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PROFILE OF VISAKHAPATNAM STEEL PLANT
INTRODUCTION
Steel occupies the foremost place amongst the materials in use today
and pervades all walks of life. All the key discoveries of the human genius
for instance, steam engine, railway, means of communication and
connection, automobile, aeroplace 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 furthering and achieving continual growth of
the economy be it construction, manufacturing, infrastructure or
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 following integrated steel
plants with foreign collaborations were set up in the Public Sector in the
post-independence era:
Sl.No
.
Steel Plant Collaborated by
1. Durgapur Steel
Plant
Britain
2. Bhilai Steel Plant Erstwhile USSR
3. Bokaro Steel Plant Erstwhile USSR
4. Rourkela Steel Plant Germany
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Background :
To meet the growing domestic needs of steel, Govt. of India decidedto set up an integrated steel plant at Visakhapatnam. An agreement was
signed with erstwhile USSR in 1979 for cooperation 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 January 1971.
The project was estimated to cost Rs.8397.28 Cr. 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
Rs.8,500 Cr. Unlike other integrated steel plants in India, Visakhapatnam
Steel Plant (VSP) is one of the most modern steel plants in the country.
The plant was dedicated to the nation on 1st August 1992 by the then Prime
Minister, Shri PV 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.
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
Supressed combustion LD gas recovery system
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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 Source
Iron Ore Lumps & Fines Bailadilla, MP
BF Lime Stone Jaggayyapeta, AP
SMS Lime Stone UAE
BF Dolomite Madharam, AP
SMS Dolomite Madharam, AP
Manganese Ore Chipurupalli, AP
Boiler Coal Talcher, Orissa
Coking Coal Australia
Medium Coking Coal (MCC) Gidi/Swang/Rajarappa/Kargali
Water Supply
Operational water requirement of 36 mgd is being met from the
Yeleru Water Supply Scheme.
Power Supply
Operation 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 around 60 MW power to APSEB.
Major Units
Department AnnualCapacity
Units (3.0 MT Stage)
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(000 T)
Coke Ovens 2,261 3 Batteries of 67 Ovens & 7 Mtrs.
height
Sinter Plant 5,256 2 Sinter machines of 312 Sq. Mtr.grate area each
Blast Furnace 3,400 2 Furnaces of 3200 Cu. Mtr.
volume each
Steel Melt
Shop
3,000 3 LD Convertors each of 133 Cu.
Mtr. Volume and six 4 strand
bloom casters
LMMM 710 4 stand finishing Mill
WRM 850 2 x 10 stand finishing Mill
MMSM 850 6 stand finishing Mill
Main Products of VSP
Steel
Products
By-products
Angles Nut Coke Granulated Slag
Billets Coke Dust Lime Fines
Channels Coal Tar Ammonium Sulphate
Beams Anthracene Oil
Squares HP Napthalene
Flats Benzene
Rounds Toulene
Re-bars Zylene
Wire Rods Wash Oil
Advent of Centre 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 initiatives and develop
suitable framework for their adoption and implementation on an
organization-wide basis at VSP.
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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 PortalGnana was launched on 26th 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 achieve 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, alignment and
integration of organizational activities through Process Management,
research on the latest technological developments in the steel industry for
suitable adoption and benchmarking, initiatives leading to improved
customer satisfaction, knowledge sharing initiatives like Knowledge
Management etc., Groups of self organized employees from different areas
of common interest called communities of practices (CoPs) have been
initiated which promote collaboration, information exchange and sharing
of best practices among them.
The CBS has been merged with Corporate Planning Department and
renamed as Corporate Strategic Management in order to suit thechanging trends.
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Vision, Mission & Objectives
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 explansion; to produce steel at
international standards of cost and quality; and to meet the aspirations of
the stakeholders.
Objectives
Expand plant capacity of 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 200607.
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Achieve customer satisfaction levels on par with world class
organizations by 2006-07.
Make RINL the employer of choice by caring our employees.
Develop people as knowledge workers by 2005-06 and achieve an
improvement of 5 percentage points in employee satisfaction levels
every alternate year.
Be ranked as an excellent business organization by 2006-07.
Ensure zero effluent discharge by 2005 06 and contribute to
improving quality of life (health literacy and water) in at least onevillage every year.
Core Values
Commitment
Customer Satisfaction
Continuous Improvement
Concern for Environment
Creativity & Innovation
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.
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Quality, Environment and Occupational Health & Safety Policy :
We, at Visakhapatnam Steel Plant, are committed to meet the needsand expectations of our customers and other interested parties, the
occupational health and safety of our work force and to preserve the
environment. The accomplish this, we will
Supply quality goods and services to customers delight.
