Chairman-cum-Managing Director’s statement ....................... 1Key impacts, risks, opportunities and approachfor sustainability, SWOT ............................................................ 4Company profile ....................................................................... 7Report parameters ................................................................. 14Awards and recognitions ........................................................ 15Corporate governance ........................................................... 17Stakeholder engagement ....................................................... 21Economic performance .......................................................... 23Environmental performance ................................................... 33Social performance ................................................................ 51
a. Labour practices .......................................................... 54b. Human rights ............................................................... 61c. Society ......................................................................... 62d. Product responsibility ................................................... 64
It gives me immense pleasure in introducing the third Sustainability Report
of RINL. At RINL, Sustainability Reporting is an opportunity to explore,
assimilate and understand information that is critical from the view point of
Sustainability. Great attention has been paid to authenticity of reporting to
enhance transparency in information sharing with our stakeholders. In this
endeavour, the expertise of “CII-ITC Centre of Excellence for Sustainability
Development” has been taken with a view to bring about further qualitative
improvement in the report.
The various units of our expansion to double the capacity to 6.3 MTPA were
commissioned during the year and the focus now is to gradually increase the
production from the new units. Quick stabilization of the expansion units
along with the modernization of existing plant will augment the capacity to
7.3 Mt by 2017, which will provide economic Sustainability. It would increase
our share of crude steel in the country where existing and new players are
also adding capacities aggressively. In this drive, the modernization of one of
the Blast Furnaces has been completed and modernization of the other units
are in various phases.
The company is dependent on external sourcing for key raw materials and
hence focuses on improving productivity and energy efficiency to minimize
the cost disadvantage of raw materials to sustain healthy bottom line. The
focus has always been on minimizing the operating costs by recovering and
reusing waste energy and waste heat in the plant. In this effort, during the
year, the company successfully commissioned the India-Japan model project
to generate 20.6MW electricity utilizing the waste heat from hot sinter, the
first of its kind in the Indian Steel Industry. This project has been completed
with technological co-operation from NEDO under Green Aid plan of Japan
and the project has a potential to reduce the overall specific energy
consumption by 0.07 Gcal/tcs.
On the community development front, I strongly believe that for sustainable
economic development of the country, we need to create sustainable
livelihood besides industrial development, on a large scale. An amount of
` 20.31 Crores has been spent during the year on CSR activities for the benefit
of the communities around us. RINL CSR flagship programmes include
“Sanjeevan”, “NetraJyothi” ‘Saksham’ and “Surya” for improving health,
literacy rate and living conditions of the local population. Also, RINL has
been encouraging the local industry to be a part of its supply chain system
which in turn is also developing the communities around us.
The company has built a good image and established itself as a leader in bars
and rods and would continue to improve further with more value added
production from its expansion units. RINL is always committed to the
fulfilment of the expectations of its stake holders, both internal and external,
and I am sure that with the genuine efforts of the RINL collective, the
company is heading confidently towards a sustainable future.
(P Madhusudan)
Chairman-cum-Managing Director
In view of the major shift in external scenario and realization from its first phase of growth through commencementof commissioning activities of its 6.3 Mt expansion stage, the earlier Corporate Plan Vision 2020 has beenrevisited and Corporate Plan - Vision 2025 has been formulated.As part of the Vision 2025 exercise, the Vision statement has been articulated and the revised Vision statementand Objectives are as follows:
• Achieve Gross Margin to Turnover ratio > 10%.• Plan for finishing mill to integrate with 7.3 Mt capacity and commission the same by 2017-18.• Achieve rated capacity of new & revamped units by 2017-18.• Capture markets for high-end value added products by focusing on sector specific applications and
customer needs.• Achieve leadership in Energy consumption by achieving 5.6 Gcal/tcs by 2017-18.• Globalisation of operations through acquisition of mines and setting up of marketing network abroad.• Diversify through operationalizing of Bhilwara Mines, setting up of Pelletization plant, DRI-EAF unit,
Wheel & Axle Plants.• Create a high performance and safe work culture by nurturing talent and developing leaders.• To grow in harmony with the environment & communities around us.
“To be the most efficient steel makerhaving the largest single location shorebased steel plant in the country.”
OBJECTIVES
Objec
tives
3
Key impacts, risks & opportunities – SWOT
Major initiatives during 2013-14
StrengthsS1. Shore based location
S2. Operational efficiency
S3. Diverse customer base andextensive marketing network
S4. Availability of land
S5. Image as quality producer.
S6. Strong credit worthiness
S7 Committed manpower
WeaknessW1. Lack of captive mines for iron
ore and coking coal.
W2. Single location Company andonly long products, exposedto cyclic markets.
W3 High equity base.
ThreatsT1. Increased competition.
T2. Increasing raw material mrices
T3. Oligopolistic coal supply side
T4. Single iron ore supplier.
T5. Predominant secondary sectorin long products.
T6. Threat of substitutes.
T7. Slowdown in economic growth
T8. Declining margins due toincreasing cost of production
OpportunitiesO1. Encouraging growth
projections.
O2. Huge infrastructure spendsplanned in 12th five year plan.
O3. Improved availability of ports &logistics
O4. Product diversification scope forimproving balance sheet
Long term action plans
• Expansion to 6.3 Mt, 7.3 Mt and beyond(Leverage: S4, S6, S7; Capitalise: O1, O2;Counter: T1, T5)
• Efforts on developing export markets(Leverage: S1, S5; Capitalise: O3;Counter: T7)
• Ramp up of production from expansion units(Strengthen: S5, S7;Counter: T1, T5, T7)
• Expansion of domestic markets
(Leverage / strengthen: S3, S5;Counter: T5)
• Modernization projects taken up in all criticalareas (Strengthen: S2; Counter: T8)
• Diversify into flats and niche products from /beyond 7.3 Mt. (Capitalise: O1, O2, O4;Counter:W2, T1, T5, T7)
• Strategic initiatives for acquisition / sourcingof major raw materials (Counter: W1, T2,T3, T4,T8)
Capital restructuring (Counter: W3,Capitalise: O5)
Area Result
Expansion Commissioning of major units of Stage-1 of 6.3 Mtpa Expansion
Modernization and upgradation of projects Category – I Capital Repairs of BF-1
Strategic initiatives MoUs with Indian Railways and PGCIL for business diversification
Increased focus on export markets and special steels Exports grew by 25% and OEM certifications
Efforts towards allocation of Iron ore mines Allotment of Iron ore mines at Bhilwara, Rajasthan
Environment and energy • Online reporting system-‘ENVISION’ to report various environmental aspects• 20.6 MW waste heat recovery system on sinter straight-line cooler of sinter machines 1 & 2 – made ready for synchronisation 4
Being a single location Company, with product mix exclusivelyof longs, handicapped due to lack of captive mines for majorraw materials and equipment operating at above rated capacitiessince more than a decade now, RINL has a unique portfolio ofrisks and opportunities. Initiatives addressing the same arecrucial for company’s profitability in current time frame and alsofor sustainable performance in the time to come. A brief oninitiatives taken to address the following significant risks andopportunities during the reporting period is as follows:
Sluggish market conditions:
Slowdown in economic growth, execution delays in manyinfrastructure and construction projects have translated to lowerdemand for steel. This in turn has led to sluggish volume growthfor major steel manufacturers during 2013-14.
Volatile raw material prices:
RINL’s financial performance hinges critically on input costs asit is the only main steel producer in India without captive minesfor Iron Ore and Coal. In order to have a continuous supply ofmajor raw materials and also keeping in view the requirementof expansion units, the following measures have been takenduring the reporting period:
Iron ore:
• Long Term Agreement (LTA) with NMDC for supply of 12.5million tonnes of iron ore to meet the requirement upto 6.3million tonnes. Efforts are also being made to develop othersources of supply like supply from OMDC, a subsidiary ofRINL.
• RINL has been continuously taking up the matter ofallocation of mines with concerned State Governments andCentral Government. RINL has taken up with Govt. ofRajasthan for allotment of Jahazpur iron ore block inBhilwara, Rajasthan
• MOU signed with NMDC for Joint Venture to install 336 KMlength Slurry pipeline from Jagdalpur to Visakhapatnamand to set up 4 MTPA capacity Pellet plant atVisakhapatnam.
Coking coal:
• LTA formulated with reputed suppliers like BHP, Anglo andPeabody of Australia; Logan &Kanahwa and Alfa Coal ofUSA, Solid Energy of New Zealand for supply of Coal.Besides this, one standing EOI has been kept on Company’swebsite for exploring new sources of Coal supply.
5
Capital repairs / major revamps for critical equipment:
RINL has charted out a roadmap for technological up-gradationof critical units in the existing facilities, which would not onlyinfuse fresh lease of life to the ageing equipment but would alsoscale up efficiency and productivity to contemporary levels.Major revamps and up-gradations would continue till 2016-17in a phased manner. This revamping of equipment would alsoenhance production volume by 1 Mtpa at the hot metal stageand also would help in adoption of latest energy efficient andenvironment friendly technologies in the existing units of theplant.
Commissioning of 6.3 MT stage:
During the year 2013-14, Sinter Machine-3, 2 convertors andContinuous caster complex in SMS -2, WRM-2 etc., werecommissioned. Trial runs and commissioning were completedin many auxiliary units which are prerequisite for commissioningof the main facilities in expansion.
Growth potential for RINL at Visakhapatnam:
RINL has a land bank of around 20,000 acres which is suitablefor expansion up to 20 Mtpa at Visakhapatnam. Also, theinfrastructure of two major ports in the vicinity and connectivityby rail and National Highway coupled with projected growth ininfrastructural development in the country makes expansion atVisakhapatnam a highly attractive proposition. Expansion worksfor 7.3 Mt stage are already under way and plan for next phaseof expansion up to 11.7 Mt stage is being developed.
At RINL, leadership focus has always been on ensuringalignment across the organization by evolving action plans and
initiatives at every level to achieve Company Objectives. This isdone through an elaborate Sustainability Planning exercisecarried out annually, that results in development of 5 year roll onplan with emphasis on initiatives for the current year.
In line with our efforts to integrate Sustainable Developmentwith business strategy, the Sustainability Plan addresses variousaspects of Sustainable Development like expansion andtechnology up-gradation, energy, environment and safetyinitiatives, initiatives for enhancing employee involvement, marketdevelopment, raw material securitization, R&D plans and CSRinitiatives apart from initiatives addressing profitability concernsof the organization during the year.
The Company continued its strategic initiatives, towardsbusiness diversification and raw material securitization bysigning MOUs with Andhra Pradesh Mineral DevelopmentCorporation and Indian Railways.
Efficiency in energy consumption has been the strength of RINLsince inception, which has been made possible throughadoption of green technologies. In order to further build on thisstrength, the company adopted Energy Management StandardBSEN 16001 in 2010-11 and migrated to ISO 50001 for EnergyManagement in 2012-13 and RINL is the first in Indian SteelIndustry to get this certification. This provides uniform thrust onenergy audits and improvement plans across the company.
