Page 1
59
CHAPTER 1 III
BRIEF DESCRIPTION OF DURGAPUR STEEL PLANT
HISTORICAL BACKGROUND
Before independence there was no steel factory in this
country under public sector undertakings. Earlier two big
steel factories were set up under private sector under
takings, one is TISCO at Tatanagar and the other. is IISCO at
Burnpur. After independence the then national leaders put
importance on industrialisation which demanded increased
production of steel. To increase steel production in a large
scale,construction of Steel Plant under public sector under
takings was necessary. For this, the Government of India
had appointed a committee in the year 1952 to investigate
the possibilities of steel plants under public sector under
takings and to select the suitable sites. The committee in
regard to the raw materials and power availability in Ind~a
was of the opinion that three steel plants can be set up and
submitted report to the then Ministry of Steel & Iron, Govt.
of India in the year 1954. The committee recommended to set
up three steel plants,one at Durgapur in West Bengal, second
at Bhilai in M.P. and the 3rd at Rourkella in orissa under
Hindusthan Steel Limited. Durgapur is situated in the
Page 2
60
district of Burdwan in west Bengal about 195 kilometres to
the northwest of Calcutta,on the famous Grand Trunk Road and
on the main line of the eastern railway going from Howrah to
Delhi. Till as recently as about 25 years ago, the place was
a small village in a cluster of similar villages surrounded
by a thick-forest. Its industrial potential derives from its
proximity to the coal fields of Raniganj and Asansol, the
relative proximity to the coking coal deposits of Jharia,the
mighty oamodar river flowing nearby and its location on the
main communication arteries,both road and rail. The late Dr.
B.C.Roy, the former Chief Minister of West Bengal, saw a
glorious future for Durgapur as one of the largest complexes
of heavy industry not only in the state, but in the whole
country tor easy availability of all the facilities required
for setting up of heavy industries. 1 . For this integrated
steel plant of ourgapur was constructs. The construction of
ourgapur steel Plant was started in the year 1955 and
completed in 1959. The plant has been built with British
Technical Assistance (ISCON). Durgapur Steel Plant operated
its first blast furnace on December 29, 1959 with a capacity
of 1 million tonnes of raw steel. The plant was constructed
at the cost of b.390 crores. The first General Manager of
this plant was Shri K.x.sen, res. The first steel production
1 T. Bagaram, "Amidst Heat and Noise", All India Management Association, New Delhi, 1977.
Page 3
61
started on the 1st April, 1960 and the plant was inaugurated
by late or. Rajendra Prasad, the then President of India.
ourgapur is an ideal place to set up
high grade coal is available from
a steel plant because
Raniganj/Jharia coal
fields- water from Durgapur Barrage, power from D.V.c. and
iron ore from Bolani Mines.This factory was first controlled
by the Ministry of Iron & Steel and subsequently by the
Ministry of Steel, Mines & Fuel. This plant was under the
control of Hindusthan Steel Limited but w.e.f. lst May, 1978
HSL name has been changed to Steel Authority of India Limi
ted (SAIL). The following integrated steel plants under the
administrative control of SAIL :
1. ourgapur Steel Plant, Durgapur.
2. Bhilai steel Plant, Bhilai.
3. Rourkella Steel Plant, Rourkella.
4. Bokaro Steel Plant, Bokaro.
LOCATION AND AREA
nurqapur Steel Plant, the largest industrial unit in
Durgapur-Asansol belt, is one of the integrated steel plants
of Steel Authority of India Ltd., situated on the banks of
the river oamodar in West Bengal, at a distance of 158 km
from Calcutta.
The plant started taking shape since January 1957, with
Page 4
62
a capacity of 1 million tonne of ingot steel per annum and
was subsequently expanded to 1.6 million tonnes per annum by
1969. The plant is spread over an area of 6.4 sq.km. and
inside the perimeter are about 32 km. of roads and 113 km.
of railway tracks.
RAW MATERIALS
Raw materials used in an integrated steel plant are
called major or minor depending on their quantum of require
ments. The major raw materials used at DSP are as follows :
(a) Bearing material - iron ore
(b) Flux - lime stone, dolomite
(c) Fuel - coke, coal
(d) Refractories - chromile
Minor raw materials, though used in less quantity, are still
having a decided influence on the process of characteris-
tics, e.g., Bauxite, Quartzite, etc ••
rials, water and power are obtained
places a
Coal - Raniganj and Jharia
Iron Ore - Bolani Mines
Dolomite - North Bengal and Baradwar
Necessary raw mate
from the following
Lime Stone- Chopan(UP), Satna(MP) and Birmitrapur(Orissa)
Water - Damodar Barrage
Electricity - o.v.c.
Page 5
BASIC FUNCTIONS OF THE MAJOR PLANTS OF DSP
2 Major plants of DSP are as follows ~
63
Coke ovens and By-products Plant - Cooking coal is con
verted into coke in the ovens of batteries by heating coal
in absence of air. The plant has 4.5 batteries with 78 ovens
in each full battery and 39 ovens in the half battery. Coal
change is 20 to (dry) per oven and cooking time is nearly 20
hours.
Coke oven gas is processed in the by-products plant
converting it into Benzene, Xylene, Toluene Solvent Naptha,
Criosote Oil, Crude Tar, Pitch and Ammonium Sulphate (Ferti
liser). The captive coal washery and the coal handling unit
help supply of processed coking coal to the coke ovens.
