project on welfare measures submitted by sneha desaraju

7/28/2019 Project on Welfare Measures Submitted by Sneha Desaraju

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Project Report on

WELFARE AMENITIES

IN RINL-VISAKHAPATNAM STEEL PLANT

Submitted to the TSR&TBK DEGREE & PG COLLEGE,

Visakhapatnam in partial fulfillment for the award of

MASTER OF BUSINESS ADMINISTRATION

Preparedby

Sneha Desaraju

Regd. No. 111134207010

Under the able support of

Shri O Rama Mohan Rao

AGM (HRD) &

Shri M.L SRINIVASA VARMA

Dy. Manager (HRD)

Under the guidance ofSHRI K SANJEEVA RAO

Assistant General ManagerPersonnel Department

RINL, VISAKHAPATNAM STEEL PLANT

VISAKHAPATNAM


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CERTIFICATE

To whom soever i t may concern

This is to certify that the project work entitled, Welfare Measures in

Visakhapatnam Steel Plant is a bonafide work carried out by Ms.

DESARAJU.SNEHA (a student of BBM, Regd. No. 111134207010) under my

guidance for the partial fulfillment of the requirement for the award of the

Degree in BACHELOR OF BUSINESS MANAGEMENT from TSR&TBK

DEGREEE & PG COLLEGE

(SHRI K SANJEEVA RAO)Asst. General Manager

Personnel Dept.R I N L / VSP

Place: VisakhapatnamDate: 28-5-2013


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DECLARATIONI hereby solemnly declare that this Project Report entitled Welfare measures

with reference to Visakhapatnam Steel Plant at Visakhapatnam, submitted

by me to the Andhra University in partial fulfillment for the award of the Degree

Bachelor of Business management is of my own and has not been

submitted to any other University /Institution for the award of any Degree.

Place: Visakhapatnam (SHENA DESARAJU)Date: 28-05-2013


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ACKNOWLEDGEMENT

At the very outset, I would like to thank Sri Y. R. Reddy, General

Manager (CP&C), Visakhapatnam Steel Plant for his valuable guidance and

timely advice during the study period for the successful completion of the

Project work. I also thank the executives of Welfare department of

Visakhapatnam Steel Plant who have given all the necessary support during

the study.

( SNEHA DESARAJU )


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PROJECT CONTENTS1. CHAPTER : Introduction 1

2. CHAPTER : Steel Industry Profile 7

3. CHAPTER : Vizag Steel Profile 13

4. CHAPTER : Conceptual profile 49

5. CHAPTER : Findings, Analysis,Interpretation 89

6. CHAPTER : Summary and Suggestions 113

7. CHAPTER : Bibliography 116


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1. CHAPTER INTRODUCTION

OBJECTIVES OF THE STUDY

NEED FOR THE STUDY

RESEARCH METHODOLOGY

SIGNIFICANCE OF THE STUDY

SCOPE OF THE STUDY

LIMITATIONS OF STUDY


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INTRODUCTION:

The concept of welfare is dynamic and varies with times, region, industry, country,

social values, customs, degree of industrialization, the general socio-economic

development of the people and the political ideologies prevailing. It is also moulded

according to the age group, sex, socio-cultural level of workers in various industries.

However, efforts have been made by expert bodies about the concept of welfare. A

few of these definitions are given below:

The Oxford dictionary defines Employees welfare as efforts to make life worth living

for workmen" while the Chamber's dictionary defined welfare as a state of faring or

doing well; freedom from calamity, enjoyment of health and prosperity".

The encyclopedia of social sciences defines.

The voluntary efforts of the employers to establish within the existing industrial item

working and something as living and cultural conditions of employees beyond; as

required by law, the customs of the industry and the conditions of market".

R.R. Hopkins:

Welfare is fundamentally an attitude of mind on the part of management.

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

the long arm of 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 because of the heat, noise, and fumes etc., involved in the manufacturing

process. There are also occupational hazards and environmental problems inherent

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

This can be referred to as the long arm of the job.

This 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 of welfare

services within the factory or work place is felt.

Thus, the term Welfare is a comprehensive term, which includes any activity

connected with social, moral, economic betterment of workers provided by any

agency. Such activities may differ from country to country and from region to region

and from Firm to Firm.


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OBJECTIVES:

The objectives of the study are

To know about the Company in brief and to understand the Personnel Department at

RINL-VSP

To understand the extent to which the welfare measures provided by Visakhapatnam

steel plant, towards their employees.

To know the level of awareness of employee about the various welfare measures

provided to them.

To study how the welfare facilities provided help in increasing the productivity and job

satisfaction.

To learn how welfare services provided to employees help organization to build up a

stable work force by reducing absenteeism and labor turnover.

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

NEED FOR THE STUDY:

Welfare in the broader sense means well-being of the employee. Welfare

measures are the steps taken by the management to create a good environment in

which the workers feel satisfied both physically and mentally and in the end, produce

the best results by putting their maximum efforts.

As a result, productive devices and compensatory benefits have to be provided for

the welfare of the workers. This can be referred to as the long arm of the Job which

stretches out its adverse effect on to the workers, long after normal working hours,

affecting his physical and mental well-being. Hence, the need of welfare services

within the factory or work place is felt.

Regarding the aspect of social invasion of the factory when a worker comes to his

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

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

personal and family needs is felt.


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RESEARCH METHODOLOGY:

Research methodology is the systematic way to solve the research problems. The

relevant data has been collected from two different sources

Primary source.

Secondary source.

Primary source:

The primary data is collected through observations and also through questionnaire.

The questionnaire is circulated among the employees to collect information.

Secondary source:

The secondary data is collected through company journals, intranet and internet.

QUESTIONNAIRE ADMINISTRATION:

The questionnaire was prepared after counseling with the Company Guide. A set of

questionnaire was prepared. A five point scale strongly agree to strongly disagree

was used for this purpose.

SAMPLE DESIGN:

A sample of 100 respondents was taken using random sampling. The researcher

contacted the employees personally and brief summary of the nature of the study

and details in the questionnaire were narrated to them.

PERIOD OF STUDY:

The present study had been undertaken for period of 6 weeks, in which it had

divided into three stages as such. Stage I is of research problem and collection the

literature of the topic chosen. Stage II is of analysis and interpretations by using

different statistical tools, findings and recommendations.

STATISTICAL TOOLS USED:

For the purpose of present study percentage analysis was used.


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SIGNIFICANCE OF THE STUDY:

Welfare amenities are provided in an effort to motivate and enhance the benefits to

the employees, the industry and the society as a whole. They are, thus, essential for

Industrial Democracy. With the rapid development of newer and improved

technologies, tremendous changes are taking place all around us. Employees are

becoming more and more knowledgeable with greater aspirations. They aspire for

improved quality of life and working conditions.

Given the above backdrop and the challenges ahead of RINL, Visakhapatnam Steel

Plant, provision of Welfare amenities assumes a very significant role for survival and

growth of the company. In this context, the implications of Welfare measures in

VSP can be stated as follows:

It affords the workers a sense of belongingness to the organization and a sense of

commitment.

It helps in motivating employees to achieve organizational goals.

Workers get induced to contribute their best with a sense of commitment.

It ensures minimum industrial conflict and accelerates economic growth.

SCOPE:

The study covers all the statutory welfare measures namely canteens, washing

facilities, resting facilities, dress and storing facilities, sanitary and drinking water

facilities and the non-statutory welfare measures namely education, housing, co-

operative societies, transport and recreation.

It also includes a study on issues like grievance handling and working environment,

which also have impact on the overall welfare of the worker.

The study is conducted only on employees of Visakhapatnam Steel Plant, which

forms the universe of this study


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LIMITATIONS OF STUDY:

The findings of the present study cannot be generalized as they are based purely

limiting to the one unit of this singular organization without giving any comparisons to

the practices in similar industry. Being a company spread all over India, for all

practical reasons and limitations, we may not be able to travel to all Steel Plant units.

Thus, this study limits to the Visakhapatnam Steel Plant only.

This study is more of professional oriented. Hence it cannot be constructed to denote

and / or purported to standardize as a model for this project. A few limitations and

constraints came in way of conducting the present study, under which the researcher

had to work are as follows:

The sample size chosen is covered only a small portion of the whole population of

STEEL PLANT and the outcome cannot be a reliable one.

The study is confined to limited period i.e. Six weeks.

Accuracy of the study is purely based on the information as given by the respondents.

Data collected cannot be asserted to the free from cores, as the sample size restricted to

the employees.

