Visakhapatnam: The RINL, the corporate entity of Visakhapatnam Steel Plant, has launched a “Zero Demurrage Campaign” aimed at reducing costs and improving operational efficiency. The initiative was spearheaded by RINL CMD Atul Bhatt, who administered a pledge to employees and officials, emphasising its importance as a crucial step towards achieving cash profit through increased production.
Recognising the significant financial burden imposed by higher Rake Retention Time (RRT), the pledge aimed to reinforce the commitment of all participants in reducing RRT and achieving “zero demurrage.” This initiative underscores the organisation’s resolve to enhance productivity, improve operational efficiency, and secure a brighter future for Visakhapatnam Steel Plant. Sources indicate that RINL could potentially save Rs 90 lakh per month by eliminating demurrage.
“The financial implications of demurrage are substantial, and it is imperative that we address this issue with utmost seriousness,” Bhatt stated. “By pledging today, we are not only committing ourselves to a critical target but also fostering a culture of accountability, trust, and collaboration within our organisation.” In a meeting with senior officials and trade union representatives, Bhatt outlined a turnaround plan that includes maximising production from two Blast Furnaces to ramp up overall output.While there is no official approval yet from the steel ministry regarding other cost-cutting measures, trade union leaders and steel executive association members confirmed that some initiatives are already in place. These measures include a six percent cut in perks for executives, a halt to leave encashment for all employees, and a proposal to reduce the contract labor force by 30 percent. Additionally, the management owes employees `2,400 crore in dues under various heads, according to a trade union leader.
