VSP announces voluntary retirement scheme

Visakhapatnam: The Visakhapatnam Steel Plant (VSP) management has announced a voluntary retirement scheme (VRS) for its employees. According to sources, the management plans to reduce the number of permanent employees from 12,300 to 8,000 by the end of Dec 2026.

The management announced the scheme before Sankranti festival and invited employees to apply by the end of January. In the first phase, around 500 executive cadres and 500 non-executive cadres are eligible. Contract employees, casual workers, govt employees working on deputation, and persons on study leave are not eligible for this scheme. Employees should have at least 15 years of service and be aged at least 45 years to qualify for the scheme.

The VSP has a total of 27,000 employees, including 14,000 contract staff. The management received a report indicating that around 2,800 employees showed interest in the VRS and has offered the option only to those who retire in 2026 or later, not to employees retiring this year.

According to sources, around 1,200 employees will retire by the end of this year, and another 1,000 will retire by the end of 2026. This apart, VRS is expected to attract other employees, and the number could reach around 4,000 by the end of next year.

Trade union leader J Ayodhya Ram told TOI that there were no salaries for the past four months, and employees are gripped with fear about their livelihood and future. Employees are not receiving salaries even during festival months.

The number of contract workers has decreased drastically, another workers' union leader, Adinarayana, alleged.

At present, the steel plant is facing severe financial problems and has been struggling to resume production due to lack of raw materials and proper help from the Central govt, receiving only assurances.