wards with central Nursing Station System

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Operation Theatres equipped with special sliding trolleys, imported operation

tables with height adjustment facility and shadow less cold lights to enable

surgeons to have a clear vision of operating field.

Well equipped Physiotherapy wing

A separate Central Sterile Supply Department with modern equipment

Automatic Laundry

Diet Counseling Clinic for providing nutrition advice to malnourished

children, diabetic patients, patients with hypertension, obesity, etc.

Occupational Health Services and Research Centre takes several measures in

the area of preventive health care and attempts to ensure good health of the

employees by conducting cyclical examination of the employees and constant

monitoring of environmental conditions.

Highlights on medical services:

Medical camps were organized in and around the plant. Orientation on First

Aid, Emergency Care and Burns management is imparted to employees. Special

programmes like AIDS Awareness Week, Pulse Polio Immunization programme,

World Health Day, World Population Day, Anti Malaria Week, Breast Feeding

Promotion Week, Mother’s Meet, International Nurses Day, Free Family Planning

Operations, etc. were organized. Periodic medical checkup of employees under Man

Maintenance Programme are done to maintain and improve their health status.

Medical Reimbursement:

Medical reimbursement towards expenses incurred on treatment is allowed to

the employees staying in city and places other than township. In case some medicines

are not available in VSGH, the expenses towards procurement of the medicines are

reimbursed. Towards this, the company spends an amount of about Rs.4.90 Crores

and further improvement is under consideration.

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D) Housing Facility:

The Company has a well laid out township – Ukkunagaram, consisting of

8,696 quarters with all modern amenities like water supply, underground sewerage,

schooling, recreation facilities, parks, shopping complexes etc. for its employees.

Various types of quarters were constructed according to BPE norms. Apart from this,

there are 386 quarters at our Captive Mines. These quarters are allotted to

employees on the basis of seniority and standard rent is charged from the occupants.

The housing satisfaction roughly works out to 55%. Employees who have not been

allotted quarters in township are paid House Rent Allowance (HRA).

Apart from providing subsidized accommodation, the Company also provides

subsidized electricity and free water to all quarters. The electricity subsidy is around

Rs.15.00 Lakhs per month and the water charges borne by the Company is to the

extent of Rs.4.20 Lakhs per month. The total annual maintenance expenditure of

Township is around Rs.6.00 Crores

E) Work Dress:

The Company is providing two pairs of Work Dress annually to all employees

since 1995-96.

- Total annual expenditure on Work Dress is around Rs.1.40 Crores.

- Current average expenditure per employee towards Work Dress comes to

around Rs.980/-

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H) Motivational Schemes:-

Jawahar Awards:-

With a view to motivating and recognizing the outstanding performance

employees, the JAWAHARLAL NEHRU PURASHKAR/ AWARDS scheme is being

operated in VSP every year. Last year 64 employees were honored with these awards.

Suggestion Rewards:-

Suggestion Reward Scheme under the name Srujan Vikas was launched in

VSP in the year 1993 with the objective to provide a forum to encourage creative

thinking and accord recognition to the employees.

The suggestions received are evaluated by Zonal/Apex level committees and

cash rewards ranging up to Rs.18, 000/- are awarded to the suggestors, depending on

the merit of the suggestion.

Gold and Silver medals are presented to the two best suggestors who have

shown maximum saving through suggestions. Creativity awards are also presented to

the suggestors who have given maximum no. of rewarded suggestions.

Incentive Schemes:-

The following are the various schemes introduced by the Management from

time to time to motivate employees to strive towards excellence and achieve social

security with job satisfaction.

a) Incentive scheme for acquiring professional qualifications

b) Incentive scheme for acquiring Hindi qualifications

c) Incentive scheme for promoting small family norms

d) Special Performance rewards connected to production

e) Performance Linked Benefit Schemes.

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Facilities for Recreation

Ukkunagaram, the Township built for the employees of Visakhapatnam Steel

Plant, is a fast emerging as polychromatic cultural centre in the region sustaining and

promoting cultures of different regions of the country symbolizing "Unity in

Diversity". People from almost all the regions in the country and professing different

religions, live in VSP's Township in peace, amity and brother-hood. VSP has been

endeavoring to make Ukkunagaram a truly Cosmopolitan Cultural Centre by

encouraging and promoting various cultural activities and fine arts like music, dance,

theatre, literature etc. Towards this, the Company has taken various initiatives some

of which are listed below

A) Community Welfare Centres (CWCS):

For the recreation of employees and their families and for encouraging social

interactions amongst employees during off-duty hours, the Company has established a

total of 8 (Eight) Community Welfare Centres located at different locations at Head

Quarters and its two Captive Mines with a total cost of around Rs.1.43 Crores. An

amount of Rs.3.17 Lakhs is being collected annually towards membership fee from

the employees residing in the respective areas of CWCs and the same is placed at

the disposal of the respective CWC Committees to pursue various activities.

