India's largest steelmaker SAIL on Thursday said 1,038 employees took its Voluntary retirement Scheme (VRS), which will have a one-time financial impact of Rs 213 crore on the firm.
In line with the consistent efforts for enhancing productivity, improving manpower profile, rationalisation of manpower and optimisation of manpower cost, the company implemented the VRS during the period from May 1-June 30, 2016 at all its plants/units, it said in a BSE filing.
"Voluntary retirement of total 1,038 number of employees has been approved under this scheme. The one time financial implication for the scheme works out to Rs 213 crore (VR Compensation), with envisaged savings of Rs 103.80 crore per annum," it added.
The state-run company has around 86,000 employees across its 10 plants spread across the country.
The Maharatna company has been trying to bring down its operational costs in a bid to cut losses amidst tough domestic market conditions due to cheap imports that are adversely impacting the margins of domestic steel producers.
SAIL on Wednesday reported a standalone net loss of Rs 1,230.93 crore for the quarter ended March 30, 2016 hit by challenging market conditions and declining sales realisation. In the year-ago period, it reported a profit of Rs 334.22 crore.
Its total standalone income declined 2 per cent to Rs 11,371.66 crore in the January-March quarter of last financial year against Rs 11,590.55 crore during the same quarter of 2014-15.