PARTICULARS OF ORGANIZATION, FUNCTIONS AND DUTIES

PARTICULARS OF ORGANIZATION

a) Name of the Company : Rashtriya Ispat Nigam Limited

b) Company Identification : U27109AP1982GOI003404

Number (CIN)
c) Date of Incorporation : 18th February 1982

d) Mode of Incorporation : Incorporated as a Government

Company under the provisions of the
Companies Act, 1956.

e) Administrative Ministry : Ministry of Steel

Govt. of India.

f) Present Status : A Govt. Company within the meaning

of Section - 617 of the Companies Act,
1956.

g) Share Capital :
i) Authorised

Equity Share Capital : Rs.4,890 Crores

Preference Share : Rs.3,110 Crores
Capital -------------------
Total : Rs.8,000 Crores
-------------------

ii) Subscribed, Issued Rs.7,827.32 Crores

and paid up capital

h) Present Share holding. : The entire Share Capital is held

by President of India.

i) Address of Registered Office : Rashtriya Ispat Nigam Limited

Visakhapatnam Steel Plant
Administrative Building
Visakhapatnam – 530 031
Website : www.vizagsteel.com

Visakhapatnam Steel Plant (VSP), the first coast based Steel Plant of India is located, 16 KM
South West of city of Destiny i.e. Visakhapatnam. Bestowed with modern technologies, VSP has
an installed capacity of 3 million Tonnes per annum of Liquid Steel and 2.656 million Tonnes of
saleable steel. At VSP there is emphasis on total automation, seamless integration and
efficient up gradation, which result in wide range of long and structural products to meet
stringent demands of discerning customers within India and abroad. VSP products meet
exacting International Quality Standards such as JIS, DIN, BIS, BS etc.

VSP has become the first integrated Steel Plant in the country to be certified to all the three
international standards for quality (ISO-9001), for Environment Management (ISO-14001) &
for Occupational Health & Safety (OHSAS-18001). The certificate covers quality systems of all
Operational, Maintenance and Service units besides Purchase systems, Training and Marketing
functions spreading over 4 Regional Marketing Offices, 24 branch offices and stock yards
located all over the country.

VSP by successfully installing & operating efficiently Rs. 460 crores worth of Pollution Control
and Environment Control Equipments and converting the barren landscape by planting more
than 3 million plants has made the Steel Plant, Steel Township and surrounding areas into a

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 heaven of lush greenery. This has made Steel Township a greener, cleaner and cooler place,
which can boast of 3 to 4° C lesser temperature even in the peak summer compared to
Visakhapatnam City.

VSP exports Quality Pig Iron & Steel products' to Sri Lanka, Myanmar, Nepal, Middle East, USA,
China and South East Asia. RINL-VSP was awarded "Star Trading House" status during 1997-
2000. Having established a fairly dependable export market, VSP plans to make a continuous
presence in the export market.

Having a total manpower of about 16,600 VSP has envisaged a labour productivity of 265
Tonnes per man year of Liquid Steel.

BACKGROUND
With a view to give impetus to Industrial growth and to meet the aspirations of the people
from Andhra Pradesh, Government of India decided to establish Integrated Steel Plant in Public
Sector at Visakhapatnam (AP). The announcement to this effect was made in the Parliament on
17th April' 1970 by the then Prime Minister of India late Smt. Indira Gandhi.

A site was selected near Balacheruvu creak near Visakhapatnam city by a Committee set up for
the purpose, keeping in view the topographical features, greater availability of land and
proximity to a future port. The foundation stone for the plant was laid by Smt. Gandhi on
20.01.1971.

Seeds were thus sown for the construction of a modern & sophisticated Steel Plant having
annual capacity of 3.4 Million Tonnes of hot metal. An agreement was signed between Gov-
ernments of India and the erstwhile USSR on June 12th, 1979 for setting up of an Integrated
Steel Plant to produce structural & long products on the basis of detailed Project report
prepared by M/s M.N. Dastur & Company. A Comprehensive revised DPR jointly prepared by
Soviets & M/s Dastur & Company was submitted in Nov' 1980 to Govt. of India.

The construction of the Plant started on 1st February 1982. Government of India on 18th
February 1982 formed a new Company called Rashtriya Ispat Nigam Ltd. (RINL) and
transferred the responsibility of constructing, commissioning & operating the Plant at
Visakhapatnam from Steel Authority of India Ltd. to RINL.

Due to poor resource availability, the construction could not keep pace with the plans which led
to appreciable revision of the plant cost. In view of the critical fund situation and need to check
further increase in the plant costs, a rationalized concept was approved which was to cost Rs.
6849 crores based on 4th Quarter of 1988.

The rationalized concept was based on obtaining the maximum output from the equipments
already installed, planned / ordered for procurement and achieving higher levels of operational
efficiency and labour productivity. Thus the plant capacity was limited to 3.0 Million tonnes of
Liquid Steel per annum. In the process, one of the Steel Melt Shops and one of the mills were
curtailed.

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 The availability of resources were continued to be lower than what was planned and this
further delayed the completion of the construction of the plant. Finally all the units were con-
structed and commissioned by July' 92 at a cost of Rs. 8529 crores. The plant was dedicated to
nation by the then prime Minister of India Late Sri P. V. Narasimha Rao on 1st August, 1992.