In addition, annually an amount of Rs.1.50 Lakhs is being given to the CWCs as

special grants for organizing the sports and cultural activities. With a view to meet the

additional needs of the recreational and cultural facilities, approval has been accorded

to construct CWC-2 at Ukkunagaram with an estimated expenditure of about Rs.3.21

Crores. Additional facilities are also in anvil to construct an Open Air Stage at

Trishna Grounds and to provide more facilities at CWC-1 at Ukkunagaram.

b) Library:-

A separate Library-cum-Reading Room, built at a cost of Rs.4.50 Lakhs

named after Bharat Ratna Dr B R Ambedkar was inaugurated on 17.08.1997, as part

of the Golden Jubilee Celebrations of our Country's Independence for the use of

Township residents.

67

c) Ukkunagaram Club & Steel Club:-

There is a well-equipped Ukkunagaram Club, which was constructed with an

expenditure of Rs.89.00 Lakhs in the year 1984. The Club is having the facilities like

Multi Purpose Hall, Library, Multi-Gym, Swimming Pool, Billiards room, etc. One

more club viz; Steel Club was established during the year 2003 in the township to

improve the Socio-Cultural & Recreational activities.

i) Bala Udyan at Sector-II Shopping Complex

ii) 2 Jet Fountains and Boat Club at Indira Gandhi Park

e) Sports Facilities:-

VSP Management has provided the following infrastructural facilities for

sports persons to improve their skills and standards.

Sports Complex:-

A big Sports Complex was built with an expenditure of Rs.1.70 Crores, which

have the facilities of big ground with Pavilion, three main turf (Cricket) wickets,

three practice turf wickets, one football ground, Hockey field, one floodlit Volleyball

court, one floodlit Tennis Play Court, one floodlit Basket Ball Court, 8 lane 400 mts

track, etc. There is also an Indoor stadium developed for playing Volleyball,

Badminton and other games. Besides the above, a very good cricket field has been

developed with two turf wickets and two practice wickets and a Foot Ball field at

Trishna Ground, located outside Stadium Complex. One Multi Gym has been

provided for the benefit of residents of Ukkunagaram.

Hostel Grounds:-

The following sports facilities were provided in the premises of Hostel Grounds:

Two floodlit volleyball courts

Beach volleyball court

Ball Badminton court

68

With the above measures, VSP is identifying hidden talent and training them to

bring laurels to VSP. The annual expenditure towards sports facilities is around

Rs.5.00 Lakhs.

f) National Day Celebrations:-

The Company has been organizing the following National Day and

Ceremonial functions every year in a grand manner by incurring an expenditure of

Rs.3.00 Lakhs:

Republic Day Celebrations

Independence Day Celebrations

RINL Formation Day Celebrations on 18th February

Dr B R Ambedkar & Babu Jagjeevan Ram Jayanthi Celebrations, etc.

69

SOCIAL SECURITY MEASURES

A) Employees' Family Benefit Scheme:

The Company has introduced an Employees' Family Benefit Scheme as a

Special measure of Welfare for the employees’ w.e.f. 01.08.1995. Under the Scheme,

last pay drawn of the employee is extended till the notional date of superannuation

subject to depositing Provident Fund and Gratuity amounts accruing to the employee,

on cessation of his employment on account of permanent total disablement or

permanent medical unfitness and to his nominee in case of the death of employee

while in service of the Company.

However, in case of death/permanent total disablement of an employee arising

out of and in course of employment while on duty or death/permanent total

disablement arising out of accidents while coming to duty or going back from duty

within one hour before or after the end of the shift, the employee/ dependants of such

employee will have the following options:

a) One of the dependants (Wife/husband, son, unmarried (daughter) may opt for

employment and he/she may be considered for employment at the intake

point of recruitment depending on age, qualification, experience etc.