Sustainable Development policy was formulated so as tointernalize DPE guidelines on SD. As part of the policy frameworkaspects related to identification, implementation, review andevaluation of SD projects have been addressed and three tiermonitoring mechanism has been put in place.
6
Company profile
7
Scale of operations
Rashtriya Ispat Nigam Limited (RINL) - a Navratna Public SectorEnterprise (PSE) with 100% ownership of GoI as on 31.03.2014,having its headquarters at Visakhapatnam is the corporate entityof Visakhapatnam Steel Plant (VSP), India’s first shore basedintegrated steel plant located at Visakhapatnam (single location),with a capacity of 3 Mtpa, currently commissioning and stabilizingits 6.3Mtpa facilities and has started production from its 6.3 Mtfacilities during the year 2013-14.
A pioneer in steel industry in adoption of system standards, VSPis accredited for all the three system standards i.e. ISO9001:2008, ISO 14001:2004 and OHSAS 18001:2007 and is
the first Indian steel plant to be certified with “Capability MaturityModel Integrated (CMMI) – Level 3” for its implementation of ITsystems and is also the first PSE to be certified for ISO 50001 forEnergy Management System.RINL is the first 5S certified PSEin the Steel Industry to achieve the “Plant level” certification in“5S” - Work Place Management System during 2013-14.
VSP has adopted the BF-BOF route for steel-making, the mostcommon steel making process for an integrated steel plant.Adoption of green technologies for steel production at everystage of operation has been a major source of competitiveadvantage to the Company in the area of operational efficiency.
8
Major OperationsRINL has its integrated steel plant located in Visakhapatnam,
India. Iron ore is sourced through 100% tie-up with National
Mineral Development Corporation (NMDC) from Bailadilla
mines in Chhattisgarh State. The Company was allocated
iron ore mines in Bhilwara, Rajasthan.
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.
Also 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 off-take 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.
9 10
Market Served
RINL, with its exclusive product mix of longs is the largest producer of long products in the country with a market share of 7.5 % in
2013-14. The principal products of RINL include rounds, structurals, bars, wire rods, blooms, billets & pig iron, and the company
also markets the resulting by-products like coal chemicals (Ammonium Sulphate, Benzol products etc.) and slag.
Initially, the design capability of the plant was limited to mild steel products, but sensing the growing opportunity in value addedsteel segment, innovative process improvements have been carried out over-time and there is a constant thrust on new productdevelopment and production of value added steel products as a differentiation strategy against secondary steel makers.
RINL is a registered vendor for supply of special steel products to various customers like DNV for ship building, Meritor Troy-USA,Tata Motors and Caterpillar in Automobile sector and Indian Railways for Elastic Rail Clips.In 2013-14, RINL products werecertified by IBR for Boiler applications.
A network of 23 branch offices, 22 stockyards and 5 CSAs cater to the delivery requirements across the country, which is furthercomplemented by the mechanism of DLDS and RDS to ensure availability of quality steel in rural areas at affordable prices.Retailers provide an efficient channel to ensure the availability of RINL products at various points of consumption that cannot bedirectly accessed by the company.
11 12
Commissioning and execution of 6.3 Mt stage expansion
Major units of Stage-1 of 6.3 Mtpa Expansion Project of RINL have been commissioned
during 2013-14. RINL commenced production of Liquid Steel from 6.3 Mtpa Expansion in
Oct ‘13. Production of Hot Metal from new Blast Furnace (No.3) reached rated capacity on
20th Dec ‘13.
Commissioning of NEDO Project
NEDO (New Energy and Industrial Technology and Development Organization) project for
20.6 MW Waste Heat Recovery System on Sinter Straight-Line Cooler of Sinter Machines
1 & 2, first of its kind in India, was made ready for synchronization in March 2014.
Modernization - Completion of Cat-1 capital repair of BF-1
With robust cooling system with copper staves and new design refractory, inner volume of the
furnace has been increased to 3800 m3 and thus enhancing production capacity to 2.5 Mtpa.
Up-gradation of the furnace with state of art technology in top charging, cast house, adoption of
level-2 automation etc. help in reducing the fuel rate and attaining higher levels of productivity
Business Diversification - Setting up Forged Wheel Plant
A specialized unit catering to the need of special grade wheels, 1, 00,000 wheels per annum,
for High Speed Trains of Indian Railways (Biggest of its kind in India).
Major changes during the reporting period
13
Sustainable Development has always been an integral part of the Company’s strategy since the project conceptualizationstage in 1980s. This is accentuated by the fact that RINL pioneered in adoption of green technologies in various stagesof steel production.
The report highlights the efforts of the Company in integrating sustainability with business strategy. This is the thirdSustainability Report being published by RINL covering the period 1stApr 2013 to 31st Mar 2014 in line with GRI Guidelines3.1 and compiled in accordance with GRI Application Level-A.Our second Sustainability Report was published inFebruary 2014.
During the current reporting period, major initiatives towards sustainable development included:
• NEDO Project for 20.6 MW Waste Heat Recovery System at Sinter plant
• Completion of Cat-1 capital repair of BF-1• Obtaining host country approval for 2 CDM projects
• Development of online reporting system - ‘ENVISION’ to report various environmental aspects
• Plantation of 75000 trees under project ‘Green Visakha’
A Core Committee with senior level executives worked on the development of the Sustainability Report. The reportfocuses on the Company’s practices and outcomes which are important for sustainable results for the Company andperceived as important by the stakeholders.The initiatives and indicators reported are prioritized by the Core Committee,based on significance of economic, environmental,and social impacts, and their importance for stakeholder’s assessmentand 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 materialslike 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 and RINMOIL Ferro-Alloys Limited – the JVCompany formed by RINL with M/s Manganese Ore India Limited (MOIL) which is yet to commence commercialproduction, have also not been included in the report.
Data presented in the report is based on various reporting standards / methodologies such as, financial indicatorscomply with Indian Accounting Standards, energy and CO2 calculations as per WSA methodology, various environmentalindicators are based on measurements assured by calibration as per relevant Indian Standards, perception measurescaptured through employee and customer surveys, etc.
M/s CII-ITC Centre of Excellence for Sustainable Development have been rendering the required support and providedtraining to RINL executives in Sustainable development aspects. In order to enhance the confidence levels of stakeholderson reliability and materiality of the reported information, CII-ITC Centre of Excellence for Sustainable Developmentprovided necessary support and guidance for bringing out this report.
Clarifications on the report, if any, may be sought from:
Ms.Anita Idiculla, GM (Corporate Strategic Management)Visakhapatnam Steel Plant, RINL, Visakhapatnam – 530031Phone: +91-891-2767194, Email: [email protected]
Scope and Reporting Parameters
14
15
Awards and Recognitionsduring the reporting periodExcellence of RINL’s performance during the yeargot recognized by leading National andInternational institutions.
16
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 ofGoI and Independent Directors.
The Vision, Mission and Values of the Company are being revisited in the company as part of Corporate Plan – Vision 2025 in viewof the change in external scenario and expansion / diversification plan.
Corporate Governance
RINL developed a well-defined corporate structure to ensure transparency, disclosures and reporting that conforms fully withlaws, regulations, guidelines, etc. and to promote ethical conduct throughout the organization.
17
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
Major strategic issues that were taken up by the Board for reviews and improvements during the reporting period includedexecution of the 6.3 Mtpa expansion project, technological up-gradation projects and other modernization programmes, issuesrelated to raw material security, IPO and options for product diversification etc. The Board level Committees, Sub Committeeschaired by CMD/ Functional Directors/ Independent Directors addressing economic, social and environmental issues of thecompany are given below:
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 decision-
making by the Board. There are Eight Independent Directors in
the Board.
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 ` 60,000/- is paid to Independent
Directors as sitting fee for each Board / Board Sub-Committee
meeting.
18
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 audits 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 2013-14 was 93 % of total value of tenders
floated.
The robust process of Sustainability Planning exercise
addresses key issues through 5-year Roll-on Plans and Annual
Business Plans followed by comprehensive review of the
progress on quarterly basis. This helps in identifying the gaps
and tracking of emerging threats in the dynamic business
environment for formulation of corrective actions and mitigation
strategies.
Linking compensation to companyperformance:Linkage of compensation of functional Directors with theperformance of the company is ensured through themechanism of Performance Related Pay (PRP). PRP is basedon the level of achievement against the parameters covered inthe annual MoU with Ministry of Steel.
Mechanism for avoidance ofconflict of interest:Conflict of interest is avoided in a transparent manner, throughmandatory disclosure of interest by the Directors at the time oftheir appointment and on annual basis and also at the time ofundertaking of special assignments, which is also presented tothe Board, for information. There were no instances of conflictof interest or transactions having potential for conflict withcompany’s interest, during the reporting period.
Precautionary approach:There are comprehensive mechanisms to handle risks onproactive basis in the company which are elaborated below:Implementation of Enterprise Risk Management (ERM) inthe Company was initiated in 2009 for developing a structuredmechanism as a proactive precautionary approach formitigating risks across the organization. During 2013-14,specialized Training/ Risk Identification and profiling workshopswere held in association with external consultants for the keypersonnel in the areas of procurement, sales, logistic andprojects.
19
Target setting and performance evaluationPerformance 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.
Performance evaluation of BoardWhile 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 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 international management system standards
on Quality as per ISO 9001, Environment, Health and Safety as
per ISO 14001 and OHSAS 18001 and has also adopted ISO
50001 for energy management and CMMI – Level 3 for
management of IT processes.
The memberships in various industrial bodies / associations
viewed as an opportunity to share their insights for the benefit of
the industry and widening the network for enhancing the image
of the company and deriving benefits in the form of adoption of
learning from the industrial bodies / associations. 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.
20
���������� ���������� ���������Stakeholder engagement mechanisms with key concerns and outcomes during the reporting period:Various mechanisms / forums have been designed over a period of time to ensure meaningful engagement with stakeholders forunderstanding and managing their expectations. The learning from such engagement is helpful in devising related strategies forbalanced outcome for the company and the stakeholders.Details of stakeholder engagement with focus on performance areshown in the adjacent table.
During 2013-14, a seven point communication strategy for stakeholders was developed with the help of CII-ITC Centre of Excellencefor Sustainable Development.
21
��� �������� �������� ��������� ��������� ��������� ��� ������� �
����������� ���������� ���������
2. � In Customer SatisfactionSurvey 2013-14, RINLachieved a satisfaction indexof 83.25 against 80.8 ofprevious year
Customers � Availability� Quality� Service norms� Pricing� Flexibility in payment
� Cross Functional Teams' visit to customer'spremises.
� Customers meet.� Independent External Monitor (IEM)
reviews.� Customer Satisfaction Survey.� Complaint handling.� Annual Partnership Summit.
1. � Excellent MOU rating.� Commissioning of major
expansion units
Shareholder(GoI)
� Sustainable performance� Capacity expansion� Faster decision making� Raw Material security
� Annual General Meeting.� Annual MoU meeting.� 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.
3. � Quarterly and monthly pricingmechanism for ImportedCoking Coal.
