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1. Rourkela Steel Plant Panorama 2005

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An Introduction to Rourkela Steel Plant

Rourkela steel plant was the torchbearer for Public Sector Steel Industry in India and
carried the banner of the industrial revolution for the nascent Republic of India. The
Steel Plant, now a unit of the Steel Authority of India Limited (SAIL), was a started
during the mid-fifties of the 20th century in collaboration with the leading steel
makers from the Federal Republic of Germany.
The units at 1.0 MT stage were commissioned between December 1958 and early
part of 1962. With a view to meet the additional demand for flat products in the
country, it was decided to increase the capacity of the Blooming& Slabbing Mill, Hot
Strip Mill and Plate Mill RSP. Accordingly, capacity of ingot steel was increased to
1.0 MT to 1.8 MT between the years 1965 to 1969. Besides expansion of the units, the
scheme also envisaged additional unit of new units like Electrical Steel Mill (for
dynamo and transformer grade steel) and galvanized lines (for corrugated and plain
galvanized sheets). Subsequently to the expansion of the steel plant a number of units
were added to enhance the product quality, production, productivity and to meet the
market needs. These units included Blast Furnaces, Spiral Weld Pipe Plant, Silicon
Steel Mill, Captive Power Plant-II, Mechanical Shop, Structural & Fabrication Shop,
Heavy Loco Repair Shop, Slag Granulation Plant and Coke Oven Battery number 5.
In order to overcome technological obsolescence and to remain competitive in the
market place, even internationally, RSP went in for modernization, which was
conceived in the year 1988. Phase-I of modernization, which emphasized on
improving the quality of raw materials, consisted of new Oxygen Plant at Blast
Furnace-4, Raw Material Handling System, Coal Handling Plant (in Coke Ovens) and
power Distribution system, was completed in the year 1994. Phase-II consisted of a
new Sinter Plant, basic Oxygen Furnace and Slab Casting Shop-II, modification of
Plate Mill and Hot Strip Mill and installation of Slab Casting Shop in SMS-I, except

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for Hot Strip Mill, which was completed in the year 1999, all the other areas were
completed in the year 1997.
Rourkela Steel Plant is one of the unique steel plants under the SAIL umbrella
with a wide variety of special purpose steels. The use of its plates in Ship building and
high pressure vessels, Silicon Steel in electrical industries, Corrugated galvanized
sheets for roofing including industrial roofing, Pipes in the oil & gas sectors, Tin
Plates in packaging industries and Special Plates in the defense of the nation is well
known.
Most of the Production and Services units of Rourkela Steel Plant have been
certified by M/s RWTUV, Germany to ISO 9001:2000 Quality Management System.
American Petroleum Institute (API) also certifies the Pipe Plants of RSP to API Q1
Quality Assurance System Sixth Version in August 2000.
The units certified under ISO 9001:2000 QMS are as follows:
1 Air Conditioning
2 Blast Furnace
3 Calcining Plant II
4 Electrical Resistance Weld Pipe Plant
5 Galvanizing Line & Electro Tinning Line of CRM
6 Hot Strip Mill
7 HRD Centre
8 Mechanical Shop
9 Ore Bedding and Blending Plant
10 Planning & Coordination (Services)
11 Plate Mill
12 Repair Shop(Electrical)
13 Repair Shop(Mechanical)
14 Roll Shop
15 Silicon Steel Mill

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16 Sinter Plant-II
17 Spiral Weld Pipe Plant
18 Steel Melting Shop-I
19 Steel Melting Shop-II
20 Structural & Fabrication Shop
21 T &RM(Loco Repair Shop)
22 Tonnage Oxygen Plant-I
23 Tonnage Oxygen Plant-II

The following units of RSP have also been certified with ISO 14001: 2004
Environment Management
System (EMS)
1 Environmental Engineering Department
2 Hot Strip Mill
3 Plate Mill
4 Silicon Steel Mill
5 Sinter Plant-II

Special Features of Rourkela Steel Plant:
It is the first Plant in Asia to adopt LD process of steel making.
It is the only Plant producing large diameters ERW/SW Pipes confirming to most rigid
standards of API.
It is the first steel Plant in India to adopt external desulphurization of hot metal by
calcium carbide injection process.
It is the only steel Plant in SAIL producing Cold Rolled Oriented (CRNO) Steel sheets
for use in the electrical industries with installed capacity of 73000 Ton/yr
Rourkela is the first in vacuum degassing metallurgy. This system has been adopted
primarily for production of silicon steel for the cold rolled non-oriented sheets. This

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system consists of vacuum arc refining and vacuum oxygen refining units and
degassing facility.
It is the first integrated Steel Plant of SAIL which adopted the cost effective and
quality centered continuous casting route to process 100% of steel produced.
All the major production departments and some service departments and some service
departments certified to ISO 9001:2000 QMS.
Silicon Steel Mill, Environmental Engineering Department and Sinter Plant-II
certified to ISO 14001:2004 EMS.

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The Turnaround Story


Rourkela Steel Plant (RSP) carved out a place for itself in recent corporate history
when it ended almost a decade of making losses changed the complexion of its bottom
line from red to black.
The steel plant, which is an integral part of Steel Authority of India Limited, had
earlier enjoyed the reputation of being one of the most profitable plants of the
company. It even had the distinction of enjoying uninterrupted net profit from 1984-85
to 1994-95. However due to various reasons, both internal and external, the plant
began to incur losses from the year 1995-96. While the external factors consisted of
overcapacity in domestic market, steep decline in steel prices and a recession in steel
industry worldwide, the internal conditions included poor capacity utilization in the
modernized units and existing units, leading to high costs, poor health of equipment,
frequent work interruptions due to mal-operations, breakdowns and fires, adverse
techno-economics indices, low level of employee morale, little or no respect for
Rourkela Steel Plant and a conspicuous absence of leadership. The situation at
Rourkela Steel Plant got worse each year but just when things seemed to be getting out
of hand, change in the leadership took place with the arrival of Dr. Sanak Mishra, who
took over as the Chief Executive towards the end of first half of the year 2001.
In around four year’s time, under the visionary leadership of its Chief Executive,
Rourkela Steel Plant has achieved one of the most dramatic turnaround in Indian
Corporate History. The Steel Plant which was on the verge of oblivion in 2001-02, is
now firmly on path of profitability and prosperity. While the steel plant has completed
a spectacular turnaround in financial terms by not only making a net profit during
2004-05 which is several times the sum total of profits earned by it since inception,

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what is more important is that a transformation has taken place in RSP and this
transformation has begun to embrace every aspect of working.






Initiation of the Turnaround Strategy (2001-2002)
Regenerating Strength with People

The new Chief Executive began in a unique way with some unprecedented steps. He
took up the challenge of pioneering a change intervention to revive and transform
Rourkela Steel Plant from a loss making to a “PROFITABLE HARMONIOUS AND
VIBRANT ORGANISATION”. He constructed a programme spread over a three-year
period to achieve this objective.
‘Regenerating Strength with People’ was a people-centered transformation
programme. It emerged out of the Chief Executive’s firm conviction that people
constitute the most powerful force in moving an organization forward, even when the
organization is highly technology centered.
A simple strategy called ‘profit-related performance’ was adopted as the single
most important objective of the Plant. This was reinforced repeatedly so that the
employees could internalize the message and reflected in their efforts for the overall
performance of the Plant. The employees had to understand one fundamental thing,
that is, the most critical inputs for performance of the plant. The employees had to
understand one fundamental thing, that is, the most critical inputs for performance and
progress had to come from internal actions by the employees themselves- mostly
physical activities. It was to be emphasized to the employees that if RSP was to earn
even positive gross margin to start with, then physical performance was essential.

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There was absolutely no substitute for PERFORMANCE since the “future of Rourkela
Steel Plant depended upon internal physical actions.”
The Chief Executive set the programme in motion by setting the ten priorities,
which were:

Employees Motivation and Employees Pride
Leadership Practices
Environmental Relations and Organizational Change
Plant Maintenance and Equipment Health
Small Investment Schemes for Maintaining Current Operations
Sustained Operation and Consistent Production
Strengthening Secondary Streams of Cash Generation
Operational and Purchase Cost Reduction
Sustaining the Benefits of Operation Vijay
Enhancing Gross Margin and Net Sales Realization

To drive the implementation process, a Strategy Team (headed by the Chief Executive
himself) and Crack Teams were also formed to look into specific issues.
The earliest preparation for the transformation of Rourkela Steel Plant finds
expression in the Managing Director’s novel initiative of moving out of his office to
REACH OUT to people by visiting employees on the shop floor, right at their place of
work. The purpose of these visits was to communicate the priorities before the
organization while also understanding the needs of the employees. The employees
were encouraged to speak about their contribution to the department’s performance,
their hopes and aspirations. In a month and half or so, the Chief Executive had
traveled across the length and breadth of the steel plant interacting individually with
several hundred employees- something that no Chief Executive had ever attempted.
The climate of cordiality and informality could magnetize the people towards the
Leader and generated a strong sense of commitment among the employees to

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participate in the change process. At each shop floor, the common refrain was…” Give
us a challenge and see how we perform.. Give us proper input material and we will
give you production…Give us spares we want to give you reliable equipment…” in an
overwhelming atmosphere, people listened to that message of their Managing
Director.” Everyone here must do what he or she is supposed to do. We can move
forward only by carrying out internal actions by ourselves; no one from outside is
going to do it for us. It is, therefore, important that each one of us must do what we
promise to do and what is expected from us by our Plant.”
This built a general consensus that the whole collective needed to work
together if the plant was to build a future for itself. With these initial preparations, the
Managing Director took the next step of conducting a series of carefully structured
interactive workshops for implementing the change initiatives. These workshops were
unique in their approach. These were not mere communication exercises. On the other
hand these were “commitment centered exercises with the people who made
production happen and who made production happen and who could open up before
the Chief Executive with all their frankness in their eagerness to contribute in their
area of work. Day by day, these workshops grew more vibrant and helped
participation of each and every employee in the process of taking Rourkela Steel Plant
forward. It was remarkable in corporate history that workshops were planned to cover
the entire workforce numbering nearly 26000 employees. These workshops were as
follows:


Workshops for Sharing Concern
This was the vital process for survival. This exercise ensured that employees were
updated with the financial results of the plant and sensitized towards the implications
of the specific activities that caused loss of revenue/cash. The grass root level workers
whose contributions had direct impact upon the performance of the Plant for
revenue/cash earnings were targeted for this information sharing exercise. Each

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workshop covered a cross-section of about 100 key workers from a major process
department or zone of departments. The participants belonged to core operation and
maintenance activities of a department besides persons from allied service
departments and support functions like Materials, Personnel, and Finance etc. While
workers constituted 70% of the participants, others included executives involved in
monitoring the jobs and allied departments. Senior executives from the concerned
zones also participated in the workshops. The Managing Director himself was present
in each and every workshop to extend guidance and support.
In each workshop, a detailed presentation was made on the revenue/ cash aspects
relating to the Plant and shop-specific parameters. Besides highlighting the relevant
data on the financial results of the Plant (Gross Margin, Cash Profit and Loss etc.),
insight was also provided into the monetary loss involved in techno-economic factors,
lower Net Sales Realization for the specific products, shortfalls of performance in
individual shops such as delay in production, downtime and other adverse trends in
various related indices of performance. During the interactions after the presentation,
participants were encouraged to come forward and suggest improvements in their
areas of working, by their own actions, for arresting revenue and cash loss.

Internal Customer- Supplier Workshops
This was another unique exercise to bring together inter- related departments on a
single platform. The purpose was to bring about better inter departmental co-
ordination and sort out various internal customers problems. Here the employees of a
particular department discussed their requirements with their upstream and lateral
supplier departments and explored solutions for implementing to fulfill the
department’s and explored solutions for implementation to fulfil the department’s
targets and priorities. For example, a customer- supplier exchange of views was
arranged between Blast Furnaces with employees groups from supplier departments
like Coke Ovens, Sinter Plant, Ore Bedding & Blending Plant for emphasizing the
importance of the right quality, quantity and timely supply of Coke, Sinter, sized Ore

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etc. Similar interface was organized in the finishing mills area for the Silicon Steel
Mill with its supplier departments like Hot Strip Mill and Roll Shop. This type of
intervention helped in providing a common platform for the inter-departmental
agencies to mutually appreciate each other’s requirements and constraints. The
priorities were to be addressed not by cohesive teams sharing the vision of the total
Plant as a whole.

Issue Focussed Participative Workshops

Surprises like maloperations, breakdowns and fires had become a major problem
hindering the continuity of operations and there was increasing evidence of the agony
of the employees in such situations. To overcome these stumbling blocks, specific
issue-focussed interactions were also initiated and a new pattern was adopted in these
interactions. For instance, the common issue of maloperation in equipment/machines
was taken up and a workshop was first arranged for focusing the particular issue
before a combined group of participants from different individual departments, which
had sustained dislocation due to critical incidents of maloperation. The affected groups
themselves presented specific case studies of maloperation, and deliberations were
held to analyse the underlying causes and identify preventive measures. The learning
points from the critical incidents were shared for pre-empting similar dislocation in
future. A series of subsequent rounds of interactions were launched at departmental
venues, in which incidents of maloperation the concerned operating groups analyzed
relating to the particular shops. Besides enabling employees to take necessary
precautions for improving their operational efficiency, these interactions could also
strengthen their sense of ownership and accountability for performance. Special
problem solving workshops were organized to focus on various issues that were
critical to the Plant’s performance. Burning issues such as inconsistency in the supply
of 100% screened ore from OBBP to Blast Furnaces, reorganizing maintenance
support to production units by Centralised Maintenance Departments, increasing

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converter lining life, or the issue of loading of HR Coils etc. were effectively
addressed in these multi-disciplinary forums. Moreover, the interfacing of employees
directly connected to the critical issue created a feeling of importance of different
departments and their contribution to Total Performance. The synergy of collective
problem solving stimulated by the interactions could be seen to give results, which is
hitherto could not have been imagined.


Bringing Closeness

These different interactive workshops ultimate had one aim. Managing Director put
it in a powerful communication: “The future of our steel plant lies entirely in our own
hands, that is, in the hands of the nearly 24000 employees of Rourkela Steel Plant. If
the steel plant does not have a future, then none of us here including our family
members have any future either. We therefore, have to work together like the members
of one family- the RSP family- to take the steel plant forward.
The Chief Executive aimed at creating an ambience that would generate an urge
among the employees to work together and realize the pleasure of working together.
He succeeded in reducing the distance between the minds of employees, by bringing
them together on a single platform with the common goal of taking Rourkela Steel
Plant forward. In the words,” bringing closeness” among the employee.

Implementing Of The Turnaround Strategy (2002-03)

Dealing with Survival & Security for the Future

The first year of the three-year project of the Managing Director generated a newfound
confidence among the collective in the plant. For the first time they were able to see in
themselves the ability to fight odds and come out on top- entirely by adopting internal

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actions directed to achieve a defined result. In all the workshops, there was one thing
in common- Employees were keen to be apart of he total process. They yearned to
know where the organization is heading and how they could be an integral part of the
total effort. Each one wanted to contribute meaningfully and everyone wanted to be a
part of that magical term called ACCOMPLISHMENT. In fact it was the Managing
Director, who in one of his earlier interactions had said,
“If we want RSP to move forward, we all have to work a lot harder than what we have
been doing. It may be difficult and inconvenient for many of us- I cannot do anything
about that. But the one thing I can assure you at the end of the effort is a sense of
ACCOMPLISHMENT which will be something you can all be proud of.”
Encouraged by the performance during the financial year 2001-02, the RSP
collective took up the challenge to sustain the momentum and target still higher levels
of production. The strategy was three prolonged i.e. maximize the volume production,
cut down cost, minimize waste and retain market share of products through improved
quality. Another major strategic decision was to produce only against firm orders. The
steel plant thus targeted 1.8 MT of Hot Metal, 1.670 MT of Continuous Cast Slabs,
1.440 MT of HR Coil and 1.671 MT of Saleable Steel indicating ambitious growth
rates of 22.7%, 26.4%,26.4% and22.1% respectively with reflected mood of the
collective.




The Mass Contact Exercise
It was in this backdrop that the Managing Director commenced an exercise that has
never been witnessed in the Corporate History anywhere in the world. It was just the
evidence that had expected considering his absolutely unambiguous belief in the
power of employees to take an Organization forward.

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As the financial year 2002-03 unfolded, Managing Director began a unique and
unprecedented programme, which was called the Mass Contact Exercise. This type of
interaction was to synergize people towards taking upon stretched goals through a
collective resolve. A series of Mass Contact Exercises were initiated commencing on
19th April 2002 with the periodicity of two workshops a week on a fixed day. The
purpose of this massive interaction was to facilitate a convergence of around 500
employees in each workshop and generating discussion aimed at eliciting individual
commitments for ensuring the “Survival and Future of RSP.” A few of these exercises
were held even during the night shift duty between 11 pm an d 1 am, which was
visible demonstration of seriousness of purpose.
The sessions were steered by Managing Director along with Executive Director
(Works). Each session began with the MD’s opening remarks highlighting the issues
and priorities critical to the survival and future of the Plant. He identified some of the
main obstacles to RSP’s progress. The high interest and depreciation burden arising
out of modernization which was getting compounded because of failure to achieve
capacity utilization which was getting compounded because of failure to achieve
capacity utilization in modernization units and other units as well. Poor performance
in Techno-economic parameters, which had an influence on financial performance.
Low quality maintenance of equipments, which led to frequent breakdowns and thus
low production Surprises in the form of maloperation, equipment failures, accidents
and fires. He constantly emphasized that only these were taken out of the way, no one
family and help each other. He pointed out that it is not the MD or the ED (Works)
who can solve problems. They can only show the direction and provide support. Each
department or function has to work towards removing its problem. They can only
show the direction and provide support. Each department or function has to work
towards removing its problem one by one. He also pointed out that there were
departments that had started doing well because they sat together doing well because
they sat together and found out solutions to their problems. One of the most powerful
messages of the MD to each participant was” Remember, our future and the future of

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our family members depend fully on the future of Rourkela Steel Plant. If Rourkela
Steel Plant does not have a future, then none of us sitting here nor our family members
have any future either.”
The employees were thereafter briefed through two presentations. While the
first presentation dwelt
on the performance during the previous fiscal and the strategies adopted for
achieving the growth plan for 2002-03, the second presentation focused on the techno-
economic factors and financial impact of actions such as shift change delays, losses
per hour of production disruption for whatever reasons , losses due to accidents &
maloperation etc. Following the presentation, an interaction session was initiated by
ED(Works) emphasizing the attention that was required to be given by the employees
in the priority areas.
One of the motivating factors in the Mass Contact Exercise was the
leadership provided by Managing Director in each of these sessions. He was present
all through, setting the tone right in the beginning, listening carefully to each
employee who spoke, and channelising the suggestions of the employees to the Plant’s
requirement of achieving profitability. It was thus possible to bring about a climate of
trust and togetherness, which is essential for energizing an organization. Employees
stood up to reinforce their identification with the plant. Many of them committed to go
back and never do any thing that will hurt the plant. Statements like “I am and will
always remain indebted to RSP for my livelihood, for providing me bread and butter
and for helping me raise my children,” came from one of the employees, and “Every
hour, every minute and every second I shall try my best to do something good for the
Plant…” was how another employee put it in the Mass Contact Exercise. Many other
employees spoke similarly indicating their love for Rourkela Steel Plant. Other reacted
by declaring that this situation of poor performance cannot be allowed to continue and
has to stop. Employees resolved that they would go back to the stop. Employees
resolved that they would go back to the shop floor and do whatever is required to
make the steel plant perform at its best. Grievances turned into suggestions, blaming

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turned into introspection and there was eagerness among employees do those things
that would show them in better light in the presentations. Every employee could
become aware of the challenges before RSP and the significance of his or her
individual contribution.
A unique feature of the Mass Contract Exercise was the reaffirming of the collective
commitment through a formal pledge, which was adopted on the suggestion of the
suggestion of the employees themselves. This pledge was,” We the employees of the
Rourkela Steel Plant commit ourselves to work together like the members of a family
for the survival, and for its growth and prosperity”
What was more important is that the suggestions of the employees for improvement
were take up for implementing by a system of follow up. In many cases the employees
were called and spoken to for encouragement in what they were doing to bring in
improvements. In this programme, which has no precedent in corporate history, 57
sessions were held during April 2002 to March 2003 where more than 23000
employees participated to reaffirm their commitment to the Survival and Future of
Rourkela Steel Plant. The result was the formulation of Mission Statement of the steel
plant, which says:
The future of our Steel Plant lies in our own hands. It is our individual and collective
responsibility to rebuild our Plant into a profitable, harmonious and vibrant
organisaton. We will do what things are necessary which are good for our plant. We
shall never do anything that hurts our Plant.