To prepare such kind of report is very tough task because there is the possibility that

employee may hide some truth or information.

Although all attempts were made to make this an objective study, biases on the part of

respondents might have resulted in some subjectivity.

Though, no effort was spared to make the study most accurate and useful, the sample

Size selected for the same may not be the true representative of the Company, resulting

in biased results.

This being the maiden experience of the researcher of conducting study such as this, the

possibility of better results, using deeper statistical techniques in analyzing and

interpreting data may not be ruled out.


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STEEL INDUSTRY PROFILE

INTRODUCTION TO STEEL INDUSTRY IN INDIA

Steel is crucial to the development of any modern economy and is considered to be

the backbone of human civilization. The level of per capita consumption of steel is

treated as an important index of the level of socioeconomic development and living

standards of the people in any country. It is a product of a large and technologically

complex industry having strong forward and backward linkages in terms of material

flows and income generation.

All major industrial economies are characterized by the existence of a strong steel

industry and the growth of many of these economies has been largely shaped by the

strength of their steel industries in their initial stages of development. Steel industry

was in the vanguard in the liberalization of the industrial Sector and has made rapid

strides since then. The new Greenfield plants represent the latest in technology.

Output has increased, the industry has moved up i n the value chain and exports

have raised consequent to a greater integration with the global economy. The new

plants have also brought about a greater regional dispersion easing the domestic

supply position notably in the western region. At the same time, the domestic steel

industry faces new challenges. Some of these relate to the trade barriers in

developed markets and certain structural problems of the domestic industry notably


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due to the high cost of commissioning of new projects. The domestic demand too

has not improved to significant levels. The litmus test of the steel industry will be to

surmount these difficulties and remain globally competitive.

HISTORY OF STEEL

Steel was discovered by the Chinese under the reign of Han dynasty in 202 BC till

220 AD. Prior to steel, iron was a very popular metal and it was used all over the

globe. Even the time period of around 2 to 3 thousand years before Christ is termed

as Iron Age as iron was vastly used in that period in each and every part of life. But,

with the change in time and technology, people were able to find an even stronger

and harder material than iron that was steel. Using iron had some disadvantages but

this alloy of iron and carbon fulfilled all that iron couldnt do. The Chinese people

invented steel as it was harder than iron and it could serve better if it is used in

making weapons. One legend says that the sword of the first Han emperor was

made of steel only. From China, the process of making steel from iron spread to its

south and reached India. High quality steel was being produced in southern India in

as early as 300 BC. Most of the steel then was exported from Asia only. Around 9th

century AD, the smiths in the Middle East developed techniques to produce sharp

and flexible steel 26 blades. In the 17th century, smiths in Europe came to know

about a new process of cementation to produce steel. Also, other new and improved

technologies were gradually developed and steel soon became the key factor on

which most of the economies of the world

THE GLOBAL STEEL INDUSTRY:

The current global steel industry is in its best position in comparing to last decades.

The price has been rising continuously. The demand expectations for steel products

are rapidly growing for coming years. The shares of steel industries are also in a

high pace. The steel industry is enjoying its 6th consecutive years of growth in

supply and demand. And there is many more merger and acquisitions which overall

buoyed the industry and showed some good results. The supreme crisis has lead to

the recession in economy of different countries, which may lead to have a negative

effect on whole steel industry in coming years. However steel production and

consumption will be supported by continuous economic growth


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CONTRIBUTION OF COUNTRIES TO GLOBAL STEEL INDUSTRY

The countries like China, Japan, India and South Korea are in the top of the above in

steel production in Asian countries. China accounts for one third of total production

i.e. 419m ton, Japan accounts for 9% i.e. 118 m ton, India accounts for 53m ton and

South Korea is accounted for 49m ton, which all totally becomes more than 50% of

global production. Apart from this USA, BRAZIL, UK accounts for the major chunk of

the whole growth.

Country Wise Crude Steel

Production During The Year

Of 2007-08 Country

Crude Steel Production

(mtpa)

CHINA 272.5

JAPAN 112.7

UNITED STATES 98.9

RUSSIA 65.6

SOUTH KOREA 47.5

F.R.GERMANY 46.4

UKRAINE 38.7

BRAZIL 32.9


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INDIA 32.6

ITALY 28.4

Indias crude steel output was 68.32 million tons during 2010. The country managed

to expand the capacity for crude steel production from 72.76 million tons per annum

mtpa in 2009-10 to 78 mtpa in 2010-11.


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According to government, public sector steel companies performed well during the

year. Their combined profit after tax was Rs8605 crore during the period April-

December 2010.

Realising it report card for the year 2010-11, the government said that the process of

drafting a new National Steel Policy has been initiated. A five year strategy paper

has been prepared for promotion of the steel sector. A policy paper on research &

development has also been prepared with special focus on beneficiation, coal ash

reduction and promotion of high grade value added steel in the country, it added.


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3. CHAPTER Vizag Steel Profile


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PARTICULARS OF ORGANIZATION, FUNCTIONS AND DUTIES

Part iculars of Organizat ion

Name of the Company Rashtriya Ispat Nigam Limited

Company Identification U27109AP1982GOI003404 Number (CIN)

Date of Incorporation 18th February 1982

Mode of Incorporation

Incorporated as a Government Company

under the provisions of the Companies Act,

1956

Administrative Ministry Ministry of Steel Govt. of India

Present StatusA Govt. Company within the meaning of

Section - 617 of the Companies Act, 1956

Address of Registered Office:

Rashtriya Ispat Nigam LimitedVisakhapatnam Steel PlantAdministrative BuildingVisakhapatnam - 530 031Website :www.vizagsteel.com
http://www.vizagsteel.com/http://www.vizagsteel.com/http://www.vizagsteel.com/http://www.vizagsteel.com/


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HISTORY:

On 17 April 1970, the then prime

minister of India, Late Mrs. Indira

Gandhi announced the government's

decision in the Parliament to

establish a steel plant at

Visakhapatnam. The activities kicked

off by appointing site selection

committee in June 1970 and

subsequently the committees report

was approved for site. On 20 January 1971 she laid the foundation stone.

Consultants were appointed in February 1971, and feasibility reports were submitted

in 1972. The first block of land was taken over on 7 April 1974. M/s M.N. Dastur &

Co was appointed as the consultant for preparing the detailed Project report in April

1975 and in October 1977 they have submitted the report for 3.4 mtpa of liquid steel.

With the offer for assistance from government of erstwhile USSR, a revised project

concept was evolved. Detailed Project Report for a plant capacity of 3.4 Mtpa was

prepared by M/s M.N. Dastur & Co in November 1980. In February 1981 the contract

was signed with USSR for preparation of working drawings for coke ovens, Blast

Furnace and sinter plant. The blast furnace foundation was laid with first mass

concreting in the project in January 1982. The construction of township also started.

A new company Rashtriya Ispat Nigam Limited (RINL) was formed on 18 February

1982. Visakhapatnam Steel Plant was separated from SAIL and RINL was made the

corporate entity of Visakhapatnam Steel Plant in April 1982.

Vizag Steel Plant is the only Indian shore-based steel plant, and it has massive land,

up to 19,000 acres (7,700 ha), and is poised to become up to 20 MT in a single

campus and turnover in 2011-2012 was 14,457Crores. On 20th May, 2009

Honorable Prime Minister Manmohan Singh launched the expansion project of

Visakhapatnam Steel Plant from a capacity of 3.6MT to 6.3MT at a cost of Rs. 8,692

Crores. But the investment was revised to 14,489 crores with following classification:

Expenditure for the financial year 2009-10 Rs 1840 Crore
http://en.wikipedia.org/wiki/Indira_Gandhihttp://en.wikipedia.org/wiki/Indira_Gandhihttp://en.wikipedia.org/wiki/USSRhttp://en.wikipedia.org/wiki/Blast_Furnacehttp://en.wikipedia.org/wiki/Blast_Furnacehttp://en.wikipedia.org/wiki/Rashtriya_Ispat_Nigam_Limitedhttp://en.wikipedia.org/wiki/Steel_Authority_of_India_Limitedhttp://en.wikipedia.org/wiki/Steel_Authority_of_India_Limitedhttp://en.wikipedia.org/wiki/Rashtriya_Ispat_Nigam_Limitedhttp://en.wikipedia.org/wiki/Blast_Furnacehttp://en.wikipedia.org/wiki/Blast_Furnacehttp://en.wikipedia.org/wiki/USSRhttp://en.wikipedia.org/wiki/Indira_Gandhihttp://en.wikipedia.org/wiki/Indira_Gandhi


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Rs 5883 Crores since inception of the Project

Total Commitment, including enabling works, steel procurement, Consultancy,

Spares, etc is Rs 11591 Crores as on 25.03.10.