(OR)

b) The dependent may opt for monthly payment equivalent to last pay drawn

(Basic + DA) till the notional date of superannuation of the deceased

employee without requiring to deposit with the Company PF & Gratuity

amounts earned.

B) SUPER-ANNUATION BENEFIT FUND:-

RINL Employees’ Superannuation Benefit fund has been introduced as a

special measure of employee welfare 1. 11. 1995 in accordance with clause 7.0 of the

memorandum of settlement dated 19. 9. 1995. The funds for the operation of this

scheme would consist of contribution of 2% of employee’s salary (Basic pay + DA)

70

and the earning under the Performance Linked Benefit Scheme (PLBS). The company

shall contribution to the fund an amount of Rs.100/- per annum.

Benefits:-

I. For entitlement of benefit from the fund, the minimum contribution by an

employee will be at 2% of his salary and the sum received by him as payment

towards incentives under the PBLS for 5 years.

II. The benefits will be in the shape of annuity to be purchased out of the fund

standing to the credit of the concern retiring/retired member of the fund from any

of the approved agencies under the act and the member shall be given an option to

select from amongst the alternatives offered by the said agency.

The member would also be given option to receive deferred pension

commencing from the normal date of superannuation provided that he keeps the

amount at his credit with the trust even after his opting out the scheme. The amount so

kept with the trust will earn interest on year – to – year basis at the rate declared by

the board of trusties.

C) Family Benefit Scheme (Death Benefit Fund):-

This is a voluntary Scheme. In case of death of an employee during service,

the dependents of the deceased are entitled to receive an amount of Rs.85,000/-

(approx.), which is contributed by the employees @ Rs.5/- from the FBS members.

D) Group Savings Linked Insurance Scheme:-

Under this Scheme, employees are to contribute at specified rate to the GSLI

which will be recovered through salary and remitted to LIC. At the time of

retirement/resignation/death, the amounts received from LIC will be paid to the

employee/dependents. The amount of benefit ranges between Rs.0.40 Lakhs to

Rs.1.60 Lakhs depending on the grade of the employee.

E) Life Cover Scheme:-

Under the Life Cover Scheme (in lieu of EDLI), the dependents of an

employee are entitled to receive an amount of Rs.62, 000/-

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F) Group Personal Accident Insurance Scheme:-

As a welfare measure, VSP has introduced “Group Personal Accident

Insurance Policy” for the benefit of its employees covering the risks of accidental

Death/Disablement arising out of accident.

Under the scheme an employee can opt for a sum insured amount up to 60

times of Basic+DA, and the risk includes payment of compensation at the specified

rates (ranging from 2% to 50% of capital sum insured depending on the extent of

disability) in case of disability or 100% amount of capital sum insured in case of

death due to accident. Risk covers round the clock for 24 hours and it could cover

anywhere in the World. As on date, 16,600 employees are covered under the policy.

G) Contribution from Incentive Earnings:-

In case of death of an employee while on duty, the dependents are entitled to

receive a portion of the incentive of the department in which he was working at the

time of death. The amount ranges between Rs.50, 000/- to Rs.60, 000/-

H) Corporate social responsibility:-

A comprehensive Corporate Social Responsibility policy has also been evolved

for addressing the societal issues in a structural manner. In this scheme RINL is

contributing 2% of their annual net profits for Social service activities, such as

providing basic facilities of street lights, roads, drinking water facilities in the rural

areas around the Visakhapatnam. Under this scheme two villages near JPT lime stone

that is Bhudawada village and K.Agraharam villages are identified under CSR

activities Roads, Drainages have been provided.

The Following box have been under taken bye VSP through its CSR schemes.

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CSR WORKS TAKEN UP BY VSP

BUDAWADA VILLAGE

SNO NAME OF SUB HEAD PRESENT STATUS OF WORK Approved Amount Rs.

01 C/o Drains in Budawada Village of Agency area i/c side drains (PH-II)

To be completed 1474900

02 C/o CC Roads over existing WBM Road and C/o open drains (PH-I)

Completed 1107700

03 C/o CC Road over existing WBM road and Construction of slab over drain at point No.2 at Budawada village

Completed 809800

04 C/o open drain from Budawada village to Lambada Tanda Completed 186400

05 C/o Open stage at School premises of Budawada village Completed 186300

06 Construction of toilet at Panchayat Office at Budawada village

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K AGRAHARAM

SNO NAME OF SUB HEAD PRESENT STATUS OF WORK APPROVED AMOUNT

01 Community Hall cum Library at K Agraharam To be started 780000

02 Development of weekly Market place at JLM township wit GI sheet roofing -do- 564600

03 Welcome Arch entrance of JLM township To be completed 70800

04 Internal Roads at K Agraharam including side drains Completed 1422800

JAGGAYYAPETA

SNO NAME OF SUB HEAD PRESENT STATUS OF WORK APPROVED AMOUNT01 Construction of Multi purpose Hall in Municipal

site at'Approval accorded for construction. 9507800

All the above works under final of competition.

