Chairman-cum-Managing Director's Message

It gives me immense pleasure in releasing the Second Sustainability Report of the company encapsulating
our performance during 2011-12 and 2012-13.
It is a matter of great pride for us, that we pioneered the adoption of concepts of Sustainable Development
(SD) in the steel industry through green initiatives in various manufacturing processes during inception stage
itself, and took up the motto of "One tree for every ton of steel" even before our project was commissioned.
Sustainability is a journey, and over the years it has been our constant endeavour to establish clear linkage
between the aspects of SD and our business imperatives as we harnessed the green technologies at every
stage of production and improved our operational efficiencies to create a competitive advantage. The thrust
on sustainability and business continuity saw adoption of novel and emerging approaches for comprehensive
address of various facets of SD through Annual Sustainability plans; deployment of Enterprise Risk
Management; product diversification; raw material securitization; and efforts towards growth & expanding
geographical presence, to name a few.
The years 2011-12 and 2012-13 were further characterised by diligent efforts towards long term sustainability
of business, such as:


Close follow up with various State Governments for allocation of Iron Ore mines resulting in LOI for an
Iron Ore mine in Bhilwara by the Govt. of Rajasthan.

Physical completion of major units under the expansion programme to double the capacity to 6.3 mtpa;
commencement of production from new Blast Furnace; commissioning of supporting facilities of expansion
and finalization of initial activities for various modernisation schemes. The roll out of new products
would commence progressively from 2013-14 onwards, enhancing our presence in the steel market.

MoU with Power Grid Corporation of India Ltd., for manufacture of transmission line towers; and MoU
with Indian Railways for manufacture of rail axles and wheels, to establish ready markets for value
added products after current expansion & modernization.

Our benign belief has been that business has both an opportunity and an obligation to make the world better.
Over the years, this belief has fuelled our investment not only for our business growth, but also for supporting
the communities around us. We have made notable progress in creating sustainable assets for the benefit
of the society by making a meaningful difference in their life through our various CSR programmes. This is
the power of sustainability as it encourages engagement and, in turn, engagement breeds sustainability.
Our committed performance was well recognized by the various industries and Governmental bodies, as we
were bestowed with "3 Leaves Rating" by Centre for Science & Environment under the Green Rating Project;
Leadership award for Green Manufacturing by Frost & Sullivan; "Strong Commitment" in CII-ITC Award for
performance on Sustainability; "Significant Achievement" in CII-EXIM Bank Award for Business Excellence
2013; and capped with "Excellent MoU Rating" by the Govt. of India for the years 2011-12 & 2012-13. I am
grateful for the support, encouragement & cooperation of the various stakeholders in our journey towards
sustainability.

With these encouraging signs, I am sure that we would continue to

move forward swiftly in our quest for creating a sustainable future.
Sustainability will be at the nexus of transformation in the years to
come. We need to achieve our bold goals by pushing ourselves
with aggressive targets and commitments, re-defining our
performance guided by values of utmost safety, integrity,
accountability, transparency and team work.

(P Madhusudan)
Chairman-cum-Managing Director

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 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.

Objectives

Mission

Vision

To be a continuously growing World Class company

We shall

To attain 20 Million ton

liquid steel capacity through
technological up-gradation,
operational efficiency and
expansion; augmentation of
assured supply of raw
materials; to produce steel at
international standards of cost
and quality; and to meet the
aspirations
of
the
stakeholders.

Stabilise 6.3Mt by 2013-14 with the mission to

expand further in subsequent phases as per
Corporate Plan

Revamping existing Blast Furnaces to make

them energy efficient to contemporary levels
and in the process increase their capacity by
0.5 Mt each, thus total hot metal capacity to
7.5 Mt

Achieve higher levels of customer satisfaction

Vibrant work culture in the organization

Be proactive in conserving environment,

maintaining high levels of safety & addressing
social concerns

The essence of our Vision is about

growth, competitiveness and satisfying
& exceeding the expectations of our
stakeholders, which are targeted

Threats

Opportunities

through focused Objectives and are

T1. Increased competition.

further broken down as initiatives with

T2. Increasing Raw Material Prices.

timelines.

T3. Oligopolistic coal supply side.

T4. Single iron ore supplier.

A study was conducted by external

T5. Predominant secondary sector in long

products.

consultants from M/s Dastur& Co and

T6. Slowdown in economic growth.

M/s MECON to assess the growth

T7. Declining margins due to increasing cost

of production.

potential at Visakhapatnam Steel Plant

O1. Encouraging growth

projections.
O2. Huge infrastructure
spending planned in 12th
five year plan.
O3. Improved availability of Ports
& Logistics.
O4. Product diversification.
O5. Scope for improving balance
sheet.

considering the availability of land and

layout of the plant and in line with the

Expansion to 6.3 Mt, 7.3 Mt and beyond.

Initiation of 7.3 Mt expansion and

(Leverage: S4, S6, S7; Capitalise: O1, O2; Counter: T1, T5)

Commissioning of BF-3.

S1. Shore based location.

Efforts on developing export markets.

S2. Operational Efficiency.

(Leverage: S1, S5; Capitalise: O3; Counter: T6)

Increased focus on export markets.

Iron & Steel exports grew by 44% in
2012-13 to ` 598 Cr.

same the Mission statement of the

company which earlier focused on
attaining 16 Mt of liquid steel was
revised during the year 2011-12 to
"attain 20 Mt" of liquid steel to reflect
its true potential for growth.

Strengths

S3. Diverse Customer base and

extensive marketing network.
S4. Availability of Land.
S5. Image as quality producer.
S6. Strong credit worthiness.
S7. Committed manpower.

Ramp up of production from expansion units.

Efforts made to realize 1 Mt of production

during first year of BF-3 operation.

(Strengthen: S5, S7; Counter: T1, T5, T6)

No. of Marketing outlets increased from 496

in 2011-12 to 767 in 2012-13.
(2011-12:137 & 2012-13:356)

Expansion of domestic markets.

(Leverage / strengthen: S3, S5; Counter: T5)
Modernization projects taken up in all critical areas.

Finalised the order for BF-2 Capital Repairs.

(Strengthen: S2; Counter: T7)

Diversify into flats and niche products from / beyond 7.3 Mt.
Weakness
W1. Lack of Captive Mines for Iron
Ore and Coking Coal.
W2. Single Location Company
producing only Long Products
and exposed to cyclic markets.
W3. High Equity base.

Initiatives during the

reporting period
(2011-12 & 2012-13)

(Capitalise: O1, O2, O4; Counter: W2, T1, T5, T6)

Strategic initiatives for acquisition / sourcing of

Capital restructuring.

major raw materials (Counter: W1, T2, T3, T4,T7)

(Counter: W3, Capitalise: O5)

Long term action plans

Entered into MoUs with Indian Railways and

PGCIL for business diversification.
Iron ore mines allotted by Govt of
Rajasthan at Bhilwara in Rajasthan.
Redeemed ` 1480.5 Cr of preferential
shares capital to GoI.

Being a single location plant, with product mix

exclusively of long products, handicapped due to
lack of captive mines for major raw materials and
equipment operating at above rated capacities since
more than a decade now, RINL has a unique portfolio
of risks and opportunities. Initiatives addressing the
same are crucial for companys profitability in current
time frame and also for sustainable performance in
the time to come. A brief on initiatives taken to
address the significant risks and opportunities during
the reporting period is as follows :

materials and also keeping in view the requirement

of expansion units, the following measures have
been taken during the reporting period:


Long Term Agreement (LTA) with NMDC for

supply of 10.5 Mt of Iron Ores to meet the
requirement upto 6.3 Mt. Efforts are also being
made to develop other sources of supply like
OMDC, a subsidiary of RINL.

LTA formulated with reputed suppliers like

BHP, Anglo and Peabody of Australia; Logan
& Kanahwa and Alpha Coal of USA, Solid
Energy of New Zealand for supply of Coal.
Besides this, one standing EOI has been kept
on Companys Website for exploring new
sources of Coal supply.

Significant Risks and Opportunities








Sluggish market conditions

Volatile raw material prices.
Capital repairs / major revamps for critical
equipment.
Commissioning of 6.3 Mt stage
Power restrictions by APSEB.
Growth potential for RINL at
Visakhapatnam.

Sluggish market conditions :

Low growth cycles in Indian economy and
associated persisting down cycles in industry, has
emerged as key risk for steel producers in the
country. Consumption of long products was hit
adversely in 2012-13 and the company acted swiftly
to reorient its sales strategy towards exports and
appropriate corrections in its product mix to
maximize the production of relatively higher
contribution products from the Mills.
Volatile raw material prices :
Volatility in prices of key raw materials for
steelmaking i.e. Iron Ore and Coking Coal has been
an area of great concern for the company since
2008. RINLs financial performance hinges critically
on input costs as it is the only main steel producer
in India without captive mines for Iron Ore and Coal.
In order to have a continuous supply of major raw
6

MOU signed with NMDC for Joint Venture to

install 336 KM length Slurry pipeline from
Jagdalpur to Visakhapatnam and to set up 4
Mtpa capacity Pellet plant at Visakhapatnam.
Mining lease applications in various States:
RINL has been continuously taking up the
matter of allocation of mines with concerned
State Governments and Central Government.
During 2012-13, the Company was allocated
iron ore mines in Bhilwara, Rajasthan.

Critical equipment due for major revamps : The

company has charted out a roadmap for
technological up-gradation of critical units like Blast
Furnaces, LD converters and Sinter machines in
the existing facilities, which would not only infuse
fresh lease of life to the ageing equipment but would
also scale up efficiency and productivity to
contemporary levels. Major revamps and upgradations would continue till 2015-16 in a phased
manner. This revamping of equipment would also
enhance production volume by 1 Mtpa at the hot
metal stage and also would help in adoption of
latest energy efficient and environment friendly
technologies in the existing units of the plant.

Commissioning of 6.3 Mt expansion facilities:

Commissioning activities of major facilities
commenced in 2012-13 with commissioning of the
new BF-3. Also, Ladle Furnace -1 and Caster 1 &
2 of SMS-2 were commissioned. However, an
accident during the commissioning trials of LD
converter at SMS-2 on 13.06.12 in Oxygen line at
PRS-3 derailed the commissioning sequence and
delayed the commissioning and production from
downstream units by more than a year. This also
resulted in throttling of Blast Furnaces to match
the off-take at SMS-1, thus impacting the
productivity of furnaces and downstream facilities
adversely.
Power restrictions by APSEB: Due to unforeseen
power crisis in the State of Andhra Pradesh in 201213, Power restrictions were imposed by
APTRANSCO as a result of which there was a
production loss of nearly 3,24,000 t of saleable
steel. In order to counter this risk, various initiatives
are being pursued. Power generation capacity of
14 MW by utilizing waste heat in COB-IV was
commissioned in the year. Boiler-6 was lighted up
in Jan 2013 and also works related to 67.5 MW
TG-5 were expedited. Other initiatives include
expediting 20.6 MW waste heat recovery turbine
in Sinter Plant in collaboration with NEDO, Japan
and 120 MW PP-2 that would run on lean byproduct gas from Blast Furnaces.
Growth potential at Visakhapatnam: RINL has
a land bank of around 20,000 acres which is
suitable for expansion upto 20 Mtpa at
Visakhapatnam. The infrastructure of two major
ports in the vicinity and connectivity by rail and
National Highway coupled with projected growth
in infrastructural development in the country makes
expansion at Visakhapatnam a highly attractive
proposition. Expansion works for 7.3 Mt stage are
already under way and plan for next phase of
expansion up to 11.7 Mt stage is being developed.

At RINL, leadership focus has always been on

ensuring alignment across the organization by
evolving action plans and initiatives at every level
to achieve Company Objectives. This is done
through an elaborate Sustainability Planning
exercise carried out annually, that results in
development of 5 year Roll-on-Plan with emphasis
on initiatives for the current year.
In line with our efforts to integrate Sustainable
Development with business strategy, the
Sustainability Plan addresses various aspects of
Sustainable Development like expansion and
technology up-gradation, energy, environment and
safety initiatives, initiatives for enhancing employee
involvement, market development, raw material
securitization, R&D plans and CSR initiatives apart
from initiatives addressing profitability concerns of
the organization during the year.
The Company continued its strategic initiatives,
towards business diversification and raw material
securitization by signing MOUs with Andhra
Pradesh Mineral Development Corporation and
Indian Railways.
Energy efficiency has been the strength of RINL
since inception, which has been made possible
through adoption of green technologies. In order
to further build on this strength, the company
adopted Energy Management Standard BSEN
16001 in 2010-11 and migrated to ISO 50001 for
Energy Management in 2012-13 and RINL is the
first in Indian Steel Industry to get this certification.
This provides uniform thrust on energy audits and
improvement plans across the company.
Sustainable Development policy was formulated
during the year 2012-13 so as to internalize DPE
guidelines on SD. As part of the policy, framework
aspects related to identification, implementation,
review and evaluation of SD projects have been
addressed and a three tier monitoring mechanism
has been put in place.

Scale of Operation

Gross sales
Market share of Bars & Rods
Saleable steel production
Capacity utilization
Manpower
 Executives
 Non-Executives

` 14,462 Cr
9%
3 Mt
110%
18,079
5,516
12,563

` 13,553 Cr
8.7%
2.9 Mt
109%
18,072
6,300
11,772

Rashtriya Ispat Nigam Limited (RINL)

- a Navratna Public Sector Enterprise
(PSE) with 100% ownership of GoI as
on 31.03.2013, is the corporate entity
of Visakhapatnam Steel Plant (VSP)India's first shore based integrated
steel plant located at Visakhapatnam
(single location), with a capacity of
3 Mtpa, currently being expanded to
6.3 Mtpa.

A pioneer in steel industry in adoption of system standards, VSP is accredited for all the three system
standards i.e. ISO 9001:2008, ISO 14001:2004 and OHSAS 18001:2007 and is the first Indian steel plant
to be certified with "Capability Maturity Model Integrated (CMMI) - Level 3" for its implementation of IT
systems and is also the first PSE to be certified for ISO 50001 for Energy Management System.
VSP has adopted the BF-BOF route for steel-making, the most common steel making process for an
integrated steel plant. Adoption of green technologies for steel production at every stage of operation has
been a major source of competitive advantage to the Company in the area of operational efficiency.

Major Operations
RINL has its integrated steel plant located in Visakhapatnam, Andhra Pradesh, India. Iron ore is sourced
through 100% tie-up with National Mineral Development Corporation (NMDC) from Bailadilla mines in
Chhattisgarh.
The company has no captive linkage for coking coal which is sourced from international markets mainly Australia. RINL has captive mines for minor raw materials like Limestone, Dolomite and Manganese
Ore in the State of Andhra Pradesh at Jaggayapeta, Madharam and Garbham respectively.
RINL has a subsidiary- Eastern Investment Ltd. which has mainly two mining companies - OMDC for
iron ore and BSLC for limestone and dolomite. The Company was also allocated iron ore mines in
Bhilwara, Rajasthan recently.
MoUs are forged with Indian railways for setting up Forged Wheel Plant and the Axle Plant. This initiative
would help RINL in widening its geographical spread and diversify product portfolio with assured offtake at 7.3 Mt stage.
In the 6.3 Mtpa expansion phase, latest technologies are being adopted which will further strengthen
the product portfolio with entry into high end value added steels & will also help in maintaining the
competitive advantage gained through operational efficiency.