� Sustained Business withMSMEs.
� LTAs for iron ore and cokingcoal to ensure additionalrequirement in view ofcommissioning of expansionunits
Suppliers � Timely payments� Assured business� Transparent procedures� Vendor development
� Bimonthly review with SSI representativeby ED(MM)
� Annual evaluation and review of suppliersby Vendor Development Cell (VDC).
� Biannual National Level VendorDevelopment Program (NVDP) by VDC.
� Biannual State Level Vendor DevelopmentProgram (SVDP) by VDC.
� Annual Plant Level Committee meeting withCommissioner of Industries to review issuesrelated to local MSEs, chaired by CMD
� Quarterly reviews of Independent ExternalMonitor (IEM).
� Quarterly Empowered Joint Committee(EJC) meetings.
4. � Rated amongst the"India'sBest Companies to Work for2013" - based on studyconducted by the Great Placeto Work Institute Inc. and TheEconomic Times.
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
5. � Implementation of projectspertaining to Zero DischargeScheme.
� Alignment of CSR initiativewith DPE guidelines.
� Implementation of variousCSR projects.
Communities � Pollution Control� Community development� Health� Livelihood� Education
� Interaction with government officials,parliamentary/legislative committees,local bodies/ municipalities.
� Meeting with Statutory bodies, NGOgroups etc.
22
During 2013-14, execution delays in manyinfrastructure and construction projects havetranslated to lower demand for steel andslowdown in economic growth. This in turn hasled to sluggish volume growth for major steelmanufacturers.As RINL products find its application inconstruction and manufacturing, the economicslowdown of these sectors have heavilyimpacted the sales of our products. The growthin apparent consumption of long products andbars & rods in the country has declined to 3.2%and 2.1% respectively during 2013-14(Fig. EC-a)
Economic Value Generation and Distribution
RINL earned Profit After Tax (PAT) of ` 366 Crs for the FY 2013-
14 against ` 353 Crs of previous year. Lower growth in
consumption of steel lead to lower sales realisation which in
turn offset the advantage of lower raw material prices during the
year.
A Turnover of ` 13,489 Crs., was achieved during 2013-14.
Despite a sluggish market, (Fig. EC-1 (i)) Company ensured
high share of value added steels (Fig. EC-1 (ii)) and exports
during the year (Fig.EC-1 (iii)). Also, 6% increase in production
of value added steels and 4% growth in saleable steel production
ensured regaining the leadership position of RINL in the wire
rod category with product-mix change in line with market
demand.
RINL was able to register increase of 8.9% y-o-y in operating
margin rate despite negative trend for operating margins in the
industry due to the various economic conditions hampering
growth. (Fig. EC-1 (iv))
25
During 2013-14, competition in the Bars & Rods marketincreased due to higher production in this category from othermajor competitors without commensurate increase inconsumption. Despite low growth in consumption of Bars andRods in long products category, RINL achieved a growth of 8%and 25% over 2012-13 in Sales Volume of Saleable steelproducts and exports.
The initiatives such as optimization of coal blend, maximizationof captive power generation, prudent fund management,improvement in techno-economic parameters amongst manyother initiatives helped the company in minimizing the adverseimpact of sluggish demand conditions. The Company focusedon exports to leverage its port based location and to start withand completed all formalities during the reporting period foropening of IMO at Colombo, Sri Lanka.
2013-14
• Saleable steel sales grew by 8% in volume.
• Sales value of export grew by 25%
• Improvement over last year’s Customer Satisfaction Index
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 ` 26448 Cr. till 2013 -14 to the exchequer (Fig. EC-3).
Completion of commissioning activities and ramp up of production from new units of 6.3 Mtpa expansion project will drive
RINL’s growth till 2016-17, when its 7.3 Mtpa stage will come on stream coupled with modernization of existing units. 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 has not availed any financial assistance from GoI for its operations and growth initiatives during the reporting
period.
Fig.EC-3: Contribution to exchequer ( ` Cr)Year Central Govt. State Govt. Gross Total
2011-12 1636 593 2229
2012-13 1587 599 2186
2013-14 1541 607 2148
26
Fig.EC-2: Economic value generation and distribution ( ` Cr)2011-12 2012-13 2013-14
1 Direct Economic value Generated
Revenues 14792 13919 13672
a Net Sales 14462 13463 13364
b Revenue from Financial investments 328 455 307
c Sale of assets 1.79 0.48 0.77
2 Economic Value Distributed 13713 13421 12695
a Operating Expenditure (Raw Material cost, 10494 10332 9459
Spares, Power & Fuel, R&M, other exp.)
b Employees' wages & benefits 1467 1469 1751
c Payment to providers of fund (Dividend+ Interest) 381 496 431
d Payment to government (Income Tax, Wealth Tax &Excise Duty) 1360 1108 1034
e Community Investments 10 16 20
3 Economic Value Retained 1079 498 977
Opportunity
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
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.
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 million tons annually. A total of 15
projects having the potential for registration under CDM are
being implemented. Out of these 15 projects, Host Country
Approval (HCA) has been obtained for 2 projects in 2013-14
taking the total number of CDM projectswith HCA to 13 projects.
Risks
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.
Emergence of various policy guidelines to prevent induced
change in natural resources or mitigate the risk of climate
change will also have impact on 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.
In the last decade, there have been instances of deficit rainfall
in the catchment areas of Yeleru reservoir, the source of water
for Visakhapatnam Steel Plant, causing alarming decline in
inflow of 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 year 2002. In view of the commissioning
of various expansion units and increase in demand for availability
of water, various conservative measures have since been taken
to improve efficiency of water usage in the plant
Employee benefits & welfare measures
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.
Consolidated list of statutory and other welfare and benefit
schemes deployed in the company are brought out in Fig. LA-7.
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.
Implication of climate change
27
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 onaccount of permanent total disablement, permanent medical unfitness and to his nominee, in case of his death while inservice of the Company. For this, the employee/nominee has to deposit an amount equivalent to Notional Provident Fundand Gratuity.
2. In case of death/permanent total disablement arising out of & in course of employment while on duty or death/ permanenttotal disablement arising out of accidents while coming to duty or going back from duty within one hour before or after theend 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 theposts mentioned in the scheme (or)
b. The dependent may opt for monthly payment equivalent to last pay (Basic + DA) without being required to depositwith 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% perannum without being required to deposit the amount equivalent to Notional PF & Gratuity with the Company.
An amount of ` 1751 Cr. was spent during 2013-14 on Employee benefits which includes salaries, PF and staff welfare expenses.
Standard entry level wages
Basic pay for entry level at lowest grade for non-executive and executive of full time employees, irrespective of gender, is ` 8,630
per month and ` 16,400 per month respectively. Since the entry level wages are set and benchmarked by the Government of India,we are at par with all the set norms and regulations. Entry level wages of contract workers is shown in Fig. EC-5.
Fig. EC-5: Entry level wages of contract workers ( ` )
Skill level
Minimum wage stipulation(as on 31.03.2014) Additional payment at RINL
Grand TotalBasic Variable DA Total Adhoc Special Misc.
Allowance
Unskilled 3900 2782 6682 300 1000 7982
Semi-Skilled 4420 3146 7566 300 1000 8866
Skilled 5200 3692 8892 300 1000 10192
28
Encouragement to local Industries
With a view to develope the general economy of the region, local Micro and Small Enterprises are encouraged for both upstreamside and downstream side. As a part of support for development and for larger involvement of Local Micro Small Industries in VSPpurchases, the following Purchase Preference Policy is being followed. i.e.
• If there are a minimum of five or more local manufacturers (MSEs) available for any item / class of items and the tender
value is ` 20.00 Lakhs, 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 MSEshave to compete with outstation firms, purchase preference is being given to technically and commercially acceptableLocal 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.
Local hiringBeing a PSE, RINL complies with the Hon’ble Supreme Courtdirectives for recruitment on all India basis for full timeemployees. However, a significant percentage of employeesbelong to the state of Andhra Pradesh due to their own preference.Contract workforce comprises largely of people fromsurrounding areas of Visakhapatnam. As an equal opportunityemployer, RINL follows GoI norms in recruitment throughreservation to SC, ST, Ex-Service men and PWD categories(refer page 23 of Annual Report of 2013-14).
Investment on community infrastructureRINL aligns its Corporate Social Responsibility initiatives withDPE’s guidelines on Corporate Social Responsibility for CentralPublic Sector Enterprises which were first issued in April 2010and have been followed by subsequent amendments. CSRactivities are planned, based on identified community needsand the expenditure is accordingly committed. Expenditure onCSR activities is given at Fig. EC-7, which is well above theminimum norm of 0.5% envisaged by DPE guidelines. Unspentamount earmarked for CSR activities for a specific year, if any, iscarried forward to a non-lapsable account, so as to continuethe thrust on such projects in the following years.
Efforts on encouraging local MSMEs, has resulted in substantialincrease in business with MSMEs which contributes indevelopment of local economy as well. Trend of supplies bylocal MSMEs is shown at Fig. EC-6. Performance of local MSMEswas adversely impacted during 2012-13 due to acute shortageof power in AP. Continuous efforts are made to widen the vendorbase for various items and 150 Vendors were enlisted duringthe year 2013-14.Payment to MSMEs is done on fast track sothat they can manage their working capital requirements easily.
29
As mentioned earlier, RINL have been progressively involved inthe development of communities by providing them with requiredassistance including financial support for infrastructuredevelopment. RINL have launched into various projects for thesame purpose over the reporting period. We are providing:
Financial assistance for development of infrastructure forestablishing Multi Storied Hospital complex and providingadditional facilities / renovation works at the mortuary in KingGeorge Hospital, Visakhapatnam
• A solar power system to St. Joseph’s Home for the aged,Visakhapatnam, under project ‘Surya’
• School commodities and infrastructural requirementsto 6 schools.
• Installation services of solar powered street lights (100nos) and refurbishment of roads
• Infrastructure for Industrial Training Institute (ITI) fordeveloping the skills of the youth within the communities
2011-12 2012-13 2013-14
CSR expenditure ( ` Cr) 10.62 16.00 20.31
PAT ( ` Cr) 751 353 366CSR expenditure as % of PAT 1.41 4.53 5.6
Fig. EC-7: Expenditure on CSR Activities
30
31
We are participating in the ambitious ‘Green Visakha – plantation’ programme , which has targeted to plant 40 lakh trees inVisakhapatnam in 5 years, by involving local industries. RINL, under this programme has planned to plant 5 lakh trees over 5 years,out of which it has planted 75,000 trees in the village of Parwada during the reporting period taking the total to 1.10 lakh trees.
32
Indirect economic impact of operationsRINL’s operations at Visakhapatnam have created a multiplying effect on local economy and related development. Expansionof existing facilities at Visakhapatnam has also given a fillip to the employment levels in construction activities. This coupledwith outsourcing of non-core activities in production and logistics provides employment to about 22,000 people in the form ofcontract workers, who are also trained on various skills based on requirement and safety aspects.
