As per reports, about 350 employees of Vizag Steel Plant (VSP) have opted for the Voluntary Retirement Scheme (VRS) in the third phase, compared to the target of 600.
VSP had issued a notification announcing the VRS in the previous year in order to downsize its number of employees. The third phase of said scheme was announced last month. The acceptance of applications for opting in began on January 1, 2026, and the final date of submission is January 20, 2026.
The first two phases of the VRS scheme saw a decrease of 1,633 employee. Now, the number of permanent employees at VSP has come down to about 9,000, which includes 2,700 executives and 6,300 employees. These numbers are expected to go down even more throughout the third phase of VRS.
This month, 56 employees will be retiring from VSP. This will be followed by 42 retirees in the next month under the same scheme. Over 5,000 of the 14,000 contract employees have been removed to date.
Trade unions have speculated that VSP is using delay tactics for salaries, which is forcing employees to opt for VRS. They claimed that the lack of promotions and uncertainty about the plant’s future have led many, including young staff, to retire.