Workshops for Improving Departmental Performance
Concerning the ambitious growth rates envisaged in the performance plans, it was
important that every department worked at its peak. Keeping this in mind, Managing
Director initiated another intervention for gearing up the performance of individual;
department in order to achieve RSP’s growth plan for 2002-03. For each of the key
departments, a series of workshops was held at weekly intervals. The participants
consisted of 70 non-executives and 30 executives. While the non-executives came

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from all the sections of the departments. Besides this Heads of the Departments and
representatives of support service departments also participated.
In each workshop, Managing Director himself set the tone at the start. The objective of
these workshops was to understand the targets, i.e., the level of operation required to
achieve the targets. The main task was to identify the critical factors that could come
in the way of achievement and to present the plan to overcome these critical factors.
The unique thing was that in most departments, the presentation was worked out
jointly by the managers and worked out.
This intervention created an entirely new ownership of targets and an unbelievable
commitment to enhancing performance. The progress of action was reviewed in the
workshops arranged during the succeeding weeks and this interactive process was
continued up to the stage of achieving the desired level of performance. The key
departments for which these workshops was held were Coke Ovens, Blast Furnaces,
Steel Melting Shops-I&II Cold Rolling Mill, Captive Power Plant and Refractories.
About 70 sessions were held as a part of this exercise.
Apart from this, Managing Director took a special intervention for Ore
Bedding & Blending Plant and Traffic & Raw Materials department to highlight the
importance of team working and introduction of productive practices because of the
importance of team working and introduction of productive practices because of the
importance of these two support departments for RSP’s growth plan. The initial
workshops were steered by Managing Director himself. Subsequently, weekly
workshops were held at the level of Head of Department where all employees were
covered.

Over Intervention
There are certain sections of employees who have a different identify at a point of
time. These are the new Management Trainees; newly promoted functional executives,
front line executives etc. MD held separate interactions with each other of these
categories as well. While spelling out the priorities of the organization, MD went on to

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carefully explain the kind of special role these people can play to achieve RSP’s plans
during the year and the specific expectation from them. While the young management
trainees had a first hand opportunity to meet the Leader to understand the real
challenges before the organization, the front line as well a functional executives were
impressed with how they could utilize their experience to act as catalyst in the process
of transformation.


Consolidating the grains
Rourkela Steel Plant ended the fiscal on a promising note registering its best-ever
annual performance since inception in all aspects of its working. While the production
surpassed all earlier levels of performance, despatches to the market also attained new
peaks eclipsing earlier mark.
Production of major items continued to grow at unprecedented rates for the second
year in succession. In 2002-03 production of Hot Metal at 1.645 MT(12.2%), Total
Continuous Cast Slabs at 1.475 MT(10.6%), Total Hot Rolled Coils at 1.287
MT(15.2%) and Total Saleable Steel at 1.563 MT(12.8%) surpassed all past
performance levels. It was now for the second year in a succession that RSP had
recorded the best growth rates for major items among all SAIL plants. It was a matter
of great significance that all modernized units operated at 100% or more capacity
utilization during the second half of fiscal.
While increasing volumes, RSP continued to focus on value added products like
plates from Plate Mills, CR sheets & coils, HR coils, tin plates and CRNO steel,
keeping market demand in view for ultimately achieving profitability. A noteworthy
point was that RSP not only produced but also despatched more than 1.5 MT of
saleable steel to the market.
Another important aspect of RSP’s efforts to enhance its profitability
was through cost reduction efforts and improving techno-economic parameters. The
steel plant was able to achieve a massive Rs.118 crore savings through various cost

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control projects taken up during the year. Lowest ever coke rate and lowest ever
energy consumption since inception was achieved with improvement of 5.5% and 5%
in the respective areas. The Plant was also able to achieve process cost reduction by
substantial improvement in the lining life of LD Converters in SMS-I and SMS-II.
In the first year of the turnaround story strategy RSP had steadily progressed to the
level of earning Profit Before Depreciation Interest and Taxes(PBIT) for the year
2002-03 while earning cash profit for the quarter of the fiscal(January-March 2003).
The steel plant was thus able to come back to this elevated level after a gap of seven
years having last earned cash profit in January 1996. THE MOOD IN THE RSP C
OLLECTIVE WAS UPBEAT AND BASED ON THIS MOOD THE STEEL PLANT
TOOK UP FURTHER CHALLENGES FOR THE YEAR 2003-04.


Implementing Of The Turnaround Strategy (2003-04)

Graduating to a Path of Profitability & Prosperity
The year 2003-04, the third year of effort by Managing Director, was a crucial one.
The high growth rates achieved during the earlier years had to be sustained.
After having PBDIT for the year 2002-03 and earning Cash Profit during the last
quarter of that fiscal the steel pant had to exert itself that much extra to not only
sustain the present production levels but on it further and move further ahead. The
steel plant had to now enter the domain of Net Profit. The emphasis once again was
to sustain the increased volumes of production with a view to bring down cost of
production and at the same time produce more of high value added products only
against market demand.

A Change of Theme in the Mass Contact Exercise

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The Mass Contact Exercises resumed on the 9th of the April with the commencement
of the new financial year. But this time, it was launched with the theme “Profitability
And Prosperity of Rourkela Steel Plant”. In his opening remarks, Managing Director
made some points very clear. The success of Rourkela Steel Plant during the
preceding months and earning of Cash Profit had been possible largely due to the
untiring efforts of the employees and especially because the employees had
internalized one major thing. That was “if Rourkela Steel Plant did not have a future
then none of the employees including their family members had any future either.”
The employees had now begun to work in the Plant like the members of a family- the
Plant like the members of a family –the RSP family, which was a good sign for the
steel plant. The collective had also established that the steel plant was capable of
producing at its capacity as proved in the performance of the modernized units
working at more than 100% capacity utilization. MD also pointed out that there were
several occasions during the previous year when the Plant could have gone into the net
profit mode but for work stoppages, breakdowns, maloperation etc. which led to lost
opportunities. He described the day when there was a work stoppage, breakdown or
accident as a BLACK DAY. A good day is when the steel plant is able to avoid all
these incidents and produce 5000 tonnes of Hot Metal, Crude Steel, Hot Rolling,
Saleable Steel and Despatch 5000 tonnes of Saleable Steel as well.” Let us make every
effort to make every day a Good Day and eliminate the Bad Days completely,” he
repeated each time.
If there was one thing that revolutionized the minds of the employees, in the crucial
third year, it was the concept of SAMSKAR adopted by the Managing Director.
SAMSKAR, imbibed from Vedic philosophy was a process of Reforms. It said,” We
have to create and sustain a peaceful work environment where every employee can
contribute to the plant in assigned area of work with full freedom and dignity and
without fear.”

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This became the guiding principle for the RSP collective. It also revealed a deep
commitment of Managing Director to creating an ambience in the works area that
would give employees the things they value most as human beings.
Each Mass Contact Exercise continued to be steered by Managing Director himself
where he spelt out the priorities before the organization and the important issues that
was pulling back the steel plant in its endeavour to become a profitable plant. The first
and foremost priority was safety. He repeated each time that “We must value human
life-our own and that of others who work with us. Accidents cause maximum loss to
the individual employees, their family members and the Plant also suffers. Our
Profitability and Prosperity would mean nothing if an employee lost his life in the
process. We must, therefore, be alert and pay maximum attention to safety. We simply
cannot afford to run a process if there is a safety risk to our colleagues.” To make
Rourkela Steel Plant a safe place, it was essential that all employees pay attention to
house keeping because the two went hand in hand. Then for sustaining high levels of
operations the equipments had to continue to operate day in and day out. He
emphasized the importance of Cost of Production as making the crucial difference in
profitability. He praised the employees for enabling a reduction of cost of production
by sheer volume of production. He reminded them that efficiency in using resources
had to improve to make the steel plant cost effective. He highlighted the cost of inputs
like Coke,
Energy consumption cost of Refractories and several other inputs whose economy
would improve competitiveness in the market.
MD’s opening remarks were followed by two presentations. The first one focused on
the achievements of the previous year. Then the performance against targets for the
current year was discussed describing details of the factors that came in the way of
achieving them highlighting every incident and event. Comparisons with the
performance of the sister plants was also made to generate benchmarks to be reached
by RSP. The second presentation revealed the losses arising out of actions and
activities of the collective and the monetary loss caused to the steel plan due to shift-

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change delay, keeping equipment idle for an hour and due to adverse techno-economic
factors. The second presentation also showed the direct relationship also showed the
direct relationship between the plant’s performance and the earning potential of
employees thereby enabling the employees to understand the established the truth that
the employees prosper when the plant performs. MD put it very appropriately by
saying “We want profitability for Rourkela Steel Plant and Prosperity for its
Employees.” He went to introduce an adhoc motivation scheme called 100% Plus
where the employees of a department achieving 100% capacity could earn Rs.100
each and for each additional 2% an additional Rs. 50 for each employee.
The atmosphere is the Mass Contact exercise was changing from anxiety to
excitement. Employees came forward to express their achievements and commitment
to achieve more. There were occasions when employees did not speak because of their
feeling of a strong sense of failure for not having achieved targets. The Samaskar
statement became internalized and many employees openly declared their sense of
pride to belong declared their sense of pride to belong to a work culture where the
dignity of the human being stood high. Besides suggesting ways and means to achieve
the goal of profitability and prosperity, employees called upon the MD to introduce
steps that would ensure their dignity at work and an atmosphere that could help them
to carry on with the job of uninterrupted production without fear from any source.
They also pointed out that certain facilities like proper public convenience buildings
and canteens could help employees save time. These suggestions were taken up by
Managing Director and shall be described in detail a little later.



Leadership Practice
The most novel initiative of MD was the introduction of a programme called
Leadership Practice. It was one of the ten priorities identified by MD in 2001 as an
area of concern because there had been total absence of leadership throughout the

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Plant. As the Steel Plant was recovering from the brink of disaster through a
movement involving employees it was essential that a system be put in place to keep t
the direction of change in line with the long term objective of building and sustaining
a Profitable, Harmonious and Vibrant Rourkela Steel Plant. The one certain method of
doing this was to establish Leadership at every level in the Organization. In order to
channelise the latent potential of employees were provided with empowerment and
enabled to practice leadership at all levels. By way of inculcating this approach as a
way of work life at RSP, MD conceived SAMSKAR and articulated it as the most
suited formula of work ethos of RSP.
Originally addressed to the shift-in charges, it was later extended to Senior and
Middle level Executives. Seeing its effectiveness, non-executive shift-incharges were
also added as participants.

Each session was of three hours duration with the Managing Director himself as the
lead faculty for a group of 40 participants. The session was structured in three parts:
Inputs by MD on the concept of Leadership as required in specific context of RSP
Presentation by a team of executives on Production Plan & Production Mix for
Profitability of RSP as well as five important dimensions of leadership relevant to
RSP
Interaction session consisting of suggestion and commitment of the participants on
discharging Leadership role to meet challenges


Explaining Leadership as a contextual concept, MD called upon the participants to
understand that Leadership at RSP has to be developed to make the Steel Plant a
Profitable, Harmonious and Vibrant one. Through his own concept of the Materialistic
and Metaphysical Powerhouses he opened up the possibilities to the participants to
exploit their own latent strength and abilities. Through these sessions MD has driven a

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process of change by identifying, supporting and nurturing everyday Leaders who will
provide long-term strength to the organization.

The FIVE dimension of Leadership emphasized by MD include:
· Leaders have to create and sustain a peaceful work environment where every
employee can contribute to plant in assigned area of work, with full freedom
and dignity and without fear.
· Leaders must empower the people who work with them or follow them.
Empowerment is the freedom to do what one is supposed to do. Empowerment
is not the freedom to choose what to do.
· Leaders must persuade people to attach the highest value to human life, and
therefore, safety must be most important consideration in all spheres of
activity.
· Leaders must teach and guide people to treat the equipment and machinery
with utmost care and maintain them to full potential.
· Leaders must convince people to work together like a family, keeping in mind
the interests and goals of the steel plant.
In about 15 sessions held at the HRD Centre, more than 500 participants right from
non-executive shift incharges to the level of General Managers and Executive
Directors participated.

Performance Improvement Workshops
These were directed at improving the performance of the key operation departments
whose performance was critical to the RSP’s ultimate Profitability

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Increased importance given to Service Support Facilities



ENERGY MANAGEMENT


Energy Management Department in Rourkela Steel Plant is primarily responsible for
meeting the fuel/ energy requirements of all the consuming units both qualitatively
and quantitatively, while keeping the energy cost at the minimum possible level. In
order to meet the above objective, the department performs the following functions:

Planning the fuel requirements and gas / utility balances as per the production plan and
consumption norms decided jointly with the consuming departments. Fuel includes
Coke Oven Gas, Blast Furnace Gas, Converter Gas and Mixed Gas while utilities
include steam, oxygen, nitrogen, argon and synthesis gas.
Monitoring of the optimum availability and distribution of fuel gases and utilities on
round the clock basis from Energy Centre.
Preparation of daily, monthly, annual gas / utility balances, specific Energy
consumption and cost reports. Analysis of deviation and taking up with the concerned
agencies.
Energy conservation activities in all the energy consuming units to ensure efficient
utilisation of energy. This includes maintaining of operational parameters, combustion
control, condition of fuel/ energy consuming equipment, status of instrumentation and
control system and inspection/ follow up for rectification of leakages.

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For ensuring gas safe operation in the plant gas/ oxygen/ explosive mixture testing is
done for all protocol/ non-protocol jobs as per requirement. Also gas safety equipment
like masks, carbon monoxide and oxygen monitor and breathing apparatus etc. are
maintained in proper condition.
Maintenance of the yard utility grid to ensure uninterrupted supply of fuel gases/
utilities to the consumers besides day to day maintenance jobs. This involves repair/
replacement activities as per requirement.
Involvement and participation in all the projects as per vision 2012 and under AMR
and other schemes, to ensure adoption of energy efficient technologies and proper
integration of the individual unit gas/ utility pipe lines with the main grid.

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SAFETY ENGINEERING


Iron and Steel production being a complex and hazardous activity, SAIL recognizes its
moral, economic and legal obligations to prevent hazards, provide healthy working
environment and guard against all foreseeable risks. The management of SAIL
recognizes its obligation to endeavour to progressively identify, control and eliminate
all hazards and conditions which present risk to employees and / or possible damage
and loss to the plant and equipment including products.

Safety Engineering department of Rourkela Steel plant is a technical wing with a multi
disciplinary team discharging all the above functions. It has been the constant
endeavour of the department over the past 40 years to create a hazard free, safe
environment for the employees of Rourkela. Towards this end the department has been
carrying out the following major functions:

Safety training to all levels of the employees including Contractor labour.

Periodic inspection of equipment, work methods and the environment.

Identification of hazards and taking steps for their elimination.

Facilitate procurement of personal protective equipment as required for various jobs,
prepare norms of issuing the same and enforce its use by the employees.

Creating awareness of employees through visuals like hoardings, posters, film shows,
printed handouts, bulletins, safety campaigns, various competitions etc.

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Publishing safety rule books for various departments, printing permit to work. Holding
protocol meeting for major shutdown and other hazardous jobs.

Encouraging joint participation in the field of safety through the Central Safety
Committee (at the apex level) and the safety committee of departments (headed by
General Managers). Monitoring implementation of the recommendations of these
committees.

Briefing the contractors on the hazards inherent in their area of work and the safety
requirements for their jobs before start of the job. Day-to-day monitoring of the work
of contractors and ensure penalty to defaulting contractors.

Conducting Safety Audits by internal as well as external teams and taking necessary
actions to liquidate the deficiencies noted.

Working in close liaison with Environmental Engineering Department and
Occupational Health Centre to promote a clean, healthy and safe environment.

Monitoring compliance of the various provisions relating safety as numerated in the
Factories Act, 1948.

Maintaining constant liaison with the various statutory authorities like the Director of
Factories, Inspector of Factories & Boilers, various Labour Institutes.

RSP has won several National Safety Awards for its exemplary performance. RSP
won Steel Minister’s Safety Shields for best performance and RSP also won many
awards from the State Government and the Standing Committee on Safety in the Steel
Industry.

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RRoouurrkkeellaa SStteeeell PPllaanntt tthhuuss,, iiss ccoommmmiitttteedd ttoo::
The safety of its employees and the people associated with it including those living in
its neighbourhood.
Pursue the safety efforts in a sustained and consistent way by establishing safety goals,
demanding accountability for safety performance and providing the resources to make
safety programme work.