Blast Furnace Complex - In the blast furnaces,iron ore,
sinter, coke and limestone are charged to produce hot metal.
To get one tonne of molten iron in the blast furnace,
1000 kg. iron ore, 600 kg. sinter, 875 kg. coke and 350 kg.
limestone are required. The plant has 4 blast furnaces, 3
having a capacity of 1250 to each and one 1.500 te daily. The
annual capacity is 1.7 million tonne of hot metal.
2 Towards New FRONTIERS, DSP -a pamphlet published by Pub~ie Relations Department, DSP.
Page 6
64
The other units of this complex are 3 pig costing
machines for producing pig iron with a capacity of 120 te/hr
each, the sintering plant with a capacity of 1.5 million te
per annum for providing sinter and the ore handling plant
for processing iron ores for use in Blast Furnaces.
Steel Melting Shop - In steel melting shop, molten iron
is purified in the furnace at a temperature of 1600°c
(approx.). The process used is basic open hearth and the
produce is mild steel. The shop consists of 9 open hearth
furnace, 8 with a capacity of 220 te each and one 120 te per
heat for making ingot for railway wheels. A mixer bay with 2
mixers and two desill conising stations help process the hot
metal before charging in the furnace. Annual capacity of SMS
is 1.6 million te of rollable ingot steel.
Rolling Mills - The rolling mills consist of 42" & 32"
blooming mill (capacity 1.47 m.te annually), Billet Mill
(capacity 0.937 m.te yearly), Section Mill (annual capacity
212800 te), Merchant Mill (annual capacity 240000 te), Skelp
Mill {annual capacity 250000 te),Wheel and Axle Plant(annual
capacity 40000 wheel sets), Sleeper Plant (annual capacity
75000 te) and Fish Plate Finishing Plant (annual capacity
11000 te). Steel ingots are processed in the Blooming and
Billet Mills mainly to convert them in semi-finished pro-
ducts. Section mill rolls out light and medium structurals
Page 7
65
like joists, channels and fish plate bars of different speci
fications. The range of products in merchant mill is plain
rounds, ribbed bars and torsteel. The skelp mill produces
skelps for making tubes and pipes.
Wheel & AXle Plant - Wheel and axle plant is one of the
biggest wheel making units in South-East Asia. The 6000 te
wheel forging press is the biggest of the type in the coun
try. The plant produces wheels sets ofbroad metre and narrow
gauges. The sleeper plant produces BG/MG sleepers while the
products of the fish plate finishing plant are fish plates
for 90 lb or 52 kg rails for Indian Railways. In addition,
Durgapur Steel Plant has a score of other supporting units
to help the production process.
PRODUCTS
Iron and steel products, mainly railway materials like
wheels and axels, fish plates and sleepers. It also produces
light and medium sections, merchant sections and skelp.
BY-PRODUCTS
Naptha, Sulphuric acid, Benjal, Tar etc. are produced
Page 8
66
as by-product by this plant.
WORLD MARKET
DSP entered in the world market in 1975. It supplies
materials to Nepal, Bangladesh, Pakistan, Hong Kong, Kuwait,
Rumania, Libya, Saudi Arabia, Egypt, Nigeria, Phillipines
etc ••
It is pertinent to know how different departments are
arranged and coordinated for the overall functioning of DSP.
It is necessary therefore, to examine the organisational
structure of DSP. Specifically to know the basic features of
the structure which is shown diagrammatically.
It is evident from the organisational structure that
Managing Director is the supreme authority of all kinds of
organisational activities in DSP and is assisted by Execu
tive Directors for works, materials project control and pro-
ject, General Managers for Iron, Steel, Personnel and
Administration, Finance and Project. Deputy General Managers
and Assistant General Managers in the discharge of his duti
es and responsibilities.As the study is related to IR in the
DSP, a more detailed analysis of the organisational struc
ture of Personnel Department seems to be logical and useful
as well.The organisational structure of personnel department
of DSP is depicted also diagrammatically.
Page 9
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Page 10
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Page 11
69
The above structure indicates that the personnel depart
ment of DSP there are 9 grades of Executive starting from Eo
to E8 • E denotes - Executive.MT denotes- Management Trainee.
It is evident from the above diagram showing the complete
structure of hierarchical position of the executives in the
personnel department in DSP, there is a General Manager
(Personnel & Administration)who is the head of the personnel
department. It also reveals from the above diagram that
General Manager (P&A) is the principal staff officer to the
Managing Director and is responsible to the latter in the
administrative of all personnel matters.
The General Manager (P&A) is assisted by the following
staff members e.g., (1) Dy. General Manager (P&A) in the
grade E7 , (2) Assistant Chief Personnel Manager (Works) in
the grade E6 , (3) Dy. Chief Personnel Managers for works,
nonworks, recruitment, contract labours, Project Personnel
etc. in the grade E5 , (4) Dy.Personnel Managers in the grade
E4 , Senior Personnel Managers in the grade E3, (5) Assistant
Personnel Managers in the grade E2 , (6) Junior Personnel
Managers in the grade E1 , (?)other subordinates in the grade
Eo and Management Trainee in the discharge of his duties and
responsibilities.