Since Commissioning VSP has already crossed many milestones in the fields of production,
productivity & exports. Coke rate of the order of 509 Kg/Ton of Hot metal, average convertor
life of 2864 heats an average of 23.6 heats per sequence in continuous Bloom Caster. Specific
energy consumption of 6.07 G Kal / ton of liquid steel, a specific refractory consumption of
8.94 kg and a labour productivity of 265 Ton / man year are some of the peaks achieved
(during the year 2004-05) in pursuit of excellence.

VSP Technology: State-of-the-Art

 7 meter tall Coke Oven Batteries with coke dry quenching. Biggest Blast Furnaces in
the Country
 Bell - less top charging system in Blast Furnace
 100% slag granulation at the BF Cast House
 Suppressed combustion - LD gas recovery system
 100% continuous casting of liquid steel.
 "Tempcore" and "Stelmor" cooling process in LMMM & WRM respectively
 Extensive waste heat recovery systems
 Comprehensive pollution control measures

Major Sources of Raw Materials

Raw Material Source

Iron Ore Lumps & Fines Bailadila, Chattisgarh

BF Lime Stone Jaggayyapeta, AP

SMS Lime Stone Dubai

BF Dolomite Madharam, AP

SMS Dolomite Madharam, AP

Manganese Ore Chipurupalli, AP

Boiler Coal Talcher, Orissa

Imported Boiler Coal Indonesia

Imported Coking Coal Australia / US

Medium Coking Coal (MCC) Kathara / Swang / Rajarappa / Kedla

Imported LAM Coke China

Quartzite Lump & Fines Local

Sand Sarepalli, AP

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 Major Units

Annual
Department Capacity Units (3.0 MT Stage)
(‘000 T)

Coke Ovens 2,261 3 Batteries of 67 Ovens & 7 Mtrs. Height

Sinter Plant 5,256 2 Sinter Machines of 312 Sq. Mtr. grate area each

Blast Furnace 3,400 2 Furnaces of 3200 Cu. Mtr. volume each

Steel Melt 3 LD Converters each of 133 Cu. Mtr.

3,000
Shop Volume and Six 4 strand bloom casters

LMMM 710 2 Strand finishing Mill

4 Strand high speed continuous mill with no twist

WRM 850
finishing blocks

MMSM 850 6 STAND FINISHING MILL

Main Products of VSP

Steel Products By-Products

Blooms Nut Coke Granulated Slag

Billets Coke Dust Lime Fines

Channels, Angles Coal Tar Ammonium Sulphate

Beams Anthracene Oil

Squares HP Naphthalene

Flats Benzene

Rounds Toluene

Re-bars Zylene

Wire Rods Wash Oil

MAJOR DEPARTMENTS

Raw Material Handling Plant

VSP annually requires quality raw materials viz. Iron Ore, fluxes (Lime stone, Dolomite), coking
and non coking coals etc. to the tune of 12-13 Million Tonnes for producing 3 Million Tonnes of
Liquid Steel. To handle such a large volume of incoming raw materials received from different
sources and to ensure timely supply of consistent quality of feed materials to different VSP
consumers, Raw Material Handling Plant serves a vital function. This unit is provided with
elaborate unloading, blending, stacking & reclaiming facilities viz. Wagon Tipplers, Ground &
Track Hoppers, Stock yards Crushing plants, Vibrating screens, Single/ twin boom stackers,

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 wheel on boom and Blender reclaimers, Stacker – cum – Reclaimer (SCR). In VSP peripheral
unloading has been adopted for the first time in the country.

Coke ovens & Coal Chemical Plant (CO&CCP)

Blast Furnaces, the mother units of any Steel plant require huge quantities of strong, hard and
porous solid fuel in the form of hard metallurgical coke for supplying necessary heat for
carrying out the reduction and refining reactions besides acting as a reducing agent. At VSP
there are three Coke Oven Batteries, 7 Metre tall and having 67 Ovens each. Each oven is
having a volume of 41.6 cu. metre & can hold upto 31.6 Tonnes of dry coal charge. There are 3
Coke Dry Cooling Plants (CDCP) each having 4 cooling chambers. Nitrogen gas is used as the
Cooling medium. The heat recovery from nitrogen is done by generating steam and expanding
in two back pressure turbines to produce 7.5 MW each.

The Coal chemicals such as Benzole (& its products), Tar (& its products), Ammonium Sulphate
etc. are extracted in Coal Chemical Plant from C.O. Gas. After recovering the Coal chemicals the
gas is used as a by product fuel by mixing it with gases such as BF Gas, LD Gas etc. A
mechanical, biological & chemical treatment plant takes care of the effluents.

Sinter Plant

Sinter is a hard & porous ferrous material obtained by agglomeration of Iron Ore fines, Coke
breeze, Lime Stone fines, Metallurgical wastes viz. Flue dust, mill scale, LD slag etc. Sinter is a
better feed material to Blast Furnace in comparison to Iron Ore lumps and its usage in Blast
furnaces help in increasing productivity, decreasing the coke rate & improving the quality of
Hot Metal produced. Hot Sinter discharged from Sintering machine is crushed to +5 mm - 50
mm size and cooled before dispatching to Blast Furnaces.

Parameters of Sintering Machines are

 Total area : 312 Sq. metre

 Effective Sintering area : 276 Sq. metre
 Sinter bed height : 500 mm
 Sinter Machine Capacity : 400 T P H each

The dust laden air from the machines are cleaned in scrubbers & electrostatic precipitators to
reduce the dust content to 100 mg/ m3 level before allowing to escape into the atmosphere
and thus helping in maintaining a clean & dust free environment.