Document, implement, maintain & 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 andalso 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 of employees.
Maintain high level of quality, environment, occupational
health and safety consciousness amongst employees and contract
workers by imparting education and training.
Energy Policy
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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 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 teamwork, creativity, innovativeness and high
achievement orientation
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Provide growth and opportunities for developing skill and
knowledge
Ensure functioning of effective communication channels with
employees
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Customer Policy
VSP will endeavour to adopt a Customer-focused approach atall times with transparency
VSP will strive to meet more than the Customer needs and
expectations pertaining to Products, Quality, 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 in improving the customer-satisfaction, 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 Processes
through IT by in-house efforts / outsourcing and collaborative efforts with
other organizations / expert groups / institutions of higher learning, etc.,
thus ensuring the quality of product and services at least 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
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Make the most out of the sate-of-th 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 responsibilities of the personnel and
facilitate the objective of becoming a world-class business
organization Enrich the skill-set and knowledge based of all related
personnel at regular intervals to make employees knowledge-
employees
Periodically monitor the IT investments made and
achievements accrued to review their cost effectiveness
HRD Group Key Initiatives
In-house Training Programs
Nominations to External Training Programs
Organisation Research, Employees Satisfaction Surveys
& Voice of Employees Index
Organisation Development
Membership with Professional Bodies
Performance Appraisal for Executives
Human Resource Information System
In-plant training for Management Students
Lectures by eminent personalities
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Corporate Presentations
Interactions with professionals, academicians and consultants
Knowledge Management
Initiatives on Six Sigma
Emancipation of women through WIPS, Women Development
Programs (Spring Board)
Thrust on Samalochana
Pursuit of Business Excellence Model (BEM)
Dil Ki baat
Chairman tho maata
Training & Development
RINL believes that the employees are its assets and strives to realise
their potential in full for mutual advantage. The human resource
development involves development of the employee as a whole.
The needs of induction training, skill up gradation, unit training,
computer related training, refresher training, foreign training, faculty
development etc. are attended by the Training & Development Centre
while management development and attitudinal development are taken
care at the Centre for HRD.
Training in certain specialized areas like safety, fire prevention,
occupational health etc. is also taken up by departments specializing in
respective fields.
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RINL also provides learning opportunities to individuals by
nominating them to external training programmes for enhancing their
knowledge. Employees are sponsored for external training programmesincluding seminars and competitions organised by various professional
bodies and institutes like CII, IISI, INSSAN, ASSOCHAM, INSDAG,
AIMA, NIPM, LPAI, ISTD, ICWAI, CSI, SCOPE, VSC, QCFI,
RDCIS(SAIL), ICA, ASCI, ESCI, XLRI, MDI, BVQI ,WIPS, IIMs,CBI
Academy, NPC etc.
Employees are sent to other steel plants on short duration tours to
find solutions to the various issues facing the company. Employees are
also sent to suppliers' manufacturing units / training institutes to get
specific training in identified areas.
Marketing Network
The company markets its products through headquarter marketing
office and a network of regional offices, branch offices and stockyards
located at 24 centers all over the country. Consignment agents and
consignment sales agents located at these centers provide the infrastructure
and channels for sale of the 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, Govt. of India
Pollution Control and Environmental Protection
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Generally, integrated steel plant is seen as a major contributor to
environmental pollution as it discharges volumes of waste products.
Elaborate measures have been adopted to combat air and water pollution inVSP. In order to be echo-friendly, VSP has planted more than 3.4 million
trees over an area of 35 Sq. Kms. and incorporated various technologies at
a cost of Rs.460 Crores towards pollution control measures.
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-skilling concept since inception
and the employees are trained to imbibe this. 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. The labour productivity
is currently 282 tonnes/man/year unparalleled in the public sector steel
industry.
Management of Industrial Relations
Presently, 20 registered Trade Unions are functioning at VSP. Out
of these, 3 unions viz., Visakha Steel Employees Congress (INTUC), Steel
Plant Employees Union (CITU) and Visakha Steel Workers Union
(AITUC) have the support of more than 90% of the total votes.
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Welfare Amenities
Welfare has 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 Non-
Statutory Welfare schemes which impart and propagate the feeling that the
Company cares for its employees.
Some of the Non-Statutory Welfare and Social Security Schemes
for the benefit of the employees and their family members are detailed
below:
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, temples, ATMs etc., for its employees.