Page 12
70
RECRUITMENT AND PROMOTION POLICY
The sound policy for recruitment is ofutmost importance
in a concern.
All posts at DSP and its sister plants under SAIL are
classified into two categories : (a) Executive, and (b) Non
executive.
Executive Posts - The following policies
recruitment of Executives :
govern the
(a) At least 50% of the vacancies occuring in calendar
year in the initial executive level, i.e., in the scale of
EO are to be filled in through recruitment from outside.
(b) The recruitment of Executives in the initial grade
of EO is certainly done by the SAIL, New Delhi, the holding
company. Plants do not have power to recruit candidates to
cadre posts (such as Graduate Engineer, Executive trainees)
in the above initial executive scale.
(c) Recruitment of candidates to executive posts is done
on All India basisthrough advertisement in the National Press
and selection is based on merit.
(d) Posts in the higher executive scale are filled up
through promotion. Only when suitable candidate are not
Page 13
71
available from within the organisation,recruitment from out
side is made.
(e) Suitable number of posts are reserved for SC/ST
candidates as per recruitment rules.
Within a cluster of scales of pay,
is linked to performance as reflected
executive promotion
in the performance
appraisal report. Executive promotion from one scale of pay
to another in the same cluster is decided on collection of
certain specified credit points after completion of 3 years
relaxable to a maximum of 3 months. Promotion between clus
ters depends on availability of vacancies in the next higher
cluster.
Non-Executive Posts -
outside the organisation
Recruitment of candidates from
is made through the local Employ-
ment Exchange. After receiving the particulars of the candi
dates from Employment Exchange, candidates are invited for
written/trade test and or interview as the case may be. In
case suitable candidates are not available in Employment Ex
change, the posts are advertised in the news papers after
getting 'Non-Availability Certificate' from Employment Ex
change. The candidates are interviewed by a duly constituted
selection board.
Local displaced person whose land had been acquired for
Page 14
72
establishment of the plant aregiven preference in the matter
of employment. Temporary employees who have put in atleast
one year•s continuous service are considered for absorption,
as and when vacancies arise for permanent posts.
In addition to above, there are Government directives
regarding reservation of vacancies for candidates belonging
to SC/ST and Ex-service personnel disabled or otherwise and
dependents of Ex-service personnel.
In case of Non-executive, every non-executive employee
gets promotion facility after five years of service in the
organisation.
PRODUCTION TREND
The Table 3.1 and Figure 3.la to 3.1e indicate the pro
duction trend during 1984-85 to 1993-94 of DSP. It is seen
from the table that it is very difficult to say about produc
tion trend whether increasing or decreasing. From 1990-91 to
1993-94 all types of production went down because for moder
nisation, many units were under shut down condition.
PRODUCTWISE TURNOVER
From the Table 3.2 and Figure 3.2 of productwise turn
over it is evident that turnover of almost all the productmix
Page 15
73
TABLE 3.1
PRODUCTION SUMMARY
HOT METAL,SALEABLE PIG IRON,INGOT STEEL AND SALEABLE STEEL
PRODUCTWISE - DSP (THOUSAND TONNES) (1984-85 TO 1993-94)
• • • • • Year :Hot Metal:saleable: Ingot Steel/:saleable: Sinter
:Pig Iron: Crude Steel Steel
1984-85 884 64 760 621 477
1985-86 1065 143 876 724 504
1986-87 112 5 153 922 751 471
1987-88 1139 179 936 836 543
1988-89 1096 129 956 832 726
1989-90 1062 207 850 700 729
1990-91 972 87 875 727 701
1991-92 937 69 871 682 702
1992-93 725 17 676 641 605
1993-94 676 35 618 641 525
Source:Annual Report of DSP(l993-94) and Financial Year Book (1994-95) of DSP.
Page 16
1200
1000
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600
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200 0
Pro
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5 85
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3 93
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Page 17
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Page 18
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Prod
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Page 19
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Page 20
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.........
.. ..... ..
........
.........
.........
........
........
..........
. ....
... .
~-;,
..........
:::
:::::
........
........ . ...... .
........
........
::::::
:: :::::
::: . ...... .
. ..... ..
.. .... ..
::::::::
.....
, .. ~m~m
::::::
:: :::::
::: . ...... .
::::::
:: nn
nn
::::::::
gggg
..
....
..
....
....
. ..
....
...
....
....
...
......
• .
....
. ,.
······
·::J
J-1.
:::··"
:11
rJ
0 ..
... ....
....
.... ...
. ...
... ...
... ....
....
''"C:.:l.:Jl~l:!..:....t../
84-8
5 85
-86
86-8
7 87
-88
88-8
9 89
-90
90-9
1 91
-92
92-9
3 93
-94
Year
Fi
g. 3
.le:
PRO
DU
CTI
ON
SA
LEA
BLE
STEE
L O
F D
SP
....J
CQ
Page 21
TAB
LE
3.
2
PRO
DU
CT
-WIS
E
TUR
NO
VER
Q
tty
. :
•ooo
T
, v
alu
e
Rs.
L
ak
hs.
19
87
-88
1
98
8-8
9
19
89
-90
1
99
0-9
1
19
91
-92
1
99
2-9
3
19
93
-94
P
art
icu
lars
Q
tty
·I Valu
e
Qtt
y.,
Valu
e Q
tty
.Jv
alu
e Q
tty
·J Valu
e
Qtt
y.,
Valu
e Q
tty
.,V
alu
e
Qtt
y. 1
Sale
ab
le S
teel:
r.
