March 5, 2002
‘18’
STEPS TO IMPROVE PERFORMANCE OF RSP
The Steel Authority of India Ltd. (SAIL) has taken a number of steps to improve the performance of Rourkela Steel Plant (RSP). It launched an intensive cost control drive in 1997. As a result, RSP has been able to contain variable cost at a lower level than the previous year 1996-97 after absorbing input cost escalations. Implementation of Voluntary Retirement Scheme (VRS) for employees in 1998 and 1999 has resulted in separation of 3820 employees. In February 2001, another VR Scheme based on DPE pattern was introduced and 1251 employees opted for VRS in RSP. A new VRS has recently been launched on similar pattern in January 2002.
SAIL has introduced market oriented production and product-mix, increasing sales network and has focussed on customer satisfaction. During 2000-01, the Government has divested Captive Power Plants-II of RSP, identified for divestment under its Business Restructuring package. But adverse conditions in the steel market both domestic and international, high production costs, closure of important export markets due to protectionist measures initiated by a number of importing countries has affected the performance and net sales realisation of the plant.