Description

Existing Units

6.3 Mtpa (Additional units)

Coke Ovens

3 x 67 ovens

1 x 67 ovens.

Sinter Machines

2 x 312 Sq.M

1 x 400 Sq.M with circular cooler, multi slit burners, etc. to produce
3.25 Mtpa of sinter.

Blast Furnaces

2 x 3200 Cu.M
with bell less top
equipment & cast
house slag
granulation

1 x 3800 Cu.M with water cooled hearth bottom, profilometer,

copper staves, Pulverized Coal Injection, Top Gas Recovery
Turbine, etc to produce 2.5 Mtpa of Hot Metal.

Steel Melt
Shop(SMS)

3 x 133 Cu.M
6 x 4 strand bloom
casters

2 x 150 Cu.M with combined blowing for better yield &quality,

secondary fume extraction system for cleaner environment,etc.
to produce 2.8 Mtpa Liquid Steel.
2 x 6 strand square billet casters & 1 Combi-casterwith auto mould
technology, electro-magnetic stirring for cleaner steel.

10

Light and Medium

Merchant Mill
(LMMM)

1 x 0.7 Mtpa

Wire Rod Mill (WRM)

1 x 0.85 Mtpa
4 strand continuous
mill with Stelmor
cooling

1 x 0.6 Mtpa high speed mill (105-110 m/s).

Medium Merchant &

Structural Mill
(MMSM)

1 x 0.85 Mtpa

Structural Mill

1 x 0.7 Mtpa with high speed roughing stands to produce 75-175

mm structurals.

Special Bar Mill

1 x 0.75 Mtpa mill for customized sizes with low tolerance.

Power Plants

3 x 60 MW &
1 x 67.5 MW

1 x 67.5 MW.

11

Market Served
Long products market in the country is highly
fragmented with four major players accounting for

A Navratna Company

Product Mix
RINL is an exclusive producer of long products
in the country, primarily catering to the domestic

30% of the market share and the rest is made up

of small secondary producers creating lot of
volatility in the market place. RINL is a market
leader in bars & rods that are typically used by the
construction sector - its core business segment with a market share of 8.7% in the country.

markets. Principal products of RINL include

rounds, structural, bars and wire rods

Initially, the design capability of the plant was limited

RINL has served the domestic markets through its

to mild steel products, but sensing the growing

marketing outlets including Branches, Stockyards,

opportunity in value added steel segment,

CSAs, DLDs, RDs, Retailers, etc. The number of

innovative process improvements have been

outlets has increased from 496 in 2011-12 to 767

carried out over the time and there is a constant

in 2012-13 registering a growth of 55%. During

thrust on new product development and production

2012-13, RINL became the largest exporter of Pig

of value added steel products as a differentiation

Iron from India with a share of 59% by exporting

strategy against secondary steel makers.

2.44 lakh tonnes of Pig Iron.

RINL is a registered vendor for supply of special

steel products to various OEMs like Meritor TroyUSA, Wheels India-Chennai, Axles India-Chennai,
Automotive Axles-Mysore and Tata Motors-Pune for
forging grade steel and Indian Railways for Elastic
Rail Clips.

12

13

Major Changes during the reporting period

Awards and Recognitions during the reporting period

Commissioning of Blast Furnace-3 and execution of 6.3 Mt stage expansion

The state of the art Blast Furnace-3 at RINL was commissioned on 24th April 2012 and more than 1 Mt
of production was realized during its first year of operation.
Raw material securitisation
With constant pursuance, the first ever Iron Ore lease was allotted to the Company in Bhilwara District of

RINL has been recognized by

various national and international
institutions, reiterating excellence
in all facets of organizational
performance and the awards
and recognitions achieved by
the company during the reporting
period are given below:

Rajasthan with an area of about 946 Hectares.

Redemption of share capital
Preferential share redemption amounting to ` 1480.5 Cr out of the total liability of ` 2937.47Cr was made
during the reporting period (` 100 Cr in 2011-12 and ` 1380.5 Cr in 2012-13).
Certification for ISO 50001
VSP was the first plant in the Indian steel sector to implement BSEN 16001 standard for Energy
Management System in 2011. This was upgraded to international standard ISO 50001: 2011 in the year
2012.
Transmission Line Tower segment
JV with PGCIL for manufacturing Transmission Line Tower & Tower parts including Research &
Development, with a production capacity of 2 lakh tonnes per annum.

 "Rajbhasha Shield" for effective implementation of official language Hindi.

 Greentech National HR Award 2012 - Gold Award for outstanding achievement in
Training arena.
 First all women QC team won the top award ( 3 star) for the first time from India at the
International Convention on Quality Control Circles - 2012, at Kuala Lumpur in addition
to 2 more top awards.
 National Vigilance Excellence Award by Vigilance Study Circle (VSC).
 ''IIM National Sustainability Award 2011'', First prize amongst the integrated steel plants.
 Excellent Energy Efficient Unit' Award by Confederation of Indian Industry.
 "Indira Gandhi Rajbhasha Shield" (First Prize) for the first time for effective
implementation of Official language Hindi.
 Recognition (third time in a row) as one among "India's best companies to work for" 2011 study by Great Place to Work Institute & Economic Times. Special Category
award for 'The best companies in employee participation in CSR activities'.

14

15

Report
Parameters

Corporate
Governance

Sustainable Development has always been an integral

part of the Company's strategy since the project
conceptualization stage in 1980s. This is accentuated
by the fact that RINL was the first Indian steel plant to
adopt green technologies in its manufacturing processes.

 Obtaining host country approval for 5 CDM projects

during 2012-13.
A Core Committee was formed with senior level
executives to work on the development of the
Sustainability Report. The report focuses on the
Company's practices and outcomes which are important
for sustainable results for the Company and perceived
as important by the stakeholders.
The initiatives and indicators reported are prioritized by
the Core Committee, based on significance of economic
/ environmental / social impacts, and their importance
for stakeholder's assessment and decisions, keeping in
view, the Vision, Mission and Objectives of RINL.
The report primarily covers the production facility at
Visakhapatnam. RINL's mining operation for minor raw
materials like limestone, dolomite, manganese and sand
are not included as a part of this report.
Our subsidiary EIL, as well as the subsidiaries of EIL OMDC and BSLC, which was acquired during 2010-11
and RINMOIL Ferro-Alloys Limited - the JV Company
formed by RINL with M/s Manganese Ore India Limited

.................................................................................................................

Corporate Governance structure at RINL is based on the guidelines issued

by the Department of Public Enterprises (DPE), Govt. of India on
Corporate Governance. CMD is the Chairman of the Board comprising
of Functional Directors, nominee Directors of GoI and Independent
Directors. As on 31.03.2013 the Board of Directors of the company had
Five Functional Directors, two nominee Directors of GoI and eight
Independent Directors.

During the reporting period, major initiatives towards

sustainable development included :

 Migration to ISO 50001 Energy Management System

in 2012-13.

RINL developed a well-defined corporate structure to ensure transparency,

disclosures and reporting that conforms fully with laws, regulations,
guidelines, etc. and to promote ethical conduct throughout the
organization.

The report highlights the efforts of the Company in

integrating sustainability with business strategy. This is
the second Sustainability Report being published by
RINL covering the period April 1, 2011 to March 31, 2013
in line with GRI Guidelines 3.1 and compiled in
accordance with GRI Application Level-A.

 Formulation of SD policy for the Company addressing

environment, economic & societal facets of
Sustainable Development during 2012-13.

............................................................................................................
(MOIL) which is yet to commence commercial
production, have also not been included in the
report. Over subsequent reporting cycles,
efforts will be directed towards uniform
deployment of sustainability initiatives in these
areas too.
Data presented in the report is based on
various reporting standards / methodologies
such as, financial indicators complying with
Indian Accounting Standards, energy and CO2
calculations as per WSA methodology, various
environmental indicators are based on
measurements assured by calibration as per
relevant Indian Standards, perception
measures captured through employee and
customer surveys, etc.

The Vision, Mission and Values of the Company are being revisited in
the company in view of the change in external scenario and expansion /
diversification plan.
Major strategic issues that were taken up by the Board for reviews and
improvements during the reporting period included execution of the 6.3
Mtpa expansion project, technological up-gradation projects and other
modernization programmes, issues related to raw material security, IPO
and options for product diversification etc. The Board level Committees /
Sub Committees chaired by CMD / Functional Directors / Independent
Directors addressing economic / social and environmental issues of the
company are given below:

M/s CII-ITC have been rendering the required

support and provided training to RINL
executives in Sustainable development
aspects. In order to enhance the confidence
levels of stakeholders on reliability and
materiality of the reported information, CII-ITC
provided necessary support and guidance for
compiling this report.
Clarifications on the report, if any, may be
sought from:
Ms.Anita Idiculla
DGM (CSM)
Visakhapatnam Steel Plant, RINL
Visakhapatnam - 530031
Phone: +91-891-2767194
Email: anita.csm@vizagsteel.com

16

A Navratna Company

17

Sl.No.
01.

Audit Committee

Key functions of the Committee.

The scope of the Audit Committee is in conformity with
the guidelines issued by DPE for Corporate Governance
in respect of unlisted Companies and 292 (A)
of the Companies Act-1956.

02.

Independent Ethics
Committee (IEC)

To oversee Company's Ethics Policy Implementation.

03.

CSR & Sustainability

Development Committee.

 To approve CSR Projects (each case) valuing above

` 100 Lakh and upto ` 200 Lakh and to review and
recommend CSR projects valuing above ` 200 Lakh.
 To approve Sustainable Development Plan and to
oversee SD Performance.

04.

Human Resources
Committee (HRC)

To oversee the efforts made by the Company with

regard to Manpower Utilization, Redeployment and
Skill Development and give guidance thereon.

Committee for Award of

Contracts for Operations and
Expansion of Projects
(CACOEP)

 To approve the contracts for operation valuing beyond

` 100 Cr. and upto ` 250 Cr.
 Award of contracts / orders for expansion project /
expansion works valuing beyond ` 100 Cr. and
upto ` 500 Cr.

06.

High Power Steering

To oversee the implementation of 6.3 Mtpa Expansion and to

monitor the progress of implementation.

07.

Committee on Marketing
(BSCOM)

 To review marketing policy, performance and

channels of distribution, etc.
 Empowered to clear the product campaign budget.
 To incorporate / modify the broad guidelines
approved by the Board depending upon market conditions.
 Authorized to approve the detailed guidelines,
procedures & DOP on exports.
 Empowered to clear the product campaign budget.
 To incorporate/ modify the broad guidelines approved
by the Board depending upon market conditions.
 Authorized to approve the detailed guidelines,
procedures & DOP on exports.

05.

18

Name of Board
Level Committees

08.

Committee for Raw Material

Security & Joint Ventures and
Acquisitions (including Fly Ash/
Slag based cement plant).

To review efforts being made by the Company towards

obtaining much needed Raw Material security & Joint
Ventures and Acquisitions and give necessary guidance
and suggestions in this regard.

09.

Committee of Management (COM)

 To award contracts and approve capital expenditure,

purchase orders for operational requirements for
values above ` 50 Cr. and below ` 100 Cr.
 To award contracts relating to operations and
maintenance requirements for a period upto 7 (seven) years.

10.

Board Sub-Committee for

Steel Processing Units (SPU)

 To finalize and award the contracts of SPUs.

 Full powers to finalize and award the contracts of SPUs for
tenure of 10 years with an option for extension by additional
2 years.

11.

Remuneration Committee

To oversee implementation of directives concerning

implementation of latest pay and perks on a continuous basis.

Sl.No.

Name of Board
Level Committees

Key functions of the Committee.

12.

Committee of Independent
Directors

A forum to discuss matters pertaining to the affairs of the

company without the presence of Functional Directors
of the Company.

13.

Shareholders'/ Investors'
Grievance Committee

 Redressal of shareholder's and investors' complaints.

 Allotment of shares, approval of transfer or transmission of
shares, debentures or any other securities.
 Issue of duplicate certificates and new certificates
on split/ consolidation/ renewal, etc.
 Non-receipt of declared dividends, balance sheets of the
Company, etc.
 Carrying out any other function contained in the
Listing Agreement as and when amended from time to time.

14.

COM for Share Transfers

To approve present share transfers of RINL.

15.

Steering Committee

To monitor all actions for achieving the Vision, Mission and

Objectives, customers delight, risk management, CSR and
environment protection.

16.

Grievance Redressal Committee

To deal with the disputes and negotiate for out of court settlement

17.

Committee on Broadening the

base of Coal Suppliers

To negotiate the price for procurement of coal succeeding in

pilot oven test for one trial shipment with a maximum quantity
of one panamax vessel. The negotiated price be put up to
Board for approval. On successful industrial trial of the coking
coal supplied by the party, the same will be informed to EJC
for consideration of the party as a long term coking coal supplier.

18.

IPO Committee

To take all decisions and approve, negotiate, finalize and carry

out all activities relating to the Initial Public Offering (IPO),
as it may, in its absolute discretion, deem fit and proper in the
best interests of the Company.

19.

Committee on Transit and

Handling Loss of Raw Materials

Revisits the norms afresh and gives its recommendations to

the Board for its consideration and approval.

20

Committee on Gangavaram

To examine the issues related to handling of cargo through

Gangavaram Port Limited (GPL).

Code of Business Conduct :

Board members and senior management personnel of RINL are required to submit formal consent for
complying with the guidelines for Code of Business Conduct and Ethics on assumption of charge and also
on annual basis. There is no incidence of non-compliance by the company, penalties or strictures imposed
on the company by any statutory body, on any matter during the reporting period.
Selection procedure :
Selection of Chairman-cum-Managing Director and Functional Directors is done by Public Enterprise
Selection Board (PESB) through the selection process laid down by the Government of India. Appointment
is upon approval by the Appointments Committee of the Cabinet (ACC) of Government of India. Their
appointment is for a period of five years or till the age of superannuation, whichever is earlier. Appointment
of Independent Directors is made by ACC based on the selection by the Search Committee of Department
of Public Enterprises (DPE). Independent Directors are drawn from the eminent professionals having
distinguished experience in industry and public service to facilitate independent and rational decisionmaking by the Board. There are eight Independent Directors in the Board.