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ENVIRONMENTAL ENGINEERING


Rourkela Steel Plant has established a full-fledged Environmental Engineering
Department with latest monitoring and analysis facilities during early nineties. The
Environmental Engineering Laboratory which is attached to this department has got
recognition from Central Pollution Board.
Responsible for:
Monitoring and analysis of various pollutants of Air, Water and Wastes.
Inspection and evaluation of efficiency of various pollution control equipment
installed in different departments.
Coordination with respective departments for implementation of statutory regulations.
Coordination with State Pollution Control Board, Central Pollution Control Board,
Ministry of Environment and Forests and other Government agencies and bodies for
implementation of various statutory rules and other regulations.

The quality of waste water generated at different sources is regularly monitored by
collecting samples from 50+ locations throughout the plant including the final
discharge of effluent from Lagoon to River Brahmani. Any deviation from the norm is
analysed for taking corrective actions.

The stack emissions from 20+ number of active stacks are regularly monitored for
Dust emissions (SPM) into environment. The efficiency of air pollution control
equipment like Electro Static Precipitators, Bag houses etc. are also monitored
regularly for suggesting corrective actions. Environmental Engineering Department
has installed online stack monitors at 15 numbers of stacks which is first time in
Indian Steel Industries.

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This department is regularly monitoring ambient air quality at six number of ambient
air quality monitoring stations which are at OBBP administration building, EED
building, RDCIS building, PMPH building, BOD plant building & Fertiliser Lab
building. This department has established an automatic ambient air quality monitoring
station at Indo-German club which is first time in Indian Steel Industries. It
continuously monitors the levels of suspended particulate matter, respirable dust,
Sulphur Dioxide, Oxides of Nitrogen, Carbon Monoxide, Hydrocarbons & Methane.
The pollutant levels are displayed on a bill board continuously at IG club and the data
is downloaded regularly from the central station installed at Environmental
Engineering Department.

Environmental Engineering Department has taken up a massive drive in identification
of alternative uses for different solid wastes through out the plant for making them as
byproducts. The utilisation of solid waste has greatly improved due to adoption of 4 R
principle (Reduce, Recycle, Reuse & Recover).

The inventorisation of hazardous wastes in Rourkela Steel Plant is conducted by
Environmental Engineering Department along with State Pollution Control Board and
got authorisation from State Pollution Control Board for handling and management of
25 numbers of Hazardous Wastes which is the highest among all Indian steel plants.

Environment Information Management System (EIMS) which is a unique online
software system developed on Oracle 9I platform using optical fiber network by
Rourkela Steel Plant, first of its kind in Indian Steel Industries to strengthen the
pollution control facilities by online monitoring of various pollutants and giving first
hand information to Management for taking corrective actions.

A road map identifying new pollution control projects and strengthening of existing
pollution control projects is prepared, to meet the future requirement in view of

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stringent statutory requirements and commitments given under Corporate
Responsibility for Environment Protection (CREP).

Execution of projects under Clean Development Mechanism (CDM), replacement of
Ozone Depleting Substances (ODS) with non ozone depleting substances, finding
ways and means for abate/reduce fugitive emissions like door and door frame
emissions in coke ovens by using spray materials are other areas where Environmental
Engineering Department is actively involved.

The Environmental Engineering Laboratory is provided with latest instruments for
analysis of various parameters. The laboratory is equipped with

AAS (Atomic Absorption Spectro
Photometer)
HACH 2001 spectrophotometers
Orion Ion Analyser
BOD(Biochemical Oxygen Demand)
apparatus
BOD incubator
COD(Chemical Oxygen Demand)
reactor
Phenol Distillation Sets
Auto Titrating apparatus
High volume samplers
Respirable dust samplers
Stack monitoring kits
Flue gas analysers
Flow meter for open channel flow
Noise meter

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FIRE SERVICES


The Fire Services Wing of the earstwhile Hindustan Steel Security Force (HSF) was
established under the provision of security scheme, compiled by the security advisor,
HSL. After the induction of CISF, Fire Service was made a separate department.

OObbjjeeccttiivvee::
To prevent fire from starting
To prevent loss of life and property when fire starts
To confine fire to the place where it started
To extinguish fire

MMoottttoo:: ““WWee sseerrvvee ttoo ssaavvee””

Sections: The department organizes itself in to four Strategic wings
Operation wing
Prevention wing
Maintenance wing
Training wing

OOppeerraattiioonn WWiinngg::
The most vital of all the four wings is the operational wing. The prime responsibility
of reducing the response time lies with the operation wing by responding to an
emergency at its earliest. The operation wing’s activities are categorized into (i)
Preparation and (ii) Attack.

PPrreeppaarraattiioonn::

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Fire Service department deploys its Physical human resources at four Fire Stations at
strategic locations of the Plant. The four fire stations are:
(i) Central Fire Station
(ii) Modernization Fire Station
(iii) Fertilizer Fire Station
(iv) CO & CCD Fire Station
These four Fire Stations always remain alert to attend to any exigency round the clock.
AAttttaacckk::
The Central Fire station, which is the nerve center of the Fire Service department, on
receipt of any emergency call, despatches its appliances at it’s earliest. On arrival at
the scene of fire, rescue, special service call, the Officer I/c studies the situation and
plans his strategy of attack. Further assistance of manpower or reinforcement of
additional appliances / equipment is called for interalia VHF or other mode of
communication with the control room. The Operation wing, as a part of its pre-fire
planning, also carries out regular Mock drills and Topography study. The Operation
wing fulfills the mission of Fire Service department.

PPrreevveennttiioonn WWiinngg::
This wing fulfils the first objective of Fire Service to prevent fire from starting. The
major activities of this wing is to plan for scheduled inspection of all hazardous / fire
prone areas, the detection and protection systems, checking of all fire hydrants / fire
extinguishers.

MMaaiinntteennaannccee WWiinngg::
Of all the physical resources, the appliances and equipment used by fire service must
be trouble free at any point of time. The wing does all the in-house maintenance,
preventive maintenance of all the appliances and equipment available with Fire
Service. The list of appliances (vehicles) and equipment available with Fire Service
department are as under:

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Sl. No. Fire Fighting Appliances / equipment Quantity
Foam Tender 06 Nos.
Water Tender 01 No.
Foam-cum-DCP Tender 01 No.
Crash Fire Tender 01 No.
Emergency Tender 01 No.
Towing Tender 02 Nos.
Hydraulic Platform (Snorkel) 01 No.
Jeep 02 Nos.
Portable Pump 07 Nos.
Submersible Pump 03 Nos.
Portable Fire Extinguishers (CO2, DCP & Foam) 3500 Nos.

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TTrraaiinniinngg WWiinngg::
Training wing has to carry out an important task in imparting in-house training to its
new recruits and refresher course for old timers. Both acquiring knowledge and skill,
the training wing is constantly trying to cope up with the needs of the plant employees
in general and Fire Service department in particular. The Fire Control Management
(FCM) programme conducted under the aeges of HRDC department is an unique
venture. With faculty support from Fire Service department added with practical
demonstrations this FCM programme enhances both knowledge and skill of the
participants to greater extent. Specialized training programmes, pertaining to only Fire
Service personnel are also conducted at regular intervals.

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ADDITION MODIFACTION REPLACEMENT PROJECT MONITORING CELL
(AMRPMC)


Functioning of AMRPMC:
AMRPMC is the Nodal Agency for Capital Investment Schemes. The Cell scrutinises
all Capital Investment Schemes, obtains sanction and monitors the progress of the
sanctioned schemes. The methodology adopted is:

Getting Capital Investment Proposals at the beginning of each financial year.
Compile the schemes and obtain funds from Corporate Office.
Prioritise the schemes as per allocation of funds.
Scrutinise each prioritised proposal thread bare and obtain sanction.
Monitor the overall progress of the sanctioned schemes on a quarterly basis.

For prioritised schemes estimated below Rs.10 lakhs the Cell itself scrutinises the
proposal and puts up for sanction. For schemes estimated above Rs.10 lakhs the Cell
puts up the proposals to a duly constituted “Investment Proposal Scrutiny Committee”
for further scrutiny and screening and thereafter puts up to an APEX Committee for
prioritisation. Schemes below Rs.10Lakhs are also put up by AMRPMC to the same
APEX Committee for prioritisation.

AMRPMC is also the convenor of Central Survey Committee which recommends the
“Replacement” of written off assets. AMRPMC usually does not deal with assets of
Administrative Category (such as Furniture, Photocopiers etc.)

Some of the items sanctioned through AMRPMC and seen around us are Mobile
Equipment and Transport Vehicles, Hospital Equipment, Modification of Spill Way of
Mandira Dam, Modification of Hockey Stadium with Synthetic Turf.

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In 2005-06 Rs.50 crores were allocated to RSP from Corporate Office for AMR
Schemes. Awarding of consultancy to Centre for Engineering & Technology (CET)
for any feasibility study is also undertaken by AMRPMC.

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COMPUTER & INFORMATION TECHNOLOGY (C&IT)


In Rourkela Steel Plant, computerization has been used for various activities:
Quicker availability of information for decision making
Cost Reduction & Cost Control
Production, Planning & Control
Stricter Inventory Control.

C&IT is equipped with following equipment:
SUN SS20/712
SUN Enterprise 3000 (E3K)
SUN Hyper Sparc
SUN Blade 2000
SUN Fire 280R (2 Nos.)
SUN Fire 480R (2 Nos.)
SUN 3510 Fiber Storage

Followings are some computer application areas in RSP:
Production, Planning & Control area covering movement plan from CMO, planning,
manufacturing operation, testing & inspection, despatches.
Sales invoicing from DA to accounts receivable
In Finance areas from on-line sectional computerization to profit & loss accounting
including statutory requirements.
In Costing area from monthly cost sheet variance analysis to element wise cost
analysis.
Human Resource Information System covering employees master data, orders,
circulars, computerization of unit personnel offices.

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Employee Services area covering pay slip, PF slip, Income Tax, VRS schemes,
incentive, bonus etc. till trial balance.
CMMS module covering preventive maintenance planning, shop scheduling, FMM
equipment, Cranes, Repair Shop (Electrical).
Materials Management area from cataloging, indent, tender enquiry, order placement,
inspection, receipts, issues, budget control, ABC analysis, lead time analysis & MIS.
Town Services covering quarter allotment to employees & non-employees, shop
allotment, private party billing & revenue collection etc.
Hospital area covering indoor patient registration, non-entitled patient billing &
revenue collection, central medicine store & ward medicine accounting.
Plant Status for MD, EDs, GMs, HoDs and Plant Control.

Process Control Computer Systems in RSP:
A general process control computer system consists of the following levels of
distribution of responsibility, with two-way communication among peer-level as well
as with higher levels:

Level-1 - direct digital control of process using PLC, DCS (Digital Control System)
and Operator HMI (Human Machine Interface)
Level-2 - supervisory control level, for process tracking and optimisation using a
server type of computer and terminals
Level-3 - infra-level coordination computers for production, planning and control
functions
Level-4 - scheduling, decision making, management information level

The Level-2 systems communicate with the process through Level-1 interface called a
gateway. Most of the systems have facility of material tracking and process
monitoring, GUI (Graphical User Interface) based displays, operator data screens, set-
point downloading to Level-1, communication with SUN system and MIS reports.

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Safety features are included in the design using interlocks and power-reboot
procedures. The computer systems which have been implemented in the process areas
of Rourkela Steel Plant are described below:

Sl.
No.
Location Computer System Modules
BF-4 L1: ABIL, L2:
VAX/VMS
Skip charge tracking
Supervisory control for Blast
Furnace
Laboratory Management
SP-II L1: Yokogawa, L2:
VAX/ VKS
Online connection to L1-DCS
for data acquisition
Parameter display and transfer
to Plant-status database
BOF-II Shop L1: ABB, L2:
VAX/VMS
New heat preparation
Process aim calculation
Hot-metal, scrap ordering
Reblow Calculation
Main blow advice
Ladle alloy calculation
End of blow & Feedback
calculation

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Casters
(SMS-I& II)
including
LHF & Argon
rinsing
L1: ABB, L&T, ABIL,
Siemens L2: VAX/
ALPHA/ VMS
Material Tracking
Cut-length optimisation advice
Laboratory Management
Dynamic secondary cooling
control
Machine status tracking
Heat/slab tracking
Reheating
Furnace
(HSM)
L1: Siemens PLC,
Yokogawa DCS, L2:
VAX/VMS
Slab arrival
Slab line-up
Process tracking
Thermal tracking
Zone-wise set point
downloading
Rolling programme
Pacing control
In-process weighing
HSM:
Roughing,
Coil box,
AGC, Speed
Control,
Coiler
Controls,
Coiler
Conveyor
L1: Siemens Simadyn-D,
R-30, PLC, MMC-216,
HMI: SIFLEX, Win CC
Automatic mill pass-R0
Process tracking
Looper Control
Gauge Control
Speed Control
Communication among L1
Coil shape control
Process synchronisation

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ERWPP L1: ABIL PLC,
L2: Windows 2000
Planning
Pipe tracking
Product analysis
Pipe testing & inspection
Despatches
Energy
Management
L1: ADAM signal I/O
L2: Windows-2000, FIX
Data acquisition
Analysis Management
Alarm Management
Online Mixed Gas CV
Gas balancing
Mimics and trend graph
Supervisory
Load Control
Centre
L1: ECIL-RTU
L2: Windows-NT, SCO-
Unix
Data acquisition
Alarm Management
Area-wise energy balancing
Mimics and trend graph
Connectivity with Eastern Grid
Environment
Functions
Online data acquisition from
field instruments
User interface system for
parameter monitoring
Periodic area-wise reporting to
Management & Statutory bodies

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Weigh
Bridges
L1: Digital weight
indicators: Philips,
Avery, Sanmar, Ashbee,
Weitex
L2: Windows-XP, DOS
Online communication with
Digital-Weight Indicator for
weight
Communication with central
database server
Logic for net weight calculation
and screens for operator
interface

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MATERIALS MANAGEMENT

Materials Management (MM) department ensures availability of input materials to
consuming departments of Rourkela Steel Plant at right time, right quality, right
quantity and right price. It also ensures customer satisfaction and supply chain
management. The important functions under MM department are as follows:


Peripheral Industries & Vendor Development (PIVD):
This section of MM is the central agency for registration of vendors.
For established/ reputed vendors, deemed registration is processed considering the
firm©s market structure.
Important functions include maximisation of reservation of items for local Small Scale
Industries (SSI) and facilitating increase in the order booking value on Local SSI, for
development of SSI in Orissa.
Liaison with District Industries Centre for resolving issues of Local SSI with RSP.

Stock Control:
This is MM©s material planning agency for processing indents for multi-user
Automatic Procurement items (consumables as well as spares) based on previous
consumption norms and procurement policy and specific projected requirements of
user departments.
Stock Control monitors the safety stock of critical multi user items and issues
materials to user departments.
Activities include allotment of catalogue numbers for consumables.
Stock Control is the nodal agency for Indent Scrutiny Committee for consumables.

Standardisation & Rationalisation Group (SRG):

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This is RSP©s central spare and consumables catalogue specification clearance agency.
All transactions of this section are on-line in Integrated Materials Management System
(IMMS) and SRG operates on paperless office concept.
SRG is responsible for specification standardisation in order to reduce the total
number of catalogue numbers of RSP by reducing duplicate catalogue specification
generation.

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Purchase:
The broad function of the department is to process order placement against revenue
procurement indents received from user departments and to follow-up for receipt of
material.
Purchase sections are organised in purchase groups for
General Purchase
Spares
Refractories
Rolls
Minor Raw Material (MRM)
Import
Repair Job Contract(RJC)
Ispat General Hospita (lIGH)

Activities in purchase are to obtain quotations from registered vendors, examine and
negotiate commercial parameters of quotations, negotiate by formation of Tender
Committee for price (where required) obtain approval & concurrence of Finance for
order placement and follow-up for execution of order.
Emphasis is being placed by Purchase for maximisation of long term rate contracts
with price variation clause, open/ global tendering & price bid through reverse auction
route.
Purchase Procedure governs all activities of Purchase.
Purchase activities are under process of being covered by e-procurement system and
RSP is leading among SAIL units, an on-line internet enabled system of viewing
tenders, submitting sealed quotations, viewing purchase orders, payment information
etc. in order to move towards paperless transaction and for increased level of
Transparency.

Inspection:

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The broad function of the Department is to ensure that the material being supplied
meets the desired specification as per the quality requirement of the user.
Inspection by RSP Inspection Zone is carried out at Stores Receipt and in the premises
of vendors.
Inspection department develops the Quality Assurance Plan for items in consultation
with user departments.
Inspection also undertakes Capacity Assessment of vendors in the Vendor Registration
Process.

Stores:
The broad functions of Stores department is to monitor movement of input materials
(consumables, spares and minor raw material), its receipts, immediate accountal and
safe custody and quick issue to user departments as and when required by them. Its
activity starts as soon as an item is ready for despatch at supplier premises. Organising
transport, receipt, accountal and safe custody of the material are the basic functions of
Stores.

Stores cater to the need of consumers through 6 Main Stores i.e. Central Stores, Plant
Store-II, Modernisation Stores, Refractory Stores, Cement Structural Modernisation
(CSM) Stores, IGH Stores and 6 Sub-Stores conveniently located near consuming
departments.

Store is also the custodian of materials not drawn by indenting department. Items
which are not drawn for a long period are classified as Deemed Non-moving (items
not moved for more than 4 years and less than 5 years), Non-moving (items not moved
for more than 5 years), Obsolete / Surplus (items unusable and approved by MD).
Materials declared as Obsolete / Surplus are disposed off by Marketing section of MM
department.

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All activities of Stores, starting from entry of material at RSP gate till issue to
departments has been computerised. Payment copy of GARN (Goods Acceptance/
Rejection Note) is being electronically transferred to Finance. All outside despatches
through Stores is also computerised.

Another important function of Stores is to lodge insurance claims and realise through
F&A(Claims & Freights Section).


Marketing:
Prime products of RSP are sold through Central Marketing Organisation (CMO), all
other products are sold by Marketing Department. The product range dealt by
Marketing Department includes defectives, coil/sheet cuttings, rejected pipes,
granulated slag, coke fractions, fertilisers such as ammonium sulphate, various waste
products like LD Slag, Ferrous Sulphate etc. Marketing Department also looks after
disposal of old/used machinery, conveyor belts, drums, electrical spares and unused /
surplus obsolete spares. In addition to the above, all idle assets of plant are also
disposed off by Marketing Department.