Blo
om
s,
Bil
lets
&
S
lab
s-
sle
ep
er
Bar
2.
Str
uctu
rals
3.
Bars
&
R
od
s
4 0
Sk
elp
5.
Sle
ep
er
6.
Fis
h p
late
7.
Wh
eel
&
Ax
le
SUB
T
OT
AL
8.
Pig
ir
on
9.
Ste
el
ing
ot
10
.By
-pro
du
cts
11
.0th
ers
TOTA
L
20
2.6
8
56
5
18
0.4
9
28
3
91
.8
53
06
7
3.4
5
65
7
68
.9
58
08
1
38
.0
12
0.0
8
36
5
14
0.8
1
06
69
1
28
.9
10
24
0
15
4.9
1
25
77
1
23
.7
12
16
6
11
1.1
24
8.3
1
42
74
2
78
.4
18
42
0
26
4.1
1
86
62
2
97
.2
23
17
7
25
7.0
2
30
14
1
61
.2
12
6.2
9
22
5
14
0.4
1
19
97
1
35
.2
12
69
3
15
3.5
1
52
35
1
50
.4
16
12
6
13
9.0
54
.7
37
06
4
7.6
3
79
2
50
.7
42
66
4
5.2
4
16
8
26
.7
26
12
3
6.2
3.6
2
93
3
.6
35
5
3.2
3
50
3
.3
37
5
3.6
4
24
3
.4
20
.9
37
43
2
1.4
3
96
3
16
.6
45
89
1
9.4
4
60
5
10
.7
34
69
2
.7
77
6.3
4
81
71
8
12
.6
58
47
9
69
0.5
5
61
06
7
46
.9
65
79
4
64
1.0
6
36
19
5
91
.6
14
3.5
4
35
7
98
.8
34
04
1
48
.4
60
15
5
6.9
2
44
2
35
.7
15
74
1
.5
93
.3
36
44
1
24
.5
60
46
6
0.0
3
33
8
45
.1
28
12
7
0.0
4
75
6
1.2
51
8
61
7
47
6
62
0
10
92
63
59
8
99
8
88
86
7
25
0
14
71
0
63
04
9
77
54
4
74
82
1
78
91
8
85
75
1
No
te
: T
ota
l sale
s in
clu
de in
ter-
pla
nt
tran
sfe
r an
d in
tern
al
co
nsu
mp
tio
n
So
urc
e
: F
inan
cia
l Y
ear
Bo
ok
o
f D
SP
: 1
99
4-9
5
11
78
9
77
.9
12
79
0
10
2.1
17
10
2
18
9.7
17
47
9
18
5.6
34
88
2
8.8
41
2
3.2
87
7
6.9
63
93
7
59
4.2
79
2
0.8
79
3
.2
14
23
16
28
7
81
80
5
valu
e
69
84
12
68
6
20
73
4
22
99
0
35
38
47
2
26
13
70
01
7
11
66
21
7
47
92
16
25
5
92
44
7
...J
10
Page 22
Val
ues
(in R
s. th
ousa
nd l
akhs
)
80~-------------------------------------------
60
40
20 0
87-8
8 88
-89
• S
alea
ble
Stee
l
~
By-
prod
ucts
89-9
0 90
-91
Year
R
Pig
Iro
n
f:::::
~ O
ther
s
F1g.
3.2:
PR
OD
UC
TWIS
E TU
RN
OV
ER O
F D
SP
91-9
2 92
-93
93-9
4
D
Ste
el i
ngot
00
0
Page 23
81
is more or less in increasing trend.
MANPOWER ANALYSIS
The Table 3.3 and Figure 3.3 show a brief account of
manpower analysis during the period under study. It is also
evident from the Figure and also from the Table that DSP
provides employment to a substantial proportion of total
Indian work force. It is also clear that manpower of DSP is
decreasing every year. This is due to modernisation.
FINANCIAL PERFORMANCE OF DSP
The Table 3.4 and Figure 3.4 show the financial perfor
mance of DSP since inception (1959-60 to 1993-94).It is also
clear to us that the financial performance of DSP is less
said the better. DSP made profit in the early years of nine
teen sixtees i.e., in the initial phase of its construction.
After then DSP incurred heavy losses every year except the
years 1978-79 and 1981-82 in which year DSP made profit.
LABOUR PRODUCTIVITY AND LABOUR COST
The Table 3.5 and Figure 3.5 indicate the labour pro
ductivity and labour cost during 1984-85 to 1993-94. It is
clear from the Table and also the Figure that labour cost
have increased but the increase of labour productivity is
very insignificant. From the Table it is also seen that over
Page 24
TA
BL
E
3.3
NU
MBE
R O
F E
MPL
OY
EE
S A
T D
SP
(CA
TE
GO
RY
-WIS
E)
(19
84
-85
TO
1
99
3-9
4)
19
84
-85
1
98
5-H
6
19
86
-87
Dep
art
men
t E
xecu
-N
on
-Ex
e-
Tem
po
-T
ota
l E
xecu
-N
on
-Ex
e-
Tem
po
-T
ota
l E
xecu
-No
n-Ex
e-~T
empo
-1 T
ota
l ti
ve
cu
tiv
e
rary
/ ti
ve
cu
tiv
e
rary
/ ti
ve
cu
tiv
e
rary
/ C
asu
al
Casu
al
!Casu
al'
etc
. etc
. etc
.