19

The changes in the RINL Board during the reporting period are given below :
Financial
Year
2011-12

Appointment /
Cessation

Particulars

Target setting and performance evaluation :

Appointment

Shri A. P. Choudhary appointed as CMD

01 August 2011

Cessation

Shri PK Bishnoi Consequent

to his superannuation

30 July 2011

Shri NS Rao appointed as Director (Projects)

19 April 2012

Shri VS Jain appointed as Independent Director

14 May 2012

Shri AK Jain as Independent Director

14 May 2012

Prof Sushil appointed as Independent Director

14 May 2012

Prof. SK Garg as Independent Director

16 Oct 2012

Shri Lokesh Chandra as Independent Director

25 Oct 2012

Shri E Bharat Bhusan as Independent Director

15 Mar 2013

Performance agreement in the form of MoU is signed

by the company with Ministry of Steel on annual
basis, the process for which is facilitated by DPE
through an independent taskforce. Performance
against the targets is monitored on monthly basis
by the CMD and the same is appraised to the Board
on quarterly basis. Performance Related Pay of
executives is based on the evaluation of company
performance against MoU targets. MoU is designed
on the Balanced Score Card framework with clearly
identified weightages for performance related to
financials, environmental and social aspects apart
from covering operational and other dynamic
parameters.

Shri S. Machendra Nathan, IAS

withdrawn as Govt Nominee Director

14 May 2012

Performance evaluation of Board :

Appointment
2012-13

Cessation

Nominee Directors are appointed by the Government

of India based on the recommendation of the Ministry
of Steel. There were no women directors in the Board
of RINL during the reporting period. No remuneration
is paid to Nominee Directors and an amount of upto
` 20,000/- is paid to Independent Directors as sitting
fee for each Board / Board Sub-Committee meeting.
Linking compensation to company performance:
Linkage of compensation of functional Directors with
the performance of the company is ensured through
the mechanism of Performance Related Pay (PRP)
which is based on the level of achievement against
the parameters covered in the annual MoU with
Ministry of Steel.
Mechanism for avoidance of conflict of interest:
Conflict of interest is avoided in a transparent
manner, through mandatory disclosure of interest by
the Directors at the time of their appointment and on
annual basis and also at the time of undertaking of
special assignments, which is also presented to the
Board, for information. There were no instances of
conflict of interest or transactions having potential
for conflict with company's interest, during the
reporting period.
Precautionary approach:
There are comprehensive mechanisms to handle
risks on proactive basis in the company which are
elaborated below:
Implementation of Enterprise Risk Management
(ERM) in the Company was initiated in 2009 for
20

Effective Date

of emerging threats in the dynamic business

environment for formulation of corrective actions and
mitigation strategies.

developing a structured mechanism as a proactive

precautionary approach for mitigating risks across
the organization. During 2012-13, 185 risks profiled
across 71 departments were reviewed with a
quarterly periodicity through online system deployed
for the same.

While at present there is no formal mechanism of

assessing the performance of Independent Directors,
the performance of the Functional Directors is
evaluated by the Administrative Ministry.

All the relevant guidelines and policies issued by the

Government and other statutory bodies are adopted
and complied with - like environmental norms by
Andhra Pradesh Pollution Control Board (APPCB),
DPE guidelines for Corporate Governance, for
formulation of MoU, CSR policy, etc. In addition, the
company complies with the system standards such
as QMS as per ISO 9001, EMS as per ISO 14001
and OHSAS 18001 and has adopted ISO 50001 for
Energy Management and CMMI - Level 3 for
management of IT processes.
RINL leadership views memberships in various
industrial bodies / associations as an opportunity to
share their insights for the benefit of the industry and
widening the network for enhancing Company's
image and deriving benefits in the form of adoption
of learning from them. During the reporting period,
RINL continued its patronage as a member of
industrial associations like: Indian Institute of Metals,
Computer Society of India, World Steel Association,
Ceramic Society of India, World Steel Dynamics and
Global Compact Network, etc.

Internal Audit is a multi-disciplinary function which

reports to Director (Finance) and undertakes
comprehensive audit of practices across the
organization including out-station offices, for
compliance to the set procedures and policies. The
audits are conducted by teams of experienced
Chartered Accountants, Cost Accountants and
Engineers. Periodicity of audits is based on volume
and nature of transactions and ranges from annual
for major/critical departments to 2-3 years for others.
Findings of internal audit are appraised to the Audit
Committee of the Board for guidance to strengthen
internal controls.
The mechanism of Preventive Vigilance through
Vigilance Department ensures timely studies on
procedures being followed in procurement, sales and
award of contracts of all departments including
expansion area to bring in systemic improvements.
The effectiveness of implementation of Integrity Pact
(IP) is also monitored and extent of implementation
achieved during 2012-13 was 93% of total value of
tenders floated.
The robust process of Sustainability Planning
exercise addresses key issues through 5-year Rollon Plans and Annual Business Plans followed by
comprehensive review of the progress on quarterly
basis. This helps in identifying the gaps and tracking
21

Stakeholders
Engagement

Stakeholders Engagement Mechanism

S.No Stakeholder

Various mechanisms / fora have been

designed over a period of time to ensure
meaningful
engagement
with
stakeholders for understanding and
managing their expectations. The learning
from such engagement is helpful in
devising related strategies for balanced
outcome for the company and the
stakeholders.

22

Key concern /
expectation

Engagement mechanism

Key outcomes during

the reporting period

1.

Shareholder
(GoI)

 Sustainable performance
 Capacity expansion
 Faster decision making
 Raw Material security

 Annual General Meeting.

 Excellent MOU rating.
 Commissioning of major
 Annual MoU meeting.
expansion units.
 Quarterly Board meetings.
 Quarterly Performance Review by MoS.
 Quarterly review of expansion and other
major projects.
 Planned interventions / continuous follow
up with related Government Agencies.
 Overall Ministry coordination for any PMO /
VIP references.

2.

Customers

 Availability
 Quality
 Service norms
 Pricing
 Flexibility in payment

 Cross Functional Teams' visit to customer's  In Customer Satisfaction

premises.
Survey 2012-13, RINL
achieved a satisfaction index
 Customers meet.
of 80.8 against 78 of
 Independent External Monitor (IEM)
previous year.
reviews.
 New customer policy with
 Customer Satisfaction Survey.
thrust on customer
 Complaint handling.
satisfaction introduced in
 Annual Partnership Summit.
2012-13.

3.

Suppliers

 Timely payments
 Assured business
 Transparent procedures
 Vendor development

 Bimonthly review with SSI representative

by ED(MM).
 Annual evaluation and review of suppliers
by Vendor Development Cell (VDC).
 Biannual National Level Vendor
Development Program (NVDP) by VDC.
 Biannual State Level Vendor Development
Program (SVDP) by VDC.
 Annual Plant Level Committee meeting
with Commissioner of Industries to review
issues related to local MSEs, chaired by
CMD.
 Quarterly reviews of Independent External
Monitor (IEM).
 Quarterly Empowered Joint Committee
(EJC) meetings.

 Quarterly and monthly

pricing mechanism for
Imported Coking Coal.
 Sustained Business with
MSMEs.
 LTAs for iron ore and coking
coal to ensure additional
requirement in view of
commissioning of expansion
units.

4.

Employees

 Health & Safety

 Remuneration
 Welfare amenities
 Inspiring work culture

 CMD online.
 Samalochana- held quarterly by all
departments.
 Monthly safety meetings.
 Departmental co-ordination meetings.
 Other participative fora.
 Employee Satisfaction Survey.

 Rated amongst the "India's

Best Companies to Work for
2013" - based on study
conducted by the Great
Place to Work Institute Inc.
and The Economic Times.

5.

Communities

 Pollution Control
 Community development
 Health
 Livelihood
 Education

 Interaction with government officials,

parliamentary / legislative committees,
local bodies / municipalities.
 Meeting with Statutory bodies, NGO
groups etc.

 Implementation of projects
pertaining to Zero Discharge
Scheme.
 Alignment of CSR initiative
with DPE guidelines.
 Implementation of various
CSR projects.

23

Economic
Performance

24

25

2012-13 saw decline in growth rates in

consumption of long products in the country as
apparent consumption of longs and more
particularly bars & rods (flagship product line of
RINL) grew by 5.2% and 4.3% respectively on
the back of relatively healthier growth of 6% and
5.7% respectively in 2011-12 (Fig. EC-a)

Fig. EC-b : Steel Price Trend during 2012-13 (` /t) (TMT (20/25mm), Faridabad)
Fig. EC-a : Apparent Steel Consumption (Growth %)

During 2011-12, the focus was on ensuring

optimum mix of markets and products to
maximize sales realizations by capitalizing upon
opportunities in the market place. RINL registered
a growth of 26% in gross sales and recorded its best ever gross sales of `14,462 Cr (Fig. EC-1 (i)).
Best ever Gross Sales of `14,462 Cr in 2011-12
During 2012-13, RINL explored export markets in view of sluggishness in domestic markets as steel
prices declined by 12.5% (Fig. EC-b) and availability of higher quantity of pig iron due to commissioning
of BF-3. Also product mix decisions leading to higher rolling of relatively higher contribution products
helped the company in minimizing the adverse impact of sluggish demand conditions.

2012-13
 Iron & Steel exports grew by 55% in volume.
 RINL is largest exporter of Pig Iron in India with a share of 59%.
During 2012-13, RINL registered a gross sales of `13,553 Cr.,a decline of 6% from previous year
(Fig. EC-1 (i)) Company ensured high share of value added steels (Fig. EC-1 (ii)) and Vizag TMT
during the year (Fig. EC-1 (iii)). Also, 8% increase in production of rebars in WRM & 12% in LMMM
which gave almost 17% higher contribution was ensured even as the production in mills was hampered
severely due to power restrictions imposed by APTRANSCO.

Fig. EC-1 (i) : Gross Sales (` Cr)

Fig. EC-1 (ii) : VAS Production ('000t)

Fig. EC-1(iii) : Sales of Vizag TMT

(% of total sales in t)

Fig. EC-1(iv) : Profit After Tax (` Cr)

Margins (Fig. EC-1 (iv)) were essentially constrained in 2012-13 due to sluggishness in domestic markets
and lower productivity in plant due to commissioning of new units and constraints faced in ramping up of
production and lower production in mills due to power restrictions.

Products of LMMM & WRM

26

However, the real value that RINL as a PSE generates (Fig. EC-2) is through its contribution to exchequer,
community investments, creating sustainable business for the up-stream supply chain, attractive value
proposition for the employees and supply of quality products to the customers. The company has contributed
an amount of `25091.18 Cr. till 2012-13 to the exchequer (Fig. EC-3).
27

Emergence of various policy guidelines to prevent

Fig. EC-2 : Economic value generation and distribution (` Cr)

2009-10

2010-11

2011-12

2012-13

risk of climate change will also have impact on

Direct Economic value Generated

a

Revenues

11272

11946

14792

13919

Economic Value Distributed

9914

11757

13713

13420

Operating Expenditure

7189

8886

10494

10332

(Raw Material cost, Spares, Power & Fuel, R&M, other exp.)
c

Employees wages & benefits

d
e

sourcing options for major raw materials for steel

making and Company may have to invest on
emerging and alternate technologies for more
efficient use of natural resources, at some point of
time in its future expansion plans.

1400

1273

1467

1469

In the last decade, there have been instances of

Payment to providers of fund (Dividend+ Interest)

363

436

381

496

deficit rainfall in the catchment areas of Yeleru

Payment to government

953

1150

1360

1107

reservoir, the source of water for Visakhapatnam

Steel Plant, causing alarming decline in inflow of

(Income Tax, Wealth Tax &Excise Duty)

f

Community Investments (Payment basis)

9.37

11.73

10.42

15.99

Economic Value Retained

1358

190

1079

499

water to the plant. As a risk mitigating action, RINL

had taken up this issue with the State Government
and APIIDC and developed a scheme for pumping
water from Godavari River to Yeleru reservoir in the

Fig.EC-3: Contribution to exchequer (` Cr)

year 2002. Various initiatives have since been taken

Year

Central Govt.

State Govt.

Gross Total

2009-10

1344.63

340.36

1684.99

2010-11

1477.70

333.49

1811.19

2011-12

1635.73

593.16

2228.89

Employee benefits & welfare measures

2012-13

1587.33

598.85

2186.18

In addition to statutory measures for employee

benefit and welfare, RINL has innovatively designed
welfare interventions to demonstrate people care
and foster strong employee relations in the long run.

Commissioning of 6.3 Mtpa expansion project with

facilities for production of high end value added steel
will drive RINLs growth till 2015-16, when its 7.3
Mtpa stage will come on stream. Upstream capacity
for 7.3 Mtpa expansion will come from various
modernization projects and major revamps planned
for existing facilities from 2013-14 onwards. In the
course of expansion and modernization projects,
the competitive advantage of operational efficiency
of the plant will receive a huge boost through
adoption of latest technologies. Also, the expansion
facilities will have the capability to produce 100%
value added steel products. The company did not
avail any financial assistance from GoI for its
operations & growth initiatives during the reporting
period.

28

induced change in natural resources or mitigate the

Efficiency Trading Scheme (EETS) called Perform

Achieve Trade (PAT). Iron & Steel industry is one
among the energy intensive industries identified in
the country and so steel companies would be able
to earn and trade Energy Saving Certificates for
energy efficient performance. RINL procured 100
nos. of Renewable Energy certificates from India
Energy Exchange through M/s PTC India as a token
of purchasing Green Attributes.

Implication of climate change

As part of modernization and expansion RINL has

taken up several projects having potential for
registration under Clean Development Mechanism
(CDM) to reduce Green House Gas (GHG)
emissions by about 1.2 Mt annually. So far RINL
obtained Host Country Approval for 11 CDM
projects, 6 projects are under validation and 4 more
projects are under tendering stage for validation.

Opportunity

Risks

Government of India as a policy instrument towards

meeting the objectives of National Mission for
Enhanced Energy Efficiency (NMEE) - which is a
key component of National Action Plan on Climate
Change (NAPCC) - has introduced an Energy

Market mechanism for energy and carbon trading

will drive incorporation of energy efficient
technologies, which would call for capital
investment. Also, failing to meet the energy targets
as part of PAT scheme would attract penalties.

to improve efficiency of water usage in the plant as

well.

Consolidated list of statutory and other welfare and

benefit schemes deployed in the company are
brought out in Fig. LA-7 at page no. 51.
Contributory Provident Fund is paid @ 12% of the
wage of the employees and the fund is managed
by a Trust as per Section-17 of the Employees
Provident Fund and Miscellaneous Provisions Act
1952. The Employees Pension Scheme 1995
introduced by the Government of India has also
been implemented.
Employees are paid Gratuity as per the Payment
of Gratuity Act 1972 and as amended from time to
time. Over and above the provisions of the Act,
Gratuity is also paid in case of death of an employee
before the qualifying service of five years shown at
Fig. EC-4.