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For disposal of products, there are 2 yards, namely Secondary Steel Stock
Yard(SSSY), which stores defectives, coils/sheet cuttings. The other stockyard is
Central Disposal Yard(CDY), which handles maintenance scraps/ wastes like old/used
conveyor belts, old/used electrical spares, used drums, old batteries, old vehicles etc.

For disposal of above items Marketing department has introduced latest system of e-
sale through "Online Forward Action". In this process customer bids its highest price
through Internet.

The present annual revenue generated through sale of secondary items is to the tune of
Rs.320 - 350 Crores.

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FINANCE & ACCOUNTS

The major functions of Finance & Accounts department are as under:

Financial Accounting:
Finance department is responsible for recording of monetary transactions in the books
of accounts and preparation of final accounts quarterly as per the provisions of
Companies Act, complying with provisions of Income Tax Act and Wealth Tax Act.
The final accounts are prepared as per the requirement of schedule VI of the
Companies Act, 1956. Quarterly accounts are subject to review by the auditors
appointed by the Corporate Office, SAIL. The annual accounts are examined by
auditors appointed by Comptroller and Auditor General (C&AG) of India under the
provisions of Companies Act. The auditors so appointed are required to report on true
and fair view of the accounts amongst others. The annual accounts are thereafter
reviewed by the Resident Audit Officer of Commercial Audit branch of C&AG.
Memos raised by Commercial Audit are replied to with necessary clarifications and on
satisfaction of the Commercial audit, the memos are dropped otherwise the comments
of C&AG are reported in the Annual Accounts and placed before the Annual General
Meeting of the company.

Cost Accounting:
Cost Accounting involves costing of products and services, preparation of standard
cost, variance analysis, pricing of products and services and preparation of various
MIS reports like monthly profit forecast, techno economic report, cost control report,
scrutiny of make/buy proposal etc. Cost sheets are prepared on historical cost basis by
following the principles of Process Costing. Standard cost sheet is prepared for control
purposes. Monthly cost sheets are prepared and made available to different
departments on line. Cost awareness workshops are conducted department-wise.
Finance department is also responsible for cost audit under Companies Act. The cost

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data are examined by a qualified accountant appointed by Board of Directors with the
approval of Central Government. The cost audit report is submitted to Company Law
Board, Cost audit branch by the cost auditor.

Preparation of annual Budget and budgetary control reports:
Operation budget is prepared as per guidelines of the corporate office.
Departmentwise budget is fixed for each expenditure head for controlling expenses
bringing about cost efficiency in the operation of the plant. Quarterly budget reports
are made available to different departments for their information and necessary action.
Capital budgets are prepared by Project finance in consultation with head of works and
project department.

Stock Verification:
It involves physical verification of inventory and assets. Entire inventory of raw
materials and Semi/Finished goods is physically verified at the end of each quarter.
The inventory of Stores and spares is physically verified over a period of three years.
However the inventory of high value items is verified every year. The fixed assets are
physically verified over a period of three years in a phased manner.

Preparation of pay roll and complying with the provisions of Provident Fund
Act, Income Tax Act:
Monthly payrolls are prepared on the basis of master data in the computer duly
updated from time to time on issue of relevant office orders by Personnel Department
and Plant departments. Attendance of all the employees is collected and fed into the
computer by the Finance department. Finance department is also responsible for
disbursement and recovery of loans, deduction and deposit of income tax at source.
Employeewise accounts are maintained for the Provident Fund deducted every month
from the salaries of the employees.

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Scrutinizing purchase/contract/expenditure proposals and giving concurrence:
Proposals involving funds and requiring approval of MD are routed through
GM(F&A). Other proposals are checked by finance department as per delegation of
power. The representative of Finance department are nominated in various
tender/negotiation committees for obtaining the best price and commercial terms.

Examining the financial viability of investment proposals:
Various investment proposals are thoroughly examined from financial point view.

Payment of Suppliers/Contractors Bills:
Bills of suppliers/contractors are received checked and paid as per the terms of
contract with them.

Preparation of invoices:
Invoices are prepared for despatch of materials from the plant in compliance with
provisions of related laws like Orissa VAT Act, Central Excise Act, Service Tax Act,
Entry Tax Act and Income Tax Act.

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PERSONNEL


While managing human resource is an integral job of the Manager at all levels, in a
business organization, a nodal agency is required to oversee and monitor the myriad
human processes and also to carry out specific functions required to optimize the
available human resources. The Personnel Department of Rourkela Steel Plant is
primarily responsible for this. The functions of Personnel Department can be broadly
categorized as follows :

Rationalization of Manpower:
To meet the present and future manpower needs, Personnel department makes
strategic personnel planning and ensures induction of competent personnel in the
organization. Personnel department analyses the requirement of manpower and
existing profile on a continuous basis leading to a systematic deployment plan, which
comprises of both redeployment from within and recruitment for ensuring right man
on the right job. An annual manpower budget is prepared taking care of various
oragnaisational requirements and objectives. Besides, thrust is also put for optimum
utilization of the human resource by way of redeployment, retraining etc.

Motivating Employees:
In order to encourage the employees to maintain consistently high levels of
performance, Personnel department facilitates the introduction & implementation of
various financial & non-financial motivational schemes & awards . The schemes are
both group and individual-based. Various schemes are in place linked to achievement
of departmental targets based on production, productivity, cost control, quality-
consciousness etc. There are also some schemes that reward individual/ group
creativity and accomplishments. Apart from this good performance is recognised

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through in-house newsletters, magazines, RSTV, Departmental Notice Boards,
appreciation letters etc.

Grievance Redressal System:
Effective and quick redressal of grievances of employees is a vital Personnel function
especially in a labour intensive industry like Rourkela Steel Plant. There is an
effective system of informal grievance handling through Employee Assistance
Register (EAR) to settle employees’ grievances at the shortest possible time. The
EARs are available in all the Personnel Unit Offices and in Control Rooms of some
major departments. The aggreved employees can record their grievances/ difficulties
relating to a number of areas attendance, pay, house allotment/ maintenance,
promotion, seniority, etc. The Unit Personnel Officers take appropriate follow-up
actions to sort out the grievances at the earliest and also keep the employee concerned
informed by making appropriate entries in the EAR.

In addition to the above, there is also a formal two tier grievance redressal machinery
called Grievance Redressal Committee for Employees (GRCE) and an apex body
called Grievance Redressal Apex Committee for Employees (GRACE) for redressal of
the employees’ grievance on a time bound basis.

Employees’ Welfare and Social Security:
Employees welfare is of utmost priority among various Personnel commitments in any
organization. Personnel department takes utmost care for ensuring & up keeping of
vast array of welfare facilities both statutory and non-statutory. Some of the main
Welfare facilities include canteens, rest rooms, drinking water, public convenience
buildings, first aid, medical facilities, baby crèche etc. Besides Personnel department
facilitates the implementation of all social security measures in vogue in the
organization viz. PF, Gratuity, Workmen’s Compensation, Employee Family Benefit

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Scheme, Employee Family Benefit Voluntary Scheme, Life Cover Scheme, SESBF
etc.

Performance Management System(PMS) and growth of employees:
For an objective assessment of the performance and potential of the employees and to
distinguish between different levels of performance, the Personnel department
implements the Performance Management System in vogue in the company. Besides
to motivate the employees for their better performance, Personnel department takes
care the aspiration of the employees by effecting promotion, career planning and
succession planning. A comprehensive appraisal system for the employees has been
developed to ensure an objective assessment of performance and potential of the
employees and to integrate company©s and individual goals. There are also systematic
Promotion Policies for promotion within executives, within non-executive employees
and also for promotion from non-executive to executive cadre.

Communication:
Communication is the lifeline of any organization. It can help establish a performance
oriented culture in the organization. Communication helps not only in disseminating
information to the employees , it also helps in enhancing employees morale,
inculcating a sense of participation and belongingness, fostering team-spirit and a
motivation to perform better. To facilitate involvement of employees in all spheres of
their activity Personnel department facilitates various structured communication
programmes viz:

MD’s Mass Contact Exercise: With an aim to synergise employees towards
organizational goals, a unique and unprecedented programme started on 19-04-2002.
It is held once in a week, where around 500 employees participate and contribute their
constructive idea/suggestions for growth of the organization and interact with the
Managing Director. A presentation highlighting the areas of concern and good

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performance is also made to aware the important issues affecting the plant and the
employees.

General Manager’s Communication Meeting: Every General Manager holds a
monthly meeting of groups of employees of his area of control and major departmental
issues, action plans, performance highlights, etc. are discussed.

HOD’s Communication Meeting: Heads of departments hold weekly/ fortnightly
meetings with employees where departmental issues, safety aspects, improvement
plans etc. are discussed.

Sectional In-charge’s Communication Meeting: Sectional In-charges of major units
hold weekly meetings of employees to discuss day-to-day shop-floor issues.

Issue Based Workshops: It is held whenever required and all agencies concerned
with the issue are encouraged to evolve improvement plans.

Besides these Unit Personnel Executives also communicate various plant related
issues to the employees at shop floor.

Building a Responsive Work-force:
Discipline plays an important role in an Industry. It is a bare minimum necessity for
sustaining the Production & Productivity. While emphasising positive discipline like
quick grievance redressal, ensuring proper welfare facilities, improving quality of
work life etc. prompt and consistent disciplinary action is taken against the
employees concerned under the disciplinary rules & procedures of the company. In
order to ensure the employees availability on the shop floor in time, the Direct
Reporting System (DRS) is in vogue whereby employees report at their place of work
directly and put their signature in the attendance register both at the beginning and end

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of the shift. The Unit Personnel Executives undertake periodic surveillance on DRS to
make the system more effective.

Away from the traditional fire-fighting management, the Personnel collective believes
in pro-active IR management through involving the employees in all spheres of work
activities, cultivating a participative culture and creating a atmosphere of creativity.
Various committees and bodies are in place at both the departmental and central level
so as to involve the employees in various issues of significance for the Plant as well as
the welfare of the employees.

Besides the above some key Personnel functions in RSP are:
Formulation and ratification of human resources policies, in line with the business
strategies.
Designing and redesigning of organization and work systems.
Designing and regulating compensation systems.
Ensuring compliance to statutory requirements.
Functioning as convener of all job contracts in the works departments.
Ensuring compliance of all statutory matters in respect of final bills of contractors.

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HUMAN RESOURCE DEVELOPMENT CENTRE

The Technical Institute was established in the year 1959 to impart professional
training to new entrants and the employees of the erstwhile Hindustan Steel Limited.
Since its inception it has not only equipped the employees of Rourkela Steel Plant to
discharge their responsibilities but also has extended similar assistance to the
employees of other SAIL units. The earlier building and workshop complex was
installed in 1959. In 1984 the ground floor of the present MDP wing was installed and
in 1993 the first floor of the MDP wing was built. The Refractory Shop came up in
1993. With the passage of time the scope of the activities of the Institute has expanded
and it was renamed as Training and Development Centre in 1985 and subsequently as
Human Resource Development Centre in August, 2000.

It is conducting Training Programmes towards reinforcement of employee©s
competence. Today the Centre has grown to a position through imparting professional
training to new entrants as well as the employees of Rourkela Steel Plant to bridge the
ever-increasing gap of skill, knowledge and experience. Around 55% of training
pertains to technical areas, addressing the immediate requirement of the day.

Training Strategy:
The gamut of HRD activity centers around:
Training of all fresh entrants : Standard Training Schemes exist which are followed in
all the units of SAIL
Training of existing employees Through
identifing the thrust areas of training as per organisational needs to reach corporate
goals
pursuing each thrust area department wise and designing training programmes based
on the above needs.
the identification of number of employees to be trained in each programme.

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covering all employees, irrespective of level of specialisation.

Focus of HRDC:
During the recent times, HRD activities have been given special thrust and directed
towards transformation and turnaround of Rourkela Steel Plant. While making efforts
towards bringing about continuous improvements and fostering a culture of learning
and innovation, the focus has been on linking training events and outcomes to the
business needs and strategic goals of the company.

HRD Activities:
Based on the training need received from the different departments Annual Training
Plan is prepared indicating the training programmes to be conducted in each thrust
area and number of employees to be trained. This is discussed and approved by the
apex body before being included in the APP (Annual Performance Plan) of the
Organisation. In HRD Centre the training is imparted in the following broad areas.

Induction Training:
All new recruitees for Rourkela Steel Plant are trained in the HRDC before posting to
their departments. Specific training scheme has been prepared for each of the
categories of trainees and training is imparted based on the same. For executives
joining as Management Trainees and Jr. Manager (Finance), Central Induction is held
at plant location or Management Training Institute, Ranchi followed by Plant training.
For non-executives category i.e. Sr. Technician cum Operative Trainees, Technicians
cum Operative Trainees, Semi Skilled Worker Trainees and Trade Apprentices
separate training modules have been designed consisting of training in HRDC as well
as on-the-job training in the department.

Competence Enhancement:
This area is divided into the following broad sub-areas :

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Technical Skill Development training - Includes Basic Engineering Skill, Unit
Training, Hi-tech Training and Department Specific Programmes, Systematic
Maintenance Management, Technology Awareness Programmes and Performance
Excellence Workshops etc.
Redeployment Training - Employees transferred to other departments are imparted
redeployment training to familiarise them with their new departments and job
assignments.
Multiskill Training - As a consequence of cluster promotion policy, the non-
executive employees are to be trained in all the jobs they have to perform in a job
cluster. It includes all training conducted on Material Handling, Basic Welding & Gas
Cutting, Electro Hydraulics, Machine Tools Maintenance, Basic Fabrication and
Layouts and other programmes conducted to facilitate Multiskilling.
Managerial Training – Its objective is to make the managers aware of the changing
business scenario and understanding individual role in achieving the organisational
objectives.Acquiring the managerial skills like Leadership, Planning, Effective
Communication, Delegating, Problem Solving, Decision Making, Developing
Subordinates, Presentation, Concept of Cost and Quality, Team Building
etc.Understanding individual roles and responsibilities for establishing and
maintaining standards.It includes General Management Programmes like MDP, SDP,
EME and Specific Managerial Skill Development programmes like Microplanning,
Counselling, TOTO Module and Emotional Intelligence etc.

Specific Areas:
Areas like safety and health consciousness, environment control, Occupational
Hazards and means to combat them and stress management are addressed to through
programmes like Safety, Environment, Fire Control Management, Cost Control and
Cost Reduction, Energy Conservation, ISO 9000, ISO 14000, Quality Control Tools
and Problem Solving Workshops etc.

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Foreign and External Training:
All training programmes for which employees are sponsored abroad are covered under
“Foreign” whereas outstation programmes conducted by agencies other than SAIL and
its units, for which employees are sponsored are covered under “External”.

Other Areas:
Various workshops / seminars, Hindi Training programmes conducted for employees
of non-works departments are included here. This also includes the training activities
conducted here for employees of sister units of SAIL.

Training Facilities:
The Centre is well equipped with various facilities required, for conducting different
types of training programmes like spacious well furnished Classrooms, Galleries,
Conference Rooms, Syndicate Halls, Auditorium, Laboratories, Audio-visual aids,
Workshops & Library.

Classrooms and Laboratories:
HRDC has 22 fully furnished Classrooms. The classrooms are well equipped with the
type of furniture required for different types of courses (e.g. white board, Overhead
Projector, Flip Chart Board, LCD Projector etc) for conducting the normal lecture
classes and syndicate discussions, seminars, Communication Meetings and other
Management Development activities.
This department has 2 laboratories (Electronics Lab and Hydraulics & Pneumatics
Lab) and 1 Computer Centre.
Electronics Laboratory was commissioned in the Year 1994 M/s Feedback UK to
train the employees of RSP in the Electronics, Electrical and Automation areas to suit
the present plant requirement.
Hydraulics & Pneumatics Laboratory was commissioned in 1993 with a view to
retraining senior employees to increase the competency level to cope with the advent

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of latest technologies with modernization. The equipments were supplied by M/s
Amatrol INC, USA.
Computer Centre was installed in 1989. Equipped with 8 modern PCs (Celeron /
Pentium) to train the executive / non-executive of RSP in Common Software
Packages.

Workshop Facilities:
Various skilled and multiskilled training and work order jobs for various departments
are undertaken by different workshops. Besides fresh Trade Apprentices, regular
training courses like Basic Engineering Skill Training and other shop based
Programmes are also conducted.
Machine shop has Lathe Machines, CNC Lathe Trainer, Shaping Machines, slotting
machine, Radial Drilling Machine, Universal Milling machine, Horizontal Milling
Machine, Boring Machine, Double ended Pedestal Grinder, Surface Grinder and
Power Saw Metal Cutting Machine. In Machine shop the Apprenticeship Training for
Machinist Trade is conducted covering Shaping, Slotting, Planning. Milling, Drilling
and grinding exercises. For Turner trade exercises are conducted in Lathe Machine,
Drilling Machine and Capstan Lathe.

Welding Shop has welding Transformers, MIG/MAG CO2 Welding Machine, TIG
Welding machine, Pedestal grinding Machine and Gas Cutting and Welding facilities.

Fitting Shop has 70 nos of Bench vices, 2 Pillar type Drilling Machine, Hydraulic
Press, Bending machine, Shearing machine, 2 Pedestal grinding machine, 2 Bench
Drilling machine. Other facilities of Fitting Shop are Material Handling
Demonstration Equipment, Eldro Brake.

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Electrical Shop has various AC & DC drives, Transformer Panel, Crane Circuits
Panel Battery Panel, Resistance Boxes and common electrical measuring instruments.
4 Basic Engineering Modules are conducted here.

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Other Infrastructural Facilities:
Caretaking Cell:
Looks after the total building maintenance and overall housekeeping of HRD Centre
with a thrust for improved housekeeping standards.

Customer Care Cell:
Coordinates all training programmes conducted in HRD Centre. It monitors Audio-
Visual Aids, provides stationeries to the programme in-charges, organises tea/ lunch
etc., coordinates all communication Meetings, maintains Photo-copiers, prepares
attendance of all participants and also attends to the general requirements of all the
programmes.

Documentation Cell:
Computerises the entire training documents in the SUN System (Training
Management System). All the departments are connected through this network. It
maintains bio-data of trainings, updates the records, prepares highlights every month,
training need complied for making Annual Training Plan (ATP).

Trade Testing Centre:
Conducts trade tests and job tests as per plant requirements according to laid down and
approved norms.

Library:
HRD Centre maintains a library of 20,000 books containing various technical and
managerial topics and all the latest editions of the publications related to the
curriculum with computerised Information System. The library provides a comfortable
reading environment for the employees, trainees and faculty members.