Wor
.lcs
16
70
2
29
76
1
23
2
47
69
1
67
2
22
93
3
22
7
24
83
2
16
65
2
27
32
8
5
24
48
2
Ad
min
istr
ati
on
3
68
2
37
4
-2
74
2
35
1
22
75
-
26
26
3
59
2
25
7
-2
61
6
To
wn
ship
1
44
4
60
8
32
47
84
1
49
4
57
9
40
4
76
8
14
8
45
11
9
9
47
58
Co
nstr
ucti
on
9
7
30
6
-4
03
9
6
29
9
-3
95
9
4
29
6
-3
90
Ore
M
ines
&
Q
uarr
ies
* 6
8
13
80
7
59
2
20
7
64
14
49
6
85
2
19
8
66
1
48
5
68
3
22
34
To
tal
23
47
3
16
64
9
14
3
49
05
2
33
2
31
53
5
95
2
34
81
9
22
32
3
12
81
8
67
3
44
80
* M
anp
ow
er
of
Min
es
& Q
uarr
ies
hav
e
been
in
clu
ded
in
R
aw
Mate
rials
D
ivis
ion
fr
om
th
e
year
19
90
-91
.
~
CD
r-.>
Page 25
TAB
LE
3.3
C
ON
TD
.
19
87
-88
Dep
art
men
t E
xecu
-N
on
-Ex
e-
Tem
po
-T
ota
l E
xecu
-ti
ve
cu
tiv
e
rary
/ ti
ve
Casu
al
etc
. -
------
-
Wo
rks
16
55
2
20
76
2
96
2
40
27
1
63
1
Ad
min
istr
ati
on
2
80
2
22
3
-2
50
3
28
3
To
wn
ship
2
40
4
30
1
57
4
59
8
26
4
Co
nstr
ucti
on
1
32
2
73
-
40
5
18
7
Ore
M
ines
&
Q
uarr
ies
68
1
47
1
62
4
21
63
7
0
To
tal
23
75
3
03
44
9
77
3
36
96
2
43
5
19
88
-89
No
n-E
xe-
Tem
po
-T
ota
l cu
tiv
e
rary
/ casu
al
etc
. -
21
74
9
34
23
41
4
21
83
-
24
66
41
48
-
44
12
26
1
-4
48
14
30
6
07
2
10
7
29
77
1
64
1
32
84
7
19
89
-90
Ex
ecu
-N
on
-Ex
e-
tiv
e
cu
tiv
e
--
---
--·-
17
74
1
86
84
37
8
44
43
2 52
4
04
5
20
3
24
5
83
19
55
26
90
2
93
72
Tem
po
-·r
ota
l rary
/ casu
al
etc
. --~1.-.----
---
34 - 2 -
19
55
20
49
2
48
21
42
99
44
8
20
57
32
11
7
~
CD
l,.oJ
Page 26
TA
BL
E
3.3
C
ON
TD
.
19
90
-91
D
ep
art
men
t E
xecu
tiv
e I N
on
-T
em
po
rary
/ T
ota
l E
xecu
tiv
e
Casu
al
etc
. ~-
-
wo
rks
16
75
1
80
75
2
63
2
00
13
Ad
min
istr
ati
on
3
58
4
26
9
16
4
64
3
To
wn
ship
2
52
3
88
3
2 4
13
7
Co
nstr
ucti
on
1
90
2
38
2
43
0
To
tal
24
75
2
64
65
2
83
2
92
23
19
91
-92
Ex
ecu
tiv
e
No
n-
Ex
ecu
tiv
e
16
83
1
80
67
37
2
41
16
25
5
37
66
18
5
22
1
24
95
2
61
70
Tem
po
rary
; casu
al
etc
. -------
-----
15
4
4
15
8
To
tal
----
19
90
4
44
88
40
25
40
6
28
82
3
MO
RE CD
of>
.
Page 27
TA
BL
E
3.
3 C
ON
TD
.
19
92
-93
l
19
93
-94
Dep
art
men
t E
xecu
tiv
e
Tem
po
rary
/
1
Ex
ecu
tiv
e
. N
on
-T
ota
l N
on
-E
xecu
tiv
e
Casu
al
etc
. E
xecu
tiv
e
L_
_ _
__
__
__
-
---· --
---
-·-·----
-
wo
rks
18
13
1
93
60
5
3
21
22
6
18
40
1
94
79
Ad
min
istr
ati
on
3
36
3
88
9
42
25
3
36
3
73
5
To
wn
ship
2
63
3
64
6
39
09
2
54
35
73
Co
nstr
ucti
on
1
77
2
16
3
93
1
68
2
05
To
tal
25
89
2
71
11
5
3
29
75
3
25
98
2
69
92
So
urc
e
Sta
tisti
cs fo
r Ir
on
an
d S
teel
Ind
ustr
y in
In
dia
-
SA
IL
19
90
an
d
19
94
.
Tem
po
rary
/ casu
al
etc
.