The Company has introduced an Employees'

Family Benefit Scheme as a special welfare
measure for the employees.
1. As per this scheme, monetary benefit (last Basic
+ DA) is provided to an employee on cessation
of his employment on account of permanent
total disablement, permanent medical unfitness
and to his nominee, in case of his death while
in service of the Company. For this, the
employee/nominee has to deposit an amount
equivalent to Notional Provident Fund and
Gratuity.
2. In case of death / permanent total disablement
arising out of & in course of employment while
on duty or death / permanent total disablement
arising out of accidents while coming to duty or
going back from duty within one hour before or
after the end of the shift, the employee /
dependents of such employee will have the
following options :
a. One of the dependents may opt for employment
& he / she may be considered for regular
employment to any of the posts mentioned in
the scheme (or)
b. The dependent may opt for monthly payment
equivalent to last pay (Basic + DA) without being
required to deposit with the Company the amount
equivalent to Notional PF & Gratuity (or)
c. The dependent may opt for a lump sum one time
amount equivalent to (b) above at a discount rate
of 20% per annum without being required to
deposit the amount equivalent to Notional PF &
Gratuity with the Company.
Amount spent on Employee benefits was
` 1466.67 Cr. in 2011-12 & ` 1469 Cr. in 2012-13.
Standard entry level wages
Basic pay for entry level at lowest grade for nonexecutive and executive of full time employees is
`8,630 per month and `16,400 per month
respectively. Entry level wages of contract workers
is shown in Fig. EC-5.

Fig. EC-4: Gratuity payment

1st year of service

2 months emoluments

Before 5 years of service

6 months emoluments

On completion of 5 years of service

12 months emoluments
29

Community Infrastructure Development

Activities taken up in 2012-13 :

Fig. EC-5: Entry level wages of contract workers (`)

Skill
Level

Minimum wage stipulation

(as on 31.03.2013)
Basic

Additional payment at RINL

Variable DA

Total

Adhoc

Special
Miscellaneous
Allowance

Grand
Total

 Setting up of Industrial Training Institute (ITI).

Unskilled

3900

2106

6006

300

1,000

7306

Semi-Skilled

4420

2392

6812

300

1,000

8112

Skilled

5200

2808

8008

300

1,000

9308

Encouragement to local Industries

 Construction of Road over Bridge on

Balacheruvu Road near Visakhapatnam Steel
Plant, in partnership with AP State Govt.

Fig. EC-6: Orders placed on local MSEs (` Cr)

With a view to developing the general economy of

the region, local Micro and Small Enterprises are
encouraged for both upstream side and downstream
side. As a part of support for development and for
larger involvement of Local Micro Small Industries in
VSP purchases, the following Purchase Preference
Policy is being followed. i.e.

 Introduction of Digital Class Room concept in

Visakha Vimala Vidyalayam Schools benefiting
around 2500 children.
 Distribution of desktop computers to 25 brilliant
students of Government/Aided schools in rural
areas of Uttar Pradesh.

about 22,000 people in the form of contract workers,

who are also trained on various skills based on
requirement and safety aspects.
In order to promote usage of quality steel at
affordable prices in rural areas, the scheme of
District Level Dealerships (DLDs) was further
extended to Panchayat level villages through the
introduction of Rural Dealership Scheme (RDS)
(Fig. EC-8). As per the scheme, the cost of
transporting steel from the nearest branch to the
DLD or RD is subsidized by the company.
Fig. EC-8 :Distribution Network

 Construction of 4 nos. additional class rooms and

Laying of road in backward areas.
 Providing 100nos. hand pumps in backward
areas.
 Provided Desk cum Benches (60nos.) & Teacher
tables and Chairs to Government Junior College,
Islampeta.
Indirect economic impact of operations

 If there are a minimum of five or more local

manufacturers (MSEs) available for any item /
class of items and the tender value is ` 20 Lakhs
or less, tenders are limited to such suppliers.
 If available local manufacturers (MSEs) are less
than five for any item / class of items and in the
tenders where local MSEs have to compete with
outstation firms, purchase preference is being
given to technically and commercially acceptable
Local MSE, if their offer is within 15% above L1
price and upon their matching with L1 price.
 Also, their technological capabilities are
assessed regularly and technical support is
extended by VSP.
Efforts on encouraging local MSMEs, has resulted
in substantial increase in business with MSMEs
which contributes in development of local economy
as well. Trend of supplies by local MSMEs is shown
at Fig. EC-6. Performance of local MSMEs was
adversely impacted during 2012-13 due to acute
shortage of power in AP.
Local hiring
Being a PSE, RINL complies with the Hon'ble
Supreme Court directives for recruitment on all India

basis for full time employees. However, significant

percentage of employees belongs to the state of
Andhra Pradesh due to their own preference.
Contract workforce comprises largely of people from
surrounding areas of Visakhapatnam. As an equal
opportunity employer, RINL follows GoI norms in
recruitment through reservation to SC, ST, ExService men and PWD categories (refer page 27
of Annual Report of 2012-13).
Investment on community infrastructure
RINL aligns its Corporate Social Responsibility
initiatives with DPE's guidelines on Corporate Social
Responsibility for Central Public Sector Enterprises
which were first issued in April 2010 and have been
followed by subsequent amendments. CSR
activities are planned, based on identified
community needs and the expenditure is
accordingly committed. Expenditure on CSR
activities is given at Fig. EC-7, which is well above
the minimum norms envisaged by DPE guidelines.
Unspent amount earmarked for CSR activities for
a specific year, if any, is carried forward to a nonlapsable account, so as to continue the thrust on
such projects in the following years.

RINL's operations at Visakhapatnam have created

a multiplying effect on local economy and related
development. Expansion of existing facilities at
Visakhapatnam has also given a fillip to the
employment levels in construction activities. This
coupled with outsourcing of non-core activities in
production and logistics provides employment to

RINL also supports the business of Micro, Small

and Medium Enterprises (MSMEs) by way of supply
of steel through SSIC and NSIC as per the
distribution policy of Ministry of Steel (MoS). Supply
to MSMEs by RINL is given in Fig. EC-9.

Fig. EC-9 : Supplies to MSMEs (SSIC, NSIC and SSI's)('000t)

SSI / SSIC

2009-10

2010-11

2011-12

2012-13

SSIC

43.5

26.3

34.6

34.2

NSIC

32.3

29.6

44.7

40.2

SSI

476.2

342.4

470.5

451.2

Bridge on BC Road

Fig. EC-7: Expenditure on CSR Activities

30

2009-10

2010-11

2011-12

2012-13

CSR expenditure (` Cr)

9.37

11.73

10.42

15.99

PAT (` Cr)

797

658

751

353

CSR expenditure as % of PAT

1.17

1.78

1.39

4.56
31

Environmental
Performance
At RINL, environment protection has always been
integrated with the Company strategy since inception. An
initial investment of `468 Cr was made on environment
protection systems at 3 Mt stage which was 5.5% of the
total project cost and around ` 2,002 Crs was spent on
various energy and environmental projects over the past
decade.
Harnessing green technologies in production processes
has been a major driver for operational efficiency and
profitability right from inception through higher productivity
and yields, efficient use of materials, waste utilization and
recycling.

32

33

Fig EN-1 : Green Technologies ( Existing)

COKE OVEN:
Coke Dry Cooling Plant
(CDQ)

 Elimination of fugitive dust emissions, discharges & toxic gaseous pollutants

during cooling of red hot coke.
 Recovery of waste heat from the red hot coke for generation of power (2 X
7.5 MW and 1 X 14 MW) and saturated steam (2.5 ata, 7 ata and 13 ata) for
process use, resulting in
I. Reduction in CO2 emission per year: 6,89,586 tons.
II. Reduction in coal use per year: 4,08,668 tons.
III. Reduction in SO2 emission per year: 2917 tons.

BLAST FURNACES:
Bell-less / belt conveyor charging
and Top Recovery Turbine (TRT)

 Elimination of fugitive dust emission during charging of raw materials, i.e.,

coke, sinter, iron ore etc. into BF resulting in better work zone environment.
 Generation of power in gas expansion turbines (2 X 12 MW) from high
pressure gas at BF top, resulting in
I. Reduction in CO2 emission per year: 1,27,152 tons.
II. Reduction in coal use per year: 75354 tons.
III. Reduction in SO2 emission per year: 518 tons.

STEEL MELT SHOP:

Recovery of LD gas

 Utilization of LD gas as fuel by recovery of waste gases in converters,

resulting in
I. Reduction in CO2 emission per year: 3,47,060 tons.
II. Reduction in coal use per year: 2,05,677 tons.
III. Reduction in SO2 emission per year: 1,414 tons.

ROLLING MILLS:
Evaporative cooling systems &
Waste heat recovery from furnace

 Generation of process steam (13 ata) by recovery of heat from the skids in
reheating furnaces in LMMM & MMSM, resulting in
I. Reduction in CO2 emission per year: 72,814 tons.
II. Reduction in coal use per year: 43,152 tons.
III. Reduction in SO2 emission per year: 501 tons.

Other Green technologies being adopted

Waste heat recovery at SP

20.6 MW power generation

TRT at BF-3

14 MW power generation

New Power Plant 2 X 60 MW

Power generation from waste gases

Other energy saving and waste heat utilization measures implemented at RINL are 100% continuous
casting of liquid steel into blooms, recuperators in the rolling mill furnaces for preheating the combustion
air and pre-heaters & contact coolers in Calcining & Refractory Material Plant to pre-heat the air and feed
material.

RINL is the first

integrated steel plant
to setup 20.6 MW
waste heat recovery
system on Sinter
Straight-line Cooler
in Sinter Machines

34

35

The by-product gases such as Coke Oven gas, Blast Furnace gas and LD gas are used as fuel in various
processes, thus conserving significant quantity of natural resources. Trend of recovery of by -product
gases in various processes that are used as fuel gases in the plant are given below.(Fig. EN-2 (i), (ii) & (iii))

Fig. EN-2 (i) :

LD Gas Recovery (Nm3/tls)

Fig. EN-2 (ii) :

CO Gas Recovery (Nm3/t coke)

Fig. EN-2 (iii) :

BF Gas Recovery (Nm3/thm)

RINL's performance with respect to recovery of CO gas in coke making process, BF gas recovery in iron
making process and LD gas recovery in steel making process are among the best in the world. The LD gas
Recovery in 2012-13 was low as the job of seal repair in LD gas holder was undertaken from Aug '12 to
Jan '13.

In 2012-13, RINL procured 100 Nos. of Renewable Energy Certificates from India Energy Exchange through
M/s PTC India as a token of Support for renewable energy in the country.

Fig. EN-4: Energy saved due to initiatives for improving energy efficiency during 2012-13

Unit

Energy
Savings

Installation of Waste Heat Recovery System in Stoves of Blast Furnace-3

M Kcal

35357.11

Replacement of Tubular air heater in Boiler-4 in thermal power plant

M kcal

20355.84

Replacement of Air Recuperators in F/C-1& F/C-2 of LMMM

M Kcal

7884.00

Replacement of Gas Recuperator at the reheating furnace of WRM

M Kcal

985.50

Reduction of BF gas venting from 3.75 % to 2.95 %

M Kcal

39367.22

To reduce significant Energy consumption of AHU by 8% by replacing

with new Energy efficient AHU.

MWH

79.73

To reduce significant Energy consumption of AHU by 13% by providing

Variable Speed drive for Fan.

MWH

115.00

To reduce significant Energy consumption of Package Air Conditioners by

12% by replacing with new Energy efficient AHU.

MWH

211.90

To install 120KVA Lighting Energy Saver in high-Bay lighting circuits

MWH

21.00

To install 30nos of 28W Energy efficient tube lights in ASO-1.

MWH

21.00

To install 20nos of 28W energy efficient tube light in ASO-2.

MWH

0.89

Commissioning of 14 MW Steam Turbine at Coke Oven Battery-4 to utilize waste heat of coke

MWH

0.60

Initiatives

Note: For initiatives taken during 2011-12, refer to Pg. No. 81-82 of Annual Report 2011-12.
The details of direct and indirect energy consumption are given at Fig. EN-5.
Fig.EN-5: Direct / Indirect energy consumption by primary source

Energy Management

2009-10

Various energy conservation measures are identified during the Sustainability Planning exercise for
implementation by concerned department. Centrally, Energy Management Department with close
coordination with various process owners in manufacturing ensures sufficient thrust on improving energy
efficiency. Energy audits and accounting, regular Management Reviews of energy generation and utilization,
drive the organization towards effective energy management, which has ensured consistent performance
at low levels of specific energy consumption and CO2 emissions.(Fig. EN-3 (i) & (ii)).
Fig. EN-3 (i):
Specific Energy consumption ( G.Cal/tcs)

Fig. EN-3 (ii):

CO2 Emissions (t CO2/tcs)

RINL has about 15 energy auditors certified by Bureau of Energy Efficiency in addition to more than 150
engineers trained by National Productivity Council. Teams of these engineers work under the guidance of
certified energy auditors with focus on energy intensive units such as reheating furnaces, boilers, fan
system, sinter machine etc. Recommendations of audit teams are implemented and improvements are
continuously monitored. Various projects taken up to improve energy efficiency during 2012-13 are shown
at Fig. EN-4.
36

Electricity:
a)Purchased
(Net import from
AP TRANSCO)
b)Gross exported
c)Imported
d)Own generation
-Through Steam Turbine
/Generator
-Through Back pressure
Turbine Station
-Through Gas Expansion
Turbine Station
Coal consumption
Boiler Coal (Wet)*
Coking Coal (Wet)*
Furnace oil consumption *
HSD Consumption *
BF Coke purchased
Coke breeze purchased

10 Gcal

2010-11

285430

MWH
MWH

3166
288596

3450
339730

1524
298558

1522
316754

MWH 1576607

1536909

1634127

1613665

300082

10 Gcal

2012-13
Qty. 103 Gcal

MWH

289.2

Qty.

Qty.

336280

10 Gcal

2011-12

Unit

245.5

Qty.

258.1

318276

MWH

113992

106870

105390

178846

MWH

88578

86014

85824

53675

t 1436200
t 3805361
Kl
1556
Kl
2154
t
0
t
0

3808 1334564
24828 3731364
14.5
1898
21.5
2192
0
0
0
0

3348 1246551
24313 3960724
17.7 461.45
21.9
2252
0
0
0
0

3280 1270444
25181 3945442
4.3 570.671
22.5 2573.3
0
0

273.7

3550
25157
5.3
25.7

* Direct Energy Consumption by primary energy source

37

Raw Materials

Fig.EN-6: Trend of Raw material consumption (t/ tss)

RINL recognizes the importance of the depleting raw

material sources and is committed to optimum utilization
of raw materials.
High cost of input materials in view of lack of captive raw
material mines for the company makes efficient usage
of raw materials a key business imperative. Various
initiatives are taken up for maximizing yields and recycling
of metallurgical wastes to minimize consumption of raw
materials and operate consistently at low levels of specific
raw material consumption (Fig EN-6). Quantity of major
raw materials used in steel making is available at page
No.101 in the Annual report 2012-13. Efforts towards
usage of metallurgical waste to replace primary raw
material to the extent possible in sinter making is evident
from Fig- EN-7.