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J) Mediclaim Insurance Policy for Retired Employees:-

Mediclaim Insurance Policy is extended to the retired employees and their

spouses, in addition to the treatment that they may avail in the Company run Hospital

free of charge.

An expenditure of Rs.12.86 Lakhs incurred during 2003-04 to cover the

retired employees (Mediclaim Policy holders) up to 31.03.2004. So far 321 retired

employees and their spouses have been covered under this scheme.

L) AFFORESTATION:-

“Conservation of Environment” is one of the core values of VSP. In order to

create a safe and healthy environment for the inhabitants of the township and

surrounding neighborhood, a comprehensive plan was prepared to afforest an area of

3,600 ha i.e., 41% of its total land area of 8827 Hectares. This is well above the

prescribed national norm of 33.33%. The afforestation areas constitute block

plantations inside the Plant and Township (1,630 Ha) and a peripheral green belt of

500m wide along the VSP land boundary (1,970 Ha).

INFRASTUCTURE:

A Railway Line (BG) of 32 KMs joining Motumarri to Jaggayyapeta

Limestone Mine was constructed by the Railways and is in operation.

POWER: 10.5 KMS HT line was constructed by APSEB for 33 KV HT

supply to the Mining area. The Mine receiving Sub-Station

(33KV/3.3KV/440V) was constructed by lessee and is in operation.

It has a beautiful township consisting of 226 houses of ‘A’, ‘B’ & ‘C’ type

and barracks with modern amenities including school, hospital, hostel,

Social Centre, Shopping Centre and open air auditorium. There is a

branch Post Office located in the Township.

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76

INTRODUCTION ABOUT PROJECT

MEANING AND DIFINITION:-

Welfare means faring or doing well it is the comprehensive term and refers to the

physical, mental, moral and emotional well being of an individual labour welfare ,also

referred to is betterment work for employees relates to taking care .well being of the of

workers by employers trade unions governmental nongovernmental agencies.

“Labour welfare is a term which must necessarily be elastic, bearing a some what

different interpretation in one country from another, according to the different social

customs, the degree of industrialization and educational level level of the workers”.

Importance of Welfare Activities of Employee’s:-

Following are the important principles to be followed in setting up Employee’s

welfare programme.

The programme should satisfy real needs of the workers.

The programme should be such as can be handled best by a group approach.

The employer should not .assume a benevolent posture.

The cost of programme should be calculated and its financing established on a

sound basis.

The management should ensure co-oparation and active participation of unions

and workers in formulating and implementing the programme.

There should be periodical assessment or evolution of the programme.

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Objectives of welfare activities:-

Today lobour welfare programmes have become very important because whatever is

spent on it is as good investment by the employer. He is benefited by increased

production on better quality of work .Some important motives of labour welfare are as

follows.

1. To give expression to philanthropic and paternalistic feedings.

2. To win over employee’s loyalty and increase their morale.

3. To combat trade unionism and socialist ideas.

4. To build up stable lobour force, to reduce labour turnover and absenteeism.

5. To develop efficiency and productivity among workers.

6. To save oneself from heavy taxes on surplus profit’s.

7. To earn good will and enhance public image.

8. To reduce the threat of further government intervention.

Types of Welfare Activities:-

A comprehensive list of welfare activities is given moorthy in his monumental

work on labour welfare .He divides welfare measures into two broad groups, namely.

Welfare measures inside the work place: and Welfare measures outside the work place.

I. Welfare measures inside the work place:-

Conditions of the work environment. Convinces. Workers, Health services Woman and child welfare Workers recreations Employment follow up Economic service Labour management participation Workers education.

II. Welfare Measures outside the work place:-

Housing: bachelors ‘quarters; family residences according to types

and rooms.

Water, sanitation, Waste Disposal.

Roads lighting, parks, recreation, playground.

Schools: nursery, primary, secondary and high schools.