78
78
To
tal
21
39
7
40
71
38
27
37
3
29
66
8
(J)
l/1
Page 28
No.
ot
empl
oyee
s (T
hous
ands
) 35~----------------------------------~
I~
~
~
I 30
25
20
15
l
10 5 0
I
84-8
5 85
-86
86-8
7 87
-88
88-8
9 89
-90
90-9
1 91
-92
92-9
3 93
-94
Year
• E
xecu
tive
• N
on
Exe
cutiv
e D
C
asua
l et
c.
F1g.
3.3:
CA
TEG
ORY
WIS
E M
AN
POW
ER A
NA
LYSI
S O
F D
SP
CD
0\
Page 29
87
TABLE 3.4
FINANCIAL PERFORMANCE OF DURGAPUR STEEL PLANT (SINCE INCEPTION
Rs. in crores
Year Profit(+)/Loss(-) Depreciation Cash Loss
1959-60 (-) 0.33 0.09 (-) 0.24 1960-61 (-) 0.68 0. 52 (-) 0.16 1961-62 (-) 8.70 6.99 (-) 1.71 1962-63 (-) 7.29 8.92 (+) 1.63 1963-64 --------- 9.30 (+) 9.30 1964-65 (-) 2. 52 11.74 (+) 9.22 1965-66 (+) 0.29 11.97 ( +) 12.26 1966-67 (-) 13.36 12.19 (-) 1.17 1967-68 (-) 18.08 12.95 (-) 5.13 1968-69 (-) 17.37 14.24 (-) 3.13 1969-70 (-) 15.50 15.15> (-) 0.35 1970-71 (-) 20.40 15.35 (-) s.os 1971-72 (-) 27.52 15.50 (-) 12.02 1972-73 (-) 25.72 15.57 (-) 10.15 1973-74 (-) 18.44 15.65 (-) 2.79 1974-75 (-) 14.32 13.66 (-) 0.66 1975-76 (-) 20.06 8.61 (-) 11.45 1976-77 (-} 7.74 7.17 (-) 0.57 1977-78 (-) 17.54 8.09 (-) 9.45 1978-79 (+) 4.25 6.50 (+) 10.75 1979-80 (-) 22.43 7.77 (-) 14.66 1980-81 (-) 8.44 7.29 (-) 1.15 1981-82 (+) 0.70 6.50 (+) 7.20 1982-83 (-} 44.23 7.57 (-) 36.66 1983-84 (-) 63.72 8.34 (-) 55.38 1984-85 (-} 53.36 12.02 (-) 51.34 1985-86 (-) 26.52 12.85 (-) 13.67 1986-87 (-) 22.45 11.81 (-) 10.64 1987-88 (-) 54.75 21.09 (-) 33.66 1988-89 (- J 77.22 31.51 (-) 45.71 1989-90 (-) 93.85 37 .so (-) 56.35 1990-91 (-) 88.06 39.82 (-) 45.44 1991-92 (-) 90.33 45.69 (-) 44.66 1992-93 (-)132.92 56.98 (-) 75.94 1993-94 (-)212.57 62.20 (-)150.37
Source I Annual Report of DSP (94-95)
Page 30
Rs. i
n cr
ores
60~------------------------------------~
Q I
-~~-
MW
---
mr
---
-•
I I I -so
1
I I -1
00 4
I -1
50 I
-2 0 0
-"-r-r-r-r-r-T~---,--,.~--r-r--r-T"~__,..--,---r--r--,--r--,----r-r-r--r--r--r--r---,--,--r-'
59-6
0 64
-65
69-7
0 74
-75
79-8
0
Year
• P
rofit
(+ )/
Loss
(-)
Flg.
3.4:
FI
NA
NC
IAL
PER
FOR
MA
NC
E O
F DS
P (
Sin
ce i
ncep
tion
)
84-8
5 89
-90
93-9
4
OJ
(D
Page 31
89
TABLE 3.5
LABOUR PRODUCTIVITY & LABOUR COST OF DSP (1984-85 TO 1993-94)
~. in thousand/man/year
Year Labour Index Base Labour cost Index Base Productivity 1984-85=100 (Cost per 1984-85=100
ton of ingot steel)
1984-85 31 100 1229 100
1985-86 37 119 1136 92
1986-87 39 125 1191 97
1987-88 41 132 1319 107
1988-89 42 135 1485 120
1989-90 42 135 1839 149
1990-91 45 145 1860 151
1991-92 45 145 2045 166
1992-93 34 109 2677 217
1993-94 31 100 2924 238
Source : Annual Report of DSP - 93-94 and Otficial Records Personnel Research Cell of DSP.
Page 32
250~------------------------------------~
200
150
100 50 0
84-8
5 85
-86
86-8
7 87
-88
88-8
9 89
-90
90-9
1 91
-92
92-9
3 93
-94
Year
• L
ab
ou
r P
rod
uct
ivity
B
La
bour
Cos
t
Fig
. 3.
5: L
AB
OU
R P
RO
DU
CTI
VIT
Y A
ND
LA
BO
UR
C
OS'
l' O
F D
SP
~
0
Page 33
91
the period under study,percentage increase in labour produc
tivity is very low compared to labour cost, which is one of
the chief cause of dismal financial performance of DSP.
