500 Visakhapatnam Steel Plant employees opt for third phase of VRS amid merger push

Around 500 employees have reportedly responded to the third phase of the Voluntary Retirement Scheme (VRS) notified by Rashtriya Ispat Nigam Limited, the corporate entity of the Visakhapatnam Steel Plant, with an objective of optimising human resources and reducing operational costs.

According to sources, heads of departments are urging employees with health issues or a history of minor injuries due to accidents on duty to apply for the VRS.

At the same time, the demand to save the Vizag Steel Plant, which is intrinsically linked to the self-respect of the Telugu people, is growing stronger following the issuance of the notification for the third phase of the VRS.

While some experts have suggested that the company can be revived by merging it with the Steel Authority of India Limited, no clear decision has been taken so far.

“Losing experienced employees will have a negative impact on production and quality in the long run. There is a widespread opinion that the plant’s future will be secure only if the government takes immediate action, releases full funding and stops the VRS,” said a retired Vizag Steel Plant employee.

It may be mentioned that following the first and second phases in 2025, the notification for the third phase of the VRS was issued on December 24, 2025. Online applications commenced on January 1, 2026, and the last date for submission of applications is January 27, 2026. Initially, due to an inadequate response, the deadline was extended from January 20 to January 27. Employees who have applied have the option to withdraw their applications until January 31, 2026.

The eligibility criteria include a minimum of 15 years of continuous service in RINL and a minimum age of 45 years as on the date of application. Employees working on a contract or fixed-term basis, or personnel on deputation from other government departments, are not eligible for the scheme.

“Around 500 employees have applied for the third phase of the VRS so far. It is understood that the management is expecting at least 1,000 applications. This could be the reason for extending the deadline from January 20 to January 27,” a VSP official told The Hindu on Sunday.

In the first phase, 692 officers and 631 non-executive employees opted for the VRS, followed by 377 officers and 464 non-executives in the second phase. In all, 1,008 officers and 1,587 non-executives have taken VRS in the two phases so far.

As of January 1, 2025, the plant had 12,338 regular employees. However, as of January 1 this year, the strength has come down to 9,311, according to RINL sources.

Leaders of trade unions, including the Visakha Ukku Parirakshana Porata Committee, have expressed concern over the situation. They pointed out that a significant number of applicants, including young and middle-aged employees, are opting for the VRS due to periodic delays in salary payments, increased workload following staff reduction in critical operations such as blast furnaces, uncertainty over disinvestment, and the lack of promotions in recent years.