RINL Management Under Fire for Delayed VRS Payments and Pending Wages
Employees, trade unions slam RINL for violating DPE norms, delaying ₹98 crore VRS payouts and holding back salaries worth ₹350 crore for over 18 months.
The management of Rashtriya Ispat Nigam Limited (RINL), Visakhapatnam, is facing intense criticism from employees , Steel Executives Association and Trade unions over serious delays in Voluntary Retirement Scheme (VRS) payments and long-pending employee wages, raising concerns over compliance with government norms and labour laws.
According to employee representatives, RINL has delayed payments amounting to nearly ₹98 crore to employees who opted for Voluntary Retirement Scheme–2 (VRS-2). Although 486 employees retired in September 2025, the management has so far released only 50 per cent of the VRS-2 package, while earned leave encashment remains unpaid, allegedly in violation of Department of Public Enterprises (DPE) guidelines and Government of India rules.
The situation has triggered further concern as applications have already been received for a third phase of VRS, involving nearly 700 additional employees, even as pending dues from the earlier phase remain unsettled.
Adding to employee unrest, around ₹350 crore worth of wages are reportedly pending for nearly 18 months. Steel Executive Association and Trade unions have accused the management of issuing unauthorised wage circulars, which they claim are contrary to Government of India wage guidelines and statutory wage acts. Strongly condemning the situation, Padi Trinath Rao, Trade Union Leader of RINL, said the actions of the management were unacceptable.
“RINL’s actions are unacceptable and raise serious questions about accountability and transparency. As a PSU under the President of India, the management must respect government rules and prioritise employee welfare stated by Katam SS Chandra Rao, Dy Secretary General National Confederation of officers Associations (NCOA.)
Trade unions have warned that continued non-compliance with government norms and prolonged delays in employee payments could lead to intensified protests and formal representations to the Ministry of Steel and other central authorities.
