The rolling mill, as part ofTisco's phase IV modernisation, will be replaced by four new mills: the cold rolling mill, set up with technical training from Nippon Steel of Japan, at an investment of Rs 1,600 crore, a hot strip mill, the bar and rod mill and the forging mill. According to company sources, "The closure of the primary mills was imminent as the company was replacing old processes of ingot rolling to continuous casting. The new mills being put into operation will cater to the demands henceforth." Allied mills getting supplies from the primary mills like the sheet mill, the narrow strip mill, merchant mills, and part of the medium, light and structural mills have already been closed down. Tisco officials added: "The whole modernisation process will make the company continuous cast. Tisco's ESS is an expensive exercise and often the company is not able to cope with the demand from the workers. The company still has not estimated the total cost of the ESS as it will depend on the profitability of the company during the currentfiscal." The ESS process at Tisco was started in 1993-94 and following a series of schemes until 1999, the workforce has been reduced from 78,000 to 59,000.

This is the fifth round of ESS that Tisco is planning to implement as a result of elaborate restructuring. The total cost of the package will depend on the profit for the current financial year. However, all retiring employees will receive Rs 3 lakh as an advance. The retiring employees who have completed 20 years of service and/or 40 years of age will receive entire salaries for the remaining months of service. The company stands to gain by retiring the employees as it will save on the perquisites, allowances and other indirect costs.

According to a detailed survey undertaken by Tisco on the early separation schemes,as a result of the reduced employee strength, the profit for the year 1998-99 was higher by Rs 76.69 crore. The cost of the early separation schemes and taxes in 1998-99 was a whopping Rs 115.46 crore as compared to Rs 112.19 croreincurred in the previous fiscal.