The expansion project is expected to become functional by 2012.

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 respected corporate citizen, ensure clean and green environment and develop

vibrant communities around us.

MISSION:

To attain 20 million ton liquid steel capacity through technological up-gradation,

operational efficiency and expansion; augmentation of assured supply of raw

materials; to produce steel at international standards of cost and quality; and to meet

the aspirations of the stakeholders.

OBJECTIVES: Expand plant capacity to 6.3Mt by 2012-13 with the mission to expand further in

subsequent phases as per Corporate Plan

Revamping existing Blast Furnaces to make them energy efficient to

contemporary levels and in the process increase their capacity by 1 Mt, thus total

hot metal capacity to 7.5 Mt

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

Achieve higher levels of customer satisfaction

Vibrant work culture in the organization

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

addressing social concerns

CORE VALUES:

Commitment

Customer Satisfaction

Continuous Improvement

Concern for Environment Creativity & Innovation


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Visakhapatnam Steel Plant (VSP), the first coast based Steel Plant of India is

located, 16 KM South West of city of Destiny i.e. Visakhapatnam. Bestowed with

modern technologies, VSP has an installed capacity of 3 million Tonnes per annum

of Liquid Steel and 2.656 million Tonnes of saleable steel. At VSP there is emphasis

on total automation, seamless integration and efficient up gradation, which result in

wide range of long and structural products to meet stringent demands of discerning

customers within India and abroad. VSP products meet exacting International Quality

Standards such as JIS, DIN, BIS, BS etc.

VSP has become the first integrated Steel Plant in the country to be certified to all

the three international standards for quality (ISO-9001), for Environment

Management (ISO-14001) & for Occupational Health & Safety (OHSAS-18001). The

certificate covers quality systems of all Operational, Maintenance and Service units

besides Purchase systems, Training and Marketing

functions spreading over 4 Regional Marketing Offices, 24 branch offices and stock

yards located all over the country.

VSP by successfully installing & operating efficiently Rs. 460 crores worth of

Pollution Control and Environment Control Equipments and converting the barren

landscape by planting more than 3 million plants has made the Steel Plant, Steel

Township and surrounding areas into a heaven of lush greenery. This has made

Steel Township a greener, cleaner and cooler place, which can boast of 3 to 4 C

lesser temperature even in the peak summer compared to Visakhapatnam City.

VSP exports Quality Pig Iron & Steel products to Sri Lanka, Myanmar, Nepal, Middle

East, USA, China and South East Asia. RINL-VSP was awarded "Star Trading

House" status during 1997- 2000. Having established a fairly dependable export

market, VSP plans to make a continuous presence in the export market.

Having a total manpower of about 16,600 VSP has envisaged a labour productivity

of 265 Tonnes per man year of Liquid Steel.

BACKGROUND

With a view to give impetus to Industrial growth and to meet the aspirations of the

people from Andhra Pradesh, Government of India decided to establish Integrated


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Steel Plant in Public Sector at Visakhapatnam (AP). The announcement to this effect

was made in the Parliament on 17th April 1970 by the then Prime Minister of India

late Smt. Indira Gandhi. A site was selected near Balacheruvu creak 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

foundation stone for the plant was laid by Smt. Gandhi on 20.01.1971.

Seeds were thus sown for the construction of a modern & sophisticated Steel Plant

having annual capacity of 3.4 Million Tonnes of hot metal. An agreement was signed

between Governments of India and the erstwhile USSR on June 12th, 1979 for

setting up of an Integrated Steel Plant to produce structural & long products on the

basis of detailed Project report prepared by M/s M.N. Dastur & Company. A

Comprehensive revised DPR jointly prepared by Soviets & M/s Dastur & Company

was submitted in Nov 1980 to Govt. of India.

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

18th February 1982 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.

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

which led 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.

The rationalized concept was based on obtaining the maximum output from the

equipments already installed, planned / ordered for procurement and achieving

higher levels of operational efficiency and labour productivity. Thus the plant capacity

was limited to 3.0 Million tonnes of Liquid Steel per annum. In the process, one of

the Steel Melt Shops and one of the mills were curtailed.

The availability of resources were continued to be lower than what was planned and

this further delayed the completion of the construction of the plant. Finally all the

units were constructed and commissioned by July 92 at a cost of Rs. 8529 crores.


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The plant was dedicated to nation by the then prime Minister of India Late Sri P. V.

Narasimha Rao on 1st August, 1992. Since Commissioning VSP has already

crossed many milestones in the fields of production, productivity & exports. Coke

rate of the order of 509 Kg/Ton of Hot metal, average convertor life of 2864 heats an

average of 23.6 heats per sequence in continuous Bloom Caster. Specific energy

consumption of 6.07 G Kal / ton of liquid steel, a specific refractory consumption of

8.94 kg and a labour productivity of 265 Ton / man year are some of the peaks

achieved (during the year 2004-05) in pursuit of excellence.

VSP TECHNOLOGY: STATE-OF-THE-ART 7 meter 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 respectively

Extensive waste heat recovery systems

Comprehensive pollution control measures

Major Sources of Raw Materials

Raw Material Sourc e

Iron Ore Lumps & Fines Bailadila, Chattisgarh

BF Lime Stone Jaggayyapeta, AP

SMS Lime Stone Dubai

BF Dolomite Madharam, AP

SMS Dolomite Madharam, AP

Manganese Ore Chipurupalli, AP

Boiler Coal Talcher, Orissa

Imported Boiler Coal Indonesia

Imported Coking Coal Australia / US

Medium Coking Coal (MCC) Kathara / Swang / Rajarappa / Kedla

Imported LAM Coke China

Quartzite Lump & Fines Local

Sand Sarepalli, AP


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Department

Annual

Capacity

(000 T)

Units(3.0 Mt Stage)

Coke Ovens 2,261 3 Batteries of 67 Ovens & 7 Mtrs. Height

Sinter Plant 5,2562 Sinter Machines of 312 Sq. Mtr. Grate area

each

Blast Furnace 3,400 2 Furnaces of 3200 Cu. Mtr. Volume each

Steel Melt

Shop3,000

3 LD Converters each of 133 Cu. Mtr. Volume

and six 4 Strand bloom casters

LMM 710 4 Stand finishing Mill

WRM 850 2*10 Stand finishing Mill

MMSM 850 6 Stand finishing Mill

MAIN PRODUCTS OF VSP

Steel Products By-Products

Blooms Nut Coke Granulated Slag

Billets Coke Dust Lime Fines

Channels Coal Tar

Angles Ammonium Sulphate

Beams Anthracene Oil

Squares HP Naphthalene

Flats Benzene

Rounds Toluene

Re-bars Zylene

Wire Rods Wash Oil

MAJOR DEPARTMENTS

Raw Material Handling Plant

VSP annually requires quality raw materials viz. Iron Ore, fluxes (Lime stone,

Dolomite), coking and non coking coals etc. to the tune of 12-13 Million Tonnes for

producing 3 Million Tonnes of Liquid Steel. To handle such a large volume of

incoming raw materials received from different sources and to ensure timely supply

of consistent quality of feed materials to different VSP consumers, Raw Material


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Handling Plant serves a vital function. This unit is provided with elaborate unloading,

blending, stacking & reclaiming facilities viz. Wagon Tipplers, Ground & Track

Hoppers, Stock yards Crushing plants, Vibrating screens, Single/ twin boom

stackers, wheel on boom and Blender reclaimers, Stacker . cum . Reclaimer (SCR).

In VSP peripheral unloading has been adopted for the first time in the country.

Coke ovens & Coal Chemical Plant (CO&CCP)

Blast Furnaces, the mother units of any Steel plant require huge quantities of strong,

hard and porous solid fuel in the form of hard metallurgical coke for supplying

necessary heat for carrying out the reduction and refining reactions besides acting

as a reducing agent. At VSP there are three Coke Oven Batteries, 7 Metre tall and

having 67 Ovens each. Each oven is having a volume of 41.6 cu. metre & can hold

upto 31.6 Tonnes of dry coal charge.

There are 3 Coke Dry Cooling Plants (CDCP) each having 4 cooling chambers.