Hostel:

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The Trainees Hostel complex has accommodation of about 250 trainees. There are
facilities for indoor and outdoor games, a gymnasium, a playground, common rooms
and Reading Room exist. Furnished dining halls are provided in the hostel where the
trainees run their own messes.

Office:
Office extends support through establishment functions, budget preparation,
processing of bills, dealing with foreign training, receiving and distribution of daily
daks and record keeping.

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Stores:
Maintains all consumables / spares required by HRD Centre . Coordinates the regular
stock verifications and maintains the asset schedule, initiates write off actions of
unserviceable assets and other items like tools and tackles.


CENTRAL POWER TRAINING INSTITUTE

In 1985 Government of India had constituted a high level committee to look into the
various aspects of training in the Power Sector. Recognising the importance of
specialized training for power plant personnel, the SAIL board in April 1990 approved
the setting up of the Central Power Training Institute at Rourkela which was open for
in-house training in October 1993.

Central Electricity Authority (CEA) accorded highest degree (Category - I)
recognition to the CPTI in 1996 empowering it to train operation and maintenance
personnel of Thermal Power Plants having unit size up to 500 MW and related Power
Distribution units. This is a fulfillment of statutory requirement of Power Plant and
Power Distribution personnel. It has documented a Quality Assurance System for all
its activities and won “Golden Peacock National Quality Award” for 1997. It has
merged with Rourkela Steel Plant in July 2004 and operates under the Human
Resource Development Centre.

Objectives:
To contribute towards fulfilment of technical training needs of the personnel in the
area of captive power generation to meet organizational goals.
To provide a conducive environment for learning through excellent facilities,
hospitality and other support services.
To develop training tools and instruments.

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To facilitate and organize company wide workshops and seminars in the area of
power.
To develop training tools and instruments.
To extend facilities in organizing special events for Rourkela Steel Plant.

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Infrastructure facilities:
Operator Training Simulator:
It has a replica operator training simulator of the 60 MW Coal fired Captive Power
Plant of Rourkela Steel Plant (Presently M/s. NSPCL). It is the first of its kind in
India with indigenous technology and the only one in non-utility sector. The
application software ensures high degree of fidelity in reproducing the exact response
of the actual power plant to various operator actions. It consists of simulator computer
station, control panels, Microprocessor based input / output system, field device
terminals to simulate local operations, Instructor station and data acquisition system
(DAS). The total plant is functionally divided into process simulation, interlock
simulation and control simulation for boiler, turbine, generator and electrical system.

Lecture Halls and Simulator Hall:
The Institute is centrally air-conditioned. Main sessions are conducted in the three
Lecture halls and one screening room well equipped with audio-visual aids. Hands on
sessions are conducted in the simulator hall.

Information Centre :
The information center has a large collection of books, handbooks, journals and
courseware from Indian / foreign publishers on all areas of power engineering and
management. Documentation and drawings related to all SAIL power plants, video
cassettes on power plant operation and control are also available. It has a collection of
more than 850 books and 49 manuals on power plant engineering and allied subjects.
It also subscribes to 5 journals / magazines, 5 newspapers and 10 house magazines.

Syndicate Rooms :
Syndicate discussion is a regular feature in problem solving workshops and other
action plan oriented programmes, particularly for executives. CPTI has three well
designed syndicate rooms for smooth conduct of workshops.

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Facility for corporate programme:
CPTI organizes corporate programmes, which are graced by the presence of
Chairman, SAIL, the Directors,and other dignitaries. Occasionally it caters to the
need of Management Training Institute, Ranchi. It has an auditorium of 82 seating
capacity with captive public address system and attached projection facility. An
additional Conference Room is also available.

Personal Computers:
It has a network of 8 PCs. Every staff has access to the PCs. Correspondences, trainee
manuals, reading material, teaching notes and trainers’ manuals are prepared using
these computers. The Institute has adequate number of laser / other printers for this
purpose. Most of the formats are standardized and computerized.

Modern training tools & video screening facility:
LCD projector, OHP, TV, VCR, Electronic copy board, Document binder, photocopy
machine, laminator, colour ink-jet printer, Laser printer and personal computers are
used for enriching the programmes . The Institute has around 30 videocassettes and
these are extensively used in the programmes. Facilities for audio / video recording of
proceedings and syndicate discussions are hired whenever needed. For screening,
there is an exclusive screening room adjacent to the lecture halls with VCR and TV
permanently installed. The screening room is also used for preview of video cassettes.

Model Room:
Large number models of power plant equipment, exhibits and schematic drawings are
on display in the Institute. Exclusive model room for housing working models and
mimic display boards also exist.

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LAW


In an integrated steel plant like RSP, the role of Law department is manifold. It acts as
an adviser to the Top Management and gives shape to policies related to Production,
Marketing, Administration, Health, Welfare, Safety, Land, Estate, etc.

Law department undertakes the responsibilities of defending/ protecting the policies of
the Company/ actions of the Management, when challenged in any Court of Law or
before any Statutory Authority. Matters relating to Personnel, Contracts, Sales Tax/
Central Excise, Customs and other Taxation Laws are also handled in Law
department. Vetting of contracts/ schemes is a routine function of the Law department.

The department deals with matters/ cases pending before different
courts/fora/authorities under different acts, like Civil Courts, Criminal Courts,
Tribunals, Labour Courts, Consumer Fora including High Courts and Supreme Court.
The statistics of the last 10 years reveals that more than about 90% of cases filed
against company have been handled successfully by the Law department.

Without depending on outside agencies, Law department gives Legal opinions and
guidelines to line managers on various issues and acts as an inhouse attorney. Thus the
Law department touches upon the working of every department of Rourkela Steel
Plant.

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TOWN ENGINEERING


Town Engineering Department looks after the maintenance of 18 sectors in the
Industrial Township of Rourkela Steel Plant and the whole of Fertilizer Township
spread over an area of 45.13 Sq. KM. The department is responsible for repair and
maintenance works in 25,499 buildings including residential quarters, public buildings
like Socio-cultural centers, Educational Institutes, Sports Complex, Medical & Health
facilities, Market complex, company offices, parks and vital installations including Air
Strip.

The total maintenance is achieved through the Civil, Electrical, Water Supply,
Horticulture and Public Health sections of the department. The various repair and
maintenance works are executed through the 14 Civil Maintenance Booths and 9
Electrical Maintenance Booths located in the various sectors of the Steel Township
and in the Fertilizer Township. The Contract Cell of the Town Engineering
Department deals with the tendering process and finalises outsourced agencies for the
several jobs executed in the townships by Town Engineering, Town Services, Sports
and Horticulture departments.

Town Engineering – Civil:
The Civil wing of Town Engineering Department takes care of the repair and
maintenance work of the residential quarters in the township. Apart from this, regular
maintenance is carried out in 27 socio-cultural centers including Civic Centre, Bhanja
Bhavan Complex, Utkalmani Gopabandhu Ispat Library, Adharsa Pathaghar, Deepika
Mahila Sanghati and Social Homes / Community Centers spread over the townships.
These also include the two clubs i.e. Indo German Club and Rourkela Club.

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For encouraging sports, the number of sports complexes like Ispat Stadium, Biju
Patnaik Hockey stadium, Basket Ball Court, Indoor Stadium and various other Sector
playgrounds are kept in good condition.

The Civil wing of the department maintains 364 KMs of roads and drains, 485 KMs of
sewerage system spread over the entire townships. As part of the drive for a clean and
hygienic Rourkela, door-to-door garbage collection and its systematic disposal from
all the residential quarters and market complex, project has been started, which is the
first of its kind among the SAIL units.

As a part of environment upgradation, beautification and road safety campaign,
various important chowks and roads are continuously modified with recarpeting and
widening, providing adequate parking space and installation of monuments and
fountains.


The department also provides logistic support during various socio-cultural functions
held in the township as part of the cultural calendar for enhancing the quality of life of
the residents and creating an atmosphere of entertainment and enjoyment.

Vital installations are also maintained timely to meet the statutory provisions of the
Factory Act and State Pollution Control Board. 32 vital installation, which include 33
KV / 11 KV Sub-Stations, Booster Pump house, Intake Wells, Water Treatment Plants
and Air Strips are kept clean and in good condition with proper approach.

The department, in close liaison with the Special Peripheral Development Project–
KFW Department, also provides various basic facilities like class rooms for Schools,
Community Centres, roads, etc. in the peripheral villages. Providing drinking water
facilities through new tube wells and repair of old defunct tube wells, repair of roads

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and drainage system in the 57 identified slums are some of the activities undertaken by
the department as a part of fulfilling RSP’s Corporate Social Responsibility.

Public Health
The Public Health Section of Town Engineering department provides conservancy
services and anti malaria services in the steel township. Apart from regular road
cleaning, sanitisation of the dumping yards in the township and adjoining areas are
undertaken. Collecting water samples for bacteriological tests and analysis, de-
chlorination of the wells and spray of anti-larva on swampy areas and on stagnant
water are also some of the major activities of the department.

Town Engineering – Electrical:
Town Engineering Electrical department caters power to nearly 24000 houses in
addition to the public utility service like Water supply system, Hospital, Clubs, Office
premises etc. In the process, a vast network of HT, LT and Street Lighting are to be
maintained round the clock. This network consists of the following:

33KV Distribution Network:
Two Receiving Sub-Stations at Sector-6 & Sector-2 consisting of 33KV/11KV power
transformer & auxiliaries are to be maintained round the clock. The capacity of
Sector-6 Receiving Sub-Station is 24 MVA and that of Sector-2 Receiving Sub-
Station is 9 MVA. Power is fed at 33 KV Volt level from Plant through overhead lines
to these Receiving Sub-Stations.

11KV Distribution Network:
There are 18 numbers of 11KV feeders to cater power to the entire Steel township. Of
these 14 numbers feeders originates from Sector-6 Receiving Sub-Station and 4
numbers from Sector-2 Receiving Sub-Station.

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440V Distribution System:
137 numbers of 11KV/440V distribution Sub-Station scattered over the entire Steel
township have to be maintained round the clock for supplying electricity. The total
length of 440V overhead line and underground cable covers a distance of nearly 1500
KM.

Water Supply Installations:
Power supply to intake Wells and Booster Pump houses are maintained round the
clock with availability of dual source. 128 numbers LT Motors and 3 numbers EOT
Cranes are maintained by the department.

Street Lighting:
An elaborate network of Street lighting is maintained for safety & security of the
entire Steel Township. Town Engineering (Electrical) has to maintain nearly 8000
Street lighting fixtures consisting of HPSV, Semi High-Mast, High-Mast, Metal
Halide and MV fittings etc. which also covers 14 numbers recently erected
monuments.

One 11 KV overhead line comes from the Plant supplies emergency power to the vital
areas of Township like Ispat General Hospital (IGH), Rourkela House, Booster Pump
Houses and VIP Bunglows.

In addition to the above, all the commercial buildings, Central & State Government
Offices, Police Stations, Socio-cultural organizations located inside the township are
also provided power supply by the department. In this process, TE(Electrical) handles
a maximum demand of 32 MW with an average of nearly 21 MW of power.

Water Supply – Town:

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Source of Raw Water River Koel
River Brahmani
Intake Wells Jhirpani Intake Well – located on the bank of river
Koel in Jhirpani.
Tarkera Intake Well – Located on the bank of river
Brahmani for Township area.
Water Treatment Plants Water Purification Plant, Hill Top, Sector-2 and
Capacity : 18 MGD.
Brahmani Water Works, Sector-8 Capacity : 9 MGD.
Chemicals used for
Water Treatment
Ferric Alum 699 MT/Yr.
Poly Aluminum Chloride (PAC) 100 MT/Yr.
Lime 200 MT/Yr.
Disinfectant (Bleaching Power) 192 MT/Yr.

Raw water comes from intake well pump house of Koel river and falls on the bubbling
tank in the Water Purification Plant. Here the speed of water is reduced and heavy
particles present in the raw water settle down to the bottom of the tank, which are
finally disposed off. Chemicals are added to reduce the turbidity of the water.

The water then passes through the flocculator tank to the clarifier where sedimentation
takes place and most of turbid particles settle down and come to sludge chamber, from
where it is disposed off. From the clarifier the water goes to filter house to remove
colour, odour, turbidity and pathogenic substance, if any, from water. Chlorine is used
as chemical or disinfectant. Bleaching power is added to filtered water to maintain free
residual chlorine concentration in drinking water to 0.5 – 0.7 mg/litre.

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The filtered water is collected in 4 drinking water reservoirs and supplied to the
customers through a distribution network of main lines, branch lines and sub-branch
lines.

Horticulture:
The commitment of Rourkela Steel Plant towards making its environment clean, green
and safe is achieved to a large extent by the Horticulture Department. At present, 2000
acres of intensive green areas with 200 acres of gardens, 4 central Nurseries and 35
Parks and gardens are being maintained by the department to enhance quality of life in
the Townships. Over 50 varieties of roses of these gardens have won laurels at the
national level.

So far over 37 lakhs trees have been planted in and around Rourkela. Over 2000 acres
of land has been covered with plantation blocks. Few such blocks are Green Park of
225 acres land with 2,25,000 trees, Green Valley of 68 acres of land with 66,000 trees,
Green Meadows of 85 acres of land with 84,000 trees, Lagoon Park of 50 acres of land
with 27,000 trees.

The efforts of the department aiming at ecological restoration by massive afforestation
programmes in and around Rourkela has been widely acclaimed as RSP won the
prestigious Indira Priyadarshini Vriksh Mitra Award for the year 2003.

Indira Gandhi Park developed in early fifties is the most prestigious park in Rourkela.
Set in the backdrop of a scenic hill range, the park contains a rich collection of flora
which is a major source of attraction for nature lovers. A Toy Train encircling a small
lake, Boating facility, Doll Museum, Aquarium, Zoo and fountains are some of the
added attractions in the park. The Jubilee Park developed in the eighties in Sector-8 is
also maintained by the department and is a major attraction of the steel city.

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More than 200 animals and birds of 28 species are being nourished in the zoo,
maintained by the department. Deer Park with 52 deer running hither and thither in an
area of 5 acres is another spot of attraction near Jubilee Park.

The Horticulture Department also plays a vital role in maintaining the greenery in the
plant premises. The gardens in the Administration complex and in the HRD Centre are
maintained, adding beauty to the buildings and its surroundings. The department also
supplies materials and necessary horticultural skills to all the departments to enable
them to develop gardens inside the works.

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TOWN SERVICES


Rourkela Steel Plant, the first Public Sector Integrated Steel Plant of the country came
up as a greenfield project in the backward and remote district of Sundargarh. There
being practically no modern facilities available nearby, it became incumbent on the
Steel Plant authorities to provide all necessities and amenities like housing, roads,
electricity and water supply, Medicare, education, recreation and markets to the
employees. Hence captive townships with all civic amenities were constructed. The
Steel Township of Rourkela is to the North of the Plant and the Fertilizer Township to
its South.

In its present set-up the Town Services Department is looking after the following
aspects of the Township.

Land, its acquisition, Surrender & Management:
Rourkela Steel Plant has acquired about 16000 acres of land from the State
Government of Orissa of which the townships and surrounding areas are spread over
about 8000 acres.

Quarters and regulation of allotment to the eligible employees:
There are about 25000 quarters of 14 categories spread over 18 sectors in the Steel
Township and in the Fertilizer Township.

Markets and commercial premises and regulation of allotment and
administration:
There are 16 market areas in different sectors and in Fertilizer Township including a
centrally located Ispat Market comprising about 1800 shops and 1000 hawker’s sheds.

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Social Welfare activities for the benefit of the employee:
For recreational facilities there is a well stacked Utkalmani Gopabandhu Ispat Library,
a large air-conditioned auditorium called the Civic Centre, several Social Homes and
Community Centres. The Social Welfare Unit organizes celebrations of National
festivals like Republic Day, Independence Day and Gandhi Jayanti, State festivals i.e
Utkal Diwas and other Socio-cultural activities.

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Education activities and administration of schools:
There are 12 schools run by RSP both in English & Vernacular Medium for classes
ranging from Std-I to XII. There are about 4300 students and 240 teachers. Apart from
these, there are many private schools with different facilities extended by RSP.

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SPORTS

Rourkela Steel Plant is a pioneer in the field of sports and games. Since inception the
plant has taken several initiatives to develop sports and also to provide recreational
facilities to its employees and their wards including the periphery inhabitants through
Sports and games.

Rourkela Steel Plant has provided massive infrastructure facilities in the township for
the development of sports. Three main stadiums are – (i) The Ispat Stadium at Sector-
6 which is a multi purpose Stadium, (ii) Biju Patnaik Hockey Stadium at Sector 6
which is an exclusive Hockey Stadium of international standard with Synthetic turf
facility and (iii) Ispat Indoor Stadium in Sector-20 with all facilities for Badminton
and Table Tennis. In addition to this there is an Ispat Basketball Complex, Chess and
Weight Lifting Halls, Volleyball Courts, a Boxing Hall where all the modern facilities
for the training of the sports persons have been provided for improving their standard
to national and international level.

Rourkela Steel Plant has not only taken the initiative of providing infrastructure but
has also taken initiative in providing scientific coaching through reputed trained
coaches and Senior Players of national and international repute. While initiative is
taken for imparting training in 14 disciplines, a special thrust has been given in the
area of Athletics, Hockey, Chess, Cricket, and Table Tennis. For tapping the hidden
potential of the young and budding talents, Day Scholar Scheme is being operated in
Hockey and Athletics where the selected players - 25 in Hockey and 20 in Athletics
are being provided free kits for their practice. As a special initiative a Chess learning
Centre is being run by Rourkela Steel Plant for the last three years. These centres had
groomed a number of players of regional/ national/ international level under the
watchful eyes of Coaches.

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Summer Coaching Camps are organized in 14 disciplines for imparting scientific
training to the budding talents. This being started by RSP in the year 1986, is
continuing till date with increase in number of participants every year.

Rourkela Steel Plant has also taken several initiatives in organizing tournaments and
Championships at different level like local, State and National level. An exhibition
Hockey match between the SAIL–XI and Rest of India-XI was organized in 2005 on
the inaugural day of Synthetic turf at Biju Patnaik Hockey Stadium. This was
witnessed by a crowd of more than 30,000 and inaugurated by the Chief Minister of
the State.

The efforts of Rourkela Steel Plant for honing the hidden potential of the budding
talents has gone a step further in the form of operating the SAIL Hockey Academy
which has 32 Cadets. The Cadets are not only given scientific training and the
opportunity to practice on the Synthetic turf but also given monthly stipend, furnished
accommodation & free food, medical treatment, education, kits and ceremonial
dresses on a regular basis for a period of 5 years.