EMPLOYMENT COST
The Table 3.6 and Figure 3.6 show the increasing trend
in the employment cost per man per year during 1986-87 to
1993-94 of DSP.It also shows the total employment cost, ave
rage number of employees, average salary, wages per employee
per annum, average cost of employees benefits per employee,
and average employment cost per employee per annum of DSP
over the period.
It is also seen that the employment cost per employee
in 1993-94 is 2.1 times to that in the year 1986-87.
WAGE STRUCTURE
The wages of employees primarily consist of basic wages
and dearness allowance.The revised minimum wage for the low
est paid employee in all the steel plants as on 1.1.92 was
~.2100/- per month. The revised wage structure as on 1.1.92
and growth in wages (Figure 3.7) has been shown in Table 3.7
and Table 3.8 respectively.
Page 34
TAB
LE
3.6
EMPL
OY
MEN
T C
OST
SU
MM
ARY
O
F D
SP
(19
86
-87
TO
1
99
3-9
4)
Part
icu
lars
A.
Sala
ries,
Wag
es,
Bo
nu
s etc
.
B.
Em
plo
yee
B
en
efi
ts
: P
rov
iden
t &
oth
er
fun
ds
Gra
tuit
y
To
wn
ship
E
du
cati
on
M
ed
ical
Co
-op
era
tiv
e S
ocie
ty
Tra
nsp
ort
an
d D
air
y
Oth
er
ben
efi
ts in
clu
din
g
leav
e tr
av
el
co
ncessio
n,
med
ical
reim
bu
rsem
en
t,
cu
ltu
ral
acti
vit
ies etc
.
*
TOTA
L EM
PLO
YM
ENT
BE
NE
FIT
C
OST
(T
OT
AL
B
) T
OT
AL
EM
PLO
YM
ENT
CO
ST
(A
+ B
)
Av
era
ge
nu
mb
er
of
em
plo
yees:
Nu
mb
er
Av
era
ge
sala
ry,
wag
es
per
em
plo
yee
per
ann
um
Rs
.
Av
era
ge co
st
of
em
plo
yees
ben
efi
ts
per
em
plo
yee
Rs.
Av
era
ge
emp
loy
men
t co
st
per
em
plo
y
ee
per
ann
um
R
s.
86
-87
71
03
57
6
59
8
90
5
36
8
49
2
48
6
31
1
62
4
43
60
11
46
3
34
01
6
20
88
1
12
81
7
33
69
8
87
-88
86
01
64
1
613
10
98
4
07
52
3 4
62
2
74
27
8
42
96
12
89
7
33
61
2
25
58
9
12
78
2
38
37
1
88
-89
91
13
87
7
12
16
1
22
0
44
6
57
6
40
3
35
3
52
6
56
17
14
73
0
32
78
5
27
79
6
17
13
2
44
92
8
89
-90
98
30
11
65
1
33
3
12
23
51
3 7
07
2
99
3
79
52
8
61
47
15
97
7
32
12
6
30
59
8
19
13
4
49
73
2
* E
xclu
din
g
pay
men
t to
p
ers
on
nel
em
plo
yed
fo
r S
ocia
l A
men
itie
s
90
-91
10
61
5
10
82
1
22
7
10
86
5
44
8
21
3
31
3
70
73
1
61
92
16
80
7
31
16
7
34
05
9
19
86
7
53
92
6
91
-92
12
37
3
10
97
1
20
9
11
93
5
55
74
2 4
79
3
84
42
6
60
85
18
45
8
28
82
3
42
92
7
21
11
2
64
03
9
No
te
: (1
) E
mp
loy
men
t co
st
inclu
des sala
rie
s
& w
ages
&
co
st
of
so
cia
l o
verh
ead
s 1
99
1-9
2
ex
clu
des
Min
es.
Rs.
in la
kh
s
92
-93
12
36
0
95
9
12
87
1
32
0
65
7
89
3
36
4
39
2
56
3
64
35
18
79
5
29
75
3
41
54
2
21
62
9
63
17
1
93
-94
13
74
7
98
8
13
49
1
51
8
66
4
10
05
3
37
5
27
75
7
71
45
20
89
2
29
59
0
46
45
8
24
14
7
70
60
5
(2)
Fig
ure
s
fro
m
So
urc
e
: F
inan
cia
l Y
ear
Bo
ok
o
f D
SP
(SA
IL),
D
urg
ap
ur,
F
inan
ce
& A
cco
un
ts
Bra
nch
-1
99
0-9
1,
19
93
-94
. \0
N
Page 35
Cos
t in
Rs.
(Tho
usan
d L
akhs
) ,--
--. -
. ----------------·
25 r
i I
i !
I I
I I
' --
--/1
!
20 f-
1 I i
I I
I I
15 f-
: I I_,---~
I
10 ~ I I I sr I
86-8
7 87
-88
88-8
9 89
-90
90-9
1 91
-92
92-9
3 93
-94
Year
• E
mpl
oym
ent
Cos
t
Fig
. 3.
6:
EM
PLO
YM
EN
T C
OST
OF
DSF
I I
I I
I I II I I
I I
I I
I I
I I
I I I !