Nitrogen gas is used as the Cooling medium. The heat recovery from nitrogen is

done by generating steam and expanding in two back pressure turbines to produce

7.5 MW each. The Coal chemicals such as Benzole (& its products), Tar (& its

products), Ammonium Sulphate etc. are extracted in Coal Chemical Plant from C.O.

Gas. After recovering the Coal chemicals the gas is used as a by product fuel by

mixing it with gases such as BF Gas, LD Gas etc. A mechanical, biological &

chemical treatment plant takes care of the effluents.

Sinter Plant

Sinter is a hard & porous ferrous material obtained by agglomeration of Iron Ore

fines, Coke breeze, Lime Stone fines, Metallurgical wastes viz. Flue dust, mill scale,

LD slag etc. Sinter is a better feed material to Blast Furnace in comparison to Iron

Ore lumps and its usage in Blast furnaces help in increasing productivity, decreasing

the coke rate & improving the quality of Hot Metal produced. Hot Sinter discharged

from Sintering machine is crushed to +5 mm - 50 mm size and cooled before

dispatching to Blast Furnaces.


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Parameters of Sinter ing Machines are

Total area - 312 Sq. metre

Effective Sintering area - 276 Sq. metre

Sinter bed height - 500 mm

Sinter Machine Capacity - 400 T P H each

The dust laden air from the machines are cleaned in scrubbers & electrostatic

precipitators to reduce the dust content to 100 mg/ m3 level before allowing to

escape into the atmosphere and thus helping in maintaining a clean & dust free

environment.

Blast Furnaces

SP has two 3200 cu. metre Blast Furnaces (largest in India) equipped with Paulworth

Bell less top equipment with conveyor charging. Rightly named as "Godavari" &

"Krishna" after the two rivers of AP, the furnaces will help VSP in bringing prosperity

to the state of Andhra Pradesh. Provision exists for granulation of 100% liquid slag at

blast furnace cast house and utilization of blast furnace gas top pressure (1.5-2.0

atmospheric pressure) to generate 12 MW of power in each furnace by employing

gas expansion turbines. The two furnaces with their novel circular cast house and

four tap holes each are rated to produce 9720 tonnes of Hot Metal daily or 3.4 Million

Tonnes of low sulphur Hot Metal annually. Record Performance of Blast Furnace

department:

Techno-Economics:

Productivity - 2.23 t/m3/day Feb .06

Power - 51.31 kwh/thm Feb .06

Fuel Rate - 509 kg/tom Jan .04

Heat cons. - 450 Mcal/thm Apr .05

Nut coke usage 56 kg/thm Mar .04


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Production

Day Peaks Monthly Peaks

Blast Furnace-1 - 6820 Tons 23.03.06 Hot metal - 374419 Tons Mar .06

Blast Furnace - 2 - 6805 Tons 21.03.06 PCM Pouring - 107463 Tons Mar .93

Shop -13325 Tons

10.02.06Pig Iron Despatch - 110387 Tons Mar .94

PCM Pouring - 6723 Tons 31.03.93 G. Slag Despatch -150942 Tons May

.02

Steel Melt Shop

VSP produces steel employing three numbers of top blown Oxygen Convertors

called LD Convertors or Basic Oxygen Furnaces / Convertors. Each convertor is of

133 cu. Metre volume, rated to produce 3 Million Tonnes of Liquid Steel annually.

Besides Hot Metal, Steel Scrap, Fluxes such as calcined lime or Dolomite form part

of the charge to the Convertors. Different grades of steel of Superior quality can be

made by this process by controlling the Oxygen blow or addition of various ferro

alloys or special additives such as FeSi, FeMn, SiMn, Coke Breeze, Aluminum etc.

in required quantities while liquid steel is being tapped from the convertor into a steel

ladle. Convertor / LD Gas produced as by product is used as a secondary fuel.

Character ist ics of VSP Conv ertors:

Capacity : 150 Tones per heat blow

Volume : 133 Cu. Metre

Convertor Sp. Volume : 0.886 Metre Cube per tonne

Tap to Tap Time : 45 mts - 60 mts

Liquid Steel produced in LD Convertors is solidified in the form of blooms in

continuous Bloom Casters. However, to homogenize the steel and to raise its

temperature, if needed, steel is first routed through, Argon rinsing station, IRUT (

Injection Refining & Up temperature ) / ladle Furnaces.


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Continuous casting Department

VSP has six-4 strand continuous casting machines capable of producing 2.82 million

Tonnes / year Blooms of size 250 x 250 mm and 250 x 320 mm. Entire quantity of

molten steel produced (100%) is continuously cast in radial bloom casters which help

in energy conservation as well as production of superior quality products. Facilities at

continuous casting machines include a lift and Turn table for ladles, Copper mould,

oscillating system tundish, Primary & Secondary Cooling arrangement to cool the

steel bloom. Gas cutting machines for cutting the blooms in required lengths ( Av. 6

metres long ).

Rolling Mills

Blooms produced in SMS-CCD are shaped into products such as Billets, rounds,

squares, angles (equal & unequal), Channels, I-PE Beams, HE Beams, Wire rods

and reinforcements bars by rolling them in three sophisticated high capacity, high

speed, fully automated\ rolling mills, namely Light & Medium Merchant Mills (LMMM),

Wire Rod Mill (WRM) and Medium Merchant and Structural Mill (MMSM).

Light & Medium Merchant Mill (LMMM)

LMMM comprises of two units. In the Billet/Break down mill 250 x 320 mm size

blooms are rolled into Billets of 125 x 125 mm size. Billets are supplied from this mill

to Bar Mill of LMMM & Wire Rod Mill. The Bar mill is facilitated with temp core heat

treatment technology evaporative cooling system in walking beam furnaces,

automated pilling & bundling facilities, high degree of automation and

computerization. The mill is designed to produce 710,000 tons per annum of various

finished products such as rounds, rebars, squares, flats, angles, and channels

besides billets for sale.

Wire Rod Mill (WRM)

Wire Rod Mill is fully automated & sophisticated mill. The billets are rolled in 4

strand, high speed continuous mill having a Annual Capacity of 8,50,000 Tonnes of

Wire Rod Coils. The mill produces rounds in 5.5 - 14 mm range and rebars in 8, 10 &

12 mm sizes. The mill is equipped with standard and Retarded Stelmor controlled

cooling lines for producing high quality Wire rods in Low, Medium & High carbon


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grade meeting the stringent National & International standards viz. BIS, DIN, JIS, BS

etc. and having high ductility, uniform grain size, excellent surface finish.

Medium Merchant & Structural Mill (MMSM)

This mill is a high capacity continuous mill. The feed material to the mill is 250 x 250

mm size blooms, which is heated to rolling temperatures of 1200 C in two walking

beam furnaces. The mill is designed to produce 8,50,000 tons per annum of various

products such as rounds, squares, flats, angles (equal & unequal), T bars, channels,

IPE beams I HE beams (Universal beams)

AUXILIARY FACILITIES

Thermal Power Plant

The average power demand of all units of VSP when operating at full capacity will be

around 230 MW. The captive Generation capacity of 286.5 MW is sufficient to meet

all the plant needs in normal operation time. In case of partial outage of Captive

Generation Capacity due to brake down/ shutdown/ or other reasons, the short fall of

power is availed from State Grid. The Captive Generation capacity comprises of

TPP : 247.5 MW (3 X 60 MW + 1 X 67.5 MW)

Back Pressure Turbines (C&CCD) : 2 X 7.5 MW

Gas Expansion Turbines (BF) : 2 x 12 MW

Power plant also meets the Air Blast requirement of Blast Furnaces through 3 Turbo

Blowers each of 6067 NM3/hr capacity. In addition to the above, Power Plant also

supply process steam, DM Water, Chilled Water, Soft Water to various units of VSP.

DNW Department

Distribution network (DNW) Department deals with receipt, transmission of electrical

power at Extra High Voltage (EHV) 220 KV level, distribution of High Tension (HT)power at 33 KV, 11 KV and 6.6 KV level. Operation and maintenance of power

handling equipment at 220 KV and maintenance of equipment at 33 KV, 11 KV and

6.6 KV (except for shop HVMCC & contractors) is carried out by the department.

Operation of shop HT equipment and operation & maintenance of shop LT power

distribution equipment are in the scope of respective shops. DNW department also

coordinates with AP TransCo. and APEPDCL for export and import of power

respectively.