Blast Furnaces

VSP has two 3200 cu. metre Blast Furnaces (largest in India) equipped with Paulworth Bell less
top equipment with conveyor charging. Rightly named as "Godavari" & "Krishna" after the two
rivers of AP, the furnaces will help VSP in bringing prosperity to the state of Andhra Pradesh.
Provision exists for granulation of 100% liquid slag at blast furnace cast house and utilization
of blast furnace gas top pressure (1.5-2.0 atmospheric pressure) to generate 12 MW of power
in each furnace by employing gas expansion turbines. The two furnaces with their novel

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 circular cast house and four tap holes each are rated to produce 9720 tonnes of Hot Metal daily
or 3.4 Million Tonnes of low sulphur Hot Metal annually.

Record Performance of Blast Furnace department:

TECHNO-ECONOMICS:

Productivity 2.23 t/m3/day Feb ’06

Power 51.31 kwh/thm Feb ’06
Fuel Rate 509 kg/thm Jan ’04
Heat cons. 450 Mcal/thm Apr ’05
Nut coke usage 56 kg/thm Mar ’04

PRODUCTION

Day Peaks

Blast Furnace - 1 6820 Tons 23.03.06

Blast Furnace - 2 6805 Tons 21.03.06
Shop 13325 Tons 10.02.06
PCM Pouring 6723 Tons 31.03.93

Monthly Peaks

Hot metal 374419 Tons Mar ’06

PCM Pouring 107463 Tons Mar ’93
Pig Iron Despatch 110387 Tons Mar ’94
G. Slag Despatch 150942 Tons May ’02

Steel Melt Shop

VSP produces steel employing three numbers of top blown Oxygen Convertors called LD
Convertors or Basic Oxygen Furnaces / Convertors. Each convertor is of 133 cu. Metre volume,
rated to produce 3 Million Tonnes of Liquid Steel annually. Besides Hot Metal, Steel Scrap,
Fluxes such as calcined lime or Dolomite form part of the charge to the Convertors.

Different grades of steel of Superior quality can be made by this process by controlling the
Oxygen blow or addition of various ferro alloys or special additives such as FeSi, FeMn, SiMn,
Coke Breeze, Aluminum etc. in required quantities while liquid steel is being tapped from the
convertor into a steel ladle. Convertor / LD Gas produced as by product is used as a secondary
fuel.

Characteristics of VSP Convertors:

 Capacity : 150 Tones per heat blow

 Volume : 133 Cu. Metre
 Convertor Sp. Volume : 0.886 Metre Cube per tonne
 Tap to Tap Time : 45 mts - 60 mts

Liquid Steel produced in LD Convertors is solidified in the form of blooms in continuous

Bloom Casters. However, to homogenize the steel and to raise its temperature, if needed, steel

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 is first routed through, Argon rinsing station, IRUT ( Injection Refining & Up temperature ) /
ladle Furnaces.

Continuous casting Department

VSP has six-4 strand continuous casting machines capable of producing 2.82 million Tonnes /
year Blooms of size 250 x 250 mm and 250 x 320 mm. Entire quantity of molten steel produced
(100%) is continuously cast in radial bloom casters which help in energy conservation as well
as production of superior quality products. Facilities at continuous casting machines include a
lift and Turn table for ladles, Copper mould, oscillating system tundish, Primary & Secondary
Cooling arrangement to cool the steel bloom. Gas cutting machines for cutting the blooms in
required lengths ( Av. 6 metres long ).

Rolling Mills

Blooms produced in SMS-CCD are shaped into products such as Billets, rounds, squares,
angles (equal & unequal), Channels, I-PE Beams, HE Beams, Wire rods and reinforcements
bars by rolling them in three sophisticated high capacity, high speed, fully automated
rolling mills, namely Light & Medium Merchant Mills (LMMM), Wire Rod Mill (WRM) and
Medium Merchant and Structural Mill (MMSM).

Light & Medium Merchant Mill (LMMM)

LMMM comprises of two units. In the Billet/Break down mill 250 x 320 mm size blooms are
rolled into Billets of 125 x 125 mm size. Billets are supplied from this mill to Bar Mill of LMMM &
Wire Rod Mill. The Bar mill is facilitated with temp core heat treatment technology evaporative
cooling system in walking beam furnaces, automated pilling & bundling facilities, high degree
of automation and computerization. The mill is designed to produce 710,000 tons per annum of
various finished products such as rounds, rebars, squares, flats, angles, and channels besides
billets for sale.

Wire Rod Mill (WRM)

Wire Rod Mill is fully automated & sophisticated mill. The billets are rolled in 4 strand, high
speed continuous mill having a Annual Capacity of 8,50,000 Tonnes of Wire Rod Coils. The mill
produces rounds in 5.5 - 14 mm range and rebars in 8, 10 & 12 mm sizes. The mill is equipped
with standard and Retarded Stelmor controlled cooling lines for producing high quality Wire
rods in Low, Medium & High carbon grade meeting the stringent National & International stan-
dards viz. BIS, DIN, JIS, BS etc. and having high ductility, uniform grain size, excellent surface
finish.