Recirculation System :
Cooling water / process water requirements are met with individual recirculation systems. The quantity of
recirculation system is as high as 1.5 lakhs Cu M / hour (Fig. EN-9). Clear and contaminated water
recirculation systems are under special chemical treatment for maintaining water quality and high cycles of
concentrations (COC).
Fig.EN-9: % Recirculation water

% recirculation water
Fig. EN-7: Usage of Metallurgical waste in
Sinter making (Lakh ton)

2009-10

2010-11

2011-12

2012-13

97.70

97.82

97.81

97.98

With various conservation measures listed at Fig. EN-10 - the Specific water consumption in RINL is
maintained at low level as indicated in Fig. EN-11 which is on par with international benchmarks.
Fig.EN-10: Water conservation measures

Measures

Steel products are environmental friendly and do not pose

any health or safety hazard during their use and are
completely recyclable. RINL strives to produce products
which are known for their quality and also to reduce
wastage for its end users as brought out at Fig. PR-2. Focus is also on reducing the adverse impact on
environment by improving the efficiency of operations and energy conservation.
Water Management
Visakhapatnam Steel Plant meets its water requirements from Yeleru reservoir through a 153 KM long
canal. The canal caters to agricultural needs, apart from industrial water requirement and part drinking
water needs of area under Greater Visakhapatnam Municipal Corporation (GVMC).
Raw water is received into Kanithi Balancing Reservoir (KBR) which was originally designed for storage of
water for 45 days requirement. With reduced water consumption through water conservation measures,
the present storage volume is sufficient to meet 90 days requirement of the plant. Water consumption for
the last four years has been given below in Fig. EN-8.

Fig.EN-11 Sp. Water Consumption (Cum/tcs)

Water
Conserved

Special chemical treatment for recirculation water covering

11 areas in the plant, resulting in improvement in COC
from 2-3 to 4-5.

1500cum/hr

Treatment of oil and scale contaminated water pertaining

to SMS and Mills

250 cum/hr

Teritiary treatment of plant and township sewage water for

use as make up water in SMS and Mills

250 cum/hr

Reclamation of waste / drain water

600 cum/hr

Various rain water harvesting measures have been

implemented in the Company, details of which are shown
at Fig.EN-12. Additionally, 260 more percolation pits are
being provided in the expansion area with a potential to
save 5,520 million litres of water per year.

Fig. EN-12: Rain Water Harvesting

Percolation pits
Earthen Check-dams
Masonry Check-dams
Recharge Wells

94
01
09
18

Nos
Nos
Nos
Nos

Fig. EN-8: Water consumption

Inflow (Million Gallons)

Year

Yeleru

Other
sources

09-10

9397

10-11

Water Consumption (Million Gallons)

Township KBR losses Construction
water

Water Treatment Plant

Total

Total

Plant

Nil

9397

6570

867

1487

709

9628

5570

Nil

5570

6217

642

1467

649

8976

11-12

10675

Nil

10675

6761

685

1532

1209

10188

12-13

9118

Nil

9118

6465

676

1674

688

9503

Water conservation is one of the key areas of integrated water management approach and is a part of
functions in RINL right from the start of the plant operations. RINL adopted three pronged strategy for water
conservation i.e.
 Reduction/ elimination of wastages in recirculation water systems and increasing cycles of concentration
( COC) ,
 Reduction in F&D water consumption and
 Reclaiming waste water or water meant to be discharged to drains.

38

39

Afforestation:

Fig.EN-13: Green Cover - No. of Trees (Lakhs)

RINL's philosophy of managing operations in

harmony with nature has its roots in the motto "One
tree for every ton of steel capacity", which has been
followed meticulously since inception. Out of the
total land bank of 8100 Ha, 3600 Ha has been
identified for afforestation. Cumulative trend of tree
plantation is shown at Fig EN-13.
Afforestation efforts by RINL not only help in partly
compensating GHG emitted during plant operations
but also, in minimizing the adverse impact on
ecosystems, landscapes and species in the
surroundings. Man-made forests in and around the
plant area and other areas earmarked for the
purpose have also helped in creating a conducive
environment for local flora and fauna including
diverse micro-organisms to thrive. Proper
plantation, regular follow-up, care and adherence
to maintenance practices resulted in achieving
more than 70% survival rate.
RINL has phased out chilling, refrigerating and air
condition units that use ODS. Thereby, equipment
using more than 12,000 kgs of R11 and R12 have
been replaced at a cost of about ` 19 Crs with
equipment using non-ODS refrigerants. It is now
in the process of replacing 3885 kgs of Halons used
in firefighting systems with Energen systems. This
would cost ` 6.0 Cr. to the company.
RINL is not adjacent to any protected areas and its
operations do not have any adverse effect on the
bio-diversity and no-habitats are protected or
restored at present. Hence, no species listed in
IUCN red list and national conservation list are
affected by operations of RINL.

RINL is continuously monitoring the impact of operations on environment and ensures that environmental
parameters achieved are much better than the norms and the trends of environmental parameters are
given at Fig. EN-15 & EN -16.
Fig. EN-15.: Ambient air quality (Microgram / m3)

Location
Main Gate

There is no significant impact of activities and

products and services of RINL on biodiversity due
to the extensive pollution control measures taken
up in the process and Environment friendly nature
of steel.
Environmental Monitoring
RINL has installed state- of- the- art monitoring
systems for continuous monitoring of Ambient Air
Quality (4 nos.) and Continuous Stack Emissions
Monitoring Systems (20 nos.) and is the first
integrated steel plant in India to go for such
extensive on-line environmental monitoring
systems. These stations have already been
uplinked to APPCB website. Environmental
Monitoring is being extensively carried out at RINL
with multifarious intent to not only assess
environmental status within the plant, but also to
identify other possible impacts to the surrounding
areas. Salient features of measuring the
environmental indicators and minimizing their
impact are as shown in Fig. EN-14.

Township

Parameter

APPCB Norm

2009-10

RSPM
SO2
NOX
RSPM
SO2
NOX

100
80
80
100
80
80

66.4
6.65
5.22
60.93
11.01
22.75

2010-11
49.59
6.39
10.81
47.09
14.44
27.19

2011-12
62.9
6.10
7.10
41.8
16.7
32.1

2012-13
61.03
9.95
4.49
46.76
15.47
26.29

Fig. EN-16 : Stack emissions (Milligram / Nm3)

Location

Parameter

APPCB Norm

2009-10

2010-11

2011-12

2012-13

CO Battery 1 to 3
SPM
50
39.1
43.5
42.26
42.6
Blast Furnace
SPM
115 *
86.5
79.3
81.95
73.4
Sinter Plant
SPM
115*
82.0
79.2
88.50
84.6
TPP
SPM
115*
89.2
94.8
93.73
92.8
SMS
SPM
115*
49.4
48.4
55.6
52
* Norm changed from 115 to 50 - the process of upgradation of related APC eqpt.is under progress at a CAPEX of ` 292 Cr.
As a result of continuous thrust on process controls and monitoring systems, there has been a reducing
trend in emissions as measured through specific loads of SPM, SO2 and hazardous wastes as given in
Fig.EN-17.
Fig.EN-17: Emissions

Description
Specific SPM load
Hazardous waste recycled

Unit
kg/tcs
(%)

2009-10
0.71
100

2010-11
0.61
100

2011-12
0.58
100

2012-13
0.60
100

Fig. EN-14 : Salient features of monitoring mechanisms for environmental indicators

 Regular Bio-Assay tests carried out, to assess impact of effluents discharge into sea, on marine life.
 Engaged National Institute of Oceanography to assess impact of treated effluent discharged into sea on marine life.
 Automated re-cycling and treatment system provided to ensure desired quality of trade effluent is discharged into channel.
 Sampling of ground water at 4 villages, surrounding the plant every month to assess influence of solid waste dumps on
ground water.
 Close monitoring of hazardous waste disposal

40

41

Facilities for treatment of contaminated water from plant and domestic sewage from township are shown at
Fig. EN-18.
Fig. EN-18: Initiatives for treatment of Contaminated Water

SN

System

Nos.

Capacities

Purpose

1.

Mechanical Biological &

Chemical Treatment Plant

200 cu.m/hr

For treatment of Coke

Oven effluents

2.

Effluent Treatment Plant

280 cu.m/hr

For treatment of
plant sewage and effluent

3.

Sewage Treatment Plant (Township)

300 cu.m/hr

For treatment of
township sewage

4.

Waste Water Treatment Plants

Dust laden water from

SMS (approx. 1700 cu.m/hr,
with 6000 ppm dust content),
BF (approx. 2300 cu.m/hr,
with 1000 ppm dust content)
Rolling Mills (approx.
3500 cu.m/hr with 500 ppm
dust content & approx.
5500 cu.m/hr with
200 ppm dust content)
is treated independently.
At coke ovens about
300 cu.m/hr of water is treated.

For treatment and recycling

of sludge water generated
from Coke Ovens,
Sinter Plant, Blast Furnaces,
Steel Melting Shop
and Rolling Mills

5.

6.

Spillage Recycling Systems

Ash-pond with ash handling pump houses

Total

20

Plant effluent
treatment plant
outlet

Boundary wall

pH
TSS
O&G
Phenol
COD
BOD
Ammoniacal N2

APPCB &
CPCB Norms
6.0-9.0
100
10
1
250
30
50

2009-10
7.6
79.6
7.3
0.7
228.9
26.7
43.0

2010-11
7.5
76.4
7.2
0.7
228.9
26.7
43.0

2009-10

2010-11

2011-12

2012-13

0.713

0.756

0.63

0.631

Fig. EN-22: Solid Waste Management

 Briquettes made from lime dust from CRMP is charged in SMS for steel-making.
 Granulated BF slag is sold to cement plants as a substitute for lime.
 Utilization of LD slag has been a challenge for the Company. However, all efforts are made to recycle +30 to -50mm size
metallic component in SMS & BF (as a substitute for lime) and also to use it as ballast in railway tracks. The -8mm size is
recycled in sinter plant as a substitute for lime.

 Wet sludge from other WTPs is sun-dried and recycled in Sinter Plant.
 Steel scrap from different shops is charged into the LD converters.
For recycling of toxic
spillage at CO & CCP
at TDP, BDP, BRP, ASP,
CPH, NAFC, CPU, TOS
For handling ash
and recycling of water

2011-12
7.5
77.5
9.8
0.7
245.1
28.9
47.7

 Packing of Dry lime dust in bags.

 Recycling Coke breeze in Sinter Plant.
 Usage of refractory bricks for making ramming mass and for carrying out repairs of LD converter and for relining the
emergency containers in SMS.
Details of generation and utilization of solid wastes in 2012-13 is shown at Fig.EN-23 (i) and that of hazardous
waste is shown at Fig.EN-23 (ii)
Fig.EN-23 (i): Solid Waste Utilization for the year 2012-13

Solid
Waste

2012-13
7.3
86.6
7.1
0.49
232
26.7
37.3

Quality of discharged water is monitored, so as to reduce its impact on surrounding environment and the
Specific effluent discharge is given in Fig.EN-21. The water is treated and discharged into the sea and
there is no significant impact on marine environment as per the study conducted by National Institute of
Oceanography.

42

Fig.EN-21: Specific effluent discharge (m3/tss)

 Mills scales are recycled in sinter making process.

Fig.EN-19 : Effluent monitoring (Milligram / Litre)

Parameter

Fig.EN-20.: Total Water Pollutant (kg/tcs)

 Dust recovered through DE systems is unloaded from the hoppers into closed dumpers for recycling in sinter-making.

Trends in total effluent load (pollutants such as TSS, O&G, Phenol, Ammoniacal nitrogen) (Fig. EN-19) are
reported by the industry as pollutants in discharged water per ton of crude steel (Fig. EN-20). Nitrification
/ de-nitrification process is being taken up in the upgraded MBC plant for further treatment of effluents.

Location

Solid waste utilization has been a thrust area in the plant and accordingly various initiatives were taken up
to improve the same. Sinter making facility in the plant offers flexibility for agglomeration of iron ore fines
with metallurgical wastes and other wastes in the plant as feedstock for iron making in the BF. Some of the
practices for solid waste management in the company are highlighted at Fig. EN-22. There was no instance
of significant spill while handling and storage of hazardous waste during the reporting period.

Total
Recycled or
generation
Reused
(t/year) (a)
(t/year) (b)

2012-13
Sold
utilized in
(t/year) construction
(c)
activities

Stack
(t/year)
(d)

%Utilization
For 2012-13=
{{b+c)/a}*100

Remark

Dust from
ESP's, DE
Systems

249085

196611

56629

-4155

101.67

Addl.1893 t
of Sludge
recycled from
prev. stock.

Sludge from
Water
Treatment
Plants

240532

335060

-94528

139.30

Addl.152596t
of Sludge
recycled from
prev. stock.

BF Slag

1397080

1495596

19295

-117811

108.43

LD Slag

410673

150971

259702

36.76

Total

2297370

682642

1552225

19295

43208

98.12

43

Fig.EN-23 (i) Solid Waste Utilization for the year 2011-12

Total
Recycled or
generation
Reused
(t/year) (a)
(t/year) (b)

Solid Waste

Dust from
ESPs,DE
Systems

353590

Sludge from Water

Treatment Plants

228495

300098

Stack
(t/year)
(d)

53492

1369718

LD Slag

341263

341263

2293066

869856

%Utilization =
{{b+c)/a}*100

297555

1125655

297555

Steel is completely recyclable and hence has no

adverse impact on the environment. Steel products
produced by RINL are compactly packaged using
steel straps and the same is not reclaimed from
customers.

Addl. 4,558 t of Dust

recycled from
previous stock.

100.00

1072163

The Company complied with environmental norms,

laws and regulations and was not implicated by way
of fines and non-monetary sanctions on this account
during the reporting period.

Remarks

100.00

228495

BF Slag

Total

2011-12
Sold
(t/year)
(c)

Addl.73,671 t of
Sludge recycled from
previous stock.

RINL has synergized the adjacent deep draft port

by transportation of imported coking coal directly
through conveyors into the raw material storage
facility in the plant premises, which has replaced
the movement of imported coking coal from

78.28

Addl. 39,520 t of BF
Slag utilized in the
Construction activities
from previous stock.

100.00

Addl. 2,3,323 t of
LD Slag recycled from
previous stock.