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Traffic Department

A Steel plant of the size of VSP has to handle around 60-65 MT traffic comprising of

incoming traffic (different raw materials etc.), outgoing traffic (finished / saleable steel

products, pig iron, granulated slag, byproducts etc.) and in process traffic viz. Cast P

I, Mill scrap, Mill scale, hot metal, etc. Of this 50% is transported by belt conveyors,

45% by Rail Transport and 5% by Road. VSP has the distinction of having peripheral

unloading system for the 1st time in Steel Industry. To handle this huge quantities of

traffic, VSP has a fleet of 31 locomotives, Hot Metal ladle cars, Torpedo ladle cars,

Captive wagons of different types, 5 internal Railway stations, loco and wagon repair

shop, number of weigh bridges. Engineering shops & Foundry (ES & F) Engineering

Shops & Foundry department is set up to meet the requirements of spares, repair of

assembliesand reclamation of various jobs of different departments. This complex

consists of 1.Central Machine Shop (CMS) 2.Steel Structural Shop (SSS) 3.Foundry

4. Forge Shop (FS) 5.Utility Equipment Repair Shop (UERS).

CENTRAL MACHINE SHOP (CMS)

In Central machine shop, various spares like Gears, Shafts, Crusher liners,

hammers, machined castings and fabricated jobs are made. In addition to the

manufacturing spares, assembly and repair jobs like gear boxes, Crusher, bearing

housings, stands of SMS are taken up. Over 100 major machines including lathes,

milling, Plano milling, boring, slotting, shaping, grinding etc. are available to take up

machining of spares. 2 presses of 630 ton, 315 ton and dynamic balancing machine

of 25 ton capacity, are provided at CMS for repair of assemblies.

STEEL STRUCTURAL SHOP (SSS)

At Structural shop of ES&F, structural jobs of various departments like coke bucket,

ladle, SRC body, Wagons, Shells, ducts etc. are being fabricated or repaired as per

the requirement of departments. The equipments available are Bending machine-

25mm capacity, Shearing machine-25mm capacity, CNC profile gas cutting machine,

welding machines, gas cutting sets, other tools and tackles.

FOUNDRY

In Foundry, castings of Iron, steel and non-ferrous are produced based on the

projection of customer departments. 8 ton Arc furnace, 2nos of 5ton Induction

furnaces and 1 ton crucible furnace for non-ferrous jobs and sand plant for


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preparation of sand for moulds are available for making castings. Major jobs like Hot

metal runners of 10 tons weight , Bottom funnel(5 ton), Emergency containers(7 ton),

lower mantle and Bowl liners(3 tons each) etc are produced.

FORGE SHOP (FS)

In Forge shop, preparation of raw materials for shafts, coupling flanges, gears etc

and also of forge shapes such as crusher hammer heads, V -hooks, drill rods with

the help of 0.5 ton, 2 ton, 3 ton pneumatic hammers, manipulators, heating furnaces

is carried out.

UTILITY EQUIPMENT REPAIR SHOP (UERS)

In Utility Equipment Repair Shop, repair of ventilation equipments, valves, fans and

impellers is carried out. Equipments like shearing machine, bending machine,

presses, lathes etc are provided to take up different repair and manufacturing

activities.

Field Machinery Department

FMD deals with operation and maintenance of Heavy Earth Moving Equipment,

Material Handling Equipment like Cranes, Fork lifts, Tractor trailers and Vehicles.

Our equipments are utilized for material transportation, maintenance jobs, house

keeping etc. FMD is one of the critical service department, whose services are

directly involved in operational activities at many production departments like Coke

Ovens, Sinter Plant, Blast Furnace, Steel Melting Shop etc.

In addition to the above, vehicles and fire tenders of VSP / CISF are maintained by

FMD. Central Maintenance Electrical Maintenance of all H.T motors, L.T motors and

DC motors of above 200KW. There are 810 such large rotating electrical machines

spread through out the plant including 3 Nos. of 60 MW Turbo-Generators, 1 No of

67.5M TG in TPP, 2 nos of Back Pressure Turbo Generators of 7.5 MW each and 2

Nos. of Gas Expansion Turbo- Generator of 12 MW each. The service provided are

as mentioned below.

Repairs, Maintenance and condition monitoring of all rotating Electrical machines of

the plant. The job includes transportation, Overhauling and re-erection with precision

alignment.


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Maintenance of Electrics of all street lights, Tower lights and Weigh Bridges through

out the plant. Electro Technical Laboratory

Repairs all the defective electronic PCBs which are taken out from the equipment

during their functioning.

Procures and arranges spare PCB.s for the equipment of PLC.s and drive controls

for motors in the plant and also for UPS systems.

Involves in the plant modernisation activities and upgradation of equipment.

Electrical Repair Shop (ERS)

ERS is a central repair shop to carry out repair activities like overhauling, rewinding,

testing etc., of various types of AC Motors, DC Motors, HT Motors, Submersible

pumps, Distribution transformers, Welding Machines, Control Transformers, Liftingmagnets, Coils etc., of the plant. The Main Functions of ERS are:

Overhauling of motors

Rewinding of motors, magnets, transformers, pumps, coils etc.

Testing of Electrical equipment

Emergency Site Repairs

Performance assessment of electrical motors

Utilities Department

Utilities dept. Consists of 1. Air Separation Plant 2. Compressor Houses 3. Chilled

water plants and Acetylene plants. The ASP is designed to meet the maximum daily

demand of gaseous oxygen, gaseous nitrogen and gaseous argon. Compressor

Houses ( CH ) produce Compressed Air required for the operation of pneumatic

devices, for instruments and controls, pneumatic tools and for general purpose in the

various production units of Steel Plants. Chilled Water plants ( 2 Nos ) produce

chilled water required for use in the ventilation and air conditioning system in areas

such as office rooms, electrical control room etc. Acetylene plant produces Acetylene

gas required for general purpose cutting and welding. Quality Assurance and

Technological Development (QA &TD) The QA & TD dept. has been set up to take

care of activities pertaining to Quality Control of Raw Materials, Semi finished

products and finished products. The QA & TD labs are provided at major department

like CO&CCP, SP, BF, SMS, Rolling Mills etc., in addition to Central Laboratory. The

department monitors the process parameters for production of quality products. QA


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& TD carries out analysis, testing and final inspection including spark testing of

finished products and assigns grades to them.

Environment Management Department (EnMD)

The environmental parameters related to ambient air, stacks, effluents, work-zone

environment, sound, waste management, sub-soil water, marine water and the

fugitive emissions from the coke oven batteries are regularly monitored by the

Environment Management Department (EnMD) as stipulated under consent

conditions and statutory orders from APPCB/CPCB/MoEF. All these monitoring

activities are carried out as per frequency prescribed by the APPCB/CPCB/MoEF

and compliance with all norms is ensured.

R&D

R&D department has been created in 2005 to strengthen R&D activities. This

department takes up various improvement projects related to areas like Process

improvements, Product developments, waste utilization etc. R&D projects are carried

out internally and through joint research projects with the help of external agencies

viz., Research organizations and Educational Institutions like IITs, NITs, CSIR Labs,

Andhra University, etc.

Calcining & Refractory Material Plant

CRMP consists of two units - Calcining Plant & Brick Plant. In calcining plant

limestone & dolomite are calcined for producing lime & calcined dolomite which are

used for refining of steel in the converters.

Roll shop & Repair shop

Roll shop & Repair shop is in the complex of Rolling Mills catering to the needs of

mills in respect of roll assemblies, guides few Maintenance Spares and roll pass

design. Geographically this dept. is in three areas as Roll shop-1, Roll shop-II and

Area Repair Shop. The main activities of this shop is Roll pass Design, grooving of

rolls, assembly of rolls with bearings, preparation of guides and their service and

manufacture / repair of mill maintenance spares. For the first time in the country,

VSP has adopted CNC technology for grooving of steel rolling mill rolls. High

constant respective accuracy, higher productivity, use of standard tool for any groove

turning, elimination of the use of different templates, easier to incorporate groove

modification etc., are some of the advantages of CNC lathes over the conventional

one.


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Structural Engineering Department

The main objective of Structural Engineering Department is to maintain Steel

structures located inside the plant area including Boundary Lighting Towers & Watch

Towers and the main functions are as below:

Inspection of all steel structures and chimneys as per schedule of inspection.

Schedule of inspection is prepared for the whole year (April to March) and is

circulated to all bzones and Emergency inspection is being done as when required.

Also Inspection of roof sheeting works as per schedule of inspection.