Markets, co- operatives, consumer and credit societies

Bank.

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Transport.

Communication: Post, telegraph and telephone.

Health and medical services: dispensary emergency ward, Out-patient

and out-patient care, family visiting; family planning.

Approaches to labour Welfare:-

The various approaches to labour welfare reflect the attitudes and beliefs of the

agencies which are engaged in welfare activities .Welfare facilities may be provided on

religious, philanthropic or some other grounds .More over, the Different approaches to

labour welfare reflect the evolution of the concept of welfare

A study of the approaches to labour welfare is desirable for the management,the

workers and the general reader .For the general reader ,a study of approaches is essential

because his/her knowledge of the subject is in complete with a knowledge of these

approaches , and a knowledge of approaches enables the manager and the worker to have

a better perspective on welfare work

The policing theory of labour welfare.

The religion theory of labour welfare.

The philanthorophoc theory of labour welfare.

The paternalistic theory of labour welfare.

The placating theory of labour welfare.

The public relations theory of labour welfare

The social theory of labour welfare

Welfare Activities Classes:-

According to Dr. Broughton welfare activities can be divided into two classes

(a).Intra-mural and

(b).Extra-mural.infra-mural works include

1. Scientific selection or appointment: The scientific selection of workers for the

various jobs within the organization.

2. Industrial Training: Training for different jobs in the factory.

3. Arrangement for light, fresh air and water: This classification comprehends

arrangements

4. Prevention Of accidents: This includes arrangements for protection from

dangerous machines, extreme temperatures, fire fighting etc.

5. Other Functions: Such as canteen, provision or rest rooms, refreshments etc.

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Major Extra-mural labour welfare functions are the following:

1. Provision of Education: This includes adult education, social education, primary

education, education of men, women, children etc.

2. Arrangement for proper housing accommodation.

3. Medical services: This includes rest, cure, paid leave, free treatment subsidized

medical aid etc.

4. Provision of inexpensive nourishing food

5. Facilities of Recreation: Clubs gymnasia, cinema, radio, reading –rooms libraries

etc.

In additions to the above list, the following activities are also a part of labour welfare service:

1. Social Insurance Scheme.

2. Providend Fund Benefits.

3. Pensions.

4. Sickness and Maternity benefits.

5. Arrangement of maternity homes and crèches.

6. Provision of cooperative societies.

7. Arrangements of cultural programmes

8. Schooling of children.

Labour Activities agencies in India:

Various agencies have organized welfare activities in India. These agencies are:

1. The Central Government

2. The State Government

3. The Employers

4. The Trade Unions

5. Other Agencies

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81

1. Are you aware of all the welfare measures provided by VSP?

Table: 5.1

Responses No. of Responses % Of Responses

Yes 80 80%

NO 10 10%

Partially 10 10%

 Total No. of responses 100 100%

 

Interpretation:

From the above analysis we can know that 4/5th of them are totally aware of

the welfare measures providing for employees in the VSP but, very few are not aware

due to the communication gap and also few of them are not clear about what comes

under welfare measure

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2. How do you come to know about any new welfare measures being

introduced in the organization?

Table: 5.2

Responses No. of Responses % of Responses

Through Circular 68 68%

Higher officials 8 8%

Unions 12 12%

Co-workers 12 12%

 Total No. of    Responses 100 100%

 

Interpretation:

  From the above table we come to know that most of the employees come to

know about the new welfare measures through circulars. The passing of circulars are

well maintaining in the organization. It is easily accessible to majority of employees

that helps them aware of the new measures when being come into existence. And it is

also very economic means of sending messages through out the organization. Very

few get through their superior, co-workers, and unions.

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3. How to Feel that Safety provisions?

Responses No. of Responses % of Responses

Very Good 42 42%

Good 40 40%

Satisfied 16 16%

Poor 2 2%

Total No. of Responses 100 100%

 

 

Interpretation:

 From the above analysis we can know that all most of them are totally

satisfied with the safety provisions providing for employees in the VSP but, very few

are responding poor to the safety provisions.

84

4. How to feel that Medical facilities?

Responses No. of Responses % of Responses

Very Good 32 32%

Good 48 48%

Satisfied 16 16%

Poor 4 4%

Total No. of Responses 100 100%

 

Interpretation:

 As a major portion of the employees are satisfied with the medical facilities

due to free treatment, good doctors and excellent facilities for common ailments and

lacking specialized technology so this may be the reason for dissatisfaction among

other employees.