Educational Facilities
VSP acts as a catalyst in promoting quality education by
encouraging reputed educational Institutions. There are 9 English Medium
Schools, 2 Telugu Medium Schools in and around Ukkunagaram and one
Junior College. Also there is one English Medium School at each Mine
i.e., at Jaggayyapeta and Madharam. Commensurate encouragement exists
to provide scholarships (Merit/Merit-cum-means/Cash Awards) to entitled
employees and their wards.
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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.
Achievements & Awards
The efforts of VSP have been recognized in various fora. Some of
the major awards received by VSP are in the area of energy conservation,
environment protection, safety, quality, Quality Circles, Rajbhasha, MOU,
sports related awards and a number of awards at the individual level.
Some of the important awards received by VSP are:
ISO 9002 for SMS and all the downstream units a unique
distinction in the Indian Steel Industry
Indira Priyadarshini Vriksha 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
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Selected for World Quality Commitment Award 1997 of
J*BAN, Spain
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 Suraksha Puraskar (1st Prize) for longest Accident Free Period
1991-94
Best Labour Management Award from the Govt. of AP
SCOPE Award for Best Turnaround 2001
Environment Excellence Award from Greentech Foundation for
energy conservation 2002
Best Enterprise Award from SCOPE, WIPS 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 2003-04 conferred by
INSSAN
RINL has been bestowed with several national accolades in the year
2005-06 significant among them being :
National Energy Conservation Award for the 6
th
time in succession. National Award for Excellence in Water Management.
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ICWAI Award for excellence in Cost Management.
Viswakharma Rashtriya Puraskar Awards (6 out of 32 at the national
level).
FAPCCI Best Industrial Productivity Award.
INSAAN National Award for Organisational Excellence
Best CEO Award
The above awards are besides a number of awards at the local,
regional & national level competitions in the area of Quality Circles,
Suggestion Schemes etc.
Hallmark of Vizag Steel as an organization
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 organizational excellence.
At the same time, no single advantage accruing from a knowledge
society is found wanting by the neighborhood community with the growth
& development of a phenomenon called VIZAG STEEL existing so close
to its proximity. Futuristic enterprises, academic activity, planned &
progressive residential localities are but few of the plentiful ripple effects
of this transformation and each one of us take immense pride to uphold the
philosophy of mutual (i.e., individual and societal) progress.
The remarkable performance on production front coupled with
prudent financial management has not only resulted in achieving
significant net profits but also helped RINL emerge as a NET POSITIVE
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COMPANY in January, 2006 by wiping out all its accumulated losses
during 2005 06
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STATISTICAL INFORMATION
I. Production Performance (000 Tonnes)
Year Hot Metal Liquid
Steel
Saleable
Steel
Labour
Productivity
(Tonnes/manyear)
1998-
1999
2,510 2,225 2,193 161
1999-2000
2,943 2,656 2,382 192
2000-
2001
3,165 2,909 2,507 211
2001-
2002
3,485 3,083 2,757 228
2002-
2003
3,941 3,356 3,056 253
2003-
2004
4,055 3,508 3,169 262
2004-
2005
3,920 3,560 3,173 265
2005-
2006
4,153 3,603 3,237 282
II. Commercial Performance (Rs. Crs.)
Year Sales
Turnover
Domestic
Sales
Exports
1999-2000 3,037 2,677 295
2000-2001 3,436 3,122 322
2001-2002 4,081 3,710 371
2002-2003 5,059 4,433 626
2003-2004 6,174 5,406 768
2004-2005 8,181 7,933 2482005-2006 8,469 8,026 443
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III. Financial Performance (Rs. Crs.)
Year GrossMargin
CashProfit
Net Profit
1998-
1999
15 (-) 346 -
1999-
2000
252 (-) 130 (-) 562
2000-
2001
504 153 (-) 291
2001-
2002
690 400 (-) 75
2002-
2003
1,049 915 521
2003-
2004
2,073 2,024 1,547
2004-
2005
3,271 3,260 2,008
2005-
2006
2,383 2,355 1,251
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EXPANSION PLAN:
Product Capacity (MT) Additional Facilities
Present Future envisaged
Hot Metal 4.00 6.50 New BF with 3800
CuM
Capacity
Charge Sinter 5.26 8.50 New Sinter Plant of
400
Sq.M.area
Liquid Steel 3.70 6.30 SMS-2 with Two 150
CuM Converters, Two
6 Std Billet Casters &
One 6 std Round Caster
Saleable Steel 3.34 5.72 --
Wire Road 1.05 1.65 New WRM of 600,000T/
Annum
Bars & Structural 1.95 3.40 New SBM of
50,000T/
Annum New SM of
700,000 T/Annum
Seamless Pipes - 0.30 Seamless Tube plant of 300,000 T/Annum