I I
I I
LJ
\0
w
Page 36
TABLE 3.7
REVISED WAGE STRUCTURE OF WITH EFFECT FROM 1.1.1992
Existing
Code No. a
A :
L1
L2
L3
L4
L5
L6
L7
La
L9
L1o
Scale of Pay::
Works Grades
1350-20-1630
1380-23-1541-27-1730
1415-28-1611-32-1835
1415-34-1693-40-1973
1500-43-1801-50-2151
1550-53-1921-60-2341
1610-63-2051-70-2541
1690-73-2201-80-2761
1790-83-2371-90-3001
2000-93-2744-100-3444
B : Ministerial Grades
ML1 1425-43-1726-53-2203
ML2 1560-60-2040-70-2600
ML3 1690-73-2201-80-2761
ML4 1790-83-2371-90-3001
NOTE :
94
STEEL AUTHORITY OF INDIA LIMITED
Code No.:
s-1
S-2
s-3
S-4
s-5
S-6
s-7
s-a
S-9
s-1o
SL-1
SL-2
SL-3
SL-4
(Rs. /Month)
Revised
Scale of Pay
2100-40-2660
2140-44-2448-49-2791 -
2190-50-2540-55-2925 -
2245-58-2651-65-3106 -
2310-69-2793-78-3339 -
2390-81-2957-90-3587 -
2480-94-3138-103-3859-
2585-106-3327-115-4132
2700-119-3533-128-4429
3000-131-4048-140-5028
2220-69-2703-81-3432 -
2400-90-3120-103-3944-
2505-106-3327-116-4132
2700-119-3533-128-4429
(1) Employees will continue to draw increment in their res
pective pay scales during the operation of the agreement.
(2) S-10 pay scale will also be applicable for ministerial
staff.
Source : Annual Heport ot DSP & SAIL - 1993.
Page 37
TABLE 3.8
GROWTH IN WAGES
Year
1974
1978
1982
1990
1994
Minimum Wages in ~. (Pay+ D.A.)
393.00
505.00
981.90
1550.00
2487.50
source : Annual Report of DSP - 1993-94.
95
Index 1974
100.00
128.50
249.60
394.40
632.95
Page 38
! --
-,
i I
: j
I l
W
•• ~ag~
e=s~ln
~R_s_.
__
__
__
__
__
_ -
----
----
-30
00 r
-
1 I
2soo
f I I
2000
1 I 1s
oo 1
I
1000
I .-
-/
I .-
-·/'
5 00 ~
------
------
_/
//
/.
/'
/ //
o~------~--------~--------~--------
1974
19
78
1982
19
90
1994
Ye
ar
~wages
Fig
. 3.
7 :
GR
OW
TH I
N '
MG
ES
\0
m
Page 39
97
MULTIPLICITY OF TRADE UNIONS
There are four affiliates of central trade unions viz.,
CITU. INTUC, HMS and AITUC. There are five others. The CITU
affiliate was recognised as the most representative union in
1969. Earlier the INTUC affiliate was the recognised union.
There has been no verification of membership since 1969.
UNION PARTICIPATION IN MANAGEMENT
There are 77 participative forums with equal represen
tation of the three forum unions.Production and productivity
aspects are discussed with the unions on a 3-tier basis at
the level of MD, GM (Works) and at floor level. Safety
aspects are discussed on a 2-tier basis.Individual grievance
are channelised through a 4 stage grievance procedure.
Incentive schemes,Municipal affairs,Hospital matters, Sports
and Canteen issues are discussed centrally. A schematic
presentation of participative forums is given at Annexure -
(D) & (E).
MODERNISATION PROGRAMME
A proposal for moder~isation of DSP to renovate its
main units which became old and obsolete after serving cons-
tantly, was approved by the government a few years ago.
Page 40
To
tal
Nu
mb
er
of
Tra
de
Un
ion
-
9
Num
ber
of
Fo
rum
U
nio
ns
-3
Nu
mb
er
of
Reg
iste
red
U
nio
ns
-6
I
I ,---
---,
HS
EU
(CIT
U)
HSW
U(I
NT
UC
) D
SS
U(A
ITU
C)
't I
I I
I -~
DIM
S (H
MS)
D
IKS
(B
MS)
D
EWCC
(U
TU
C)
PUL
(U
TU
C)
UCW
U (C
ITU
) T
MC
U(I
NT
UC
)
1.0
(l)
Page 41
99
Details of modernisation programme are summed up as follows:
(a) Beneficiation of iron ore lump and fines by washing
at Bolani ores mines, a captive unit of DSP, to improve qua
lity.
(b) Modification of the coal washery and addition of
one coke oven battery with by product recovery facilities.
(c) Additional facilities of raw materials storage and
handling.
(d) Addition of a new sinster plant (180M2 ).
(e) Modification of operating parameters in the Blast
Furnaces.
(f) Phasing out of the obsolete energy intensive open
hearth process and introduction of oxygen steel making pro
cess (BOF) with a vacuum are degassing unit.
(g) New facilities in Billet Mill, Merchant Mill and
Wheel and Axle Plant.
(h) Introduction of contineous casting plant.
(i) Installation of 2 x 300 t/d oxygen plant.
(j) 3 Member 275/300 t/d tonnes cancining plant.
Page 42
100
(~) Introduction of modern instrumentation and compute
risation.
In this chapter, the history and evolution of DSP has
been stated and the performance has been examined.The infra
structure of DSP has also been described in details. In the
next chapter we are going to give a clear concept of indus
trial relations.