Medium Merchant & Structural Mill (MMSM)

This mill is a high capacity continuous mill. The feed material to the mill is 250 x 250 mm size
blooms, which is heated to rolling temperatures of 1200 °C in two walking beam furnaces. The
mill is designed to produce 8,50,000 tons per annum of various products such as rounds,
squares, flats, angles (equal & unequal), T bars, channels, IPE beams I HE beams (Universal
beams)

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 AUXILIARY FACILITIES

Thermal Power Plant

The average power demand of all units of VSP when operating at full capacity will be around
230 MW. The captive Generation capacity of 286.5 MW is sufficient to meet all the plant needs
in normal operation time. In case of partial outage of Captive Generation Capacity due to brake
down/ shutdown/ or other reasons, the short fall of power is availed from State Grid. The
Captive Generation capacity comprises of

 TPP : 247.5 MW (3 X 60 MW + 1 X 67.5 MW)

 Back Pressure Turbines (C&CCD) : 2 X 7.5 MW
 Gas Expansion Turbines (BF) : 2 x 12 MW

Power plant also meets the Air Blast requirement of Blast Furnaces through 3 Turbo Blowers
each of 6067 NM3/hr capacity.

In addition to the above, Power Plant also supply process steam, DM Water, Chilled Water, Soft
Water to various units of VSP.

DNW Department

Distribution network (DNW) Department deals with receipt, transmission of electrical power at
Extra High Voltage (EHV) 220 KV level, distribution of High Tension (HT) power at 33 KV, 11 KV
and 6.6 KV level. Operation and maintenance of power handling equipment at 220 KV and
maintenance of equipment at 33 KV, 11 KV and 6.6 KV (except for shop HVMCC & contractors)
is carried out by the department. Operation of shop HT equipment and operation &
maintenance of shop LT power distribution equipment are in the scope of respective shops.
DNW department also coordinates with AP TransCo. and APEPDCL for export and import of
power respectively.

Traffic Department

A Steel plant of the size of VSP has to handle around 60-65 MT traffic comprising of incoming
traffic (different raw materials etc.), outgoing traffic (finished / saleable steel products, pig
iron, granulated slag, byproducts etc.) and in process traffic viz. Cast P I, Mill scrap, Mill scale,
hot metal, etc. Of this 50% is transported by belt conveyors, 45% by Rail Transport and 5% by
Road. VSP has the distinction of having peripheral unloading system for the 1st time in Steel
Industry. To handle this huge quantities of traffic, VSP has a fleet of 31 locomotives, Hot Metal
ladle cars, Torpedo ladle cars, Captive wagons of different types, 5 internal Railway stations,
loco and wagon repair shop, number of weigh bridges.

Engineering shops & Foundry (ES & F)

Engineering Shops & Foundry department is set up to meet the requirements of spares, repair
of assemblies and reclamation of various jobs of different departments. This complex consists
of 1.Central Machine Shop (CMS) 2.Steel Structural Shop (SSS) 3.Foundry 4. Forge Shop (FS)
5.Utility Equipment Repair Shop (UERS).

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  CENTRAL MACHINE SHOP (CMS)
In Central machine shop, various spares like Gears, Shafts, Crusher liners, hammers, machined
castings and fabricated jobs are made. In addition to the manufacturing spares, assembly and
repair jobs like gear boxes, Crusher, bearing housings, stands of SMS are taken up. Over 100
major machines including lathes, milling, Plano milling, boring, slotting, shaping, grinding etc.
are available to take up machining of spares. 2 presses of 630 ton, 315 ton and dynamic
balancing machine of 25 ton capacity, are provided at CMS for repair of assemblies.

 STEEL STRUCTURAL SHOP (SSS)

At Structural shop of ES&F, structural jobs of various departments like coke bucket, ladle, SRC
body, Wagons, Shells, ducts etc. are being fabricated or repaired as per the requirement of
departments. The equipments available are Bending machine-25mm capacity, Shearing
machine-25mm capacity, CNC profile gas cutting machine, welding machines, gas cutting sets,
other tools and tackles.

 FOUNDRY
In Foundry, castings of Iron, steel and non-ferrous are produced based on the projection of
customer departments. 8 ton Arc furnace, 2nos of 5ton Induction furnaces and 1 ton crucible
furnace for non-ferrous jobs and sand plant for preparation of sand for moulds are available for
making castings. Major jobs like Hot metal runners of 10 tons weight , Bottom funnel(5 ton),
Emergency containers(7 ton), lower mantle and Bowl liners(3 tons each) etc are produced.

 FORGE SHOP (FS)

In Forge shop, preparation of raw materials for shafts, coupling flanges, gears etc and also of
forge shapes such as crusher hammer heads, V -hooks, drill rods with the help of 0.5 ton, 2 ton,
3 ton pneumatic hammers, manipulators, heating furnaces is carried out.

 UTILITY EQUIPMENT REPAIR SHOP (UERS)

In Utility Equipment Repair Shop, repair of ventilation equipments, valves, fans and impellers is
carried out. Equipments like shearing machine, bending machine, presses, lathes etc are
provided to take up different repair and manufacturing activities.

Field Machinery Department

FMD deals with operation and maintenance of Heavy Earth Moving Equipment, Material
Handling Equipment like Cranes, Fork lifts, Tractor trailers and Vehicles. Our equipments are
utilized for material transportation, maintenance jobs, house keeping etc. FMD is one of the
critical service department, whose services are directly involved in operational activities at
many production departments like Coke Ovens, Sinter Plant, Blast Furnace, Steel Melting Shop
etc.

In addition to the above, vehicles and fire tenders of VSP / CISF are maintained by FMD.

Central Maintenance Electrical

Maintenance of all H.T motors, L.T motors and DC motors of above 200KW. There are 810 such
large rotating electrical machines spread through out the plant including 3 Nos. of 60 MW
Turbo-Generators, 1 No of 67.5M TG in TPP, 2 nos of Back Pressure Turbo Generators of 7.5 MW

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 each and 2 Nos. of Gas Expansion Turbo- Generator of 12 MW each. The service provided are as
mentioned below.

