New Delhi: Over 1,000 employees of Rashtriya Ispat Nigam Limited (RINL), the state-owned steelmaker currently undergoing disinvestment, have opted for the Voluntary Retirement Scheme (VRS), the government informed Parliament on Friday. The move marks a significant shift in the workforce composition of the loss-making public sector enterprise.
In a written reply to the Rajya Sabha, Minister of State (MoS) for Steel Bhupathiraju Srinivasa Varma stated that 1,017 employees had applied for the VRS-II scheme launched on June 16, 2025, with the last date for withdrawal set for July 18.
“The benefits under VRS-II are in accordance with the Department of Public Enterprises (DPE) guidelines issued on July 20, 2018, and are the same as those provided in earlier VRS schemes,” the minister clarified.
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Background: Disinvestment and Financial Struggles
RINL, India’s first shore-based steel plant located in Visakhapatnam, Andhra Pradesh, has been facing severe financial distress. As of March 31, 2024, the company reported total liabilities of ₹26,114.92 crore and had exhausted its working capital borrowing limits from banks.
To ensure the company remains a going concern, the central government approved an infusion of ₹11,440 crore in January 2025. So far, ₹9,824 crore has already been released to the firm.
The Cabinet Committee on Economic Affairs (CCEA) had given its in-principle approval for the 100% strategic disinvestment of RINL on January 27, 2021. However, the process has been delayed amid strong opposition from trade unions and political parties.
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Workforce and VRS Details
As per official records, RINL employed 13,536 regular staff as of March 31, 2024. This included 4,390 executives and 9,146 non-executives.
The VRS-II scheme was offered to eligible and interested employees starting June 14, 2025. The initiative appears to be part of broader restructuring efforts ahead of the planned privatization.
About RINL
RINL stands for Rashtriya Ispat Nigam Limited, the corporate entity of Visakhapatnam Steel Plant (VSP). It’s a major public sector undertaking (PSU) under the Ministry of Steel, wholly owned by the Government of India. RINL operates the Visakhapatnam Steel Plant, the only shore-based integrated steel plant in the public sector in India.
