SAIL losses escalate 85% in Q3
30 Jan 2002
1
New Delhi: The Steel Authority of India (SAIL) (www.sail.co.in) has recorded a loss of Rs 1,290 crore during the third quarter ended December 2001. This is a rise of Rs 85 per cent over the corresponding period the previous year.
SAIL had suffered a loss of Rs 698 crore during the third quarter ended 31 December 2000. The losses were due to a steep drop in sales realisation, increase in input cost escalation and an additional burden of about Rs 150 crore on account of the voluntary retirement scheme (VRS), a company press release said.
VRS-2002
In the meantime, continuing with its efforts to rationalise manpower and achieve manpower optimisation, SAIL has decided to introduce VRS-2002 for its employees from 15 January 2002. VR schemes operated earlier in 1998, 1999 and 2001 met with great success.
While the company successfully achieved a separation of around 6,000 employees through the first VRS, which was in operation from 1 March to 31 August 1998, more than 13,000 employees availed of VRS-99. Further, downsizing of more than 6,500 employees was achieved through VRS-2001. A target of 10,000 has been set for VRS-2002.
The new VR scheme is on similar lines as VRS-2001. Those employees who have completed a minimum of 10 years of service or above 40 years of age will qualify for VRS-2002. Based on the department of public enterprise’s VR scheme that exist in the state of Gujarat, the compensation package includes a salary of 35 days for every completed year of service and 25 days for the balance of service left until superannuation.
To improve its competitiveness, SAIL’s manpower will be brought down to a level of around 1 lakh by 2005 through natural as well as voluntary separations. The government had agreed to provide guarantees with 50 per cent interest subsidy for loan on Rs 1,500 crore, which SAIL can raise from the market to finance its VR schemes.
As was with the earlier scheme, SAIL will raise Rs 500 crore from the market, to fund VRS-2002. The payment will be on a one-time lump-sum cash basis. The new VRS, which will be open to all regular, permanent employees of SAIL, will be in operation till 15 May 2002.
SAIL had suffered a loss of Rs 698 crore during the third quarter ended 31 December 2000. The losses were due to a steep drop in sales realisation, increase in input cost escalation and an additional burden of about Rs 150 crore on account of the voluntary retirement scheme (VRS), a company press release said.VRS-2002
In the meantime, continuing with its efforts to rationalise manpower and achieve manpower optimisation, SAIL has decided to introduce VRS-2002 for its employees from 15 January 2002. VR schemes operated earlier in 1998, 1999 and 2001 met with great success.
While the company successfully achieved a separation of around 6,000 employees through the first VRS, which was in operation from 1 March to 31 August 1998, more than 13,000 employees availed of VRS-99. Further, downsizing of more than 6,500 employees was achieved through VRS-2001. A target of 10,000 has been set for VRS-2002.
The new VR scheme is on similar lines as VRS-2001. Those employees who have completed a minimum of 10 years of service or above 40 years of age will qualify for VRS-2002. Based on the department of public enterprise’s VR scheme that exist in the state of Gujarat, the compensation package includes a salary of 35 days for every completed year of service and 25 days for the balance of service left until superannuation.
To improve its competitiveness, SAIL’s manpower will be brought down to a level of around 1 lakh by 2005 through natural as well as voluntary separations. The government had agreed to provide guarantees with 50 per cent interest subsidy for loan on Rs 1,500 crore, which SAIL can raise from the market to finance its VR schemes.
As was with the earlier scheme, SAIL will raise Rs 500 crore from the market, to fund VRS-2002. The payment will be on a one-time lump-sum cash basis. The new VRS, which will be open to all regular, permanent employees of SAIL, will be in operation till 15 May 2002.
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