Visakhapatnam MP presses for immediate release of pending VRS benefits for ex-RINL staff

Visakhapatnam MP M. Sribharat met Union Steel Minister H.D. Kumaraswamy in New Delhi on Thursday and urged him to ensure the immediate release of pending Voluntary Retirement Scheme (VRS) benefits and other statutory dues to former employees of Rashtriya Ispat Nigam Limited (RINL), the corporate entity operating the Visakhapatnam Steel Plant.

During the meeting, Mr. Sribharat brought to the Minister’s attention a representation submitted by the Steel Executives’ Association of Visakhapatnam Steel Plant, which highlighted the financial hardships faced by retired employees whose VRS benefits remain unpaid.

The MP reportedly told the Minister that of the 486 employees who retired under the second phase of the government-approved VRS, only 50% of the compensation has been released so far. The remaining compensation, along with earned leave encashment, salary arrears, and other statutory retirement benefits, is yet to be paid. He also noted that 67 employees covered under the third phase of the VRS have received only 25% of their entitled compensation.

Mr. Sribharat urged the Minister to direct the RINL management to expedite the release of pending dues in accordance with applicable rules and regulations. An early resolution, he said, would provide much-needed financial relief to retired employees and their families, many of whom have been waiting for months for their rightful payments.

RINL, a public sector undertaking under the Ministry of Steel, has been facing financial challenges in recent years, leading to delays in the implementation of the VRS, which was introduced to reduce the workforce and cut costs. The VRS is seen as a crucial measure to help the company streamline operations and address its mounting liabilities. However, the incomplete disbursement of promised benefits has raised concerns among employees and retired staff, who argue that the delay undermines the very purpose of the scheme.

The MP's intervention comes amid growing demands from employee unions and associations for transparency and timely payment of all dues. The Steel Executives’ Association, in its representation, is believed to have sought the Ministry's intervention to ensure that the remaining benefits are cleared without further delay.

Mr. Sribharat also emphasised the need for a systemic review of the VRS process to prevent such issues in the future, and suggested that a clear timeline be established for the release of all pending amounts. He said that the government's assurance of support to RINL should be reflected in the swift settlement of dues to its former employees, who have dedicated years of service to the public sector steel plant.

The Union Steel Minister is yet to issue a formal response on the matter. However, sources indicate that the Ministry may look into the specific grievances raised by the MP and direct the RINL management to prioritise the settlement of statutory dues. The development is being closely watched by the affected employees and their families, as well as by local political circles, given the importance of the steel plant to the economy of Visakhapatnam and the surrounding region.

The pending VRS payments have also drawn attention to the broader financial situation of RINL, which has been availing government support to meet its operational expenses. While the company continues to produce steel, the delay in clearing employee benefits has become a point of contention, with many calling for a more employee-friendly approach to restructuring.

As the matter awaits further action, retired employees and their families hope that the MP's intervention will lead to a quick resolution, allowing them to receive the funds they were promised as part of the exit scheme.