Today, Rourkela and its periphery with the encouragement of Rourkela Steel Plant is
fast emerging as a centre of excellence in the field of Sports and Games.

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SPECIAL PERIPHERAL DEVELOPMENT PROJECTS – KFW

The Special Peripheral Development Projects – KFW (in short SPDPK) was set up in
August 2003 to implement various development projects and programmes in the
peripheral area of Rourkela Steel Plant as a part of RSP’s Corporate Social
Responsibility (CSR).

The SPDPK collaborates extensively with the Community Development unit of Town
Services department and Town Engineering Department for implementing various
projects and programmes.

The categories under which SPDPK takes up & implements various projects and
programmes for the development of the peripheral area are:
Economic development (with major thrust on raising the income generation capacity
and potential of the villagers in a sustainable manner).
Health care
Education
Infrastructure (such a roads, culverts, water supply etc.)

Various projects and programmes done by the SPDPK department since its inception
are:

Preparing a Blue Print for development (5 years) of the Peripheral villages with the
assistance of Society for Rural Industrialization (SRI), Ranchi after extensive study of
the Peripheral area.

Water Supply facility:
Tube wells
Dug wells

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Village ponds

Transport facility:
Roads
Culverts

Economic Development:
Construction of village markets
Construction of Dhobi Ghaat
Construction of Community halls
Skill based Training to villagers for income generation

Health Care:
12 Medical Aid Centres in villages
Health awareness programmes
Training of village health workers
Training of Village mid-wives
Cataract operation of villagers with intraocular lens transplant

Education:
Expansion of High Schools and Primary Schools
Motivational schemes for students in the form of merit awards

Activities taken up:
Setting up the Institute for Peripheral Development at Rourkela. This Institute Will
take up various development programmes in the field as well as provide institutional
training to the villagers and other people connected with rural development work.
Rural Technology Park at Kuarmunda block with SRI, Ranchi
Science and technology empowerment of tribal girls

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Promotion and setting up of production centres for low cost sanitary napkins for rural
women



Integrated development programmes in villages with BAIF Development Research
Foundation, Pune –
Agriculture and wadi programme in villages
Live stock development programme
Watershed development
Women focused intervention
Formation and development of village level organizations
Formation of Self Help Groups
Development of off farm employment skills
Drinking water and sanitation
Development of Agro-service Centers
Development of village Health guides etc.

Construction of Hostel for Girls students for Gangpur college of social works at
Bihabandh.

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INDUSTRIAL ENGINEERING

Areas of Industrial Engineering Department (IED) are mentioned below:

Motivation Schemes:
Design, Formulation of Motivational Schemes and Monitoring of the same on a
regular basis for improving production and productivity.

Cost Reduction Projects:
Identification of Cost Reduction Projects, Setting the targets, Computation of financial
impacts from the projects and monitoring of the same on monthly basis.

Procedure Orders:
Formulation of various Procedures of Works & Non-Works areas. The objective is to
streamline the system for efficient and smooth functioning. Making amendments of
existing procedure orders and issue of revised procedure orders is also a part of this.

Srujani Creativity Award Scheme and Value Engineering (VE) Projects:
SRUJANI- the Creativity Award Scheme was introduced at RSP in the year 1989-90.
Under the scheme, employees are encouraged to implement their creative ideas for any
improvement pertaining to their own area of work. The scheme has been decentralized
for effective and quick implementation of ideas and speedier recognition of employee.
The Departmental Committee is empowered to recommend cash award up to Rs.300/-,
the Zonal Committee headed by the Principal HOD can recommend cash award upto
Rs.2000/- and the Apex Committee headed by Head of Works can recommend cash
award up to Rs.10000/-. Beyond this any amount of cash award can be given with the
approval of MD.

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In addition, there are two Rolling Trophies awarded on 15th of August each year on
the basis of their contribution to SRUJANI Scheme during the preceeding financial
year. Similarly, a Best Suggestor and five Second Best Suggestors (one from works
and four from Non-works) are awarded Rs.7000/- and a Certificate of Merit (Best
Suggestor) and Rs.1500/- and a Certificate of Merit each (Second Best Suggestor)
during the Independence day celebration for the highest number of implemented
Suggestions.

IED does coordination with HRDC and other departments for organizing Value
Engineering Training Programs for Executives and Non-Executives, coordinating with
Finance Department for getting VE Projects implemented to assess the financial
savings, awarding the members of the VE teams and the Rolling Trophy to the
department achieving highest savings through implementation of VE Projects, on 1
st

April during Utkal Divas Celebration.

Delegation of Powers:
Compilation, Modification, Amendments of delegation of powers to the executives of
RSP pertaining to Statutory items, Capital items, Establishment matters, Revenue
power etc. Fixation of financial Powers of Executives of various departments,
approval and issuance of the same. Amendments of Delegation of powers as and when
required.

Prime Minister’s Trophy for Best Integrated Steel Plant:
Preparation of Application Documents, Presentation Material, Co-ordination of
Assessor’s team initial visit, overall Co-ordination during the final visit of Panel of
Judges for PM’s Trophy team.

Manpower Proposals:
Assessment of manpower for additional activities and recommendation of the same.

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National Awards:
Coordination for sending nominations for various National Awards like Prime
Mininster’s Shrama Awards, Rashtriya Viswakarma Puraskar etc.

Form Design and Control:
As per the requirement of the departments, new forms are designed, modification of
existing forms are made, coordination with official language cell for making trilingual
forms and final printing at Ispat press with a control No. known as O&M No. allotted
at IED.

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TOTAL QUALITY MANAGEMENT

Total Quality Management (TQM) Department started functioning independently
since January 1992 with an objective to establish company wide Total Quality
Movement in RSP. TQM has been adopted in RSP on the “business philosophy” and
today forms the core of all our business strategy. No other strategy can be predictive
of success in today’s competitive environment. We have been able to realize the
“customer first” approach and percolate down upto the workmen level with associated
change in our attitude towards quality of our work in general and quality of product in
particular. Our first endeavour was to implement ISO 9002 QAS in both the Pipe
Plants. Accordingly M/s TUV INDIA (PVT) LTD., New Delhi, the Indian counter
part of M/s RWTUV, Germany, has been appointed as certifying body. Pipe Plants
were certified to ISO 9002 QAS (International Organisation for Standardisation 9002
Quality Assurance System) in December 1993. Subsequently Plate Mill was certified
to ISO 9002 QAS in December 1994. ERW & SWPP have been certified to API Q1
(American Petroleum Institute Q1) since inception.

So far 24 units/departments have been certified to latest version of ISO 9001:2000
Quality Management System (QMS). In line with the policy of our Corporate office,
Silicon Steel Mill and Environment Engineering Department were certified to ISO
14001 Environment Management System (EMS) by M/s Bureau of Indian Standards
(BIS) in the year 2000. Subsequently SP-II, HSM, PM have been certified to latest
version of ISO 14001:2004 EMS. Quality Policy, Environment Policy of RSP have
been developed with approval of MD, RSP and it is being reviewed from time to time
by Steering Committee. To implement, document and maintain QMS in RSP the
Three Tire Management Review is held regularly by HODs, GMs and ED(Works).

TQM Department facilitates in monitoring and controlling Quality Objectives of ISO
certified departments.

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To continually improve the TQM culture, Quality Improvement Teams (QITs) have
been formed in major departments including Medical with HODs as chairman of
QITs. Different sectional heads of departments have taken up Quality Improvement
Projects (QIPs) for overall improvement of the process and that have also yielded
good results. To inculcate TQM culture among the employees of RSP, Quality Month
Celebration are held regularly. Quality Essay, Quality Debate & Quality Quiz
Competitions are held every year among employees to bring Quality Awareness and
motivation.

RSP participated in Quality Awards in 1991-92, organised by CII, Eastern Region,
where certificate of appreciation have been awarded for making a meritorious
beginning in the introduction of TQM.

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BUSINESS PLANNING


Perspective Planning set up in August 1979, was renamed as Business Planning in the
year 1989. The purpose of the department is to formulate long term divisional plan for
our plant covering the areas of production, purchase, finance and sales. It concerns
with the planning of the total resources of the Organisation for the achievement of
quantified objectives within specified time.

The main objectives of the department are:
To identify the mission of RSP.
To define its objectives and adopt suitable policy.
To prepare long term and short term business plan.
To identify the gaps between the standards and actual performance in critical areas.
To anticipate changes that affect production and external environment.

This has brought a better understanding of the inter-relationship between the various
input resources required for the conversion of these inputs into profitable products to
meet the needs of our customers.

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PROJECTS


With a view to implement the SAIL Corporate Plan: 2012, the Project Department of
RSP was reorganized in the year 2004-05 and functions in an integrated manner with
Project Purchase and Project Finance. A number of projects have been identified under
this plan to achieve the Hot Metal production of 3 MT, Crude Steel of 2.8 MT and
Saleable Steel production of 2.6 MT by the year 2012.

Project Department is having Project Managers in the rank of DGMs who are
supported by experienced executives from Civil, Mechanical, Electrical disciplines
with earlier experience in the works area of the plant. The strength of the executives is
about 50. Apart from the Finance and Capital Purchase function, the department has
other important sections such as Project Planning & Monitoring (PPM) Group, Field
Equipment Group, Electrical Maintenance Group and House Keeping Group.

The major projects completed in recent years / in the process of completion are as
follows:
Replacement of Palm Oil system in Tandem Mill of CRM
Revamping of CPP-I
Installation of Cast House Slag Granulation Plant at BF-I
Modernisation / Upgradation of ERWPP
Rebuilding of Coke Oven Battery #1

The future projects which are under different stages of pre-ordering are as follows:
New Tonnage Oxygen Plant on Boo-basis.
New Pipe Coating Plant.
Upgradation of Galvanising Lines of CRM
Rebuilding of Coke Oven Battery #4

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Upgradation of Coal Chemical Department
New Blast Furnace No.5 with advanced technology
New Sinter Plant-III
Upgradation of SMS-II, On-line Desulphurisation Unit, Combined blowing etc.
Upgradation of CRM including Push / Pull type Pickling Line
Upgradation of Plate Mill
Upgradation of Hot Strip Mill
Upgradation of Silicon Steel Mill

Project Department have taken number of steps as mentioned below for successful
implementation of the projects.
Formation of brigade of “Safety Captains” to ensure “Zero Accident” in the projects.
Introduction of daily site meetings to ensure 100% execution of daily plans.
Monitoring of projects through MS Project.
Conducting regular review meetings at the level of GMs/EDs.
Preparation of action plans in grey areas of the projects by Project Managers in
consultation with Contractors and Supporting agencies.
Rigorous follow-up for material supply with vendor / sub-vendors to ensure timely
availability of materials in desired sequence.
Up-dating exercise for the Field Equipment of the Department.
Emphasis has been given for quality checks and documentation.
Communication exercises with the employees of the Department.

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PUBLIC RELATIONS


Public Relations Department has the responsibility of handling ‘communications’ in
the organization. These communications consist of ‘internal’ and ‘external’
communications.

Internal Communications at Rourkela Steel Plant has developed by leaps and bounds
during the last four years or so and has several different aspects.

The first is the face-to-face communications. Here the communication is two way and
is interactive in nature.

These consist of the unique “Mass Contact Exercise” which does not have a parallel in
the Corporate sector, where the Managing Director along with the Executive Director
(Works) sits with nearly 500 employees each Wednesday. The purpose is to identify
the priorities of the organization through talking face-to-face and making presentations
that spell out the achievements and shortcomings pointing out the areas where thrust is
needed. Employees come forward with their commitment regarding what they would
like to do individually and as members of their department to overcome the
shortcomings and take the Rourkela Steel Plant forward.

The “Performance Excellence Workshops” is another programme where again the
Managing Director along with the Executive Director (Works) sits with nearly 100
employees belonging to a specific department or function which also includes key
members of support service departments. Presentations are made on the Department
targets indicating the threats and the plans to overcome them. The support service
departments commit to the help they shall render and the same is frozen. Here also the
workshop is highly interactive in nature where employees not only provide inputs

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about difficulties but also come out with concrete implementable suggestions
involving their own actions.

Apart from this, Managing Director holds interaction sessions with different
collectives on important issues like “Vision RSP” which involve different levels like
front-line executives, shift incharges, newly promoted executives, Asst. General
Managers, Senior Managers and HODs which have been unique.

“Ispat Sahayog” is the written form of internal communications. This is a colourful
house magazine published once a month in three languages viz. Oriya, Hindi and
English. This house magazine has undergone a transformation during the last three
years. The publication showcases not only the important events and activities
happening in or about the steel plant but also highlights individual and collective
achievements besides focusing on the priorities and commitment of the steel plant in
various matters of importance and interest both to the steel plant and the community at
large. Besides the back page being dedicated to Rourkela Steel Plant’s credo
“Regenerating Strength with People”, exclusive space is earmarked for “Our
SAMSKAR”, “Our MISSION” apart from the commitment to ‘Save Water”,
“Reaffirming our commitment to preserve the Environment and make Rourkela a
clean and green city” and “Save Steel City from plastic-bag menace”. The news
including photographs is captured by the members of the news team and
photographers of the Public Relations Department.


Rourkela Steel Television Centre (RSTV) another wing of the Public Relations
Department actually has the distinction of being the first ever internal cable TV
network for any industrial city in the country having been established way back in the
year 1983. During the last two years the RSTV Centre has been modernized in two
phases with Digitalisation of the equipments and facilities.

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RSTV News is telecast every day, without exception and also contains a weekly round
up of news everyday Sunday. Apart from news in Oriya and English from the very
beginning, news in Hindi has also been introduced on three days every week since
June 2003. The news covers all the important events and happenings in the steel plant
and Steel Township, which is captured by our Communications team with the help of
our news reporters and camera persons. The news is edited by a dedicated team in the
RSTV Centre and is read out by a select team of lady newsreaders who have
developed themselves with the help of RSTV Centre. Video clippings add to the
effectiveness of this important communication medium.

This centre also carries out Live Telecast of important events like the Independence
Day, Republic Day and Children’s Day Celebrations at the Ispat Stadium, as well as
cultural events taking place at Civic Centre and Bhanja Bhavan complex besides other
locations, for the benefit of viewers who could not make it to the venue of the
celebrations. These apart, different cultural programmes, quiz programmes,
documentaries, group discussions, interviews of eminent personalities are organized at
the RSTV and telecast. This facility is also utilized for communication of important
announcements as well as the messages of the Managing Director, Executive Director
(Works) and important visitors to the steel city. After the modernization of equipments
and facilities the transmission quality of RSTV matches with contemporary popular
channels.

Ispat Press is working under the control of Public Relations Department and meets
the needs relating to different forms, formats, and registers for the day to day smooth
working of departments in the Works and Non Works areas. The equipment at Ispat
Press include an HMT Letter Press Printing Machine and two numbers of Risograph
machines.

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Public Relations Department is also actively involved in external communications and
issues Press Notes to the Media on the events and happenings at the Steel Plant for the
information of the Public at large. With this initiative during the last three to four
years, the understanding and appreciation of the steel plant and its workings has
improved significantly and has generated a great amount of goodwill among the
citizens towards Rourkela Steel Plant.

The Documentation Centre of the Department is an archive of the Press reports and
press releases dating back to last many years.

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PROTOCOL & HOSPITALITY SERVICES


Liaison Cell:
The prime responsibility of the Liaison Cell is to assimilate, analyse and synthesize
internal and external intelligence on the plant affairs. It monitors important internal
and external developments of relevance to Rourkela Steel Plant and sensitizes the
Higher Management on the ensuing as well as forthcoming developments/issues in the
fields of political, social and trade unionism etc. Besides it coordinates with the
appropriate authorities and agencies as per requirement from time to time.

Protocol Unit:
The Protocol unit coordinates and handles visit of VIPs, dignitaries and other
important persons to Rourkela Steel Plant as well as visit of students from various
educational institutions. It also coordinates visit of customers as well as suppliers to
the Administration Building. It ensures observance of protocol requirements during
visit, functions and events, in association with the Government Authorities.

Hospitality Services:
The prime activity of this section is to extend due hospitality services to the
Company©s guests and dignitaries. It is responsible for the effective management of the
Guest Houses of Rourkela Steel Plant at Rourkela, i.e. at present the Rourkela House
containing 21 No. of air-conditioned suits, Guest House at Sector-20 containing 3 No.
of air-conditioned rooms and Ispat Niwas containing 27 No. of air-conditioned as well
as Non-air conditioned rooms. Further, the maintenance and management of the
Rourkela Air Strip is the responsibility of the Hospitality Services unit.

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VIGILANCE


‘Vigilance’ is a management function required to bring and sustain propriety and
integrity at all levels in an organization. This is very relevant and important in
Government Departments and Undertakings for safeguarding against the misuse of
public money so that survival of the undertakings will be possible in today’s economic
scenario.

Vigilance Set Up in Rourkela Steel Plant:
At Rourkela Steel Plant, Vigilance set up is headed by Addl. Chief Vigilance
Officer(ACVO) and assisted by a number of executives and Vigilance Inspectors who
are in the rank of non-executives. All postings in Vigilance are for a tenure of 3 years
extendable up to 5 years. Vigilance Department reports directly to Chief Executive of
RSP.

Responsibility & Functions of Vigilance Department:
Prime responsibilities of Vigilance are
to plug loopholes in the system and procedure
to protect the honest employees
to ensure deterrent punishment to wrong doers

The functions of Vigilance Department in RSP can be categorized into two types:
Preventive Vigilance
Punitive Vigilance

Preventive Vigilance:
Prime focus of Vigilance is prevention of corruption rather than investigation of
corruption. Preventive vigilance activities consists of –

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Surprise checks in different areas particularly in sensitive areas i.e places prone to
corruption such as shipping, finance, purchase, sections dealing with execution of
contracts etc.
Identifying weaknesses in existing procedures/rules & regulations and suggesting
improvements to plug loopholes and bring greater transparency in exercise of power.
Initiating formulation of new procedures/guidelines
Scrutiny of AIPR (Annual Immovable Property Return) files of employees
Scrutiny of contract/purchase files to check any violation of Purchase procedure 2000
(PP2K)
Rotation of employees in sensitive postings. As per Central Vigilance Commission
(CVC) guidelines, employees manning a sensitive post should be rotated after
completing 3 years.
Developing vigilance awareness through regular training programs.