RINL also supports the business of Micro, Small and Medium Enterprises (MSMEs) by way of supply of steel through SSIC andNSIC as per the distribution policy of Ministry of Steel (MoS). Supply to MSMEs by RINL is given in Fig. EC-8.
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).
Significant indirect economic impact on conservation of natural resources and on cost of production due to environmental
measures are:
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 in the
existing units which was 5.5% of the total project cost and around
` 2,002 Cr was spent on various energy and environmental
projects over the past decade.
Fig EN-1: Green technologies ( Existing )
COKE OVEN:Coke Dry Cooling Plant (CDQ)
� Elimination of fugitive dust emissions, discharges & toxic gaseous pollutantsduring cooling of red hot coke.
� Recovery of waste heat from the red hot coke for generation of power (2 X 7.5MW and 1 X 14 MW) and saturated steam (2.5 ata, 7 ata and 13 ata) forprocess use, resulting in
I. Reduction in CO2 emission per year: 6,89,586 tonsII. Reduction in coal use per year: 4,08,668 tonsIII. Reduction in SO2 emission per year: 2917 tons
BLAST FURNACES:Bell-less / belt conveyor charging andTop 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 highpressure gas at BF top, resulting in
I. Reduction in CO2 emission per year: 1,27,152 tonsII. Reduction in coal use per year: 75354 tonsIII. 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 tonsII. Reduction in coal use per year: 2,05,677 tonsIII. Reduction in SO2 emission per year: 1,414 tons
ROLLING MILLSEvaporative cooling systems & Wasteheat recovery from furnace
� Generation of process steam (13 ata) by recovery of heat from the skids inreheating furnaces in LMMM & MMSM, resulting in
I. Reduction in CO2 emission per year: 72,814 tonsII. Reduction in coal use per year: 43,152 tonsIII. 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
Green TechnologiesHarnessing green technologies in production processes has been a major driver for operational efficiency and profitability rightfrom inception through higher productivity and yields, efficient use of materials, waste utilization and recycling. Some of theenvironment friendly technologies adopted are shown at Fig. EN-1:
Unit / process Environmental Impact
Other energy saving and waste heat utilization measures implemented at RINL are 100% continuous casting of liquid steel intoblooms, 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.
35
The by-product gases such as Coke Oven gas, Blast Furnace gas and LD gas are used as fuel in various processes, thusconserving significant quantity of natural resources. Trend of recovery of by–product gases in various processes that are used asfuel gases in the plant are given below. (Fig. EN-2 (i), (ii) & (iii))
RINL’s performance with respect to recovery of CO gas in coke making process, BF gas recovery in iron making process and LDgas 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 sealrepair in LD gas holder was undertaken from Aug ’12 to Jan ’13.
Energy ManagementVarious energy conservation measures are identified during the Sustainability Planning exercise for implementation by concerneddepartment. Centrally, Energy Management Department with close coordination with various process owners in manufacturingensures sufficient thrust on improving energy efficiency. Energy audits and accounting, regular Management Reviews of energygeneration and utilization drive the organization towards effective energy management, which has ensured consistent performanceat low levels of specific energy consumption and CO2 emissions.(Fig.EN-3 (i) & (ii)).
36
The Green House Gasses Emissions under Scope 1, Scope 2 and Scope 3 are 7339096, 933613, 248733 Tonnes of
CO2 respectively during the reporting period (2013-14) and the initiatives taken to reduce GHG emissions are:
• Installation of Pulverized coal injection in Blast Furnace 1
• Installing Energy Conservation facilities in expansion such as Pulverized coal injection in BF 3
• Commissioning and stabilization of 14 MW TRT of BF 3
• Commissioning and stabilization of Waste Heat Recovery system in stoves of BF-3 for preheating of fuel gas for
stoves heating. This system will reduce flue gas loss to atmosphere by recovering waste heat and preheats combustion
air and fuel gas
• To reduce the heat consumption in Sinter Plant No 1(M/C 1&2) ignition furnaces by installing energy efficient roof
burners in place of side burners during revamping.
• Installation of 120 MW power plant using excess Blast furnace gas available in the plant
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 2013-14 are shown at Fig. EN-4.
37 38
The details of direct and indirect energy consumption are given at Fig.EN-5.
Fig.EN-5: Direct / Indirect energy consumption by primary source2011-12 2012-13 2013-14
Unit Qty. 103 Gcal Qty. 103 Gcal Qty. 103 Gcal
Electricity:
a) Purchased (Net import from APTRANSCO) MWH 298558 256.8 316754 272.4 340932 293.2
b) Gross exported MWH 1524 1522 1112
c)Imported MWH 300082 318276 342044
d) Own generation
-Through Steam Turbine/ Generator MWH 1634127 1613665 1681798
-Through Back pressure Turbine Station MWH 105390 178846 193331
-Through Gas ExpansionTurbine Station MWH 85824 53675 41671
Coal consumption
Boiler Coal (Wet)* t 1246551 3280 1270444 3550 1345160 3440
Coking Coal (Wet)* t 3960724 25181 3945442 25157 3960166 25277
Furnace oil consumption * Kl 461.45 4.3 570.671 5.3 3251 30.2
HSD Consumption * Kl 2252 22.5 2573.3 25.7 2666.192 26.7
BF Coke purchased t 0 0
Coke breeze purchased t 0 0
Raw MaterialsRINL recognizes the concern of the depleting raw material
sources and is committed to optimum utilization of raw materials.
Also, 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.92 in the Annual report 2013-14. Efforts
towards usage of metallurgical waste to replace primary raw
material to the extent possible in sinter making is evident from
Fig- EN-7.
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.
39
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 of industries 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 three years has been given below in Fig. EN-8.
Fig.EN-8: Water consumptionWater Consumption in Kilo LitresInflow in Kilo Litres
YeleruYear Other
sourcesTotal Plant Township KBR losses Construc-
tion waterConstruc-tion water
Total
11-12 48528550 Nil 48528550 30735506 3114010 6964472 5496114 46314648
12-13 41450428 Nil 41450428 29389890 3073096 7610004 3127648 43200638
13-14 41364054 Nil 41364054 32317514 3791364 8946528 3441322 48496728
40
The water consumption of RINL from the main source is 6% of the capacity of the main reservoir. During short duration crisis,the plant requirement is met through the internal storage without affecting the communities around by not drawing water fromthe reservoir.
Water conservation is one of the key areas of integrated water management approach and is a part of functions in RINL rightfrom 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.
• Rain water Harvesting
Recirculation System:
Cooling water / process water requirements are met with individual recirculation systems. The quantity of recirculation systemis as high as 1.8 lakhs Cu M / hour. Clear and contaminated water recirculation systems are under special chemical treatmentfor maintaining water quality and high cycles of concentrations (COC) upto 4.0 .
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.
Fig.EN-10: Water conservation measures
Special chemical treatment for recirculation watercovering 11 areas in the plant, resulting in improvementin COC from 2-3 to 4-5.
1500cum/hr
Treatment of oil and scale contaminated water pertainingto SMS and Mills
250 cum/hr
Usage of bed drainage water from Coke oven, BF, RMHPetc
50 cum/hr
Reclamation of waste / drain water 600 cum/hr
WaterConserved
41
Fig.EN-9: % Recirculation water2011-12 2012-13 2013-14
97.81 97.98 98.00% recirculation water
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 m3 of water per year.
Also, two Rain water harvesting ponds of size 400 X 100
m with pumping facility to storage reservoir of KBR to
save 18184 Kilo Litres of water are in progress.
Fig. EN-12: Rain Water HarvestingPercolation pits 94 NosEarthen Check-dams 01 NoMasonry Check-dams 09 NosRecharge Wells 18 Nos
42
Balacheruvu waste water
treatment plant 47925
Appikonda Waste water
treatment plant 902119
Ultra Filtration Plant 1322194
Further, water saving through
various Zero water discharge
schemes are as indicated below:
Unit of Zero
discharge scheme
Water savings during
2013-14 (kilo Liters)
Afforestation
RINL’s philosophy of managing operations in harmony withnature has its roots in the motto “One tree for every ton of steelcapacity”, which has been followed meticulously sinceinception. Out of the total land bank of 8100 Ha, 3600 Ha hasbeen identified for development of Green belt and afforestation.Cumulative trend of tree plantation is shown at Fig EN-13.
As reported in the last Sustainability Report,we have replacedall chilling, refrigerating and air condition units that use ODSwith non-ODS using equipment.
All Halon based fire-fighting systems replaced with Inergenbased fire-fighting systems, costing ` 6.14 Crores and resultingin 3885 kgs of Halon being phased out systematically.
Afforestation efforts by RINL not only help in partlycompensating GHG emitted during plant operations but also,in minimizing the adverse impact on ecosystems, landscapesand species in the surroundings. Man-made forests in andaround the plant area and other areas earmarked for thepurpose have also helped in creating a conducive environmentfor local flora and fauna including diverse micro-organisms tothrive. Proper plantation, regular follow-up, care and adherenceto maintenance practices resulted in achieving more than 70%survival rate.
RINL is not adjacent to any protected areas and its operationsdo not have any adverse effect on the bio-diversity and no-habitats are protected or restored at present. None of ouractivities, products or services have any significant impact onthe biodiversity of the surrounding region. Hence, no specieslisted in IUCN red list and national conservation list are affectedby operations of RINL. We have always created mitigationplans for all our activities which contribute to pollution, therebyensuring that our operations have a minimal environmentalfootprint.
43
Fig.EN-14: Salient features of monitoring mechanisms for environmental indicators� Regular Bio-Assay tests are 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
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.
Environmental MonitoringRINL 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.
44
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 and hazardous wastes as given in Fig. EN-17.
Facilities for treatment of contaminated water from plant and domestic sewage from township are shown at Fig. EN-18.
Fig.EN-16 : Stack emissions (Milligram / Nm3)Location Parameter Norm 2011-12 Norm w.e.f 12.6.2012 2012-13 2013-14
CO Battery 1 to 3 SPM 50 42.3 50 42.6 39.9Blast Furnace SPM 115 * 82.0 50 73.4# 55.4#Sinter Plant SPM 115* 80.6 50 84.6# 83.4#SMS SPM 115* 55.6 50 52 39.0* Norm changed from 115 to 50 - the process of upgradation of related APC eqpt.is under progress#: Capital Repair Projects have been taken up for revamping / rebuilding of ESP's to reduce the stack emission below 50 mg/Nm3 at a cost of ` 143.8 Cr
Fig.EN-17: EmissionsDescription Unit 2011-12 2012-13 2013-14Specific SPM load kg/tcs 0.58 0.60 0.58Hazardous waste recycled (%) 100 100 100
Fig.EN-15.: Ambient air quality (Microgram / m3)
Location Parameter APPCB Norm 2011-12 2012-13 2013-14
RSPM 100 62.9 61.03 56.5Main Gate SO2 80 6.10 9.95 7.5
NOX 80 7.10 4.49 8.6
45
Trends in total effluent load (pollutants such as TSS, O&G, Phenol, Ammoniacal nitrogen) (Fig. EN-19) are reported by theindustry as pollutants in discharged water per ton of crude steel (Fig. EN-20). Nitrification / de-nitrification process is beingtaken up in the upgraded MBC plant for further treatment of effluents.