 Repairs, Maintenance and condition monitoring of all rotating Electrical machines of the
plant. The job includes transportation, Overhauling and re-erection with precision
alignment.
 Maintenance of Electrics of all street lights, Tower lights and Weigh Bridges through
out the plant.

Electro Technical Laboratory

 Repairs all the defective electronic PCBs which are taken out from the equipment
during their functioning.
 Procures and arranges spare PCB’s for the equipment of PLC’s and drive controls for
motors in the plant and also for UPS systems.
 Involves in the plant modernisation activities and upgradation of equipment.

Electrical Repair Shop (ERS)

ERS is a central repair shop to carry out repair activities like overhauling, rewinding, testing
etc., of various types of AC Motors, DC Motors, HT Motors, Submersible pumps, Distribution
transformers, Welding Machines, Control Transformers, Lifting magnets, Coils etc., of the plant.
The Main Functions of ERS are:

 Overhauling of motors
 Rewinding of motors, magnets, transformers, pumps, coils etc.
 Testing of Electrical equipment
 Emergency Site Repairs
 Performance assessment of electrical motors

Utilities Department

Utilities dept. Consists of 1. Air Separation Plant 2. Compressor Houses 3. Chilled water plants
and Acetylene plants. The ASP is designed to meet the maximum daily demand of gaseous
oxygen, gaseous nitrogen and gaseous argon. Compressor Houses ( CH ) produce Compressed
Air required for the operation of pneumatic devices, for instruments and controls, pneumatic
tools and for general purpose in the various production units of Steel Plants. Chilled Water
plants ( 2 Nos ) produce chilled water required for use in the ventilation and air conditioning
system in areas such as office rooms, electrical control room etc. Acetylene plant produces
Acetylene gas required for general purpose cutting and welding.

Quality Assurance and Technological Development (QA &TD)

The QA & TD dept. has been set up to take care of activities pertaining to Quality Control of
Raw Materials, Semi finished products and finished products. The QA & TD labs are provided at
major department like CO&CCP, SP, BF, SMS, Rolling Mills etc., in addition to Central
Laboratory. The department monitors the process parameters for production of quality

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 products. QA & TD carries out analysis, testing and final inspection including spark testing of
finished products and assigns grades to them.

Environment Management Department (EnMD)

The environmental parameters related to ambient air, stacks, effluents, work-zone

environment, sound, waste management, sub-soil water, marine water and the fugitive
emissions from the coke oven batteries are regularly monitored by the Environment
Management Department (EnMD) as stipulated under consent conditions and statutory orders
from APPCB/CPCB/MoEF. All these monitoring activities are carried out as per frequency
prescribed by the APPCB/CPCB/MoEF and compliance with all norms is ensured.

R&D

R&D department has been created in 2005 to strengthen R&D activities. This department takes
up various improvement projects related to areas like Process improvements, Product
developments, waste utilization etc.

R&D projects are carried out internally and through joint research projects with the help of
external agencies viz., Research organizations and Educational Institutions like IITs, NITs,
CSIR Labs, Andhra University, etc.

Calcining & Refractory Material Plant

CRMP consists of two units - Calcining Plant & Brick Plant. In calcining plant limestone &
dolomite are calcined for producing lime & calcined dolomite which are used for refining of
steel in the converters.

Roll shop & Repair shop

Roll shop & Repair shop is in the complex of Rolling Mills catering to the needs of mills in
respect of roll assemblies, guides few Maintenance Spares and roll pass design. Geographically
this dept. is in three areas as Roll shop-1, Roll shop-II and Area Repair Shop. The main
activities of this shop is Roll pass Design, grooving of rolls, assembly of rolls with bearings,
preparation of guides and their service and manufacture / repair of mill maintenance spares.
For the first time in the country, VSP has adopted CNC technology for grooving of steel rolling
mill rolls. High constant respective accuracy, higher productivity, use of standard tool for any
groove turning, elimination of the use of different templates, easier to incorporate groove
modification etc., are some of the advantages of CNC lathes over the conventional one.

Structural Engineering Department

The main objective of Structural Engineering Department is to maintain Steel structures

located inside the plant area including Boundary Lighting Towers & Watch Towers and the main
functions are as below:

 Inspection of all steel structures and chimneys as per schedule of inspection. Schedule
of inspection is prepared for the whole year (April to March) and is circulated to all
zones and Emergency inspection is being done as when required.
 Also Inspection of roof sheeting works as per schedule of inspection.

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  Repair / Replacement of damaged steel structures and sheeting.
 Arresting roof leakages in all structural buildings.
 Repainting of structures as a Preventive Maintenance.
 Removal of dust from roof and gutters of different units.

Plant Design

Major functions of this unit are

 Development of detailed Manufacturing Drawing and Replacement Specification

drawings
 Suggesting New Designs and detailing by doing elaborate engineering study and
Analysis
 Standardization

Works Contracts Department

 Processing for and obtaining administrative approval on receipt of contractual proposal

from indenting departments, tendering and awarding of work.
 Convening tender Committee meetings and preparing recommendations for awarding
work.
 Preparing COM / Board Note for decisions at those forum.
 Participating in Claims and Arbitration proceedings and legal cases pertaining to
contracts.
 Registration of agencies under various categories & classes of works regularly.