Repair / Replacement of damaged steel structures and sheeting.

Arresting roof leakages in all structural buildings.

Repainting of structures as a Preventive Maintenance.

Removal of dust from roof and gutters of different units.

Plant Design

Major functions of this unit are

Development of detailed Manufacturing Drawing and Replacement Specification

drawings

Suggesting New Designs and detailing by doing elaborate engineering study and

Analysis

StandardizationnWorks Contracts Department

Processing for and obtaining administrative approval on receipt of contractual

proposal from indenting departments, tendering and awarding of work.

Convening tender Committee meetings and preparing recommendations for

awarding work.

Preparing COM / Board Note for decisions at those forum.

Participating in Claims and Arbitration proceedings and legal cases pertaining to

contracts.

Registration of agencies under various categories & classes of works regularly.

Safety Engineering Department

Safety Engineering Department advises and assists the management in the

fulfillment of obligation concerning prevention of accidents and maintaining a safe

working environment. SED imparts safety training as well as refresher safety training

to the regular employees as well as contractor workers. SED conducts safety

inspections, safety audits, mock drills and coordinatewith the departments for

corrective actions in respect of unsafe conditions and unsafe actions. SED conducts

safety campaigns and safety competitions amongst the employees to promote


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safety. SED ensures that high quality safety appliances are procured and issued to

the employees. SED co-ordinates and liaison with AP Factories departments. Spares

Management Department

The main functions of SMD are:

Rationalized spares are procured by SMD department viz., Bearings, Electrodes

Conveyor belts, Idlers, Cables, etc., to cater to the needs of various departments.

All the indents viz., Operation, Mechanical, Electrical, Instrumentation, Refractory

etc., are processed thro. SMD department for procurement of necessary spares thro.

purchase department.

SMD department is coordinating pre dispatch inspection of spares for Works

departments, Refractory & Coke Oven Battery . IV, etc.

SMD department controls Inventory of spares, indenting & consumption budget.

Functions of Various Departments of RINL/VSP

Personnel Department

(Corporate Personnel, Central Employee Relations and Plant

Personnel)

Manpower Planning

Employees induction

Service matters, policy & rules

Industrial relations

Employees welfare

Corporate Social Responsibility (CSR)

Replies to parliamentary questions

Official Language implementation

Legal Affairs

Legal Affairs deals with all legal matters including arbitration, coordination withStanding Councils, Legal Advices etc.

Management Services

Quality Circle

Suggestion Scheme

Incentive Scheme

Reward Scheme

Procedural Orders etc


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Training & HRD

Leadership Training

Training on Motivation and Attitude

Team Building

Skill Training

Induction and Orientation

Plant Practice Lectures

Basic Engineering Lectures

Plant Specialized Training

Management Development

On the Job Training

Multi Skilling / SUPW and Mentoring

Corporate Strategic Management (CSM)

CSM is a .think tank. of the organisation. The Deparment is engaged in formulation

of VMO (Vision, Mission & Objectives) of the organisation and developing the

strategy to achieve VMO. It has various wings which inter-alia includes Knowledge

Management Cell (KM Cell). It has also developed the Corporate Plan of RINL. It

takes up strategic tasks of the organisation.

Town Administration & Administration

Matters relating to Land & State

Civil Maintenance

Electrical Maintenance

Water Supply

Roads and Drain Maintenance

Horticulture and Afforestation

Peripheral Development and

Public Health in Township (Ukkunagaram)

Interact with District Authorities for various welfare activities, land acquisition

matters etc.

Medical & Health Services

The Medical & Health Services Division of RINL consist of Visakha Steel General

Hospital (VSGH) & Peripheral Units viz. Pedagantrya Health Centre (PGHC), Health

Centre . II, Occupational Health Services & Research Centre (OHSRC), Emergency


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Unit . I & II and Hospitals in Mines . Jaggayyapeta Limestone Mines and Madharam

Mines. The special features of Visakha SteelGeneral Hospital are:

Full fledged Modern American Designed ICU and MBU capable of treating 6 patients

at a time

Full fledged Modern Radiology with Central A/c systems

Well equipped Path. Lab with Blood bank facility

Cluster type Wards & Casualty with Central Nursing Station

Modern Operation Theatre comples with Shadowless cold lights and 100% bacterial

free A/c system

Directorate of Commercial

Marketing DepartmentVSP has 23 no of Branch Sales Offices all over India and five Regional Offices viz.

North Delhi, South - Chennai, West - Mumbai, East - Kolkata and Andhra -

Visakhapatnam. Main Activities of the Marketing are as follows :

Collecting Market feedback and Customers requirements for the preparation of

Annual Sales Plan in coordination with Works Department, for the sale of Pig Iron,

Steel and

Byproducts.

Prepration of Marketing Policies.

Finalisation of MOUs, Spot sale agreements etc, in Domestic and Export Markets.

Preparation of Monthly Rolling Plans in coordination with Works Department for

meeting the sale commitments.

Processing of Materials like straightening of coils, cutting, bending, bundling,

packaging etc. at the plant premises and in the branches to meet customers

requirements.

Dispatch of products to various stockyards by road or rail or to customers from the

plant on direct dispatch basis.

Operation of the contracts for transportation of products by road and stockyard

handling/ consignment agency contracts for domestic sales, stevedoring contracts

and third party inspection agency for exports.

Sale of products at branches, Headquarters and on direct dispatch basis to the

customers in domestic markets and on Ex-works and fob Visakhapatnam basis in

exports subject to tying up of commercial and financial terms and conditions. Ensure

documentation as per the procedures and as per the statutory requirements.


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Rendering after sales services, obtaining customer feedback and Customer

Relations Management.

The details/information on the following aspects of Marketing are available in

.www.vizagsteel.com, Marketing Module.

a. Rolling Plan b. Products c. Prices d. Exports e. Network f. Customer

Relation

Further, five Consignment Sale Agencies are also functioning at Jamshedpur,

Raipur, Pondicherry, Jammu and Guwahati.

Materials Management Department

Procurement of all materials such as Raw-materials, Spares and consumables

required for the entire Plant Operations.

To enter into long term agreements for supply of major & minor raw-materials with

indigenous and imported suppliers.

To affect economy in the cost of materials by Purchasing materials of the right

quality, in the right quantity at the right time from the right source at the right place.

To arrange inspection of materials prior to handing over to Production Units to ensure

quality materials only are issued to Production Units.

Storage of materials & issue the same to the Production Units as per their

requirement.

To develop and encourage ancillary industries so that the availability of the materials

at right time is ensured.

Directorate of Finance & Accounts

Making arrangement for long term fund requirements.

Accounting of all monetary transactions and preparation of financial statement of

the company and getting the same audited as required under law.

Maintaining records with regard to the cost of products produced by the company.

Release of payments to suppliers/providers of goods and services.

Release of salaries to the employees.

According concurrence to proposals for investments & expenditure as per the

policies, procedures and the Delegation of Powers.

Conduct Internal Audits, Stock Verification and Statutory compliance.

Making working capital arrangements.

Submission of periodical reports to banks as per their sanctioned terms.


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Organizing for payment of Central Excise, Sales Tax, Income Tax and other

statutory payments.

Co-ordination with statutory Auditors and Government Audit.

Generation of various MIS reports pertaining to F&A department for Management

Information and Control.

Payments.

Directorate of Operations

Mines

Brief about Captive Mines of Visakhaptanm Steel Plant

Madharam Dolomite Mine (MDM)

MDM is located at Madharam village in Singareni Mandal of Khammam District, A.P.The mining lease is for exploitation of Dolomite covering an area of 384.46 Hectares

for about 20 years. The lease area is a captive source for Rashtriya Ispat Nigam Ltd

(RINL) / Visakhapatnam Steel Plant (VSP) for use of Dolomite in its Iron and Steel

making processes. The area is situated at a distance of 16 Km from the Ywellandu .

Mehaboobabad road taking diversion at Mukundapuram to the area. The present

mining lease is valid upto 13.07.2020. A railway line of 7.165 Km distance was

constructed from the lease area adjoining at Karepalli Junction. The lease is inoperation from 1989 onwards for transportation of Dolomite to VSP covering a

distance of 510 Km from the area. A township consisting of 225 dwelling units of all

categories with modern amenities was constructed with in the lease area. A DAV

School, hospital, hostel, Community Welfare Centre, Shopping Complex, Parks and

an Open Air Auditorium were also provided in the township. A Guest House of 4

rooms was also provided in the township. The capacity of the mine is to produce

7,80,000 tonnes of Dolomite per annum. The employee strength is 203 of different

categories. The present Dolomite reserve is 31.03 million tones. It is an open cast

mechanized mine of VSP to cater to the requirement of Dolomite.