Fig. EN-18: Initiatives for treatment of Contaminated Water
SN System Nos Capacities Purpose
1. Mechanical Biological & effluents 1 200 cu.m/hr For treatment of Coke OvenChemical Treatment Plant effluents
2. Effluent Treatment Plant 1 280 cu.m/hr For treatment of plantsewage and effluent
3. Sewage Treatment Plant (Township) 1 300 cu.m/hr For treatment of townshipsewage
4. Waste Water Treatment Plants 8 Dust laden water from For treatment and recyclingSMS (approx. 1700 cu.m/hr, of sludge water generatedwith 6000 ppm dust content), from Coke Ovens, SinterBF (approx. 2300 cu.m/hr, with Plant, Blast Furnaces, Steel1000 ppm dust content) Melting Shop andRolling Mills (approx. 3500 Rolling Millscu.m/hr with 500 ppm dustcontent & approx. 5500 cu.m/hrwith 200 ppm dust content) istreated independently.At coke ovens about 300cu.m/hr of water is treated.
5. Spillage Recycling Systems 8 - For recycling of toxicspillage at CO&CCP, TDP,BDP, BRP, ASP, CPH, NAFC,CPU, TOS
6. Ash-pond with ash handling pump houses 1 - For handling ash andrecycling of water
Total 20
46
Fig.EN-19 : Effluent monitoring (Milligram / Litre)Location Parameter APPCB & CPCB
Norm2011-12 2012-13 2013-14
TSS 100 77.5 86.6 95.8Plant effluent O&G 10 9.8 7.1 7.4treatment Phenol 1 0.7 0.49 0.50plant outlet COD 250 245.1 232 242.9
BOD 30 28.9 26.7 25.3Boundary wall Ammoniacal N2 50 47.7 37.3 27.5
Quality of discharged water is monitored, so as to reduce its impact on surrounding environment and the Specificeffluent discharge is given in Fig.EN-21. The water is treated and discharged into the sea and there is no significantimpact on marine environment as per the study conducted by National Institute of Oceanography.
Solid waste utilization has been a thrust area in the plant and accordinglyvarious initiatives were taken up to improve the same. Sinter makingfacility in the plant offers flexibility for agglomeration of iron ore fines withmetallurgical wastes and other wastes in the plant as feedstock for ironmaking in the BF. Some of the practices for solid waste management inthe company are highlighted at Fig. EN-22. There was no instance ofsignificant spill while handling & storing of hazardous waste and nohazardous waste was transported during the reporting period.
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 -50mmsize 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.
� Dust recovered through DE systems is unloaded from the hoppers into closed dumpers for recycling in sinter-making.
� Mills scales are recycled in sinter making process.
� Wet sludge from other WTPs is sun-dried and recycled in Sinter Plant.
� Steel scrap from different shops is charged into the LD converters.
� 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 theemergency containers in SMS.
47 48
Details of generation and utilization of solid wastes in 2013-14 is shown at Fig.EN-23 (i) and that of hazardous waste isshown at Fig.EN-23 (ii)
Dust from ESP's, Addl.4155 t of SludgeDE Systems 249085 196611 56629 0 101.57 recycled from prev. stock
Sludge from Water 240532 335060 0 0 139.30 Addl.94258 t of SludgeTreatment Plants recycled from prev. stock
BF Slag 1397080 0 1495596 19295 108.43 Addl.117811 t of BF Slagutilized / sold form prev. stock
LD Slag 410673 150971 0 0 36.76
Total 2297370 682642 1552225 19295 98.12
Fig.EN-23 (i): Solid Waste Utilization
Solid WasteTotal
generation(t/year) (a)
Recycled orReused
(t/year) (b)
Sold(t/year)
(c)
Utilized inconstruction
activities
%Utilization for2013-14=
{{b+c)/a}*100
Remarks
Dust from ESP's,DE Systems 347119 248249 57994 0 88.22
Sludge from Water Addl.114259 t of SludgeTreatment Plants 213759 328018 0 0 153.45 recycled from prev. stock
BF Slag 1374045 0 1559750 17210 114.77 Addl.202915 t of BF Slagutilized/sold form prev. stock
LD Slag 454778 161896 0 12000 38.24
Total 2389701 738163 1617744 29210 99.81
Dust from ESP’s, 353590 300098 53492 100.00 Addl. 4,558 t of DustDE Systems recycled from previous stock
Sludge from Water 228495 228495 100.00 Addl.73,671 t of SludgeTreatment Plants recycled from previous stock
BF Slag 1369718 1072163 78.28 Addl. 39,520 t of BF Slagutilized in the Constructionactivities from previous stock
LD Slag 341263 341263 100.00 Addl. 2,3,323 t of LD Slagrecycled from previous stock
Total 2293066 869856 1125655 87.02
2012-13
2011-12
2013-14
Fig. EN-23 (ii): Hazardous Waste UtilizationDescription of
wasteETP sludge
(MBC & ETP)Used
Lead acidbatteries
Mixednon-
ferrousmetalscrap
Used oil /waste lub. oil /
trans. oil /sludge
Tarsludge &
tankbottomsludge
Acid tarfromASPP
BenzolsludgefromBDP
Containers ofHazardous
Wastes
Calciumcarbidesludge
Method ofdisposal
Being chargedinto CokeOvenbatteriesalong withcharge coal
Partlyrecycledafter recla-mation andbalance soldto authorizedparties
Being charged into CokeOven batteries along withcharge coal
Sold to authorized parties
Generation 729.7 234.52 2643.17 305.41 437.84 - - 2.0 -
Recycled - 317.17 2136.56 55.0 445.0 - - - -
Sold
Qty. of 300 320 3300 480 300 90 50 - -generation asperconsent
Generation 214.4 275.82 2378.2 442.89 413 4.51 0 9.5 0
Recycled 460.19 138.05 1855.39 575.46 320 0 0 0 0
Sold 0 172.3 0 0 0 4.31 61.7 9.5 0
Qty. of 300 320 3300 480 300 90 50 - -generation asper consent
���� �!Generation 214.4 275.82 2378.2 442.89 413 4.51 0 9.5 0
Recycled 460.19 138.05 1855.39 575.46 320 0 0 0 0
Sold 0 172.3 0 0 0 4.31 61.7 9.5 0
Qty. of 300 320 3300 480 300 90 50 - -generation asper consent
Generation 214.4 275.82 2378.2 442.89 413 4.51 0 9.5 0
Recycled 460.19 138.05 1855.39 575.46 320 0 0 0 0
Sold 0 172.3 0 0 0 4.31 61.7 9.5 0
Qty. of 300 320 3300 480 300 90 50 - -generation asper consent
Generation 235.6 174.07 2465.85 401.13 457.55 16.16 9.7 31 1184
Recycled 48.67 131.67 2235.24 157.34 418.11 0 0 0 0
Sold 0 0 0 0 0 8.84 114.25 40 1336
Qty. of 300 320 3300 480 300 90 50 - -generation asper consent
49
���! �"
���� �!
���� ��
50
In order to minimize impact on environment, RINL has taken up several projects which are under variousstages of implementation as given at Fig. EN -24
The expenditure towards Environment Management for the last 3 years is given at Fig. EN-25:
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.
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.
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 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-26).
2013-14Waste Heat Recovery from Sinter (NEDO project) bed 24470coolers to generate 20.6 MW power.
Revamping & up-gradation of ESPs of BF -1 6900
On–goingprojects
Zero water discharge scheme which saves 5 MGD water 9022per yearDry fly ash handling, storage & delivery system for boiler 10232, 3, 4 & 5.Revamping & up-gradation of ESPs of SP-1 and BF-2 14795Provision of Dog Houses in 3 converters of SMS-1 7523Rain water harvesting schemes 1304
Fig. EN- 25 Environment ManagementYear 2011-12 2012-13 2013-14Expenditure ( ` Crores) 310.998 315.047 316.544
Year ProjectCost
( ` in lakhs)
Fig. EN-26: Transport of products
2011-12 2012-13
% of rail road ratio
Qty. through rail (Mt)
1.75
2.05
1.74
1.83
2013-14
1.69
2.07
Fig. EN -24 List of Environment Projects Implemented / under implementation
RINL has a longstanding commitment to address the needs ofthe society and attaches a great deal of significance while
discharging its responsibility towards improving the quality of lifeof the community. CSR foot print of the Company covers
Environmental care, Education, Health, People care, Peripheraldevelopment, Cultural efflorescence as a responsible corporate citizen
& help during natural calamities.
RINL is a Life Member of United Nations Global Compact (UNGC), thelargest voluntary CSR initiative in the world. Being a member, RINL publishes
“Communication on Progress” every year and the same is uploaded on theglobal 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 rehabilitationcolonies at Aganampudi, Dibbapalem, Pedagantyada and Vadlapudi which have a
combined population of around 1.5 Lakhs. These colonies were set up to rehabilitate64 villages including hamlets 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 year2006 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 CSRactivities every year.
In order to identify and implement CSR projects in different areas/domains, more than 30 specializedagencies including Govt. depts., SC/ST Welfare, Tribal Welfare, CPWD etc. are engaged. Details of
activities undertaken and impact created during the reporting period are given at Fig.SI-1.
RINL-CSR has signed an MOU with King George Govt. Hospital (KGH) to extend financial support fordevelopment of infrastructure by establishing Multi Storied Hospital complex in KGH Premises alongwith other CPSEs. The poor & needy patients of North coastal Andhra as well as neighboring states willalso be benefited by this CSR initiative.
53
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 coupled with recruitment of right talent to enhance
labor productivity.
Employee base of RINL comprises of 34% executive and 66% non-
executive workforce. Trend of total manpower and by break-up by
gender is shown at (Fig. LA-1 & LA-2).
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 371 t/m/y in 2013-14 (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.
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.