Safety Engineering Department

Safety Engineering Department advises and assists the management in the fulfillment of
obligation concerning prevention of accidents and maintaining a safe working environment.
SED imparts safety training as well as refresher safety training to the regular employees as
well as contractor workers. SED conducts safety inspections, safety audits, mock drills and co-
ordinate with the departments for corrective actions in respect of unsafe conditions and unsafe
actions. SED conducts safety campaigns and safety competitions amongst the employees to
promote safety. SED ensures that high quality safety appliances are procured and issued to the
employees. SED co-ordinates and liaison with AP Factories departments.

Spares Management Department

The main functions of SMD are:

 Rationalized spares are procured by SMD department viz., Bearings, Electrodes

Conveyor belts, Idlers, Cables, etc., to cater to the needs of various departments.
 All the indents viz., Operation, Mechanical, Electrical, Instrumentation, Refractory etc.,
are processed thro’ SMD department for procurement of necessary spares thro’
purchase department.
 SMD department is coordinating pre dispatch inspection of spares for Works
departments, Refractory & Coke Oven Battery – IV, etc.
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  SMD department controls Inventory of spares, indenting & consumption budget.

FUNCTIONS OF VARIOUS DEPARTMENTS OF RINL/VSP

Vision

To be a continuously growing world-class company

We shall

● 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 the 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.

Mission

To attain 16 million tonne (Mt) liquid steel capacity through technological up-gradation,
operational efficiency and expansion; to produce steel at international standards of cost and
quality; and to meet the aspirations of the stakeholders

Objectives

1. Expand plant capacity to 6.3 Mt by 2010-11 with the mission to expand further in
subsequent phases as per the corporate plan.
2. Be amongst top five lowest cost steel producers in the world by 2009-10.
3. Achieve higher levels of customer satisfaction than competitors.
4. Vibrant work culture in the organization.
5. Be recognized as an excellent business organization.
6. Be proactive in conserving environment, maintaining high levels of safety and
addressing social concerns.

Core Values

● Commitment
● Customer Satisfaction
● Continuous Improvement
● Concern for Environment
● Creativity & Innovation

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 Directorate of Personnel

Personnel Department (Corporate Personnel, Central Employee Relations and Plant

Personnel)

 Manpower Planning
 Employees induction
 Service matters, policy & rules
 Industrial relations
 Employees welfare
 Corporate Social Responsibility (CSR)
 Replies to parliamentary questions
 Official Language implementation

Legal Affairs

 Legal Affairs deals with all legal matters including arbitration, coordination with
Standing Councils, Legal Advices etc.

Management Services

 Quality Circle
 Suggestion Scheme
 Incentive Scheme
 Reward Scheme
 Procedural Orders etc

Training & HRD

 Leadership Training
 Training on Motivation and Attitude
 Team Building
 Skill Training
 Induction and Orientation
 Plant Practice Lectures
 Basic Engineering Lectures
 Plant Specialized Training
 Management Development
 On the Job Training
 Multi Skilling / SUPW and Mentoring

Corporate Strategic Management (CSM)

CSM is a “think tank” of the organisation. The Deparment is engaged in formulation of VMO
(Vision, Mission & Objectives) of the organisation and developing the strategy to achieve VMO.

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 It has various wings which inter-alia includes Knowledge Management Cell (KM Cell). It has
also developed the Corporate Plan of RINL. It takes up strategic tasks of the organisation.

Town Administration & Administration

 Matters relating to Land & State

 Civil Maintenance
 Electrical Maintenance
 Water Supply
 Roads and Drain Maintenance
 Horticulture and Afforestation
 Peripheral Development and
 Public Health in Township (Ukkunagaram)
 Interact with District Authorities for various welfare activities, land acquisition
matters etc.

Medical & Health Services

The Medical & Health Services Division of RINL consist of Visakha Steel General Hospital
(VSGH) & Peripheral Units viz. Pedagantrya Health Centre (PGHC), Health Centre – II,
Occupational Health Services & Research Centre (OHSRC), Emergency Unit – I & II and
Hospitals in Mines – Jaggayyapeta Limestone Mines and Madharam Mines. The special features
of Visakha Steel General Hospital are:

 Full fledged Modern American Designed ICU and MBU capable of treating 6 patients at a
time
 Full fledged Modern Radiology with Central A/c systems
 Well equipped Path. Lab with Blood bank facility
 Cluster type Wards & Casualty with Central Nursing Station
 Modern Operation Theatre comples with Shadowless cold lights and 100% bacterial
free A/c system

Directorate of Commercial

Marketing Department

VSP has 23 no of Branch Sales Offices all over India and five Regional Offices viz. North Delhi,
South - Chennai, West - Mumbai, East - Kolkata and Andhra - Visakhapatnam. Main Activities of
the Marketing are as follows :

 Collecting Market feedback and Customers requirements for the preparation of Annual
Sales Plan in coordination with Works Department, for the sale of Pig Iron, Steel and
Byproducts.
 Prepration of Marketing Policies.
 Finalisation of MOUs, Spot sale agreements etc, in Domestic and Export Markets.