Punitive Vigilance:
This deals with providing adequate punishment to the wrong doer promptly so that it
serves as a deterrent for others. An employee is given major punishment only after the
charges are established against him through a regular departmental inquiry(RDA).
Conviction under Departmental inquiry is based on ‘Preponderance of Probability’
rather than ‘Proof beyond reasonable doubt’ which is the rule for conviction in judicial
proceedings. Standing Order and Conduct Discipline and Appeal Rule 1977 provides a
non-exhaustive list of misconducts for which an employee can be punished.
Direct punitive vigilance functions involve the following:
Carrying out prompt investigation into the complaints which are not
pseudonymous/anonymous and are having clear vigilance angle. Besides surprise
checks often indicate discrepancies which are taken up for detailed investigation.
Guiding Disciplinary Authority in preparation of charge memoranda/Charge sheets
Presenting cases of vigilance before Inquiry Committee

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Recommending type of punishment (whether Major or Minor) for errant employees of
E4 level and below
Taking advice of Chief Vigilance Officer (CVO) on the type of inquiry (First stage
Advice) and type of punishment (Second stage Advice) to be awarded to errant
employees.
Refer vigilance cases involving employees of E8 and above to CVC through CVO for
advice on quantum of punishment to be awarded.
Ensuring inquiry is completed within 6 months from the appointment of Inquiry
Officer and punishment order passed promptly.

Ethics, transparency and fair play forms the core of our democratic values and as such
are of paramount importance to an organization like RSP. It is possible to make profit
through good governance, which requires each and every officer and worker of our
company to maintain absolute integrity and follow ethical practices in their day to day
functioning. Every manager MUST remember that he is a vigilance officer in his own
area of supervision.

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INTERNAL AUDIT

Internal Audit Department of RSP is an integral part of Corporate Internal
Audit(SAIL). It is a statutory requirement as per Company’s Act. Accordingly an
Audit Committee was constituted by SAIL Board. For effective functions of the same,
Internal Audit department of various plants/units of SAIL functions as a part of the
Corporate Internal Audit.

It examines, evaluates and provides professional opinion on its systems of financial,
operational and management controls. It is an effective management tool to ensure that
management controls are working effectively and operations are being carried out in
consonance with the overall organisational objectives. One of its major function is to
check the compliance with established and statutory accounting system and
procedures to ensure that the final accounts represent a true and fair financial position
of the company.

Internal Audit Areas:
Audit of sanction
Proprietory Audit
Audit of expenditure
Audit of conformity with generally accepted accounting principles/standards,
accounting policies of the company and statutory provisions of Companies Act ,
Income Tax Act (Security Exchange Board of India) etc.

Scope & Functions:
Reviewing the reliability and integrity of financial and operating information and
means used to identify, measure, classify and report such information.
Reviewing the means of safeguarding the assets.

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Appraising the economy, efficiency and effectiveness with which resources are
deployed. In particular to ensure that:
The Inventory levels are managed to the best commercial advantage and for improved
market presence.
The Funds are managed to the best commercial advantage.
The appropriate expenditure is incurred.
Reviewing operations, activities or programmes to ascertain whether results are
consistent with set objectives and goals and whether they are being carried out as
planned.
Conducting special/management audits and other special assignments so directed by
the Chief Executives/ Chairman/ACB.
Coordinating the replies to the Government Audit Queries, Inspection Reports, Draft
Audit Paras, Comprehensive Appraisals and COPU Questionnaires.
Maintaining liaison with the Statutory Auditors and to provide all assistance to them
as may be required.
Assisting Audit Committee in ensuring transparency in the management functions to
make it an effective tool of Corporate Governance.

The exact scope of an audit, nevertheless is decided on the basis of risk analysis,
previous reports, resource availability, time and cost constraints prior to commencing
an audit.


Follow up/ Review of Audit activities:
On completion of Audit of a particular area/department a Preliminary Report(PR) is
issued to the Auditee department for compliance/ further comments. On receipt of
Auditee’s comment, the Final Report (FR) is issued to the Principal HoD
incorporating the Auditee’s comments and further comments of Audit. A copy of FR
is also sent to Corporate Internal Audit for perusal and further actions, if required. The

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Action Taken Report (ATR) is subsequently issued by the Auditee. Regular follow up
is done with Auditee Department to ensure implementation of various audit
suggestions. Special emphasis is given for identification of Significant Audit Findings
(SAF). The same is regularly followed up for due compliance and the same is
monitored by the Corporate Internal Audit on a regular basis till implementation.


Heads of Internal Audits (HOIA) conduct monthly review meetings to review the
progress and status of various Audits and also the findings there-of. Wherever
necessary the matter is taken up with higher authorities for necessary action against
various Audit observations.
A monthly report as per standard proforma is sent by HOIA to Corporate Office
detailing the number of audits scheduled, done, number of PR & FR issued with
details and various Significant Audit Findings (SAF) status thereof.
Similarly, a monthly report is also submitted to MD, RSP by HOIA detailing the
various activities and significant observations for kind perusal of MD.
Quarterly HOIA meetings are held by ED(IA) to review the audit activities of various
units, status of SAF etc and also to discuss various other issues like new rules/
regulations or modifications there-of.

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Action taken/proposed to be taken (with time frame) are to be indicated by the auditee
for the audit recommendations which are acceptable to them. Wherever the auditee
does not agree with the observation/suggestion/recommendation, the same is to be
clearly mentioned with reasons for disagreement/suitable explanation.

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MEDICAL & HEALTH SERVICES


Rourkela Steel Plant©s concern for a healthy environment is symbolised by it©s Medical
and Health Services. This concern has led RSP to establish a modern,
multidisciplinary, comprehensive and premier medical centre in the eastern region
which has been functioning since 1959 to provide quality medical & health services to
the employees of RSP, members of their family, supporting population and inhabitants
of the neighbouring areas of Orissa and it©s adjoining states. Equipped with state of art
diagnostic facilities, equipment and a committed task force of competent
professionals, the hospital is a centre for curative, preventive, promotive and
rehabilitative functions.

A 685 bed hospital, Ispat General Hospital (IGH) was the first hospital in the
industrial sector to initiate the concept of Intensive care, Burn care, Haemo-dialysis,
Nuclear medicine laboratory, Whole body Ultra Sound, CT Scan etc. It was also
among the first industrial hospitals to start innovative medical procedures which
include implantation of Single and Dual Chamber Pacemaker, Total Hip replacement,
Total Knee replacement, Phaco emulsification cataract surgery, Pyloplasty, etc. IGH
of RSP was first to install "Vapoclave" (Hydro clave) among SAIL steel plants and
within Orissa for treatment of biomedical waste.

The Steel Township has four Health Centres to provide basic health care and also to
impart health education. There is also a hospital in Fertilizer Town with a bed strength
of 30.

RSP was the first to start a full fledged Occupational Health Service (OHS) Centre in
SAIL and in Orissa. The OHS activities include 3 Ps of Health care, namely pre-
employment, pre-placement and periodic check ups. All the employees are covered

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under ©Man Maintenance Programme©. Special health check up for ‘high risk groups’ is
being done regularly.

Diagnostic and therapeutic Hi-Tech instruments have been installed for quick
diagnosis and better health care such as:

Automated Blood Cell Counter
Automated X-Ray film processor
Uretero Renoscope
High Speed Sterilizer in OT
Ventilator with compression compact for
Anesthesia unit

Phaco Surgical Instruments
Cardiac Defibrillator and Monitor in
ICU
Whole body ultra sound
Digital Flame Photo meter (Bio-
Chemical Lab)
Laproscopic Hysterectomy Instrument

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The Paediatric unit in IGH has the distinction of being chosen as one of the centres of excellence out
of five in India. Working in collaboration with University of Maryland USA for prevention of
neonatal sepsis, it has contributed significantly towards reducing infant mortality rate in adjacent
rural areas.

IGH has always been in the forefront in research activities. IGH has been recognised by the World
Health Organisation as a training centre for doctors from SAARC countries on malaria case
management. It is also one of the 4 centres in South East Asia to conduct SEQUAME trials in severe
‘falciparum malaria’.

Treatment of around 15 lakh out door patients and 33,000 indoor patients annually is an indication of
the gamut of operations of the Medical department. But statistics alone are not the identifying
criteria of the commitment of IGH towards society. The commitment is visible in the continually
improving quality of life of the citizens of Rourkela.

The various units of IGH:

Surgery:
The Surgery unit includes General Surgery, Neurosurgery, Burns & Plastic Surgery, Orthopaedics
and Trauma Surgery. The unit is accredited for post graduate teaching. It runs three operation
theatres and a round the clock emergency operation theatre. It carries out microsurgery, sophisticated
orthopaedic and neurosurgery in addition to urological procedures. Laparoscopic surgery for Gall
Bladder is carried out for the last 15 years. So far more than 1000 patients have received the benefit
of this button hole surgery. Many critical cases are also successfully operated by the doctors of this
unit.

Medicine:
The Medicine unit has combined services along with academics. It has various sub-specialities like
Nephrology & Dialysis unit for renal failure patients, Cardiology and Gastroenterology. It has a
modern 11 bed Intensive Care cum Coronary Care unit with facilities for artificial ventilators, central

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monitoring and central oxygen. This unit holds the record of implanting a permanent pacemaker in a
boy of eight years age. The Gastroenterology unit performs upper and lower GI endoscopy along
with facility for band ligation, sclerotherapy and foreign body removal. This unit is recognised at
national as well as international level for the research activities in tropical medicine which has
brought laurels to SAIL. It has established collaboration with World Health Organisation (WHO),
Council of Scientific and Industrial Research (CSIR) and Indian Council of Medical Research
(ICMR).

Paediatrics and Neonatology Unit:
It has a well equipped Neonatology Unit and Paediatric Intensive Care Unit. It is the first hospital in
the Public Sector Undertakings to establish collaboration with University of Maryland, USA through
a Global Network Funding.

Obstetrics & Gynaecology Unit and Family Welfare Unit:
In addition to the responsibility of the mother care, these units involve in the national programme for
the family welfare. These units organise monthly camps for family welfare, awareness and
immunisation.


Chest & TB, Psychiatry and Dermatology Units:
These units engaged in both preventive and curative aspects of the employees and the general
population. With the help of SAIL-National AIDs Control Organisation (NACO) initiative, it has
established a voluntary consultation unit for suspected HIV-AIDs patients. It conducts regular
awareness programmes for the employees, general public, students etc.

Eye, ENT and Dental Units:
The Ophthalmology unit is well equipped with modern gadgets for phacoemulsion, micro-surgery
etc.

The ENT unit is recognised as the centre of excellence for removal of foreign bodies from the
respiratory tract in the infants and children.

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The Dental unit is equipped for dental surgeries and artificial dentures.

Laboratory Services:
These are the backbones of any good hospital. The Bio-Chemistry Lab is recognised as one of the
finest Labs in the country, as it regularly occupies top ranking in the external quality control tests
conducted by Association of Clinical Bio-Chemists of India (ACBI) and Christian Medical College
(CMC), Vellore for about 2000 hospitals and laboratories in India. It stood first four times so far in
this ranking.

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Occupational Health Service Centre (OHSC):
This unit is the first Occupational Health Centre established in SAIL as well as in any Public Sector
Undertaking in Orissa. It organised the first ever conference of Occupational Health in the Steel
Sector, at Rourkela about two decades back.

Library:
IGH has a established Library with more than 40 Journals from India and abroad, two internet
terminals and four computers. The library hall is also used for conducting regular scientific meetings
and technical presentations.

In addition to the above facilities IGH is linked to the Computer & Information Technology
department of RSP through on-line SUN system which supports a near total computerisation of the
Stores, Statistics, Registration and Finance Sections.

Special Features of IGH:
Established first Dialysis unit in Eastern India
Established first Intensive Care Unit in SAIL
Established first Burns Care Centre in Public Sector Undertakings
First Industrial Hospital in India to start implantation of Pace-Makers
First Industrial Establishment in India to implant the Pace-Maker in the youngest person (8 years
old boy)
Organised first All India Steel Doctors Conference
First Industrial Hospital to establish collaboration with University of Maryland, USA in Paediatrics
& Neonatology
WHO recognised the training centre of IGH for Severe Malaria.

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CENTRAL INDUSTRIAL SECURITY FORCE


Central Industrial Security Force (CISF) came into existence through an Act of Parliament in March,
1969 and was declared as Armed Force of the Union by an enactment on April 15, 1983. To provide
better security to Public Sector Undertakings (PSU), the post of Industrial Security Advisor was
appointed and a study was made of the total security arrangements in the various. The Security
Adviser recommended the setting up of a uniformed force to look after the security of PSUs with
specialized training, strict discipline and all India liability of service and outside the purview of the
Trade Unions Act and Industrial Disputes Act CISF was inducted in RSP on 8-11-1971.

Security of the Plant’s equipment and material:
CISF provide security coverage to Rourkela Steel Plant, Fertilizer Plant, Mandira Dam and also of
Iron Ore Mines at Tensa and Barsua.

Special Security to Vital Installations:
The main crime prone areas of the steel plant have been identified and security coverage is put in
place accordingly. The plant has total 33.89 Sq. KM covered by 23 KM long perimeter wall. The
security system in the plant for countering criminal activities constitute round the clock guarding
around the vital installation, important stores, all gates, escorting of railway wagons, patrolling
inside and outside the plant premises etc.

Access Control and Administration:
Effective access control has been made at every gate by 100 % checking of passes of employees /
contractor labours during their entry / exit round the clock. Thorough verification of all material
movement is done i.e. through Main Gate, Traffic Gate and Hirakud Gate. All movements through
the gates are monitored by Control Room. All the gates and vital installations is proposed to be
covered with Close Circuit Television (CCTV) soon.

Gate Pass for all Plant Employees and Visitors:

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Laser System Identity Cards for the Plant’s regular employees are issued from CISF Pass section on
submission of filled up applications in a prescribed proforma duly forwarded by the HoD. Visitors
are also issued passes on submission of applications duly recommended by CLC / Department to
CISF, Pass Section.

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Constant Guarding of Stores and Cash Counters:
All the Stores and Cash Counters are guarded by CISF personnel deployed at static duty posts round
the clock. In addition to security checking services, Dog Squad is also used to conduct search in
different suspicious locations in the plant.

Road Traffic Control inside the Plant.:
To ensure smooth flow of traffic and safety while driving, CISF personnel are deployed to control
movement of vehicles and safety within the plant.


Introduction to Human Resource Department:

HRD Centers, an ISO 9001 Accredited Institution, conducts a multitude of Training Programmes
towards building and reinforcing employee©s skill and competence. Today the Centre has grown to a
position where it can address a wide spectrum of development needs. The objective of HRD Centre
is to impart professional training to new entrants as well as the employees of Rourkela Steel Plant to
bridge the ever increasing gap of skill, knowledge and experience. Around 55% of the total
population trained per year pertains to only Technical areas, addressing the immediate requirement
of the day. Besides training. Other important aspects of HRD like evaluating the effectiveness of
training, competency mapping, skill gap analysis, upgradation of training rigs and reading materials
also play a major role.

Focus of Training:
The focus of training and development at HRD Centre is based on -
People – Our number one resource
Customer Needs – The purpose of all our activities

Training Strategy:

A two fold training strategy is followed for the development of employees:
Printed at Ispat Press, Rourkela Steel Plant,

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Training of all new entrants: Standard Training Schemes exist which are followed in all the units of
SAIL
Training of existing employees for existing jobs as well as for future requirements

At Rourkela Steel Plant our strategies are:
The organizational needs and corporate goals identify the thrust areas of training
Initiative is taken to identify the individual and occupational needs within each thrust area
department wise. Training Programmes are designed based on the above needs.
The above simultaneously leads to the identification of number of employees to be trained in each
programme.
All employees, irrespective of level of specialization require training at specific interval in their
carrier.
All the programs are modular and need-based.

The philosophy of training function has been to able respond to the above training policy, with a
professional activity based approach.


Training Facilities
The Centre is well equipped with all types of facilities required, for conducting different types of
training Programmes like spacious well furnished Classrooms , Galleries , Conference Rooms ,
Syndicate halls , Auditorium , Laboratories , Audio-visual aids , Workshops & Library.
Classrooms and Laboratories:
We have 22 fully furnished Classrooms and two Laboratories.
The classrooms are well equipped with the type of furniture required for different types of courses
(e.g. white board, Overhead Projector, Flip Chart Board, LCD Projector etc) for conducting the
normal lecture classes and syndicate discussions, seminars, Communication Meetings and other
Management Development activities.
There are 2 Laboratories (Electronics Lab and Hydraulics & Pneumatics Lab) available for
demonstration as well as for conducting special experiments to enhance the competence level in
Electronics, PLC, Hydraulics and Pneumatics.