Fig LA-2: Employee Profile byGender as on 31.03.14
Executive Non-Execu-tive
Total
Men
Women
Total
5916
378
6294
11907
170
12077
17823
548
18371
Fig LA-4: New Recruits during FY 2013-14Age Group Gender
<30 30-50 >50 Male Female
Executive 98 16 1 104 11
Non-executive 268 267 0 520 15
Total 366 283 1 624 26
Fig LA-5: Separations
2013 - 14 90 1 39 177 5 312
Grand TotalSeparationyear
Dismissal Resignation Superannua-tion
Termination
54
Fig. LA-6: Turnover rates2013-14New Employee Hire rate 3.52
Employee Turnover Rate 1.70
Employee welfareEmployee welfare measures are targeted toenhance employee motivation and drive long termemployee relations, which has emerged as a keyfactor in attracting and retaining talent. RINL hasgone beyond the statutory requirements and hasput in place, innovative welfare schemes toaddress employees' immediate needs and futureconcerns. RINL provides a number of statutory aswell as non-statutory welfare benefits to its full-time employees as detailed below (Fig. LA-7):
Fig. LA-7: Employee welfare measuresStatutory Welfare Non-statutory Welfare
� Welfare amenities as perFactories Act
� Welfare amenities as per MinesAct
� Common Welfare facilities forcontract labour inside plant
� First aid and emergency care
� PF & Gratuity
� Employee Compensation
� Maternity Leave
� Occupational Health Care
� Crèche facility
� Canteens
� ESI for contract labour
� Employee Pension Scheme
� Comprehensive medical facilities
� Educational facilities
� Housing facilities
� Conveyance allowance
� Festival advance
� LTC / LLTC
� Leave encashment
� Work dress
� Employee Family Benefit Scheme
� Group Savings Linked InsuranceScheme
� Group Personal Accident InsuranceScheme
� Life Cover Scheme (EDLI -EmployeesDeposited Linked Insurance-)
� Financial & Non-FinancialMotivation Schemes
� Dr. B R Ambedkar Merit RecognitionScheme for Professional Stream andPhysically/Mentally ChallengedStream
� Dr.SarvepalliRadhakrishnan MeritCash Awards and Col C K NayuduSports Cash Awards
� Yoga for Township residents
� Recreation facilities like CommunityWelfare Centers, Clubs, Parks, etc.
� Promotion of sports and games
� Facilities like gym, libraries,swimming pools, stadium etc. in thetownship
� Soft loans for house / Interest subsidyto non-executives for house loan
� Soft loan for vehicle
� Soft loan for furniture
� Pre-retirement counseling
� Traveling expenses onsuperannuation
� Employees' Superannuation BenefitFund
� Group Mediclaim Insurance Policyfor retired employees
� Post retirement free medical facilitiesat company's hospitals
� Death Relief Scheme
� Employees' Cooperative Stores
� Employees' Thrift Society
� Promotion of cultural and trekkingactivities
� Long Service Award for employeeswho have completed 25 years ofservice - 150 gms Silver Medallion
� Farewell Memento - 10 gms GoldCoin
55
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 bi-annual elections, represents the cause of non-
executive 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 non-executive 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 plant’s performance and employee satisfaction across the organization to ensure high levels of employee engagement.
Fig. LA-8: Management participative foraName of the Forum Periodicity of the meetingSNo.
1 Apex Information Forum Quarterly2 Central Safety Committee Quarterly3 Central Welfare Committee Monthly4 CSR Committee Bi-monthly5 CWC Committees - 7at HQ + 2 at Mines Monthly or as and when required6 HR information Forum Monthly7 Marketing & Finance Information Sharing Committee Bi-monthly8 Medical Committee Monthly9 Mines Coordination Committee Quarterly
10 PF Trust Committee Monthly11 Plant Level Production & Productivity Committee Quarterly12 Project Works Committee Quarterly13 SFCC & SFSC - 32 Committees each Monthly14 Canteen Managing Committee As and when required15 Superannuation Benefit Fund Trust Monthly16 Town Development Committee Bi-monthly17 Sports Council Bi-monthly
Steel Executive Association for executive workforce represents 100% of the executives acting as a nodal agency for taking up
emerging concerns with the Management.
56
Safety
57
Various safety and Occupational health related issues aresettled through bipartite agreement between the recognizedUnion and the Management. Around 800 employees includingmanagement representatives take part in different shop floorsafety committee meetings and action plans are chalked outto address specific / common problems related safety.
However during the reporting period, there were no such issuesfrom either side which required settlement through a formalagreement. Health and safety related issues like availabilityand usage levels of PPEs, unsafe practices, unsafe conditions,incidents, etc. are proactively taken up by Shop-floor SafetyCommittees (SFSC), which are chaired by respective HODsalong with 5 to 7 representatives from Management side andUnion representative. Safety and Occupational Health relatedissues / incidents are deliberated and action plans are chartedand implementation is monitored. The working of SFSCprovides crucial inputs for Central Safety Committee at plantlevel which is a statutory requirement.
Implementation of OHSAS18001 through combinationof various safetymanagement practices,maintenance practices,rigorous training anddevelopment of employees
ensures a safe work culture in the organization. Safety is givenutmost importance and continuous efforts are made toimplement safety standards. Along with this, continuousmonitoring of safety risks and other proactive measures hasresulted in reduction / elimination of potential hazards. Severalmeasures are being taken up to achieve zero accident rate.(Fig. LA-9)
All efforts are made at RINL through a combination of varioussafety management practices, maintenance practices,rigorous training and development of employees to inculcatea safe work culture in the organization.
On-site emergency plan and mock drills are conducted to testthe emergency preparedness for fire, electric shock, gas leak,rescue from heights, burn injuries, etc. More than 144 nos. offire mock drills were organized and all the deficiencies wereaddressed and other observations made during the drills werecomplied with.
For further details on initiatives related to safety refer to pageno. 20 of the Annual Report 2013-14 of the company.
Occupational HealthThe statutory Occupational Health needs of the employees
are taken care of through a well-equipped 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.
58
Periodical Medical Examination (PME) of employees at
OHS&RC is carried out through a process shown in
Fig LA-10.
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. RINL-OHS has
completed 15 cycles of PME for workers. Various initiatives
like health education and heath checkup programmes are
brought out below at Fig. LA-11.
Employee developmentRINL 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.
Fig. LA-12: Training Indicators
Employee trained Nos. 13996 13472 13825
Percentage of employees trained % 80 77 76.8
Training Man hours / employee 104 104 103
Training Expenses incurred ` Crores 3.6 3.15 1.38
Training Expenses incurred for
Foreign Training` Crores 3.63 9.40 4.56
Foreign training Nos. 105 262 112
2013-14Parameter Unit 2011-12 2012-13
59
Fig. LA-14: Training Interactions to support Life Long Learning & Employability in 2013 - 14
1 Assertiveness & inter-personal skills 6 145
2 Personal effectiveness for growth 11 277
3 Communication & Presentation skills 4 109
4 Health Education 28 847
SNo Program No of participantsNo of programs
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-houseprograms 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 -13 : Effectiveness of training programs
1 Reaction 86.20 86.20 85.60
2 Learning 81.56 81.41 79.32
3 Behavior 75.00 75.00 75.22
S.No. Training evaluation 2012-13 2013-142011-12
Effectiveness of training programs is objectively evaluated and the outcome is used for retraining the employee and for redesigningthe training programs. Execution of training plans is reviewed by TAC on quarterly basis with a view to ensure adequateresources for training, new training interventions and redesign of the training programs as required.
60
Performance appraisal is the mechanism through which departmental objectives are translated into mutually agreed tasks andtargets for executives. These are reviewed during mid-term reviews to identify constraints in implementation and thrust areas forfuture. All the executives in the company have their performance appraised through objective assessment of individual’sperformance and identification of development plans, which are bridged through in-house and external trining.
1 Reaction 86.20 86.20 85.60
2 Learning 81.56 81.41 79.32
3 Behavior 75.00 75.00 75.22
Diversity and equal opportunity:
Various measures are taken to provide a conducive workingenvironment wherein the women employees can realize theirfull potential. There is a special forum for women – Women inPublic Sector (WIPS) - to provide an environment integratedgrowth of women and to enhance their effectiveness inemployment. RINL does not indulge in any discrimination bygender in any walk of organizational life and compensation isbased on grade and performance only.
During 2013-14, the maternity leave period has been enhancedfrom 84 days to 180 days; RINL is one of the few PSEs in thecountry to extend the benefit. 21 women employees availed thebenefit in the reporting period and all have joined back after theleave.
Also, RINL-WIPS was conferred the ‘Jury’s Special’ Award inrecognition of the commendable work done by RINL for thedevelopment of women.
SC/ST Cell in the Company ensures engagement with SC/STAssociation and monitors various welfare measures for SC/STemployees and their families.
Human rights
The company believes in right to human dignity, social protection,right to rest and leisure which is a worker’s fundamental humanright and the same is ensured through compliance withFactories 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 provisionsfor contract workers. Some of these measures include:
• Provision of food through subsidized canteens, washrooms,rest rooms, drinking water etc. which are meant for regularemployees of the company are being extended for contractworkers also.
• Ensuring employer’s 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 5years of service.
• Compliance to Workmen’s Compensation Act by depositingrequisite amount with Commissioner for Workmen’sCompensation in case the contractor fails to deposit thesame to ensure payment of compensation within stipulatedperiod of 30 days.
• Provision of ex-gratia payment of ` 5.00 Lakh in case of fatalaccident to contract workers. This is in addition to thepayment as per Workmen’s Compensation Act.
• Payment of notice pay, service pay, leaves pay and bonus atthe end of contract period by the contractor.
• Safety training to all contract workers and also on the jobtraining as per the requirement. Usage of Personal ProtectiveEquipment (PPEs) is stringently monitored by the Engineer I/c.
In addition, RINL has taken up the issue of coverage of ESI forcontract workers with ESI Corporation and Government ofAndhra Pradesh. At present, it is ensured that contractors bearthe expenses of medical treatment of contract workers in caseof any accident.
Though company ensures adherence to all applicable Actsregarding dignity of labor in the case of service contracts throughvarious policies and monitoring of compliance by Engineer –I/c, there is no mechanism in place to ensure compliance to thesame in case of supply contracts.
Right to collective bargaining is ensured through 21 registeredtrade Unions in the company that enable non-executiveemployees to voice their concerns. The Unions also representthe contract workers.
Minimum age limit for recruitment in the company is 18 years.All contractors are regularly advised to comply with the ChildLabor regulation and surprise checks are conducted by RINL toensure compliance. No incident of engagement of child labor,any form of forced and / or compulsory labor, grievances relatedto violation of Human Rights was reported in the company duringthe reporting period.
61 62
Society
RINL has designed a robust mechanism for capturing environment incidents, identifying any undesirable trend and proactivelyinitiating corrective action.
Inspections are carried out regularly by Environment Management Department. If any deviations are observed, it is immediatelybrought 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 ismonitored and deliberated upon during Environment Review Meeting, for adequacy of the measure to eliminate possibility ofoccurrence of similar incidents in future.
RINL made a study on impact of plant operation on environment and surrounding areas with the help of an expert agency and the
details are: (Fig. SO-1)
Fig. SO-1:Environment impact studies
Rapid Environment ImpactAssessment Study in 2005 byM/s M N Dastur& Co.
Rapid Marine ImpactAssessment Study in 2006 byNational Institute ofOceanography, GoI
Monitoring of chemical andbiological parameters in themarine environment offAppikonda and toxicologicalstudies of the treated effluentof VSP in 2010 by NationalInstitute of Oceanography, GoI
• Ground Level Concentrations at coreboundary and buffer zone of Respirable dust,Sulphur dioxides, Oxides of nitrogen muchbelow norm.
• Total Environmental Attributes adjudged: 22(Insignificant impact or no impact : 15Beneficial impact: 3, Marginal adverse impact : 4)
No impact on marine life due to discharge ofeffluents from VSP.