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  Preparation of Monthly Rolling Plans in coordination with Works Department for
meeting the sale commitments.
 Processing of Materials like straightening of coils, cutting, bending, bundling,
packaging etc. at the plant premises and in the branches to meet customers
requirements.
 Dispatch of products to various stockyards by road or rail or to customers from the
plant on direct dispatch basis.
 Operation of the contracts for transportation of products by road and stockyard
handling/ consignment agency contracts for domestic sales, stevedoring contracts and
third party inspection agency for exports.
 Sale of products at branches, Headquarters and on direct dispatch basis to the
customers in domestic markets and on Ex-works and fob Visakhapatnam basis in
exports subject to tying up of commercial and financial terms and conditions. Ensure
documentation as per the procedures and as per the statutory requirements.
 Rendering after sales services, obtaining customer feedback and Customer Relations
Management.
 The details/information on the following aspects of Marketing are available in
www.vizagsteel.com, Marketing Module.

a. Rolling Plan
b. Products
c. Prices
d. Exports
e. Network
f. Customer Relation

Further, five Consignment Sale Agencies are also functioning at

Jamshedpur, Raipur, Pondicherry, Jammu and Guwahati.

Materials Management Department

 Procurement of all materials such as Raw-materials, Spares and consumables required

for the entire Plant Operations.
 To enter into long term agreements for supply of major & minor raw-materials with
indigenous and imported suppliers.
 To affect economy in the cost of materials by Purchasing materials of the right quality,
in the right quantity at the right time from the right source at the right place.
 To arrange inspection of materials prior to handing over to Production Units to ensure
quality materials only are issued to Production Units.
 Storage of materials & issue the same to the Production Units as per their requirement.
 To develop and encourage ancillary industries so that the availability of the materials
at right time is ensured.

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 Directorate of Finance & Accounts

 Making arrangement for long term fund requirements.

 Accounting of all monetary transactions and preparation of financial statement of the
company and getting the same audited as required under law.
 Maintaining records with regard to the cost of products produced by the company.
 Release of payments to suppliers/providers of goods and services.
 Release of salaries to the employees.
 According concurrence to proposals for investments & expenditure as per the policies,
procedures and the Delegation of Powers.
 Conduct Internal Audits, Stock Verification and Statutory compliance.
 Making working capital arrangements.
 Submission of periodical reports to banks as per their sanctioned terms.
 Organizing for payment of Central Excise, Sales Tax, Income Tax and other statutory
payments.
 Co-ordination with statutory Auditors and Government Audit.
 Generation of various MIS reports pertaining to F&A department for Management
Information and Control.
 Payments. Please Click here to view the details of Payments.

Directorate of Operations

Mines
Brief about Captive Mines of Visakhaptanm Steel Plant

 Madharam Dolomite Mine (MDM)

MDM is located at Madharam village in Singareni Mandal of Khammam District, A.P. The mining
lease is for exploitation of Dolomite covering an area of 384.46 Hectares for about 20 years.
The lease area is a captive source for Rashtriya Ispat Nigam Ltd (RINL) / Visakhapatnam Steel
Plant (VSP) for use of Dolomite in its Iron and Steel making processes. The area is situated at a
distance of 16 Km from the Ywellandu – Mehaboobabad road taking diversion at
Mukundapuram to the area. The present mining lease is valid upto 13.07.2020. A railway line of
7.165 Km distance was constructed from the lease area adjoining at Karepalli Junction. The
lease is in operation from 1989 onwards for transportation of Dolomite to VSP covering a
distance of 510 Km from the area. A township consisting of 225 dwelling units of all categories
with modern amenities was constructed with in the lease area. A DAV School, hospital, hostel,
Community Welfare Centre, Shopping Complex, Parks and an Open Air Auditorium were also
provided in the township. A Guest House of 4 rooms was also provided in the township. The
capacity of the mine is to produce 7,80,000 tonnes of Dolomite per annum. The employee
strength is 203 of different categories. The present Dolomite reserve is 31.03 million tones. It
is an open cast mechanized mine of VSP to cater to the requirement of Dolomite.

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  Jaggayyapeta Limestone Mine (JLM)

Jaggayyapeta Limestone mine (JLM) is located 5 Km south – West of Jaggayyapeta connected

by a black – top road in Krishna District, A.P. This is a captive mine of VSP to cater to the
requirement of BF Grade Limestone of VSP. The mining lease has been granted by Govt. of A.P.
covering an area of 1295 Hectares out of which 900 Ha is forest land and 395 Ha is acquired
private lands. The lease is valid upto 07.08.2020. This mine is an open cast mechanized mine
with a capacity of 4,50,000 tonnes of BF Grade Limestone per year. A Township having 226
quarters of all categories with modern amenities was constructed. Schools hospital, hostel,
Community Welfare Centre, Shopping complex and an Open Air Auditorium were also provided
in the Township. A four – roomed Guest House was also provided. The Limestone reserve of
130 million tones is occurring in the area. The total strength of employees is 133. The
Limestone is dispatched by a goods train covering a distance of 450 Km to VSP from the lease
area.

 Garbham Manganese mine (GMM)

Garbham Manganese mine (GMM) is a captive source for manganese ore for VSP. It is located
16 Km away from Garividi connected by the black – top road in Merakamududam Mandal,
Vizianagaram District, A.P. There are two mining leases adjacent to each other covering an
area of 264.54 Hectares. The present reserve of Manganese is 7,03,760 tonnes as on
01.01.2008 with a life of 46 years producing 15,000 tonnes per annum. The area is equipped
with a store house, maintenance shed and vocational training centre. The total employees
strength is 31 including contractual labour. The total distance from the mine to VSP is 125 Km.
The annual production of the mine is @ 16,000 tonnes.

 Saripalli Sand Mine (SSM)

This is a captive source for catering to the requirement of Silica sand for VSP. This is located in
Champavati River near Nellimarla Mandal of Vizianagaram District, A.P. The sand is transported
from this mine by trucks covering a distance of 95 Km from the area to VSP. The requirement of
sand is 50,000 per annum. Loading, transportation and unloading is carried by contractual
agency. Only one Junior Officer is posted to look after the mining activities of Saripalli sand
Mine. The total reserve of sand is 3,20,000 tonnes.