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A. Hydraulics & Pneumatics Laboratory:
This modern laboratory is commissioned in 1993 with the objective of retraining senior employees
as well as in Hydraulics and Pneumatics, so as to increase the competency level to cope with the
advent of latest technologies with modernization. The laboratory is equipped with Hydraulics &
Pneumatics Working Bench, Component Modules. Electronic Sensors, Pump Testing
Stand,Polarised Vision System.Slide Programes,Video Programmes,Magnetic Symbols,Industrial
Application Package,Computerised Simulation,Transparent Components,Computerised Fault
Trouble Shooting,Air Logic System,Programmable Controllers
Following In-house modules are conducted in the Laboratory on regular basis :
Basic Hydraulics & Pneumatics (NE)
Basic Hydraulics & Pneumatics (Ex)
Electro - Hydraulics
B.Electronics Laboratory :
This laboratory was also commissioned in the Year 1994 with World Bank under Technical
Assistance Loan by the Supplier M/s Feedback , UK. The major objective of the laboratory is to
train the employees of RSP in the Electronics , Electrical and Automation areas to suit the present
plant requirement.The laboratory is equipped with Electronic Constructor Kit,Thyristor Control
Panel ,Computerised Power Control kit,DC Drive Control Kit,S5 100U PLC,Common Electronic
Measuring Instruments,Related Accessories
Following In-house Modules are conducted on regular basis for the plant employees
Electronics Fundamentals
Power Electronics
Siemens PLC
C. Computer Hall :
The Centre installed in 1989 is equipped with 10 modern PCs ( Celeron / Pentium) to train the ex/
Nex of RSP in Common Software Packages . various in-house modules are organised in the
Computer Hall on regular basis as per the Annual Training Plan
D. Workshop Facilities :
The main objective of the workshops is to develop skilled and multiskilled Training and produce
work order jobs for various departments. Besides fresh trainees who are trained as Trade
Apprentices as per the Apprenticeship Training Scheme and also the Diploma Holders in different

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branches , regular training courses like Basic Engineering Skill Training and other shop based
Programmes are also conducted for the benefit of semi-skilled as well as skilled workers. The
employees are also regularly trade tested to promote them for higher jobs and for this purpose all
modern machines and tools have been provided.
In Machine shop there are Lathe Machines , CNC Lathe Trainer , Shaping Machine ,Slotting
machine , Radial Drilling Machine , Universal Milling machine, Horizontal Milling Machine ,Boring
Machine ,Double ended Pedestal Grinder , Surface Grinder and Power Saw Metal Cutting Machine .
In Machine shop the Apprenticeship Training for Machinist Trade is conducted covering Shaping ,
Slotting , Planning . Milling , Drilling and Grinding exercises. For Turner trade exercises are
conducted in Lathe Machine , Drilling Machine and Capstan Trade. Sequence of operations relating
to the performance of skills are covered in the exercises.
In Welding Shop , there are welding Transformers having 6 regular generators , 1 MIG/MAG CO2
Welding Machine , 1 TIG Welding machine with Plasma coating , 1 Padestall grinding Machine and
Gas Cutting and Welding facilities . Following two Multi skill Training are conducted here :
Basic Welding & Gas Cutting
TIG/MIG Welding
In Fitting Shop , there are 70 nos of Bench vices ,Piller type Drilling Machine , Hydraulic Press ,
Bending machine , Shearing machine , padestall grinding machine & Bench Drilling machine.
Other facilities of Fitting Shop are Material Handling Demonstration Equip , Eldro Brake etc.
In Electrical Shop, we have various ac/dc drives installed for training purpose There are AC , DC
Drives , Transformer Panel , Crane Circuits Panel Battery Panel , Resistance Boxes and common
measuring instruments. Following 4 Basic Engineering Modules are conducted here :
Testing / Maintenance / Troubleshooting of AC Motors
Testing / Maintenance / Troubleshooting of DC Motors
Study of Electrical and Electronics Drawing
Electrical Measuring Instruments
E. Other Infra Structural Facilities :
Customer Care Cell
This section coordinates all training programmes conducted in HRD Centre. The primary
responsibilities of this cell is Regular upkeep of all Audio-Visual Aids , Providing stationeries to the
programme in-charges , organising tea/ lunch etc. , coordinating all communication Meetings ,

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Maintenance of Photo-copiers , managing attendance of all participants and attendin to the general
requirements of all the programmes .
Documentation Cell
This section computerises the entire training documentation in the SUN System ( Training
Management System) . All the departments are connected through this network . Training Bio-data
feeding , updating the records, Preparation of Highlights , Training Need Identification of all
employees etc. are performed here on regular basis.
Trade Testing Centre
This section conducts trade tests and job tests as per plant requirements according to laid down and
approved norms.
Library :
HRD Centre maintains a separate library having about 20,000 books containing various technical
and managerial topics and all the latest editions of the publications related to the curriculum with
computerised Information System. The latest publications like periodicals , journals are regularly
procured , making the library one of the best. The library provides a comfortable reading
environment where the employees , trainees and faculty members may spend hours for their work.
The Reference Section also keeps different training manuals running into hundreds of volumes
developed in the centre for the benefit of different categories of trainees.
Hostel :
To lodge different categories of Trainees , a big hostel complex has been established which has
living facilities of about 250 trainees. There are facilities for indoor and outdoor games , a
gymnasium , a play ground , Common rooms and Reading Room. The cosmopolitan environment
helps the trainees knowing each other from the early stage of their career which help them for better
coordination in the day to day work in the later stage of their career. Properly furnished dining halls
are provided in the hostel where the trainees run their messes on a co-operative basis.
Performance Highlights for 2005-06
Training :
------ Employees were trained against the Annual Training Plan of 8110 ( ---- % fulfillment of Plan)
against a cumulative fulfillment of 111.23 % last year
---- employees were trained in Technical & Hi Tech areas ( ---- % of total trained) against a
cumulative fulfillment of 5646 ( 67.7% of total trained) last year :

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Area wise Fulfillment of Training is mentioned below :

2004-05 2005-06 Sl.
No.
Area
Plan Fulfillme
nt
%
Fulfillme
nt

Plan Fulfillmen
t
%
Fulfillme
nt

Induction Training 160 18 11.3
Competence
Enhancement
4100 3657 89.2
Specific Areas 3380 4787 141.6
Foreign & External
Training
80 95 118.7
Other Areas 500 586 117.2
Total : 8220 9143 111.2
INDUCTION TRAINING :
All executives and non-executives recruited for Rourkela Steel Plant are trained in the Human
Resource Development Centre before being posted to the various departments. Specific training
scheme has been prepared for each of the categories of trainees and training is imparted based on the
same. For executives joining as Management Trainees and Jr. Manager (Finance), Central Induction
is held at any plant location or Management Training Institute, Ranchi followed by Plant training.
For non-executives category i.e. Sr. Technician cum Operative Trainees, Technicians cum Operative
Trainees, Semi Skilled Worker Trainees and Trade Apprentices separate training modules have been
designed consisting of training in HRDC as well as on-the-job training in the department. This year
following activities were organised :
Summer training organized for 800 Vacational Trainees of different disciplines
Post Promotion Training of 297 Jr. Executives are conducting as per schedule
47 Newly recruited Management Trainees (T) are going training as per MTTS
Competence Enhancement Training
This area includes all the efforts made at enhancing technical & Managerial skills and is further
divided into following broad sub-areas :

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Technical Skill Development Training : This area includes Basic Engineering Skill Programmes ,
Multiskill Training , Laboratory Based Training , In-PlantDepartment Specific Training ,
Performance Improvement Workshops , Technology Awareness Programmes , Unit Training etc.
Basic Engineering Skills : These modules have been developed with the aim of improving the
knowledge , skill and competence level of technicians in the area of mechanical maintenance ,
operations and technical services . On completion of the programmers the participants will be able to
–
Use correct tools and tackles for the day to day maintenance jobs
Diagnose the faults and take corrective action
Carryout qualitative Maintenance Work
This year so far we have trained -------- employees against the ATP of ----

2. Multiskill Training : In view of thrust on right –sizing of manpower in SAIL , conscious efforts
are being made in RSP to ensure that our employees possess the multiple skills to enhance their job
performance as well as job effectiveness. Process of Multi skill Trainig envisages identification of
areas , consultation with managers / employees / unions and imparting training on additional skills /
trades . Broadly speaking , Multi skill training facilitates effective utilization of human resources and
improvement in productivity through people . It ensures re-orientation of attitudes and improved
work culture among the manpower through mobility and flexibility. The objective is :
Training in one / two additional Trades apart from current Basic Trades
Training for doing extra jobs in addition to one’s own job
Skill enlargement and Skill enrichment in existing skills
We are conducting following 4 multiskill modules in our workshops on regular basis :
Basic Welding & gas Cutting
Material handling
Repair & Fitting of Electrical machines
This year --------- employees are trained against the ATP of ------
Hi Tech Training
Specialised requirements of customer departments in the areas of Hi - Tech competence
enhancement are being regularly addressed by conducting focussed training programmes. The
programmes are ranging in the areas of Electronics , PLCs , Electro-hydraulics , Digital Drives (both

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AC & DC) , Microprocessor based equipments , CNC , Microcontrollers , Networking etc. Follow
up mechanisms have been standarised by regular post training interactions and assessing the training
benefits at Learning , Application and Result Level. With the recent advancement of new
technology all over the plant , Hi Tech training is the need of the hour .
This year ---- employees were trained with external expertise from CETE , Kolkata , Oracle India ,
L&T , Siemens etc, and --- employees were trained with in-house expertise.
Performance Excellence Workshop
It is a workshop which facilitates interaction of the connected personnel to address a focussed issue
of the shop floor / other functions and arrive at the concrete action plans for implementation. It is a
top-driven approach and most of the time ,the issues of the workshop originate from the corporate
priorities of the plant , directed by ED(W) . In some cases the topics come from Principal Heads and
HODs . Some of the workshops are conducted in joint collaboration with MTI and RDCIS also.
After conducting the Workshops , the in the shop floor is assessed through Review Workshops held
after 6-8 months of the original workshop or shop floor based interactions.
This year following 4 Performance Excellence Workshops were conducted on issues critical to the
performance of the plant covering 177 employees:
Enhancing the Quality of Base Mix in OBBP
Achieving and Sustaining the Productivity Level of 250 TPH sinter at SP II
Demurrage Control in OBBP ,TRM ,CPP I & CO
Elimination of Cobble Generation in HSM
Technology Awareness Programmes :
The programmes are designed to impart necessary theoretical inputs to the participants and integrate
the theories with the practical experience of the participants. The programmes also provide
substantial reinforcement of knowledge and skill of the participants. This year 151 employees were
trained against the ATP of ---
Department Specific Programmes :
To meet the specific requirement with relation to competence enhancement of employees of the
various departments , these modules are designed and conducted on priority basis in consultation
with line departments. These programmes are designed keeping in view the following factors :
Areas where performance of the department depends upon the competence on specific equipment
maintenance ( e.g. S7 300 PLC , R30 Computer System , Tata Liebert UPS etc.)

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Competence requirement for operational efficiency (e.g. Operation of Conveyor Belt System)
Special skill requirement with relation to improving quality , cost and profitability (e.g.Improvement
of HR coils with special thrust on thickness and width)
Needs emerging out of some critical incidents ( e.g. Handling of High Voltage Equipments)
607 employees were trained through different department specific modules to meet the urgent
requirement as and when needed.
Unit Training
The objective of the unit training is to bring up the capabilities of all operators to an agreed standard
of operation . Additionally , unit training ensures that current practices are reviewed and updated
continuously for improvement in quality of performance and productivity and that good practices are
passed on and maintained.The focus of this module is training of employees On-the-job by an
experienced worker of the same department called a Unit Trainer.
This year 116 employees were trained through Unit Training on the critical job areas of SMS-II,
Strl. and Fabn. Shop, HM(E), OBBP, SPP, RCL, T&RM, Instrumentation etc. Besides Training ,a
Pocket Book for Unit Training (UT) containing Concept of UT, Manual Writing Guidelines, Key
Points and Steps Involved in Job Instructional Techniques, What to do and Whom to Contact was
prepared for the convenient of the people those who are associated with UT in their departments.
Managerial Training- The objectives of the managerial training are :
Becoming aware of the changing business scenario and understanding individual role in achieving
the organisational objectives.
Acquiring the managerial skills like Leadership , Planning , Effective Communication , Delegating ,
Problem Solving , Decision Makind , Developing Subordinates , Presentation , Concept of Cost and
Quality , Team Building etc.
Understanding individual roles and responsibilities for establishing and maintaining standards.
It includes General Management Programmes like MDP, SDP, EME and Specific Managerial Skill
Development programmes like Action Leadership, Microplanning, Counselling, Total Team
Training, TOTO Module , Emotional Intelligence etc.
This year so far ----- employees have been trained against the ATP of ------
SPECIFIC AREAS :
The objective of this training scheme is to create an awareness of safety and health conciousness ,
environment control , Occupational Hazards and means to combat them and stress amnagement.

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This includes training programmes having special focus on thrust areas in the Organisation.
Programmes on Safety, Environment, Fire Control Management, Cost Control and Cost Reduction,
Energy Conservation, ISO 9000, Quality Control Tools and all Problem Solving Workshops and
other special programmes.
This year so far ---- employees were trained in specific areas against the ATP of---
FOREIGN AND EXTERNAL TRAINING :
All training programmes for which employees are sponsored abroad are covered here under the sub-
heading “Foreign”. The other sub-heading for “External” includes all the outstation programmes
conducted by agencies other than SAIL and its units, for which employees are sponsored.

OTHER AREAS :
This covers all miscellaneous workshops / seminars and Hindi Training. All programmes conducted
for employees of non-works departments are included here. This also includes the training activities
conducted for employees of sister units of SAIL.

B. Infrastructural Development :
Human Resource Development Centre is Strategically located right near the entrance to the Plant . It
is also the Gateway where all the RSP employees start their career and subsequently revisit for
refresher training. Besides all official visits to the Plant , Ministers , Government Officials and
Guests begin their Plant Visit with HRDC .
However , in early 2005 we decided to go for a total facelift which would impact a brilliant ,
glittering and sparkling finish .
To meet the above end , a joint inspection was carried out along with Civil Engineering Services and
it was decided that there would be no Structural Changes . Instead Marble and Tiles would be used
for floor , walls and entrances. Some of the prominent hoardings would be given better look and that
not only the Periphery but the internal looks would receive a facelift.
The massive and ambitious work commenced in April 2005 and by November end , the Building and
premises really started to sparkle.
Civil Jobs :
Boundary wall around HRDC
Modification of covering of main drain along the front side boundary of HRD Centre

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Providing pipe grills along the maindrain in front of road side
GBA : Modification of both entrance and exit of GBA , Installation of Glass Doors , Interior
Snowcem Painting , Installation of Fabricated pipe structure at the entrance and exit , Vinyl flooring
Ceramic tile cladding at entrance and exit gate pillars , Steps and pillars near Library
Interior and Exterior Painting of all the rooms
Dwarf Walls around GBA and passage to MDP wing and passage to garage
Chequered tile in front of entrance and exit and MDP Wing
Renovation of all toilets
Aluminium painting and false ceiling of Workshops
Tar felting of MT(T) wing roof
Electrical Jobs :
Focussing Lamps with metal halide fittings installed at HRD Building and GB Auditorium
Post top fittings installed in east side garden and around GB Auditorium
Repairing and installing 100 % ACs in all rooms
All wall mounted fans got repaired
Complete rewiring /casing / caping for all rooms
Street light restored in both the garden areas and front side of GBA
Removal of unused Panels lying at various locations
All old Distribution Boxes replaced with new MCBs
All old damaged idle tube light sets replaced
Model Room supply was restored with new wiring
Library provided with separate source of supply
Decorative and Box type tube light fittings provided at various places of HRDC with casing / caping
/wiring
New supply provided for pump motor and exhaust fans installed at GBA basement area
New supply provided for LCD screen installed at GBA
C. Procurement : With the complete renovation of HRDC in progress , a number of procurement
actions for furniture repair and replacement , training rigs , installation of Public Address System ,
repair of equipments etc were also initiated at the beginning of 2005 . The list of new procurements
are listed below :
New Electronic Model for Model Room

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5 Pentium IV PCs
8 Dot Matrix Printers
1 LCD Projector
1 Photocopy machine
Dewatering Pump for GBA
5 Water Filters
3 Acrylic Fibre Display Boards
Renovation of Conference Table of Room 103 and Tea serving table of Foyer
Fabrication and Installation of AC Covers
Procurement action initiated for 3 more LCD Projectors , 1 laptop computer , Installation of new PA
system for Room 102,106,204 , S7 300 Trainer PLC kit , 2 new Xerox machine etc.
D HRD Interventions:
i. Competence Mapping :
It is a useful process for assessing the competency levels of the individual employees deployed on
various jobs on the shop-floor. It aims at identifying jobs / positions and corresponding
competencies required to be effective at that job / position. Competency mapping helps in
indentifying gaps in terms of specific attributes like Knowledge , Skill and Attitude for each and
every employee so that required training is imparted for bridging these gaps The broad steps
involved in the process adopted are as follows :
Identification of Competent manpower in different areas /functions of the department
Identification of knowledge and skill level in respect of other employees keeping in view the job
requirement / competency
Identification of important training needs emanating from competency mapping
Systematic training efforts to build competencies and bridge the gap

Such a systematic approach to competency mapping facilitates not only assessment of competency
levels of existing manpower but also identifies required competencies and links these with training
initiatives
In RSP the exercise was carried out in 18 ISO Certified Departments . Total 2634 employees were
assessed . 907 employees were identified for training in 598 Key Job Positions. Till date 597
employees are already trained.

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ii. Skill Gap Exercise :
All successful organisations develop , nurture , preserve and seamlessly transfer the skills of
employees to align them with changing business needs and sustaining competitive advantage . Such
strategy is called Skill Gap Analysis .
In Sept ,2004 MTI , Ranchi conducted a study all over SAIL to ascertain Critical Skills for
decriticalisation through systematic training
In RSP during Sept’04 , 65 Critical Technical Skills were identified all over the plant covering 1050
employees which needed immediate attention . Over a period of 2 years , Out of 65 total skills , 53
skills are already decriticalised till date through in-house and external training . Remaining 12 skills
will be bridged shortly.
iii. Effectiveness of Training : A new system of assessment of training has been devised all over
SAIL in which the broad criteria for selecting the programmes for measuring the effectivens of
training are as follows :
A minimum of two days duration
Repetitive in nature
Helpful for imparting critical skills
Common across various plants / units
Accordingly , in RSP the effectiveness at the Learning Level was carried out in 5 major areas ( BES
, Hi Tech , Unit Training ,PC Skills , Multiskill) for the first time . The evaluation at the application
level is also in progress.
iv. Publication of Panorama:
A revised and improved version of compendium on “RSP – A Panorama” encompasses activities of
all the departments both production and service units covering entire RSP was brought out after a
gap of 13 years. This is useful to the new entrants to assimilate the complexities of the operation of
RSP and for existing employees to improve their understanding and appreciation of each other’s
function.
Significant Activities:
A Tableau prepared by HRD Centre was displayed in the Ispat Stadium on SAIL Foundation Day
and was declared the winner

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Interactive Workshops on “ Improving Training in Mechanical Areas” , “Improving Training in
Electrical Areas “ and “ Training Need Assessment for 2006-07” organized
Srujani Mela for HRDC organized for the first time in HRDC
Competition for “ Chairman’s Trophy for Young Managers in SAIL” organized. First three teams
were awarded by MD
Accommodation provided to 650 women players for All India Under 19 Jr. Women’s National
Football Championship held at Roukela
Rent Revenue of Rs. ------ was generated from the Trainees Hostel by renting rooms to different
external agency for official purposes.

.FOCUS OF TRAINING FOR 2006 – 2007

Over the past few years a new impetus has been given to HRD activities and considerable strides
have been in this aspect. Today training is a process employed to develop knowledge, skill, values
and attitude to facilitate the effective working of groups to achieve specific organizational
objectives. In making efforts towards linking training events and outcomes to the business needs and
strategic goals of the company, specific focus areas of training during the year would be on -
Conducting training programmes based on the needs projected by the customer departments for 1518
executives and 7632 non-executives (Total 9150 employees).
Competence mapping of employees in specific departments and identifying training needs.
Organizing HR interventions to bridge the gaps in competence and skill.
Building capability of employees for multiskilling.
Development of competence of employees posted to work in Hi-tech areas including Computer
application.
Addressing specific needs of the various departments for enhancing performance.
Designing and conducting specific interventions to enhance managerial effectiveness.
Evaluating the effectiveness of training programmes in all In-house technical training programmes.
Creating an ambiance where employees feel motivated to learn
Continuously improving the quality of training

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