No impact on marine life due to discharge ofeffluents from VSP off Appikonda.
• No objections from community membersor media during the public hearingconducted at Collector office forexpansion of VSP.
• Environmental Clearance obtainedwithin 7 months for expansion of VSP.
• A two month study done for assessingimpact on marine life by VSP's operations.
• No complaints from vigilant and activefishing communities, media or anyNGOs.
Study Brief conclusions of the study Remarks
Anti-corruption measures
Being a public sector enterprise, RINL is committed to fostering an ethical and corruption free business environment. Guidelinesissued by Central Vigilance Commission (CVC) are adhered to by timely updation of related procedures in the company. RINL hasentered into a MoU with Transparency International for adopting an Integrity Pact (IP) as a tool to fight corruption by bringing intransparency 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, contractorsand 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 andrecommendations for systemic improvements which are implemented in all related areas. Employees are also sensitized oncorruption related issues through publication of in-house magazine and specific training programmes
Regular training programme covering contract management and preventive vigilance is conducted for regular employees. Thedetails of sessions conducted during the reporting period areshown in Fig.SO-2.
Fig.SO-2: Vigilance trainingsTraining details 2011-12 2012-13 2013-14No. of Sessions conducted 9 10 7No. of participants 320 511 331
The details of formal grievances for the year 2013-14 are:
63
Grievance Redressal MechanismAt RINL, there are separate channels for formal and informal grievance handling for redressal of grievance of employees. In theformal Grievance Procedure for non-executives, a workers’ representative is present in the Committee. Further, both executivesand non-executives grievance handling systems have a fixed time frame to redress the grievances. Grievances of employeespertaining 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.
To inculcate ethics amongst the School Children for nurturing Ethics and moral values, RINL organized sessions on “Ethics andMoral Values” covering about 1270 school children in 2013-14.
System improvements are also taken up in case of occurrence of incidents of corruption and suitable punitive action is initiatedin cases where malicious intentions are found. RINL does not encourage any kind of political lobbying and has not made anycontribution 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 non-compliance with laws & regulations.
Product responsibilitySteel products produced by the Company are environmental friendly and do not pose any health or safety hazard during their useand are completely recyclable. Further, RINL produces products which are known for their quality and also reduces wastage forits end users through close tolerances. Bundling and automatic tying / strapping of products minimize chances of damageduring transportation of products.
The steel products of the company find application in construction and engineering sectors, which require strict compliancewith product specifications. Stringent internal quality control mechanisms and close dimensional tolerances ensure adherenceto the required product specification. In order to enhance the confidence level of the customers, product test certificates are alsoissued to the customers along with delivery orders.
Based on the customer requirement, new products/ grades are developed through in-house R&D. the trend of new productsdeveloped is given at Fig. PR-1.
Decrease in new product development during 2012-13 was due to the extreme sluggish condition prevailing in the manufacturingsector - the main driver for new product development.
64
RINL’s focus on production of steel products as per emerging market requirement that are required by society has helped indevelopment of ‘special steels’ of various grades. These steels are lighter and stronger. Moreover they are more corrosionresistant. Some of such grades are mentioned at Fig. PR-2.
During 2013-14, RINL developed Citizen Charter to consistently provide quality products and efficient and responsive services
that meet requirements of the Citizens with applicable legal, statutory and regulatory requirements.
Branding of products meant for direct end use for construction and fabrication purpose facilitates in differentiation by thecustomer 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.
S.No
1 VIZAG- Higher strength over · 14% reduction in steel use in similar applicationTMT FE 500 conventional reinforcement · When applied they help reduce CO2 emissions over
bars the life cycle of the product2 VIZAG –TMT Higher strength over · 19% reduction in steel use in similar application
FE 550 conventional reinforcement · When applied they help reduce CO2 emissions overbars the life cycle of the product
3 VIZAG – Higher resistance to corrosion · Helps reduce CO2 emissions over the life cycle of theTMT CRM over traditional steels,in product due to longevityand HS CRM industrial and marine
environments4 PC 115 Special wire for using in PC · Excellent alternative to timber
sleepers in railway lines · Counters deforestation5 VIZAG TLT Offers higher strength to · Heavy structures for transmission lines etc can be
weight ratio over traditional made with less steelmild steel · When applied they help reduce CO2 emissions over the
life cycle of the structure
Product Name Special property Beneficial impact
Fig. PR-2 : In-house developed grades (some examples)
65
Customer satisfaction survey for major steel plants in the countryis conducted by Ministry of Steel (MoS) on annual basis whichprovides meaningful insights into the relative position of variouscompanies on various attributes. RINL also gets CustomerSatisfaction Survey conducted by an external agency everyyear which is specifically designed for customer segments ofRINL. Based on the same, branch wise action plans aredeveloped to enhance customer satisfaction levels.InCustomer Satisfaction Survey 2013-14, RINL achieved asatisfaction index of 83.25 against 80.8 of previous year.
There were no instances of non-compliance with regulationsrelated to product and service information, marketingcommunications including advertising, promotion and
Customer services:Customer service norms are displayed in each branch office to renderquality and prompt service to customers. Also, With a viewto step up customer service, RINL has introduced services like “Dial your Director (Commercial)” and “Customer day” during2013-14.
Customer ComplaintsYear 2011-12 2012-13 2013-14
Sales vs. Complaints (%) 0.041 0.056 0.025
breaches of customer privacy / loss of customer data duringthe year.
Online Quality Complaint System provides easy access to thecustomers for lodging their complaints which can also betracked online for early settlement. Learning from review ofsuch complaints during MR meetings helped in evolvingcorrective and preventive actions that resulted in reduction ofthe quality complaints.
The trend of customer complaints as a percentage of sales inthe last three years is given below:
66
67
GRI CONTENT INDEX GRI Description Page
No.Status
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.
2.3 Operational structure of the organization, including main divisions, operating companies, subsidiaries, and joint ventures.
2.4 Location of organization’s headquarters.
2.5 Number of countries where the organization operates, and names of countries with either major operations or that are specifically relevant tothe 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).
2.8 Scale of the reporting organization.
2.9 Significant changes during the reporting period regarding size, structure, or ownership.
2.10 Awards received in the reporting period.
Report Parameters
3.1 Reporting period (e.g., fiscal/calendar year) for information provided.
3.2 Date of most recent previous report (if any).
3.3 Reporting cycle (annual, biennial, etc.)
3.4 Contact point for questions regarding the report or its contents.
3.5 Process for defining report content.
3.6 Boundary of the report (e.g., countries, divisions, subsidiaries, leased facilities, joint ventures, suppliers). See GRI Boundary Protocol for furtherguidance.
3.7 State any specific limitations on the scope or boundary of the report (see completeness principle for explanation of scope).
3.8 Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can significantly affect comparabilityfrom 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 thecompilation of the Indicators and other information in the report. Explain any decisions not to apply, or to substantially diverge from, the GRIIndicator Protocols.
3.10 Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for suchre-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.
3.12 Table identifying the location of the Standard Disclosures in the report.
3.13 Policy and current practice with regard to seeking external assurance for the report.
Governance, Commitments, and Engagement
4.1 Governance structure of the organization, including committees under the highest governance body responsible for specific tasks, such assetting strategy or organizational oversight.
4.2 Indicate whether the Chair of the highest governance body is also an executive officer.
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.
4.4 Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body.
4.5 Linkage between compensation for members of the highest governance body, senior managers, and executives (including departurearrangements), and the organization’s performance (including social and environmental performance).
4.6 Processes in place for the highest governance body to ensure conflicts of interest are avoided.
4.7 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.
1 �
4 �
8 �
11,65 �
9 �
8 �
8 �
8 �
11 �
7 �
13 �
15 �
14 �
14 �
14 �
14 �
14 �
14 �
14 �
- -
14 �
- -
14 �
67 �
14 �
17 �
17 �
17 �
21 �
19 �
19 �
18 �
GRI Description PageNo.
Status
GRI CONTENT INDEX
4.8 Internally developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental, and social performanceand the status of their implementation.
4.9 Procedures of the highest governance body for overseeing the organization’s identification and management of economic, environmental, andsocial performance, including relevant risks and opportunities, and adherence or compliance with internationally agreed standards, codes ofconduct, and principles.
4.10 Processes for evaluating the highest governance body’s own performance, particularly with respect to economic, environmental, and socialperformance.
4.11 Explanation of whether and how the precautionary approach or principle is addressed by the organization.
4.12 Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organization subscribes orendorses.
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.
4.14 List of stakeholder groups engaged by the organization.
4.15 Basis for identification and selection of stakeholders with whom to engage.
4.16 Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group.
4.17 Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topicsand concerns, including through its reporting.
Economic
Disclosure on Management Approach EC
Economic performance
EC1 Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations andother community investments, retained earnings, and payments to capital providers and governments.
EC2 Financial implications and other risks and opportunities for the organization's activities due to climate change.
EC3 Coverage of the organization's defined benefit plan obligations.
EC4 Significant financial assistance received from government.
Market presence
EC5 Range of ratios of standard entry level wage compared to local minimum wage at significant locations of operation.
EC6 Policy, practices, and proportion of spending on locally-based suppliers at significant locations of operation.
EC7 Procedures for local hiring and proportion of senior management hired from the local community at significant locations of operation.
Indirect economic impacts
EC8 Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, in-kind,or pro bono engagement.
EC9 Understanding and describing significant indirect economic impacts, including the extent of impacts.
Environmental
Disclosure on Management Approach EN
Materials
EN1 Materials used by weight or volume.
EN2 Percentage of materials used that are recycled input materials.
Energy
EN3 Direct energy consumption by primary energy source.
EN4 Indirect energy consumption by primary source.
EN5 Energy saved due to conservation and efficiency improvements.
EN6 Initiatives to provide energy-efficient or renewable energy based products and services, and reductions in energy requirements asa result of these initiatives.
EN7 Initiatives to reduce indirect energy consumption and reductions achieved.
3, 18 �
19 �
20 �
19 �
20 �
20 �
22 �
21 �
22 �
22 �
26 �
27 �
27 �
26 �
28 �
29 �
29 �
29-30 �
32 �
39 �
48 �
38 �
38 �
38 �
38 �
37 � 68
GRI Description PageNo.
Status
GRI CONTENT INDEX
Water
EN8 Total water withdrawal by source.
EN9 Water sources significantly affected by withdrawal of water.
EN10 Percentage and total volume of water recycled and reused.
Biodiversity
EN11 Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outsideprotected areas.
EN12 Description of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high biodiversityvalue outside protected areas.
EN13 Habitats protected or restored.
EN14 Strategies, current actions, and future plans for managing impacts on biodiversity.
EN15 Number of IUCN Red List species and national conservation list species with habitats in areas affected by operations, by level ofextinction risk.
Emissions, effluents and waste
EN16 Total direct and indirect greenhouse gas emissions by weight.
EN17 Other relevant indirect greenhouse gas emissions by weight.
EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved.
EN19 Emissions of ozone-depleting substances by weight.
EN20 NOx, SOx, and other significant air emissions by type and weight.