Production, Planning and Monitoring Department

 Formulation of Annual and Monthly Production Plan.

 Analyzing Plant performance against targets on a periodic basis and put up for
information.
 Formulation of techno – economic norms and reviewing the same against targets
periodically.
 Raw material requirement projection of Coal, Ore and fluxes.
 Preparation of MIS on Inward and outward traffic w.r.t. incoming raw materials and
outward dispatches.

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 Research and Development

 Identification of Technological Improvement scopes for various processes and plan for
adoption of them by acquiring design and know-how capability.
 Indigenous development of technology involving laboratory investigation.
 Development of new grades and products in coordination with Marketing dept.

Information Technology

 Formulation of Organizational IT-Policy, IT-Security Policy and IT-Vision.

 Identification of IT enabled projects for various processes and implement them.

Budget plan and control

 Identification of Budget requirement under various heads.

 Control of the Budget and Spares, Consumables & Raw Materials Inventory.

Systems and Procedures

 Streamlining the contract management system to ensure consistency of approach and

adoption of sound principles of contract management.
 Ensuring the implementation and maintenance of quality management system
requirements for ISO 9001:2000 Certificate.
 Monitoring pollution control activities of the Plant and interaction with the State and
Central Pollution Control Board.

Project Division

Design & Engineering Department

 Liaisoning with Consultants and Government Authorities in connection with designs,

specifications, approval of drawings and liaisoning work for various types of
clearances.
 Preparation of drawings, design and specification for AMR and Non-AMR jobs.
 Assisting indenting departments in technical discussion with parties and preparation of
technical recommendation.
 Layout clearances of various facilities coming in the Plant and Township.
 Operation of Consultancy contracts.

Construction Department

 Exercising supervision of work at site both for quality and quantity checks.
 Preparation of contractors bills, processing of extra items and closure of contracts.

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  Liaisoning with suppliers, MM department, Design & Engineering Department and
Stores in connection with progress of work at site.
 Arranging PAT/FAT will all concerned departments like works, design, consultants and
suppliers in terms of contract and handing over the unit to works department for
operation.

Contracts Department

 Awarding of contract from the point on receipt of administrative approval from

indenting departments.
 Conducting commercial discussions with parties.
 Arranging Tender Committee meetings and preparing recommendations for awarding
work.
 Preparing COM/Board Note for decisions at those form.
 Participating in claims and arbitration proceedings.

Project Monitoring Department

 To monitor the physical and financial progress of all the works executed by
Construction department.
 To monitor the progress of works executed by D&E as well as Contracts department.
 Preparation of various types of reports for information of Government and different
levels of Management.

 Interaction with departments and consultant for updating the schedules and
networks for Project Monitoring.

ACHIEVEMENTS & AWARDS

The efforts of VSP have been recognized at various forums. Some of the major awards received
by VSP are in the area of energy conservation, environment protection, safety, quality, Circles,

Rajbhasha, MOU, sports and a number of awards at the individual level.

Some of the important awards received by VSP are

 ISO 9001:2000 Certificate for

1. Production of comprehensive range of Iron and Steel products, Coke & coal
chemicals, other saleable products like liquid nitrogen, liquid oxygen, liquid
argon, ammonium sulphate and generation of power along with supporting &
service departments.
2. Marketing of Iron and Steel products in export and domestic markets through a
network of regional offices and branch offices.
3. Sale of power to state grid and sale of Coke & coal chemicals, other saleable
products like liquid nitrogen, liquid oxygen, liquid argon, ammonium sulphate
in domestic markets.

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  Indira Priyadarshini Vriksha Mitra Award - 1992-93 Nehru Memorial National Award for
Pollution Control 1992-93 & 1993-94
 EEPC Export Excellence Award - 1994-95
 CII (Southern Region) Energy Conservation Award - 1995-96
 Golden Peacock (1st Prize) "National Quality Award - 96" 11M in the National Quality
Competition - 1996
 Steel Minister’s Trophy for "Best Safety Performance" – 1996
 Selected for "World Quality Commitment Award - I997" of J* Ban , Spain
 Gold Star Award for Excellent Performance in Productivity Udyog Excellence Gold Medal
Award for Excellence in Steel Industry. Excellence Award for outstanding performance
in Productivity Management, Quality & Innovation.
 Ispat Suraksha Puraskar (1st Prize) for longest Accident Free Period 1991-94
 Best Labour Management Award from the Govt. of AP
 SCOPE Award for Best Turnaround - 2001
 Environment Excellence Award from Greentech Foundation for Energy conservation –
2002
 Best Enterprise Award from SCOPE, WIPS - 2001-02
 Best Enterprise Award from SCOPE for surpassing MOU targets-2003-04
 ISTD Award for "Best HR Practices" - 2002
 Prime Ministers Trophy for "Best Integrated Steel Plant - 2002-03
 "World Quality Commitment International Star Award" in the Gold category conferred
by Business Initiative Directions, Paris
 "Organizational Excellence Award" for 2003-04 conferred by INSSAN
 National Energy Conservation Award, 2004 and Special Prize from Ministry of Power,
Govt. of India.

The above awards are besides a number of awards at the local, regional & national level
competitions in the area of Quality Circles, Suggestion Schemes etc.

For further information, please visit our website http://www.vizagsteel.com/

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