87.02

Visakhapatnam Port Trust by rail. In-bound logistics

are being further optimized by exploring the
possibility of deploying multi cargo cape size
vessels. Out-bound logistics are being optimized
with transport of products in larger trucks and also
regular follow up with Indian Railways for increased
transport by rail (Fig. EN-24).
Fig. EN-24: Transport of products

2011-12

2012-13

% of rail road ratio

1.75

1.74

Qty. through rail (Mt)

2.05

1.83

Fig. EN-23 (ii): Hazardous Waste Utilization (in Tonnes)

Description
of waste

ETP sludge
Used
Used oil /
Tar Acid tar Benzol
(MBC & ETP) waste lub. oil / sludge & from sludge Lead acid
trans. oil /
tank
ASP
from batteries
sludge
bottom
BDP
sludge

Method of
disposal

Being
charged into
Coke
Ovenbatteries
along with
charge coal

Being charged into Coke

Partly
Oven batteries along with
recycled
after
charge coal
reclamation
and balance
sold to
authorized
parties

Mixed Containers Calcium

non- of Hazard- carbide
ferrous ous Wastes sludge
metal
scrap

Sold to authorized parties

2011 - 12
Generation

235.6

174.07

2465.85

401.13 457.55

Recycled

48.67

131.67

2235.24

157.34

300

320

3300

Sold
Qty. of
generation as
per consent

16.16

9.7

31

1184

418.11

8.84

114.25

40

1336

480

300

90

50

2012 - 13
Generation
Recycled
Sold
Qty. of
generation as
per consent
44

214.4

275.82

2378.2

442.89

413

4.51

9.5

460.19

138.05

1855.39

575.46

320

172.3

4.31

61.7

9.5

300

320

3300

480

300

90

50

45

Social
Performance
RINL has a longstanding commitment to address the
needs of the society and attaches a great deal of
significance while discharging its responsibility towards
improving the quality of life of the community. CSR foot
print of the Company covers Environmental care,
Education, Health, People care, Peripheral development,
Cultural efflorescence, as a responsible corporate citizen
& help during natural calamities.

46

47

Fig. SI-1 : CSR initiatives & impact

Details of Initiatives undertaken

No. of beneficiaries impacted

2011-12 & 2012-13

Investment
(` Lakhs)
2011-12

Investment
(` Lakhs)
2012-13

168

263

491

769

103

166

21

184

279

218

1062

1600

People & Health care

Mobile cancer detection van 'Sanjeevan' for Lions 6807 people tested
Cancer Hospital to organize mobile camps in rural
areas
Free Eye Camps through M/s Sankar Foundation. 6346 people tested, 1436 cataract
surgeries were carried out
Installation of Hand pumps and distribution of 100 nos of pumps and 310 choolas
Smokeless Choolas in rural villages
3134 Mosquito nets to 20 Tribal welfare Ashram Benefiting 6268 students
schools
Medical Camps through Doctors from VSGH

Benefiting 2522 people

Education
Project Surya - Towards utilizing alternate energy About 200 people benefited
sources
'Saksham' - Women Literacy programs

375 women benefited

Distribution of school bags, Educational Kit and 400 poor children benefited
other items in Government/Aided schools
Free education to poor students

About 1500 children benefited

Peripheral Development
Road over Bridge near BC Road, Vizag

5000 commuters per day

Construction of community welfare centers, 2000 people benefited

function hall for SC community etc
RINL is a Life Member of United Nations Global Compact (UNGC), the largest voluntary CSR initiative in the
world. Being a member, RINL publishes "Communication on Progress" every year and the same is uploaded
on the global compact's website. Also, through various CSR projects, RINL strives to contribute for fulfilment
of Millennium Development Goals.
Even today RINL supports developmental and welfare activities in the four rehabilitation colonies at
Aganampudi, Dibbapalem, Pedagantyada and Vadlapudi which have a combined population of around 1.5
Lakhs. These colonies were set up to rehabilitate 54 villages that were displaced during land acquisition 3 to
4 decades back.
In order to create a focused approach for CSR, RINL formulated its CSR policy in the year 2006 incorporating
CSR as an important management function in the organizational structure of the Company. The policy
envisages allocation of upto 2% of its distributable profits for CSR activities every year.
In order to identify and implement CSR projects in different areas/domains, more than 30 specialized agencies
including Govt. depts., SC/ST Welfare, Tribal Welfare, CPWD etc. are engaged. Details of activities undertaken
and impact created during the reporting period is given at Fig.SI-1.
During 2012-13, RINL formed Solar Energy Group under Corporate Social Responsibility in 2012-13 to meet
the electricity requirements of the villages in interior places which are not connected by roads. RINL and
New Renewable Energy Development Corporation of AP (NEDCAP) jointly surveyed the villages inaccessible
to electricity and identified 25 villages for covering under this initiative. About 1400 Solar Lanterns were
distributed to the people in identified villages & hostels and existing bay yard roof (CGI Sheets) of the
houses in the villages were replaced with Polycarbonate sheets to use day lighting.
48

Support extended by supplying steel to Fire victims 29 Tonnes of Steel supplied to the
victims for reconstruction of 56
at Bheemunipatnam, Visakhapatnam Dt.
houses
Vocational training

Training imparted to 725 women

Environmental care
Jaladhara to provide safe drinking water to
9 tribal villages

9 tribal villages benefiting 3000

villagers

Project Green Visakha

Plan to plant 5 lakh trees in a period

of 5 years, More than 25,000 plants
planted in 2012-13

Other activities include :

 Providing free education to poor children
 Distribution of solar lanterns, artificial limbs,
school kits etc
 Conducting empowerment & skill development
programmes, medical camps etc.
 Help during natural calamities
Total

49

As a PSE, RINL is an equal opportunity employer

and has contributed in generation of employment
and development of human resources. The focus
of HR strategy to create a vibrant work culture in
the organization is driven by employee engagement
through involvement, empowerment, skill
development, safety, health and welfare.
With ongoing expansion project, RINL banks on
judiciously planned redeployment scheme coupled
with recruitment of right talent to enhance labor
productivity
Employee base of RINL comprises of 35%
executive and 65% non-executive workforce. Trend
of total manpower and by break-up by gender is
shown at (Fig. LA-1 & LA-2)

Fig LA-1: Man power (No. of Employees)

Fig. LA-6 : Hiring and Turnover Tates

2011-12

2012-13

New Employee Hire Rate

2.91

1.78

Employee Turnover Rate

1.39

1.60

RINL has figured prominently amongst 'India's Best Companies to Work for' in annual study conducted
by the Great Place to Work Institute and The Economic times since 2008.
Fig LA-2: Employee Profile by Gender as on 31.03.13

Executive
Men

5935

NonExecutive
11595

Total

Women

365

177

542

Total

6300

11772

18072

17530

Employee welfare - key driver for long term employee relations:

Employee welfare measures are targeted to enhance employee motivation and drive long term employee
relations, which has emerged as a key factor in attracting and retaining talent. RINL has gone beyond the
statutory requirements and has put in place, innovative welfare schemes to address employees' immediate
needs and future concerns. RINL provides a number of statutory as well as non-statutory welfare benefits to
its full-time employees as detailed below (Fig. LA-7):
Fig. LA-7: Employee welfare measures

RINL has long surpassed the designed labour

productivity of 231 t/m/y (which was an international
benchmark then) and has now achieved a level of
363 t/m/y in 2012-13 (Fig. LA-3). Expansion to 6.3
Mtpa, with only 10% increase in manpower provides
an opportunity to rationalize the man power through
training and redeployment to achieve higher levels
of labour productivity.

Fig LA-3: Labour productivity (t/man year)

Statutory Welfare
 Welfare amenities as per
Factories Act
 Welfare amenities as per Mines
Act

Keeping in view the expansion requirement, the

focus was on infusion of fresh talent in the last 3
years (Fig. LA-4). Also details of employee separations and comparison of recruitment and turnover
rates are provided at Fig LA-5 & Fig LA-6.

 Common Welfare facilities for

contract labour inside plant
 First aid and emergency care
 PF & Gratuity
 Employee Compensation
 Maternity Leave

Fig LA-4: Trend of New Recruits during FY 2011-12

Age Group

 Occupational Health Care

Gender

 Crche facility

<30

30-50

>50

Male

Female

Executive

294

258

38

 Canteens

Non-executive

170

61

219

12

 ESI for contract labour

Total

464

63

477

50

 Employee Pension Scheme

Trend of New Recruits during FY 2012-13

Age Group

Non-statutory Welfare













Gender

<30

30-50

>50

Male

Female

Executive

293

277

21

Non-executive

11

13

22

Total

304

18

299

23


Fig LA-5: Separations

Separation
year

50

Death

Dismissal

Resignation

2011 - 12

76

36

2012 - 13

109

39

Superannuation

Termination

Grand
Total

132

251

133

289




Comprehensive medical facilities

Educational facilities
Housing facilities
Conveyance allowance
Festival advance
LTC / LLTC
Leave encashment
Work dress
Employee Family Benefit Scheme
Group Savings Linked Insurance
Scheme
Group Personal Accident Insurance
Scheme
Life Cover Scheme (EDLI Employees Deposited Linked
Insurance-)
Financial & Non-Financial
Motivation Schemes
Dr. B R Ambedkar Merit
Recognition
Scheme
for
Professional Stream and
Physically/Mentally Challenged
Stream
Dr.Sarvepalli Radhakrishnan Merit
Cash Awards and Col C K Nayudu
Sports Cash Awards
Yoga for Township residents
Recreation
facilities
like
Community Welfare Centers,
Clubs, Parks, etc.

 Promotion of sports and games

 Facilities like gym, libraries,
swimming pools, stadium etc. in the
township
 Soft loans for house / Interest
subsidy to non-executives for
house loan
 Soft loan for vehicle
 Soft loan for furniture
 Pre-retirement counseling
 Traveling
expenses
on
superannuation
 Employees' Superannuation
Benefit Fund
 Group Mediclaim Insurance Policy
for retired employees
 Post retirement free medical
facilities at company's hospitals
 Death Relief Scheme
 Employees' Cooperative Stores
 Employees' Thrift Society
 Promotion of cultural and trekking
activities
 Long Service Award for employees
who have completed 25 years of
service - 150 gms Silver Medallion
 Farewell Memento - 10 gms Gold
Coin

51

Participative management :
Employee involvement and empowerment are key
elements for fostering a climate of participation,
collaboration, developing mutual understanding and
maintaining harmonious industrial relations. 21
Recognized Unions in the plant ensure
representation of non-executives in collective
bargaining. Recognized Union elected through biannual elections, represents the cause of nonexecutive workforce to the Management and
bipartite agreements are forged on major issues.
Effective date of implementation is also recorded
in the agreement, so as to ensure shared

understanding of the timeframe in which the

changed procedure / scheme would be
implemented. Unions represent 100% of the nonexecutive workforce in RINL. Harmonious industrial
relations at RINL can be assessed from the fact
that there have been no strikes / lockouts in the
company during the reporting period.
The mechanism of participative management (Fig.
LA-8) is effectively deployed to deal with various
operational issues that affect the plants
performance and employee satisfaction across the
organization to ensure high levels of employee
engagement.

Fig. LA-8: Management participative fora

S.No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17

52

Name of the Forum

Apex Information Forum
Central Safety Committee
Central Welfare Committee
CSR Committee
CWC Committees - 7at HQ + 2 at Mines
HR information Forum
Marketing & Finance Information Sharing Committee
Medical Committee
Mines Coordination Committee
PF Trust Committee
Plant Level Production & Productivity Committee
Project Works Committee
SFCC & SFSC - 32 Committees each
Canteen Managing Committee
Superannuation Benefit Fund Trust
Town Development Committee
Sports Council

Periodicity of the meeting

Quarterly
Quarterly
Monthly
Bi-monthly
Monthly or as and when required
Monthly
Bi-monthly
Monthly
Quarterly
Monthly
Quarterly
Quarterly
Monthly
As and when required
Monthly
Bi-monthly
Bi-monthly

practices, maintenance practices, rigorous training

and development of employees ensures a safe work
culture in the organization. Safety is given utmost
importance and continuous efforts are made to
implement safety standards. Along with this,
continuous monitoring of safety risks and other
proactive measures has resulted in reduction /
elimination of potential hazards (Fig. LA-9). Several
measures are being taken up to achieve zero
accident rate.

Steel Executive Association for executive workforce

represents 100% of the executives acting as a nodal
agency for taking up emerging concerns with the
Management.
Safety
Various safety and Occupational health related
issues are settled through bipartite agreement
between the recognized Union and the
Management. However during the reporting period,
there were no such issues from either side which
required settlement through a formal agreement.
Health and safety related issues like availability and
usage levels of PPEs, unsafe practices, unsafe
conditions, incidents, etc. are proactively taken up
by Shop-Floor Safety Committees (SFSC), which
are chaired by respective HODs along with 5 to 7
representatives from Management side and Union
representative. Safety and Occupational Health
related issues / incidents are deliberated and action
plans are charted and implementation is monitored.
The working of SFSC provides crucial inputs for
Central Safety Committee at plant level which is a
statutory requirement.

All efforts are made at RINL through a combination

of various safety management practices,
maintenance practices, rigorous training and
development of employees to inculcate a safe work
culture in the organization.
On-site emergency plan and mock drills are
conducted to test the emergency preparedness for
fire, electric shock, gas leak, rescue from heights,
burn injuries, etc. More than 144 nos. of fire mock
drills were organized and all the deficiencies were
addressed and other observations made during the
drills were complied with.
For further details on initiatives related to safety refer
to page no. 32 of the Annual Report 2012-13 of the
company.

Implementation of OHSAS 18001 through

combination of various safety management

Fig LA-9 : Safety statistics

YEAR

NR

REGULAR
CONTRACTOR
Re
F Total NR Re
F Total NR

Total
Re
F

Total

FR

IR

SR

2009-10

26

01

28

16

02

19

42

47

0.87 2.09 386.83

2010-11

19

24

--

15

17

34

41

0.67 1.61 366.53

2011-12

20

21

08

27

29

0.5

1.2 139.04

2012-13

11

13

25

--

21

14

35

32

27

60

0.75

1.8 2099.2

Re - Reportable

F - Fatal

53

There was an explosion in the oxygen line near

Pressure Reducing Station-2 during commissioning
trials in SMS-2 on 13th June, 2012 in which 19 lives
were lost. In-depth studies were done to assess
possible causes and corrective actions have been
initiated by way of improving upon the design of
oxygen valve station and also developing a safety
procedure for commissioning of any new unit.

Fig. LA-10 : Periodical medical check-up

Fig. LA-12: Training Indicators

Parameter

In addition to the statutory and other entitled

payments, ` 25 Lakhs was paid as compensation
to the deceased RINL employees. It was also
ensured that an amount of `10 Lakhs was paid as
ex-gratia to the deceased contract employees by
their respective agencies.
The statutory Occupational Health needs of the
employees are taken care of through a wellequipped Occupational Health Center since
Nov.1992. It is the first OHS unit in steel industry to
receive ISO-9001, ISO-14001 and OHSAS
18001-2007 certifications.

2012-13

13677

13996

13472

80

80

77

103.84

104

104

Employee trained

Nos.

Percentage of employees trained

Training

Man hours / employee

Training Expenses incurred

` Crores

3.12

3.6

3.15

Training Expenses incurred

for Foreign Training

` Crores

3.92

3.63

9.40

Foreign training

Nos.

102

105

262

S.No.

Health of employees in monitored at set frequency depending on the nature of work under the Man
Management Programme (MMP) and the employee records are managed online through Occupational
Health Management System. Various initiatives like health education and heath checkup programmes are
brought out below at Fig. LA-11.