EN21 Total water discharge by quality and destination.
EN22 Total weight of waste by type and disposal method.
EN23 Total number and volume of significant spills.
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.
EN25 Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly affected by the reportingorganization's discharges of water and runoff.
Products and services
EN26 Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation.
EN27 Percentage of products sold and their packaging materials that are reclaimed by category.
Compliance
EN28 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws andregulations.
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.
Overall
EN30 Total environmental protection expenditures and investments by type.
Social
Disclosure on Management Approach LA
Social: Labor Practices and Decent Work
Employment
LA1 Total workforce by employment type, employment contract, and region.
LA2 Total number and rate of employee turnover by age group, gender, and region.
LA3 Benefits provided to full-time employees that are not provided to temporary or part-time employees, by major operations.
LA4 Return to work and retention rates after parental leave, by gender.
Labor/management relations
LA4 Percentage of employees covered by collective bargaining agreements.
40 �
40 �
41 �
43 �
43 �
43 �
43 �
43 �
37 �
37 �
37 �
43 �
45 �
46-47 �
47-49 �
47 �
47 �
47 �
50 �
50 �
50 �
50 �
50 �
54 �
54 �
55 �
61 �
56 �
69
LA5 Minimum notice period(s) regarding significant operational changes, including whether it is specified in collective agreements.
Occupational health and safety
LA6 Percentage of total workforce represented in formal joint management-worker health and safety committees that help monitor andadvise on occupational health and safety programs.
LA7 Rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities by region.
LA8 Education, training, counseling, prevention, and risk-control programs in place to assist workforce members, their families, or communitymembers regarding serious diseases.
LA9 Health and safety topics covered in formal agreements with trade unions.
Training and education
LA10 Average hours of training per year per employee by employee category.
LA11 Programs for skills management and lifelong learning that support the continued employability of employees and assist them inmanaging career endings.
LA12 Percentage of employees receiving regular performance and career development reviews.
Diversity and equal opportunity
LA13 Composition of governance bodies and breakdown of employees per category according to gender, age group, minority groupmembership, and other indicators of diversity.
LA14 Ratio of basic salary of men to women by employee category.
Disclosure on Management Approach HR
Social: Human Rights
Investment and procurement practices
HR1 Percentage and total number of significant investment agreements that include human rights clauses or that have undergone humanrights screening.
HR2 Percentage of significant suppliers and contractors that have undergone screening on human rights and actions taken.
HR3 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.
Non-discrimination
HR4 Total number of incidents of discrimination and actions taken.
Freedom of association and collective bargaining
HR5 Operations and significant suppliers identified in which the right to exercise freedom of association and collective bargaining maybe violated or at significant risk, and actions taken to support these rights.
Child Labor
HR6 Operations and significant suppliers identified as having significant risk for incidents of child labor, and measures taken to contributeto the effective abolition of child labor.
Prevention of forced and compulsory labor
HR7 Operations and significant suppliers identified as having significant risk for incidents of forced or compulsory labor, and measuresto contribute to the elimination of all forms of forced or compulsory labor.
Security practices
HR8 Percentage of security personnel trained in the organization's policies or procedures concerning aspects of human rights that arerelevant to operations.
Indigenous rights
HR9 Total number of incidents of violations involving rights of indigenous people and actions taken.
Assessment
HR10 Percentage and total number of operations that have been subject to human rights reviews and/or impact assessments.
Remediation
HR11 Number of grievances related to human rights filed, addressed and resolved through formal grievance mechanisms.
GRI Description PageNo.
Status
GRI CONTENT INDEX
56 �
56 �
57 �
58 �
57 �
59 �
60 �
60 �
54 �
61 �
61 �
61 �
59 �
61 �
61 �
61 �
61 �
- -
- -
- -
61 �
70
GRI CONTENT INDEX
Public policy
SO5 Public policy positions and participation in public policy development and lobbying.
SO6 Total value of financial and in-kind contributions to political parties, politicians, and related institutions by country.
Anti-competitive behavior
SO7 Total number of legal actions for anti-competitive behavior, anti-trust, and monopoly practices and their outcomes.
Compliance
SO8 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations.
Disclosure on Management Approach PR
Social: Product Responsibility
Customer health and safety
PR1 Life cycle stages in which health and safety impacts of products and services are assessed for improvement, and percentage ofsignificant products and services categories subject to such procedures.
PR2 Total number of incidents of non-compliance with regulations and voluntary codes concerning health and safety impacts of productsand services during their life cycle, by type of outcomes.
Product and service labelling
PR3 Type of product and service information required by procedures, and percentage of significant products and services subject to suchinformation requirements.
PR4 Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information andlabeling, by type of outcomes.
PR5 Practices related to customer satisfaction, including results of surveys measuring customer satisfaction.
Marketing communications
PR6 Programs for adherence to laws, standards, and voluntary codes related to marketing communications, including advertising, promotion,and sponsorship.
PR7 Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, includingadvertising, promotion, and sponsorship by type of outcomes.
Customer privacy
PR8 Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data.
Compliance
PR9 Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and use of products andservices.
GRI Description PageNo.
Status
64 �
64 �
64 �
64 �
64 �
64 �
65 �
66 �
66 �
66 �
66 �
66 �
66 �
� Fully Reported � Partially Reported - Not Reported
Disclosure on Management Approach SO
Social: Society
Community
SO1 Percentage of operations with implemented local community engagement, impact assessments, and development programs.
SO9 Operations with significant potential or actual negative impacts on local communities.
SO10 Prevention and mitigation measures implemented in operations with significant potential or actual negative impacts on local communities.
Corruption
SO2 Percentage and total number of business units analyzed for risks related to corruption.
SO3 Percentage of employees trained in organization's anti-corruption policies and procedures.
SO4 Actions taken in response to incidents of corruption.
62 �
62 �
62 �
63 �
63 �
63 �
71
RINL Rashtriya Ispat Nigam Limited
ACC Appointments Committee of the Cabinet
ADD Ancillary Development Department
APPCB Andhra Pradesh Pollution Control Board
ASP Air Separation Plant
ASP Ammonium Sulphate Plant
BF Blast Furnace
BF-BOF Blast Furnace – Basic Oxygen Furnace
BDP Benzol Distillation Plant
BGC Bird Group of Companies
BOD Biological Oxygen Demand
BRP Benzol Recovery Plant
BSLC Bisra Stone Lime Company Limited
BSY Bloom Storage Yard
CAC Committee for Award of Contracts
CACEP Committee for Award of Contracts
relating to Project Expansion contracts
CCQC Chapter Convention of Quality Circle
CDCP Coke Drying and Cooling Plant
CDM Clean Development Mechanism
CDQ Coke Dry Quenching
CII Confederation of Indian Industry
CMD Chairman cum Managing Director
CMMI Capability Maturity Model Integrated
COD Chemical Oxygen Demand
CoM Committee of Management
CPH Condensate Pump House
CPSE Central Public Sector Enterprise
CPU Condensate Polishing Unit
CRMP Calcining& Refractory Material Plant
CSA Consignee Sales Agents
CSR Corporate Social Responsibility
CWP Cooling Water Plant
DE systems Dust Extraction system
DLDS District Level Dealerships
DM De-Mineralized
DMDA De-Mineralized &De-Aerated
DPE Department of Public Enterprises
DSC Departmental Safety Committees
ED Executive Director
EETS Energy Efficiency Trading Scheme
EIL Eastern Investments Limited
EJC Empowered Joint Committee
ERM Enterprise Risk Management
ESP’s Electrostatic Precipitator
FABCPC Fly Ash Based Cement Plant Committee
G ETS Gas Expansion Turbine Station
G.Cal/tcs Giga Calories per tonne of crude steel
GHG Green House Gas
GM General Manager
GoI Government of India
GRI Global Reporting Index
GVMC Greater Visakhapatnam
Municipal Corporation
HIRA Hazard Identification and
Risk Assessment
HOD Head of Department
HPSC High Power Steering Committee
HR Human Resources
HRC Human Resource Committee
HSD High Sulphur Diesel
ICQCC International Convention on Quality
Concept Circles
IEC Independent Ethics Committee
IEM Independent External Monitor
IFTDO International Federation of Training and
Development Organizations
INSSAN Indian National Suggestion
Scheme Association
IP Integrity Pact
ISO Indian Standards
IT Information Technology
JPC Joint Plant Committee
JSPL Jindal Steel and Power Limited
JV Joint Venture
kg/thm Kilograms per tonne of hot metal
Kl Kilo litre
LMMM Light & medium merchant mill
G L O S S A R Y
72
LTC / LLTC Leave Travel Concession / Long Leave
Travel Concession Long
Travel Compensation /
MBC Make and Buy Committee
MC & HC Medium Carbon and High Carbon
Mgd Million gallons per day
MLD Million Litres per Day
M M Material Management
MMP Man Management Programme
MMSM Medium merchant & structural mill
MOIL Manganese Ore India Limited
MoS Ministry of Steel
MoU Memorandum of Understanding
MSE Micro and Small Enterprises
MSME Micro, Small and Medium Enterprises
Mt Million tonne
MTOE Million Tonnes of Oil Equivalent
Mtpa Million tonne per annum
M T T Management Trainee -Technical
MW Mega Watt
MWH Mega Watt-Hour
NAFC Napthalene and Anthracene
Fractional Crystallization
NAPCC National Action Plan on
Climate Change
NGO Non-Governmental Organization
NMDC National Mineral
Development Corporation
NMEE National Mission for Enhanced
Energy Efficiency
NR Non Reportable
NSIC National Small Industrial Corporations
ODS Ozone Depleting Substances
OEM Original Equipment Manufacturer
OHSAS Occupational Health and
Safety Assessment Series
OMDC Orissa Mineral Development
Company Limited
PAT Perform Achieve Trade
PF Provident Fund
PH Physically Handicap
PPE Personal Protective Equipment
PRP Performance related Pay
PSE Public Sector Enterprise
QC Quality Circles
QMS Quality Management System
R&D Research &Development
R&M Repair & Maintenance
RDS Rural Dealership Scheme
Re Reportable
RINMOIL Joint venture company of RINL & MOIL
RMSC Raw Material Security Committee
SAIL Steel Authority of India Limited
SC Schedule Caste
SFCC Shop Floor Coordination Committee
SFSC Shop Floor Safety Committee
SMS Steel Melt Shop
SSIC State Small Industrial Corporations
ST Schedule Tribe
t Tonne
t/tcs Tonne per tonne of crude steel
TAC Training Advisory Committee
TB Turbo Blower
TDP Tar Distillation Plant
T G Turbo Generator
TOS Tar and Oil Storage
TPP Thermal Power Plant
TSS Total Suspended Solids
ULC Ultra Low Carbon
VAS Value Added Steel
VRP Viswakarma Rashtriya Puraskar
VSP Visakhapatnam Steel Plant
WIPS Women In Public Sector
WRM Wire Rod Mill
WTP Water Treatment Plant
YLMC Yeleru Left Main Canal
G L O S S A R Y
73