        But if we observe the facilities providing for their employees and dependents it

was excellent. The company also extends medical facilities and specialized treatment,

if required at reputed corporate hospitals. Better services are required rather than free

treatment.

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  5. What is response your Drinking water facilities?

Responses No. of Responses % of Responses

Good 40 40%

Satisfied 30 30%

Average 20 20%

unsatisfied 1O 10%

Total No. of Responses 100 100%

Interpretation:

 As a major portion of the employees are satisfied with the drinking water

facilities due to more water filters are arranged in the nearest places and lacking

maintenance of the equipment so this may be the reason for dissatisfaction among

other employees

6. How to like that your Leave facilities in VSP?

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Responses No. of Responses % of Responses

Very Good 38 38%

Good 40 40%

Satisfied 14 14%

Poor 8 8%

Total No. of Responses 100 100%

 

 Interpretation:

From the above analysis we can say that the overall respondents are above the

satisfaction level regarding the leaves because of RINL leave rules provide 10 days

bonus EL, over and above the maximum ceiling prescribed under the Factories Act

subject to the employee qualifying to earn the leave. Apart from earned leave, the

company provides casual Leave, Half pay Leave, Computed Leave, Special Class

Leave and quarantine leave. As the employees are having adequate number of leaves

they are totally satisfied in the welfare measures.

7. What is response on your Canteen facilities in VSP? 

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Table: 5.7

Responses No. of Responses % of Responses

Very Good 8 8 %

Good 40 40%

Satisfied 36 36%

Poor 16 16%

Total No. of Responses 100 100%

 

Interpretation:

 By analyzing the information given above we can say that the majority of the

employees responded that the facilities providing in the canteen are above the

satisfactory level because of the food providing for them are good quality, the

environment and hygiene are maintaining with cleanliness lastly the timings of the

canteen are comfortable with the timings of the working hours of the employees.   But

some of the respondents are not satisfied with the canteen facilities because mostly

about the tastiness of the food, cleanliness was not maintaining in the canteen. The

taste of the food was not up to their expectations and facilities providing are not

properly maintained. Some of the employees depend upon the food in the canteens.

So the food providing should give necessary calories of energy for them to do their

work properly.

 8. Now a days labour welfare programs have become very important

in the organization?

88

Opinion No. of Respondents % of Respondents

Yes 70 70%

No 30 30%

Total 100 100%

 

Interpretation:

From the above information 70% of the employees are supporting that labour

welfare programs have become very important in the organization. But 30% of

employees are not supporting because safety is an external process so they are not

giving so much importance. 

9.How to enable that your children Educational facilities in VSP?

Responses No. of Responses % of Responses

Very Good 30 30%

89

Good 32 32%

Satisfied 28 28%

Poor 10 10%

Total No. of Responses 100 100%

 

Interpretation:

 Majority of the employees are satisfied with the educational facility this shows that

organization is doing a good work for education and providing standard education at

all levels. There 11 schools in Ukkunagaram providing CBSE, ICSE and state level

syllabus.

                As far as unsatisfied employees are concerned the reason that can be

associated with their dissatisfaction is that management of some schools is not in the

hands of VSP and so it is not being regulated according to their terms and condition. 

10. VSP giving to Scholarships for the merit students does u like how

much?

Responses No. of Responses % of Responses

Very Good 32 32%

90

Good 30 30%

Satisfied 28 28%

Poor 10 10%

Total No. of Responses 100 100%

 

Interpretation:

From the above analysis we can say that most of the employees are satisfied with the

scholarship providing to the merit students of the VSP employees. We can say that

scholarships are for to motivate the students to do their best in future and appraising

their talents in studies. This is not to provide huge amounts for scholarships. One

should not see how much they are giving. Whether they are appraising or not. So VSP

is providing their best for the children.

 

11.  What is the main safety precautions should an employee take

while on work?

Opinion No. of Respondents % of Respondents

Air condition 10 10 %

91

Lighting 20 20 %

Physical amenities 10 10 %

Safe Work environment 60 60 %

Total 100 100%

Interpretation:

From the above information 60 % of employees prefer for safe work

environment .because they need safety while working and 20 % of employees for

lighting. because to perform the operations with out any breaks remaining 10%on

physical amenities and other 10%are preferring air conditioner which is needed in

some areas And 10% of employees for physical amenities. 

