Sail & #39;S New House Lease Scheme From Sept 1

The Steel Authority India (SAIL) will launch the second phase of its long-term leasing scheme of company-owned flats in the steel townships of Bhilai, Durgapur and Bokaro on September 1, 2001. The scheme, which will remain open for three months, is aimed at generating revenues, besides gainfull utilisation of assets.

The second phase of the house leasing scheme is well timed as employees opting under a voluntary retirement scheme 2001 (VRS '01) will get preference. At present, the VRS is operational in SAIL wherein around 7,000 employees are expected to be separated, the company said in a faxed statement.

A new provision has been added wherein the facility of adjustment of the cost of the house against final settlement or terminal benefits is extended to employees retiring or opting for VRS'01.

Around 1,000 applications were received in the first phase of the house leasing scheme out of which only 600 applications were accepted. The steel behemoth could only manage to garner around Rs 35-40 crore in the first phase.

The company is looking forward for a better realisation this time. To make the leasing scheme more attractive, the company has widened some eligibility criteria in the second phase. The eligibility criteria has been relaxed to include all SAIL employees, ex-employees irrespective of the number of years of service and spouses/legal heirs of deceased employees. Previously the houses could be acquired only by the employees or ex-employees.

The public sector steel major has also tied-up with some financial institutions for the loan facility for the interested applicants directly.

SAIL's manpower strength in the last five years has fallen by 35,000 and currently stands at 1.53 lakh employees.