Complaint filed against RINL-VSP management for violating DPE guidelines on salaries

Representatives of the Steel Executives Association (SEA) and National Confederation of Officers Association (NCOA) Katam SS Chandrarao, KVD Prasad and V.K Tomar submitted representations to the Department of Public Enterprises (DPE) secretary’s office in New Delhi on Thursday against the RINL-Visakhapatnam Steel Plant management over salary issues.

According to a press release, they met with the DPE Joint Secretary and submitted a complaint stating that the circular issued by RINL-VSP management on November 15, linking disbursement of wages to production targets is indirectly violating the Factories Act and DPE guidelines.

“For the past four years, RINL-VSP management has been violating DPE guidelines arbitrarily. To improve the performance of public-sector companies, DPE had ordered in 2007 that instead of bonus and incentives, companies should pay Performance Related Pay (PRP) from their profits. In 2021-22 FY, the plant recorded a profit of ₹942 crore, and as per DPE guidelines, around ₹37 crore should have to be paid to executives as PRP. However, it has not been paid till date,” they said.

For the last five years, promotions have been stalled, and many young officers are leaving the organisation as they face financial and career setbacks, threatening the survival of the Visakha Steel Plant, they added.

They further shared that even the dues of retired employees have not been paid. As per DPE rules, employees in large numbers opted for voluntary retirement between March and September 2025. Unfortunately, the second batch have not been paid the VRS package and leave encashment till date. The management is unable to give us a time period of when these payments will be made.

The DPE Joint Secretary expressed suprise at these actions and said that the department would seek clarification from the central Steel Ministry officials, said the press release.