12.What is your opinion Quality of Housing facilities?

Responses No. of Responses % of Responses

Very Good 32 32%

Good 36 36%

92

Satisfied 22 22%

Poor 10 10%

Total No. of Responses 100 100%

 

 

Interpretation:

  From the above analysis we can conclude that most of them are above the

satisfaction level regarding the facilities at quarters. The condition of the quarters,

water supply, electricity supply and maintenance are good. There will be 24 hours

interrupted power supply for the houses and water supply at any time.  

13.What is your opinion on Sports Facilities?

Responses No. of Responses % of Responses

Very Good 22 22%

Good 30 30%

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Satisfied 24 24%

Poor 24 24%

Total No. of Responses 100 100%

 

Interpretation:

Form the above analysis we can say that most of the employees are satisfied with

the sports facilities providing for them at near place. Sports are regular activity and

healthy to all the people so that the sports providing for employees. It gives to the

good fitness to the body. But few of the employees are dissatisfied with out the good

sports facilities because of the not available good courts nearer to the employees so

few of the employees are not satisfied.

14.Which agree to the Pension scheme in VSP as per given below?

Responses No. of Responses % of Responses

Very Good 9 9%

94

Good 43 43%

Satisfied 30 30%

Poor 18 18%

Total No. of Responses 100 100%

Interpretation:

 

From the above analysis we can say that the most of the employees are

satisfied. But only some percentages of them are not satisfied. Because of the reasons

the govt fallows the old rules and regulations or other things.

15. What type of safety precautions you will prefer?

Opinion No. of Respondents % of Respondents

Internal safety 10 10%

95

External safety 10 10%

All 80 80%

Total 100 100%

Interpretation:-

From the above information given in table 80% of employees are prefer for all safety

precautions because they need both internal safety and external safety while they are

in the organization and 10% for internal safety such as helmet, belt, nose filter,

gloves, spectacles which give internal safety to them and another 10% for external

safety such as stores, dispensaries, cotters, water facilities and colony security.

16. Group Personal Accidents Insurance scheme how to provide by

the VSP?

Responses No. of Responses % of Responses

96

Very Good 32 32%

Good 48 48%

Satisfied 18 18%

Poor 2 2%

Total No. of Responses 100 100%

 

Interpretation:

 Group Personal Insurance Scheme is a welfare measures scheme maintaining

by insurance claims section of financial accounting department. The scheme was

introduced from 1995 on words. As per general insurance regulations the intentions of

the accident either death or disable accident is to be intimated to the respective

insurance company immediately.

 

17. Are you satisfied with the accommodation provided and the

welfare facilities available in the township?

Opinion No. of Respondents % of Respondents

Yes 90 90%

97

No 10 10%

Total 100 100%

Interpretation:

90% of employees are satisfied with accommodations provided and welfare

facilities available in the township. Such as good drinking water exlent colony life

good canteen facilities bus facilities and educational facilities but only 10% of

employees are not satisfited. Because insufficient facilities in cotters.

18. Are you satisfied with all the welfare facilities provided by the

VSP?

 

Responses No. of Responses % Of Responses

Yes 63 63%

No 1 1%

98

Partially 33 33%

Total No. of responses 100 100%

 

Interpretation:

From the above analysis it is clear that most of the employees are happy with

the welfare measures providing to them. The organization is very clear in

implementing the welfare measure and seeing in a way that they are reaching to the

employees. But coming to the those who are not satisfied there may be some personal

experiences regarding to their wishes which was not done. But at its best VSP was

providing good welfare measures to their employees when compared to any other

sectors and taking every chance to look after their employees

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SUGGESTIONS

1. The organization shall implement the best suggestions given by the

employees to reduce the dissatisfaction levels in the employees.

2. The organization shall take more initiatives regarding the employees’welfare

and suggestions given by them.

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3. As some of the measures were not up to the mark in implementation, there

shall be periodical checkup in implementing the welfare measures provided in

the organization.

4. The first-aid kits provided in the shop floors shall be regularly checked for re

filling as it is observed that essential things are missing at the time of usage.

5. The management should provide ozone purifier for better drinking water at

each shop floor.

6. The management should provide better higher education facilities for the

employee’s children as presently education facilities up to XII Standard are

available.

7. The management shall try to provide land for the employees inside the plant

for better housing i.e Satellite Township to minimize the time coming over to

job from far places.