Jaggayyapeta Limestone Mine (JLM)

Jaggayyapeta Limestone mine (JLM) is located 5 Km south . West of Jaggayyapeta

connected by a black . Top road in Krishna District, A.P. This is a captive mine of

VSP to cater to the requirement of BF Grade Limestone of VSP. The mining lease

has been granted by Govt. of A.P. covering an area of 1295 Hectares out of which

900 Ha is forest land and 395 Ha is acquired private lands. The lease is valid upto


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07.08.2020. This mine is an open cast mechanized mine with a capacity of 4,50,000

tonnes of BF Grade Limestone per year. A Township having 226 quarters of all

categories with modern amenities was constructed. Schools hospital, hostel,

Community Welfare Centre, Shopping complex and an Open Air Auditorium were

also provided in the Township. A four . roomed Guest House was also provided. The

Limestone reserve of 130 million tones is occurring in the area. The total strength of

employees is 133. The Limestone is dispatched by a goods train covering a distance

of 450 Km to VSP from the lease area.

Garbham Manganese mine (GMM)

Garbham Manganese mine (GMM) is a captive source for manganese ore for VSP. It

is located 16 Km away from Garividi connected by the black . Top road in

Merakamududam Mandal, Vizianagaram District, A.P. There are two mining leases

adjacent to each other covering an area of 264.54 Hectares. The present reserve of

Manganese is 7,03,760 tonnes as on 01.01.2008 with a life of 46 years producing

15,000 tonnes per annum. The area is equipped with a store house, maintenance

shed and vocational training centre. The total employeesstrength is 31 including

contractual lab our. The total distance from the mine to VSP is 125 Km. the annual

production of the mine is @ 16,000 tonnes.

Saripalli Sand Mine (SSM)

This is a captive source for catering to the requirement of Silica sand for VSP. This is

located in Champavati River near Nellimarla Mandal of Vizianagaram District, A.P.

The sand is transported from this mine by trucks covering a distance of 95 Km from

the area to VSP. The requirement of sand is 50,000 per annum. Loading,

transportation and unloading is carried by contractual agency. Only one Junior

Officer is posted to look after the mining activities of Serially sand mine. The total

reserve of sand is 3,20,000 tonnes.

Production, Planning and Monitoring Department

Formulation of Annual and Monthly Production Plan.

Analyzing Plant performance against targets on a periodic basis and put up for

information.

Formulation of techno . economic norms and reviewing the same against targets

periodically.

Raw material requirement projection of Coal, Ore and fluxes.


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Preparation of MIS on Inward and outward traffic w.r.t. incoming raw materials and

outward dispatches.

Research and Development

Identification of Technological Improvement scopes for various processes and plan

for adoption of them by acquiring design and know-how capability.

Indigenous development of technology involving laboratory investigation.

Development of new grades and products in coordination with Marketing dept.

Information Technology

Formulation of Organizational IT-Policy, IT-Security Policy and IT-Vision.

Identification of IT enabled projects for various processes and implement them.

Budget plan and control

Identification of Budget requirement under various heads.

Control of the Budget and Spares, Consumables & Raw Materials Inventory.

Systems and Procedures

Streamlining the contract management system to ensure consistency of approach

and adoption of sound principles of contract management.

Ensuring the implementation and maintenance of quality management system

requirements for ISO 9001:2000 Certificate.

Monitoring pollution control activities of the Plant and interaction with the State and

Central Pollution Control Board.

Project Division

Design & Engineering Department

Liaisoning with Consultants and Government Authorities in connection with designs,

specifications, approval of drawings and liaisoning work for various types of

clearances.

Preparation of drawings, design and specification for AMR and Non-AMR jobs.

Assisting indenting departments in technical discussion with parties and preparation

of technical recommendation.

Layout clearances of various facilities coming in the Plant and Township.

Operation of Consultancy contracts. Construction Department

Exercising supervision of work at site both for quality and quantity checks.

Preparation of contractors bills, processing of extra items and closure of contracts.

Liaisoning with suppliers, MM department, Design & Engineering Department and

Stores in connection with progress of work at site.


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Arranging PAT/FAT will all concerned departments like works, design, consultants

and suppliers in terms of contract and handing over the unit to works department for

operation.

Contracts Department

Awarding of contract from the point on receipt of administrative approval from

indenting departments.

conducting commercial discussions with parties.

Arranging Tender Committee meetings and preparing recommendations for awarding

work.

Preparing COM/Board Note for decisions at those form.

Participating in claims and arbitration proceedings. Project Monitoring Department

To monitor the physical and financial progress of all the works executed by

Construction department.

To monitor the progress of works executed by D&E as well as Contracts department.

Preparation of various types of reports for information of Government and different

levels of Management.

Interaction with departments and consultant for updating the schedules and

networks for Project Monitoring.

RINL/VSP-CORPORATE SOCIAL RESPONSIBILITY (CSR)

In the RINL Boarding meeting held on 31st August, 2006, the allocation of budget for

CSR has been enhanced up to 2 % of the Net Profit (after setting off cumulative

losses and transfers etc) and accordingly it is learnt that Rs.6.8 crores is likely to be

allocated to the CSR Activities for the year 2006-07.

1. Villages have been adopted under Peripheral Development schemes to

improve the standards of life in neighboring villages.

2. Donation given to Charity Hospitals for purchase of equipments

3. Donation of Try-wheel Cycle for Orthopedically handicapped, Hearing

Machines for Hearing impaired and medical check and providing medicines to

the Physically Challenged persons

4. To construct community halls, school building, roads steel bulk cards etc.,

5. Donation of Ambulance to the Police Department to handle emergency cases.


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VSP AND ITS OBLIGATIONS TOWARDS WELFARE

Visakhapatnam Steel Plant which has been set up under Public Sector category has

a wide range welfare measures to satisfy its employees both Statutory as well as

Non statutory. All those measures as envisaged under Law in different Acts are

found implemented for the benefit of employees. Besides that, extensive Non-

Statutory measures are extended to employees, which have unique satisfying

feature. VSP has been on the forefront in extending social security to employees on

all fronts. These aspects boost the morale of employees to the great heights while

they contribute their best for the plant. Although a delayed policy for promotions to

its employees has been formulated by VSP, the policy is well defined and

satisfactory both for Non-executives and Executives. In a nutshell, VSP is a giant

organization having representative features of all Management philosophies

concerning all branches. It is an open arena for making studies.

MANPOWER IN VSP:

The total manpower of the organization has been kept within sanctioned strength

given by the Ministry. The total manpower of the Organization as follows:

ADVENT OF CENTER FOR BUSINESS SYSTEMS (CBS) & CORPORATE

STRATEGIC MANAGEMENT (CSM):

The CBS was formulated to cater to the strategic needs of Vizag Steel. The focus of

CBS is to study world-class initiative and develop suitable framework for their

adoption and implementation on an organization-wide basic at VSP.

CBS was inaugurated on 18th December 2003. On this occasion, a booklet on

Strategies to achieve the Vision, Mission & Objectives of Vizag Steel was released.

VSPs Knowledge Management portal Gnana was launched on 26 th July 2004,

basically to capture and share unique experience in day to day operations. CBS has

four teams to assist other departments in implementation of the initiatives identified

and thus guide VSP to a chive its cherished vision of becoming a world -class

integrated steel plant. The four teams are: Corporate Management; Technology &

Automation; Marketing Research; Intellectual Capital Development

The above teams initiate activities pertaining to implementation of various aspects of

the Business Excellence model, research on the latest technological developments

in the steel industry for suitable adoption and benchmarking, initiative leading to

improved customer satisfaction, knowledge sharing initiatives like Knowledge

Management etc, lf Groups of employees from different areas of common interest


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called Communities of Practices (Cops) have been initiated which promote

collaboration, informationexchange and sharing of best practices among them. The

CBS has been merged with Corporate Planning department and renamed as

corporate Strategic Management (CSM) in order to suit the changing trends.

QUALITY, ENVIRONMENT AND OCCUPATIONAL HEALTH & SAFETY POLICY

We, at Visakhapatnam Steel Plant, are committed to meet the needs and

expectations of our customers and other interested parties, the occupational health

and safety of our work force and to preserve the environment. To accomplish this,

we will

Supply quality goods and services to customers delight.