Industrial
Hygiene Surveys

Training evaluation

2009-10

2010-11

2011-12

2012-13

Reaction

85.40

85.00

86.20

86.20

Learning

83.72

80.15

81.56

81.41

Behavior

75.00

74.25

75.00

75.00

There has been significant thrust on lifelong learning and improvement of employability through various
training programs (Fig. LA-14) which helps in upgrading employees' knowledge and capabilities. These
trainings are conducted through in-house programs and external training programs at reputed institutes in
the country. With expansion projects progressing at brisk pace, employees were also imparted training on
new technologies being adopted in the expansion projects.
Fig. LA-14: Training Interactions to support Life Long Learning & Employability in 2012 - 13

Fig. LA-11 : Occupational Health Initiatives

Crane Operators
Eye Examination

No. of Employees
Covered under
Health Education

S.No.

Program

No of programs

No of participants

Assertiveness & inter-personnel skills

10

214

Personnel effectiveness for growth

211

2010-11

9722

225

1318

8548

Communication & Presentation skills

12

220

2011-12

9479

327

1271

4718

Health Education

38

943

2012-13

8924

356

1173

6191

2010-11: Special drive of HIV-AIDS Campaign was conducted which includes training of master trainers and peer educators.
2012-13: Shop floor health education classes conducted on Prevention and control of Diabetes, Hypertension and Heart disease.

Employee development :
RINL takes various initiatives to improve and enhance the skills, capabilities & performance levels of its
workforce. Training needs of the employees are identified through:
 Performance Appraisals
 Annual Training Needs Survey
 Training Advisory Committee reviews
 Training Coordinators Workshops
 Specific needs of the departments
Trend of training man-days and training effectiveness is shown in Fig. LA-12 & Fig.LA-13.
54

2011-12

Fig. LA -13 : Effectiveness of training programs

Periodical Medical Examination (PME) of

employees at OHS&RC is carried out through a
process shown in Fig LA-10.

MMP Coverage

2010-11

Effectiveness of training programs is objectively evaluated and the outcome is used for retraining the employee
and for redesigning the training programs. Execution of training plans is reviewed by TAC on quarterly basis
with a view to ensure adequate resources for training, new training interventions and redesign of the training
programs as required.

Occupational Health :

Years

Unit

Performance appraisal is the mechanism through

which departmental objectives are translated into
mutually agreed tasks and targets for executives.
These are reviewed during mid-term reviews to
identify constraints in implementation and thrust
areas for future. All the executives in the company
have their performance appraised through objective
assessment of individuals performance and
identification of development plans, which are
bridged through in-house and external training.
Diversity and equal opportunity:
Various measures are taken to provide a conducive
working environment wherein the women
employees can realize their full potential. There is
a special forum for women Women in Public
Sector (WIPS) - to provide an environment

integrated growth of women and to enhance their

effectiveness in employment.
RINL does not indulge in any discrimination by
gender in any walk of organizational life and
compensation is based on grade and performance
only.
During the reporting period, women employees had
entitlement for maternity leave of 12 weeks. Twenty
women employees had availed maternity leave
during the period of reporting and have joined back
and continuing in service.
SC/ST Cell in the Company ensures engagement
with SC/ST Association and monitors various
welfare measures for SC/ST employees and their
families.
55

Human rights
The company believes in right to human dignity,
social protection, right to rest and leisure which is a
workers fundamental human right and the same is
ensured through compliance with Factories Act and
other relevant laws in the country.
As a principal employer, RINL also ensures payment
of wages, which is more than the statutory minimum
wages (refer Fig. EC-5) also ensures compliance
with various statutory provisions for contract
workers. Some of these measures include:
 Provision of food through subsidized canteens,
washrooms, rest rooms, drinking water etc.
which are meant for regular employees of the
company are being extended for contract
workers also.
 Ensuring employers contribution of PF at the
rate of 12%.
 Payment of bonus at the rate of 8.33% of his /
her wage.
 Gratuity for contract workers who have put in
more than 5 years of service.
 Compliance to Workmens Compensation Act
by depositing requisite amount with
Commissioner for Workmens Compensation in
case the contractor fails to deposit the same to
ensure payment of compensation within
stipulated period of 30 days.
 Provision of ex-gratia payment of ` 5.00 Lakh
in case of fatal accident to contract workers. This
is in addition to the payment as per Workmens
Compensation Act.
 Payment of notice pay, service pay, leaves pay
and bonus at the end of contract period by the
contractor.
 Safety training to all contract workers and also
on the job training as per the requirement. Usage
of Personal Protective Equipment (PPEs) is

In addition, RINL has taken up the issue of coverage

of ESI for contract workers with ESI Corporation
and Government of Andhra Pradesh. At present, it
is ensured that contractors bear the expenses of
medical treatment of contract workers in case of
any accident.
Though company ensures adherence to all
applicable Acts regarding dignity of labor in the case

Society :
The Company has commissioned an expert agency to make exhaustive study on impact of plant operation
on environment and surrounding areas (Fig. SO-1)
Fig. SO-1:Environment impact studies

Study

Brief conclusions of the study

Remarks

Rapid Environment Impact

Assessment Study in 2005
by M/s M N Dastur& Co.

 Ground Level Concentrations at core boundary

and buffer zone of Respirable dust, Sulphur
dioxides, Oxides of nitrogen much below norm.
 Total Environmental Attributes adjudged: 22
(Insignificant impact or no impact : 15
Beneficial impact : 3
Marginal adverse impact : 4)

 No objections from community

members or media during the public
hearing conducted at Collector office
for expansion of VSP.
 Environmental Clearance obtained
within 7 months for expansion of VSP.

Rapid Marine Impact

Assessment Study in 2006
by National Institute of
Oceanography, GoI

No impact on marine life due to discharge of effluents

from VSP.

 A two month study done for assessing

impact on marine life by VSP's
operations.
 No complaints from vigilant and active
fishing communities, media or any
NGOs.

of service contracts through various policies and

monitoring of compliance by Engineer I/c , there
is no mechanism in place to ensure compliance to
the same in case of supply contracts.
Right to collective bargaining is ensured through
21 registered trade Unions in the company that
enable non-executive employees to voice their
concerns. The Unions also represent the contract
workers.
Minimum age limit for recruitment in the company
is 18 years. All contractors are regularly exhorted
to comply with the Child Labor regulation and
surprise checks are conducted by RINL to ensure
compliance. No incident of engagement of child
labor, any form of forced and / or compulsory labor,
grievances related to violation of Human Rights was
reported in the company during the reporting period.

Monitoring of chemical and No impact on marine life due to discharge of effluents

biological parameters in the from VSP off Appikonda.
marine environment off
Appikonda and toxicological
studies of the treated
effluent of VSP in 2010 by
National Institute of
Oceanography, GoI

Grievance Redressal Mechanism

At RINL, there are separate channels for formal and
informal grievance handling for redressal of
grievance of employees. In the formal Grievance
Procedure for non-executives, a workers
representative is present in the Committee. Further,
both executives and non-executives grievance
handling systems have a fixed time frame to redress
the grievances. Grievances of employees pertaining
to pay, promotion, allotment of quarters etc. are
resolved through informal grievance redressal
system. A senior officer at the level of General
Manager is designated as OSD (Public Grievances)
to deal with public grievances.

stringently monitored by the Engineer I/c.

56

57

RINL has designed a robust mechanism for

capturing environment incidents, identifying any
undesirable trend and proactively initiating
corrective action. Inspections are carried out
regularly by Environment Management Department.
If any deviations are observed, it is immediately
brought to the notice of the concerned HODs and
Environment incident note is raised by Environment
Management Department, and the same is sent to
the department concerned and also to higher
Management for their information. Corrective action
is monitored and deliberated upon during
Environment Review Meeting, for adequacy of the
measure to eliminate possibility of occurrence of
similar incidents in future.
Anti-corruption measures
Being a public sector enterprise, RINL is committed
to fostering an ethical and corruption free business
environment. Guidelines issued by Central Vigilance
Commission (CVC) are adhered to by timely
updation of related procedures in the company.
RINL has entered into an MoU with Transparency
International for adopting an Integrity Pact (IP) as
a tool to fight corruption by bringing in transparency
in procurement processes right from pre-selection
stage, bidding, contracting, and implementation till
completion.
Implementation of IP is monitored by Independent
External Monitors (IEM) through independent
reviews with suppliers, contractors and customers
to ascertain and address emerging concerns and
the feedback is shared with CMD on quarterly basis.

The risk of corruption is mitigated through

preventive vigilance activities in sensitive areas by
Vigilance Department and recommendations for
systemic improvements which are implemented in
all related areas. Employees are also sensitized on
corruption related issues through publication of inhouse magazine and specific training programmes
Regular training programme covering contract
management and preventive vigilance is conducted
for regular employees. The details of sessions
conducted during the reporting period is shown in
Fig.SO-2.
Fig. SO-2 : Vigilance trainings

Training details
No. of Sessions conducted
No. of participants

2011-12

2012-13

10

320

511

System improvements are also taken up in case of

occurrence of incidents of corruption and suitable
punitive action is initiated in cases where malicious
intentions are found.

Product responsibility
Steel products produced by the Company are
environmental friendly and do not pose any health
or safety hazard during their use and are completely
recyclable. Further, RINL produces products which
are known for their quality and also reduces
wastage for its end users through close tolerances.
Bundling and automatic tying / strapping of products
minimize chances of damage during transportation
of products.
The steel products of the company find application
in construction and engineering sectors, which
require strict compliance with product specifications.
Stringent internal quality control mechanisms and
close dimensional tolerances ensure adherence to
the required product specification. In order to
enhance the confidence level of the customers,
product test certificates are also issued to the
customers along with delivery orders.

Decreasing trend in new product development was

due to the extreme sluggish condition prevailing in
the market with manufacturing sector - main driver
for new product development - witnessing negative
growth for most part of the reporting period.
RINL's focus on production of steel products as per
emerging market requirement that are required by
society has helped in development of 'special steels'
of various grades. These steels are lighter and
stronger. Moreover they are more corrosion
resistant. Some of such grades are mentioned at
Fig. PR-2.
Fig. PR-1: New products development

Based on the customer requirement, new products/

grades are developed through in-house R&D. the
trend of new products developed is given at
Fig. PR-1.

RINL does not encourage any kind of political

lobbying and has not made any contribution to any
political party during the reporting period.
There are no legal actions against RINL for any kind
of anti-competitive / anti-trust or monopolistic
practices and there was no instance of noncompliance with laws & regulations.
Shri B. Siddhartha Kumar, IFS, CVO,RINL
addressing the gathering on the occasion of
Vigilance Awareness Week

58

59

Fig. PR-2: Development of special grade steel

S.No

Product Name

Special Property

GRI CONTENT INDEX

Beneficial Impact
GRI

1.

2.

3.

4.
5.

VIZAG - TMT
FE 500

VIZAG - TMT
FE 550

VIZAG - TMT
CRM and
HS CRM
PC 115
VIZAG TLT

Higher strength over

conventional reinforcement

Higher strength over

conventional reinforcement

 14% reduction in steel use in similar application

 When applied they help reduce CO2 emissions over the life cycle
of the product
 19% reduction in steel use in similar application
 When applied they help reduce CO2 emissions over the life cycle
of the product

Description

Page
No.

Strategy & Analysis

1.1

Statement from the most senior decision-maker of the organization.

1.2

Description of key impacts, risks, and opportunities.

Organisation Profile
2.1

Name of the organization.

2.2

Primary brands, products, and/or services.

12

2.3

Operational structure of the organization, including main divisions, operating companies, subsidiaries, and joint ventures.

10

2.4

Location of organizations headquarters.

8,

Number of countries where the organization operates, and names of countries with either major operations or that are
specifically relevant to the sustainability issues covered in the report.

2.6

Nature of ownership and legal form.

2.7

Markets served (including geographic breakdown, sectors served, and types of customers/beneficiaries).

13

2.8

Scale of the reporting organization.

2.9

Significant changes during the reporting period regarding size, structure, or ownership.

14

2.10

Awards received in the reporting period.

15

Reporting period (e.g., fiscal/calendar year) for information provided.

16

Higher resistance to
corrosion over traditional
steels, in industrial and
marine environments

Helps reduce CO2 emissions over the life cycle of the product due
to longevity

Special wire for using in PC

sleepers in railway lines

 Excellent alternative to timber

 Counters deforestation

2.5

Offers higher strength to

weight ratio over traditional

 Heavy structures for transmission lines etc can be made with

less steel
 When applied they help reduce CO2 emissions over the life cycle
of the structure

Back Cover

Branding of products meant for direct end use for

construction and fabrication purpose facilitates in
differentiation by the customer through ease in
recognition and eliminates any scope for duplication
by others. Product features are communicated to
potential customers through various product
brochures and also publicized through RINL
website.
Customer satisfaction survey for major steel plants
in the country is conducted by Ministry of Steel
(MoS) on annual basis which provides meaningful
insights into the relative position of various
companies on various attributes. RINL also gets
Customer Satisfaction Survey conducted by an
external agency every year which is specifically

designed for customer segments of RINL. Based

on the same, branch wise action plans are
developed to enhance customer satisfaction levels.

Status

Report Parameters
3.1
3.2

Date of most recent previous report (if any).

16

There were no instances of non-compliance with

regulations related to product and service
information, marketing communications including
advertising, promotion and breaches of customer
privacy / loss of customer data during the year.

3.3

Reporting cycle (annual, biennial, etc.)

16

3.4

Contact point for questions regarding the report or its contents.

16

3.5

Process for defining report content.

16

3.6

Boundary of the report (e.g., countries, divisions, subsidiaries, leased facilities, joint ventures, suppliers). See GRI
Boundary Protocol for further guidance.

16

Online Quality Complaint System provides easy

access to the customers for lodging their complaints
which can also be tracked online for early
settlement. Learning from review of such complaints
during MR meetings helped in evolving corrective
and preventive actions that resulted in reduction of
the quality complaints.

3.7

State any specific limitations on the scope or boundary of the report (see completeness principle for explanation of scope).

16

3.8

Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can
significantly affect comparability from period to period and/or between organizations.

3.9

Data measurement techniques and the bases of calculations, including assumptions and techniques underlying
estimations applied to the compilation of the Indicators and other information in the report. Explain any decisions not
to apply, or to substantially diverge from, the GRI Indicator Protocols.

16

3.10

Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such
re-statement (e.g.,mergers/acquisitions, change of base years/periods, nature of business, measurement methods).

3.11

Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report.

16

3.12

Table identifying the location of the Standard Disclosures in the report.

61

3.13

Policy and current practice with regard to seeking external assurance for the report.

16

Governance, Commitments, and Engagement

4.1

Governance structure of the organization, including committees under the highest governance body responsible for
specific tasks, such as setting strategy or organizational oversight.

17

4.2

Indicate whether the Chair of the highest governance body is also an executive officer.

17

4.3

For organizations that have a unitary board structure, state the number of members of the highest governance body
that are independent and/or non-executive members.

17, 20

4.4

Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body.

23

4.5

Linkage between compensation for members of the highest governance body, senior managers, and executives
(including departure arrangements), and the organizations performance (including social and environmental
performance).

20

4.6

Processes in place for the highest governance body to ensure conflicts of interest are avoided.