8. Canteen facilities should be improved. The quality of the food and the

cleanliness in the canteen should be maintained.

9. Better pension scheme may be designed. Separate pension scheme for VSP

employees may be designed as a third retirement benefit instead of EPS-95.

More details regarding the pension scheme to be made available for all the

employees.

10. Internal transportation with in the town ship to be arranged.

11. Executive establishment section should be shifted inside the plant to facilitate

executives working in side the plant.

12. Railway reservation counters to be made available with in the sectors.

FINDINGS

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1. VISAKAPATNAM STEEL PLANT Employees have been provided with some

types of facilities in such as Insurance programmers, welfare programmers, safety

programmers . This is the fact supported by the employees in the organization.

Every employee should prefer all facilities; it will be beneficial to them and for

organization. Out of them most of employees prefer all facilities providing by the

organization. Some of them prefer only welfare programmers and some prefer

safety programmers and others on insurance programmers.

2. In every organization to get work commitment and motivation they should

provide some welfare benefits such as medical insurance, disability insurance,

holidays etc. In VSP, the fact from the employees that they prefer more medical

insurance welfare benefit than disability insurance and holidays.

3. In VSP, employees are provided with internal safety measures and external safety

measures for their welfare. Most of employees prefer all the safety measures that

are both internal and external measures. Some of them prefer only internal

measure and some of them prefer only external measures.

4. It is stated that “which of the following benefits improve employee’s loyalty and

motivation”, such as pension, provident fund, insurance etc. The benefits which

are exists in all organization. Out of them some of employees in the VSP, are

motivated by the benefits provident fund and then insurance.

5. Most of the employees in the organization supported this statement and less

number of employees is against to this statement. However, in this regard it is

suggested to VSP to continue the labors welfare programmers which will be

beneficial to the organization some of them prefer only belt, helmet, nose filter

and some of them.

6. Pursuant to this policy VSP has taken several initiatives for introducing and

implementation Non –Statutory welfare which impart and propagate the

feeling that the “company care for its employees”

102

BIBLIOGRAPHY

Human Resource Management& Human Relation

- P.SUBBA RAO

Management of Industrial Relations

- L.M.PRASAD

WWW.VSP.COM

WWW.GOOGLESEARCH.COM

103

QUESTIONAIRE

1. Are you aware of welfare measures provided by VSP?

(A) Yes (B) No (C) Partially (D) All

2. How do you come to know about any new welfare measures being introduced in the organization?

(A) Through Circular (B) Higher officials (C) Unions (D) Co-workers

3. How do you Feel the Safety provisions?

(A) Very Good (B) Good (C) Satisfied (D) Poor

4. How do you feel the Medical facilities?

(A) Very Good (B) Good (C) Satisfied (D) Poor

 5. What is the response of your Drinking water facilities?

(A) Good (B) Satisfied(C) Average (D) Unsatisfied

6. How do you feel about your Leave facilities in VSP?

(A) Very Good (B) Good (C) Satisfied (D) Poor

7. What is the response of your Canteen facilities in VSP?

(A) Very Good (B) Good (C) Satisfied (D) Poor

 8. Now a days the labour welfare programs had become very important in the organization?

(A) Yes (B) No(C) Partially (D) All

9. How to enable that your children Educational facilities in VSP?

(A) Very Good (B) Good (C) Satisfied (D) Poor

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10. How do you like about VSP Scholarships for the merit students?

(A) Very Good (B) Good (C) Satisfied (D) Poor

 11.  What is the main safety precautions should an employee take while on work?  

(A) Air Condition (B) Lighting (C) Physical amenities (D) Safe Work environment

12. What is your opinion Quality of Housing facilities?

(A) Very Good (B) Good (C) Satisfied (D) Poor

13. What is your opinion on Sports Facilities?

(A) Very Good (B) Good (C) Satisfied (D) Poor

14. Which agree to the Pension scheme in VSP as per given below?

(A) Very Good (B) Good (C) Satisfied (D) Poor

15. What type of safety precautions you will prefer?

(A) Internal safety (B) External safety(C) All

16. Group Personal Accidents Insurance scheme how to provide by the VSP?

(A) Very Good (B) Good (C) Satisfied (D) Poor

17. Are you satisfied with the accommodation provided and the welfare facilities available in the township?

A) Yes (B) No

18. Are you satisfied with all the welfare facilities provided by the VSP?

A) Yes (B) NoC) Partially

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