Document, implement & periodically review the management Systems

including the policy, objectives and targets.

Use resources efficiently and reduce waste & prevent pollution.

Comply with all relevant legal, regulatory and other requirements Applicable to

products, activities and processes in respect of quality, Environment,

occupational health & safety and also ensure the same By contractors.

Continually improve quality, environment, occupational health and Safety

performance with respect to products, activities processes, Premises and

services.

Encourage development and involvement employees.

Maintain high level of quality, environment occupational health and safety

consciousness amongst employees and contract workers by Imparting

education and training.

ENVIRONMENT POLICY:

We at Visakhapatnam steel plant, while carrying out its operations reaffirm our

commitment to preserve the environment. To accomplish this, they will-

Document, implement, maintain and continuously review the environmental

management system.


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Comply with all the relevant environmental legislations, regulations, and

prevention of pollution by minimizing the emission and discharge.

Maintain a high level of environmental consciousness amongst employees.

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 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.

HR POLICY;

We, at Visakhapatnam steel plant, believe that our employees are the most

important resources. To realize the full potential of employees, the company is

committed to:

Provide work environment that makes the employees committed andMotivated for maximizing productivity.

Establish systems for maintaining transparency, fairness and equality in

dealing with employees.

Empower employees for enhancing commitment, responsibility and

accountability.

Encourage teamwork, creativity, innovativeness and high achievement

orientation.

Provide growth and opportunities for developing skills and Knowledge.

Ensure functioning of effective communication channels with employees.


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CUSTOMER POLICY:

VSP will endeavor to adopt a customer focused approach at all times with

transparency.

VSP will strive to meet more than the customer needs and expectations pertaining to

products, quality, and value for money and satisfaction.

VSP greatly values its relationship with customers and would make efforts at

strengthening these relations for mutual benefit.

IT POLICY:

RINL/VSP is committed to leverage Information Technology as the vital enabler inimproving the customersatisfaction, organizational efficiency, productivity, decision

making, transparency and cost effectiveness, and thus adding value to the

business of steel making. Towards this, RINL shall

Follow best practices in process automation & business process through IT by

inhouse efforts/outsourcing and collaborative efforts with other organizations/

expert groups/institutions of higher learning, etc., thus ensuring the quality of

product and services at less cost

Follow scientific and structured methodology in the software development

processes with total user involvement, and thus delivering integrated and

quality products to the satisfaction of internal and external customers

Make the most out of the sate of the art technologies in the IT field while

going for the suitable cost effective IT infrastructure and software.

Ensure high level of date and information security across the organization.

Strive to spread IT culture amongst employees based on organizational

need, role and responsibility of the personnel and facilities the objective of

becoming a world class business organization.

Enrich the skill set and knowledge based of all related personnel at regular

interval to make employees knowledge employees.


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Periodically monitor the IT investment made and achievements accrued to review

their cost effectiveness.

HRD GROUP KEY INITIATIVE:

Inhouse training progress

Nominations to external training programmes

Organization research, employees satisfaction surveys & voice of employees

index

Organization development

Membership with professional bodies

Performance appraisal initiatives

Human resource information system

Inplant training for management students

Lectures by eminent personalities

Corporate presentations

Interaction with professionals, academicians and consultants

Knowledge Management

Initiatives on Six Sigma

Emancipation of women through WIPS, women development programs (spring

board)

Thrust on Samalochana (internal communication exercise)

Pursuit of Business Excellence Model (BEM)

Chairman tho Maata


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HUMAN RESOURCE MANAGEMENT:

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

organization. VSP has harmonious 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. VSP has introduced multi-skill concept since

inception and the employees are trained to imbibe this. VSP has adopted a system

of over-lapping 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. The labor

productivity has crossed 414 tons/man/year unparalleled in the Public Sector steel

industry.

ACHIEVEMENTS & AWARDS

The efforts of Visakhapatnam Steel Plant have been recognized in various activities.

Some of the major awards received by Visakhapatnam Steel Plant are in the area of

Energy Conservation, Environment Protection, Safety, Quality, Quality Circles,

Official Language Implementation (Rajbhasha), MOU, Sports related awards and a

number of awards at the individual level.

SOME OF THE IMPORTANT AWARDS RECIVED BY VSP ARE INDICATED

BELOW:

ISO 9002 for SMS and all the downstream units-a distinction in the Indian Steel

Industry.

Indira Priyadarshini Vrikskha Mitra Award: 1992-93.

Nehru Memorial National Award for Pollution Control: 1992-93 & 1993-94.

EEPC Export Excellence Award: 1994-95.

CII (Southern Region) Energy Conservation Award: 1995-96.

Golden Peacock (1st Prize) National Quality Award-96 IIM in the National

Quality Competition 1996.

Steel Ministers Trophy for Best Safety Performance-1996.

Selected for World Quality Commitment Award-1997 of J*Ban, Spain.


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Gold Star Award for Excellent performance in Productivity.

Udyog Excellence Gold Medal Award for Excellence in Steel Industry.

Excellence Award for outstanding performance in Productivity management,

Quality & Innovation.

Ispat Suresh Puraskar (First Prize) for longest Accident free period, 1991-94.

Best Labour Management Award for the Govt of A.P.

SCOPE Award for best turnaround for 2001.

Environment Excellence Award from Greentech Foundation for energy

conservation in 2002.

Best Enterprise award from Scope, WIPS for 2001-02.

Best Enterprise award from SCOPE for surpassing MOU targets 2003 04.

ISTD Award for Best HR Practices - 2002.

Prime Ministers trophy for Best Integrated steel plant 2002-03.

World Quality Commitment International Star Award in the gold category

conferred by Business Initiative Directions, Paris.

Organizational Excellence Award for 2003-2004 conferred by INSSAN

RINL has been bestowed with several national accolades in the year 2005-2006

significant among them being:

National Energy Conservation Award for the 6th time in succession.

National Award for Excellence in Cost management.

Viswakharma Rashtriya Puraskar Awards (6 out of 32 at the national level).

FAPCCI Best Industries Productivity Award.

INSAAN National Award for Organizational Excellence.

Best CEO Award.

Ranked among Top FIFTY Indias Best Companies to Work for 2009.

Ranked 2nd in Public Sector Enterprises.

Ranked 6th in Manufacturing & Production category

Ranked 5th in large organization category (with more than 10,000 employees).

The above Awards are besides a number of at the local, regional and national level

competition in the area of Quality Circles, Suggestion Schemes etc.


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HALLMARK OF VIZAG STEEL AS AN ORGANIZATION:

Today, VSP is moving forward with an aura of confidence and with pride amongst itsemployees who are determined to give their best for the company to enable to reachnew heights in organizational excellence.At the same time, no single advantage accruing from a knowledge society is foundwanting by the neighborhood community with the growth & development of aphenomenon called VIZAG STEEL existing so close to its proximity, futuristicenterprises, academic activity, planned & progressive residential localities are butfew of the plentiful ripple effects of this transformation and each one of us takeimmense pride to uphold the philosophy of mutual (i.e., individual and societal)progress.

The remarkable performance on production front coupled with prudent financialmanagement has not only resulted in achieving significant net profits but also helpedRINL emerge as a NET POSITIVE COMPANY in January, 2008 by wiping out all itsaccumulated losses during 2006- 07.


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Statistical Information:

I. Production Performance (000 Tonnes)

YEAR HOTMETAL

LIQUIDSTEEL

SALEABLESTEEL

2000-01 3165 2909 25072001-02 3485 3083 2757

2002-03 3941 3356 3056

2003-04 4055 3508 3169

2004-05 3920 3560 3173

2005-06 4153 3603 3237

2006-07 4046 3606 3290

2007-08 3913 3322 3074

2008-09 3546 3145 2701

2009-10 3900 3399 3167

2010-11 3828 3425 3072II. Commercial Perform ance (Rs. Crs.)

YEAR HOTMETAL

LIQUIDSTEEL

SALEABLESTEEL

2000-01 3165 2909 2507

2001-02 3485 3083 2757

2002-03 3941 3356 3056

2003-04 4055 3508 3169

2004-05 3920 3560 3173

2005-06 4153 3603 3237

2006-07 4046 3606 32902007-08 3913 3322 3074

2008-09 3546 3145 2701

2009-10 3900 3399 3167

2010-11 3828 3425 3072

III. Financ ial P

project on welfare measures submitted by sneha desaraju

Documents