20

Process for determining the composition, qualifications, and expertise of the members of the highest governance body
and its committees, including any consideration of gender and other indicators of diversity.

19

4.7

60

61

GRI CONTENT INDEX

GRI

4.8

Description

GRI CONTENT INDEX

Page
No.

Status

GRI

4, 17

Procedures of the highest governance body for overseeing the organizations identification and management of
economic, environmental, and social performance, including relevant risks and opportunities, and adherence or
compliance with internationally agreed standards, codes of conduct, and principles.

18

4.10

Processes for evaluating the highest governance bodys own performance, particularly with respect to economic,
environmental, and social performance.

21

4.11

Explanation of whether and how the precautionary approach or principle is addressed by the organization.

20

EN11

4.12

Externally developed economic, environmental, and social charters, principles, or other initiatives to which the
organization subscribes or endorses.

21

EN12

4.13

Memberships in associations (such as industry associations) and/or national/international advocacy organizations in

which the organization: * Has positions in governance bodies; * Participates in projects or committees; * Provides
substantive funding beyond routine membership dues; or * Views membership as strategic.

21

4.14

List of stakeholder groups engaged by the organization.

23

4.15

Basis for identification and selection of stakeholders with whom to engage.

23

4.16

Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group.

23

4.17

Key topics and concerns that have been raised through stakeholder engagement, and how the organization has
responded to those key topics and concerns, including through its reporting.

23

Water sources significantly affected by withdrawal of water.

38

Percentage and total volume of water recycled and reused.

39

Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of high
biodiversity value outside protected areas.

40

Description of significant impacts of activities, products, and services on biodiversity in protected areas and
areas of high biodiversity value outside protected areas.

40

EN13

Habitats protected or restored.

40

EN14

Strategies, current actions, and future plans for managing impacts on biodiversity.

40

EN15

Number of IUCN Red List species and national conservation list species with habitats in areas affected by
operations, by level of extinction risk.

40

EN9

26

Biodiversity

Emissions, effluents and waste

EN16

Total direct and indirect greenhouse gas emissions by weight.

36

EN17

Other relevant indirect greenhouse gas emissions by weight.

41

EN18

Initiatives to reduce greenhouse gas emissions and reductions achieved.

35

EN19

Emissions of ozone-depleting substances by weight.

40

EN20

NOx, SOx, and other significant air emissions by type and weight.

41

EN21

Total water discharge by quality and destination.

42, 43

EN22

Total weight of waste by type and disposal method.

43, 44

EN23

Total number and volume of significant spills.

42

EN24

Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the Basel
Convention Annex I, II, III, and VIII, and percentage of transported waste shipped internationally.

44

EN25

Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly affected
by the reporting organization's discharges of water and runoff.

40

Economic performance
EC1

38

EN10

Economic
Disclosure on Management Approach EC

Status

Total water withdrawal by source.

EN8


Page
No.

Water

Internally developed statements of mission or values, codes of conduct, and principles relevant to economic,
environmental, and social performance and the status of their implementation.

4.9

Description

Direct economic value generated and distributed, including revenues, operating costs, employee compensation,
donations and other community investments, retained earnings, and payments to capital providers and
governments.

28

EC2

Financial implications and other risks and opportunities for the organization's activities due to climate change.

28

EC3

Coverage of the organization's defined benefit plan obligations.

29

EC4

Significant financial assistance received from government.

28


Products and services

Market presence
EC5

Range of ratios of standard entry level wage compared to local minimum wage at significant locations of operation.

30

EC6

Policy, practices, and proportion of spending on locally-based suppliers at significant locations of operation.

30

EC7

Procedures for local hiring and proportion of senior management hired from the local community at significant
locations of operation.

30

EN26

Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation.

38

EN27

Percentage of products sold and their packaging materials that are reclaimed by category.

45

45

45

Total environmental protection expenditures and investments by type.

33

Disclosure on Management Approach LA

47

Total workforce by employment type, employment contract, and region.

50




Compliance
EN28

Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with
environmental laws and regulations.

Indirect economic impacts

EC8
EC9

Development and impact of infrastructure investments and services provided primarily for public benefit through
commercial, in-kind, or pro bono engagement.
Understanding and describing significant indirect economic impacts, including the extent of impacts.

30
31




Transport
EN29

Significant environmental impacts of transporting products and other goods and materials used for the
organization's operations, and transporting members of the workforce.

Environmental
Overall
Disclosure on Management Approach EN

33

Materials

EN30
Social

EN1

Materials used by weight or volume.

38

EN2

Percentage of materials used that are recycled input materials.

38

Social: Labor Practices and Decent Work

Employment

Energy
EN3

Direct energy consumption by primary energy source.

37

LA2

Total number and rate of employee turnover by age group, gender, and region.

51

EN4

Indirect energy consumption by primary source.

37

37

Benefits provided to full-time employees that are not provided to temporary or part-time employees, by major
operations.

51

Energy saved due to conservation and efficiency improvements.

LA3

EN5

EN6

Initiatives to provide energy-efficient or renewable energy based products and services, and reductions in
energy requirements as a result of these initiatives.

36

55

Initiatives to reduce indirect energy consumption and reductions achieved.

37

52

EN7

62

LA1

LA4

Return to work and retention rates after parental leave, by gender.

Labor/management relations

LA4

Percentage of employees covered by collective bargaining agreements.

63

GRI CONTENT INDEX

GRI

LA5

GRI CONTENT INDEX

Page
No.

Description

Minimum notice period(s) regarding significant operational changes, including whether it is specified in collective
agreements.

52

Status

GRI

Disclosure on Management Approach SO

Percentage of total workforce represented in formal joint management-worker health and safety committees
that help monitor and advise on occupational health and safety programs.

53

LA7

Rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities by
region.

53

LA8

Education, training, counseling, prevention, and risk-control programs in place to assist workforce members,
their families, or community members regarding serious diseases.

54

LA9

Health and safety topics covered in formal agreements with trade unions.

54

Average hours of training per year per employee by employee category.

55

LA11

Programs for skills management and lifelong learning that support the continued employability of employees
and assist them in managing career endings.

55

Percentage of employees receiving regular performance and career development reviews.

55

Diversity and equal opportunity

LA13

Composition of governance bodies and breakdown of employees per category according to gender, age group,
minority group membership, and other indicators of diversity.

55

LA14

Ratio of basic salary of men to women by employee category.

55

SO1

Percentage of operations with implemented local community engagement, impact assessments, and development
programs.

57

SO9

Operations with significant potential or actual negative impacts on local communities.

41, 57

SO10

Prevention and mitigation measures implemented in operations with significant potential or actual negative impacts
on local communities.

41, 57

SO2

Percentage and total number of business units analyzed for risks related to corruption.

58

SO3

Percentage of employees trained in organization's anti-corruption policies and procedures.

58

SO4

Actions taken in response to incidents of corruption.

58

SO5

Public policy positions and participation in public policy development and lobbying.

58

SO6

Total value of financial and in-kind contributions to political parties, politicians, and related institutions by country.

58

58

Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws
and regulations.

58

Disclosure on Management Approach PR

59

Corruption

56

Anti-competitive behavior
SO7

HR1

Percentage and total number of significant investment agreements that include human rights clauses or that
have undergone human rights screening.

56

HR2

Percentage of significant suppliers and contractors that have undergone screening on human rights and actions
taken.

56

56

Total number of incidents of discrimination and actions taken.

Operations and significant suppliers identified in which the right to exercise freedom of association and collective
bargaining may be violated or at significant risk, and actions taken to support these rights.

Social: Product Responsibility

Customer health and safety

56

Freedom of association and collective bargaining

HR5

SO8

Non-discrimination
HR4

56

PR1

Life cycle stages in which health and safety impacts of products and services are assessed for improvement,
and percentage of significant products and services categories subject to such procedures.

59

PR2

Total number of incidents of non-compliance with regulations and voluntary codes concerning health and safety
impacts of products and services during their life cycle, by type of outcomes.

59

Product and service labelling

Child Labor
HR6

Operations and significant suppliers identified as having significant risk for incidents of child labor, and measures
taken to contribute to the effective abolition of child labor.

56

Prevention of forced and compulsory labor

HR7

Operations and significant suppliers identified as having significant risk for incidents of forced or compulsory
labor, and measures to contribute to the elimination of all forms of forced or compulsory labor.

56

PR3

Type of product and service information required by procedures, and percentage of significant products and
services subject to such information requirements.

59, 60

PR4

Total number of incidents of non-compliance with regulations and voluntary codes concerning product and
service information and labeling, by type of outcomes.

60

PR5

Practices related to customer satisfaction, including results of surveys measuring customer satisfaction.

60

Marketing communications

Security practices
HR8

Percentage of security personnel trained in the organization's policies or procedures concerning aspects of
human rights that are relevant to operations.

Indigenous rights
HR9

Total number of incidents of violations involving rights of indigenous people and actions taken.

56

Percentage and total number of operations that have been subject to human rights reviews and/or impact
assessments.

56

Number of grievances related to human rights filed, addressed and resolved through formal grievance
mechanisms.

Programs for adherence to laws, standards, and voluntary codes related to marketing communications, including
advertising, promotion, and sponsorship.

60

PR7

Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing
communications, including advertising, promotion, and sponsorship by type of outcomes.

60

PR8

Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data.

60

60

Customer privacy
Compliance


PR9

Remediation
HR11

PR6

Assessment
HR10

Total number of legal actions for anti-competitive behavior, anti-trust, and monopoly practices and their outcomes.
Compliance

Investment and procurement practices

Total hours of employee training on policies and procedures concerning aspects of human rights that are
relevant to operations, including the percentage of employees trained.

56

Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and
use of products and services.

 Fully Reported

64

Public policy

Social: Human Rights

HR3

57

Community

LA10

Disclosure on Management Approach HR

Status

Social: Society

Training and education

LA12

Page
No.

Occupational health and safety

LA6

Description

 Partially Reported

- Not Reported

65

Glossary

Glossary

ACC

Appointments Committee of the Cabinet

EJC

Empowered Joint Committee

MOIL

Manganese Ore India Limited

PRP

Performance related Pay

AHU

Air Handling Unit

EMS

Energy Management System

MoS

Ministry of Steel

PRS

Pressure Reducing Station

APPCB

Andhra Pradesh Pollution Control Board

EOI

Expression of Interest

MoU

Memorandum of Understanding

PSE

Public Sector Enterprise

APSEB

Andhra Pradesh State Electricity Board

ERM

Enterprise Risk Management

MSE

Micro and Small Enterprises

QC

Quality Circles

APTRANSCO

Andhra Pradesh Transmission Corporation.

ESP's

Electrostatic Precipitator

MSME

Micro, Small and Medium Enterprises

QMS

Quality Management System

ASP

Ammonium Sulphate Plant

G ETS

Gas Expansion Turbine Station

Mt

Million tonne

R&D

Research &Development

BF

Blast Furnace

G.Cal/tcs

Giga Calories per tonne of crude steel

Mtpa

Million tonne per annum

R&M

Repair & Maintenance

BF-BOF

Blast Furnace - Basic Oxygen Furnace

GHG

Green House Gas

MTT

Management Trainee -Technical

RDS

Rural Dealership Scheme

BDP

Benzol Distilation Plant

GM

General Manager

MW

Mega Watt

Re

Reportable

BOD

Biological Oxygen Demand

GoI

Government of India

MWH

Mega Watt-Hour

RINL

Rashtriya Ispat Nigam Limited

BRP

Benzol Recovery Plant

GRI

Global Reporting Index

NAFC

Napthalene and Anthracene Fractional

RINMOIL

Joint venture company of RINL & MOIL

Crystallization

SC

Schedule Caste

BSLC

Bisra Stone Lime Company Limited

BSY

Bloom Storage Yard

GVMC

Greater Visakhapatnam Municipal

Corporation

NAPCC

National Action Plan on Climate Change

SFCC

Shop Floor Coordination Committee

Committee for Award of Contracts relating

HOD

Head of Department

NEDO

New Energy and Industrial Technology

SFSC

Shop Floor Safety Committee

to Project Expansion contracts

HR

Human Resources

SMS

Steel Melt Shop

CDM

Clean Development Mechanism

HRC

Human Resource Committee

NGO

Non-Governmental Organization
SP

Sinter Plant

CDQ

Coke Dry Quenching

HSD

High Sulphur Diesel

NMDC

National

SPU

Steel Process Unit

CII

Confederation of Indian Industry

IEC

Independent Ethics Committee

SSIC

State Small Industrial Corporations

CMD

Chairman cum Managing Director

IEM

Independent External Monitor

Efficiency

ST

Schedule Tribe

CMMI

Capability Maturity Model Integrated

IP

Integrity Pact

NR

Non Reportable

Tonne

COD

Chemical Oxygen Demand

IPO

Initial Public Offer

NSIC

National Small Industrial Corporations

t/tcs

Tonne per tonne of crude steel

CoM

Committee of Management

ISO

Indian Standards

ODS

Ozone Depleting Substances

TAC

Training Advisory Committee

CPH

Condensate Pump House

IT

Information Technology

OEM

Original Equipment Manufacturer

TB

Turbo Blower

CPU

Condensate Polishing Unit

JV

Joint Venture

OHS

Occupational Health Service

TDP

Tar Distillation Plant

CRMP

Calcining & Refractory Material Plant

kg/thM

Kilograms per tonne of hot metal

OHSAS

Occupational

TG

Turbo Generator

CSA

Consignee Sales Agents

Kl

Kilo litre

Assessment Series

TOS

Tar and Oil Storage

CSR

Corporate Social Responsibility

LMMM

Light & medium merchant mill

Occupational Health Services &

TPP

Thermal Power Plant

DE

Dust Extraction

LTC / LLTC

Leave Travel Concession / Long Leave

TSS

Total Suspended Solids

DGM

Deputy General Manager

VAS

Value Added Steel

DLDS

District Level Dealerships

VSGH

Visakha Steel General Hospital

DM

De-Mineralized

VSP

Visakhapatnam Steel Plant

DOP

Delegation of Powers

WIPS

Women In Public Sector

DPE

Department of Public Enterprises

WRM

Wire Rod Mill

ED

Executive Director

WTP

Water Treatment Plant

EETS

Energy Efficiency Trading Scheme

EIL

Eastern Investments Limited

CACEP

Travel

Concession

Development Organization

Long

Development

Corporation
NMEE

OHSRC
Travel

National Mission for Enhanced Energy

Health

and

Safety

Research Center
OMDC

Compensation /

66

Mineral

Orissa Mineral Development Company

Limited

MBC

Mechanical, Biological and Chemical

PAT

Perform Achieve Trade

MC & HC

Medium Carbon and High Carbon

PF

Provident Fund

Mgd

Million gallons per day

PGCIL

Power Grid Corporation of India Limited

MLD

Million Litres per Day

PH

Physically Handicap

MM

Material Management

PP

Power Plant

MMP

Man Management Programme

PPE

Personal Protective Equipment

MMSM

Medium merchant & structural mill

67