Circular issued for TSDPL Bara, CR, and Demag units; Application window open until February 21.
Tata Steel Downstream Products Limited (TSDPL) has introduced a Voluntary Separation Scheme (VSS 2.0) for its employees. The management announced the scheme specifically for workers at the Bara, CR, and Demag units. According to the circular issued by CHRO Karan Lakhani, the scheme became effective on January 23, 2026, and employees can apply until February 21, 2026.
Eligible employees can submit their applications in the prescribed format through the CHRO or their respective Departmental Heads. The final decision remains at the sole discretion of the management. The standout feature of this scheme is the monthly pension, which will be provided until the employee reaches the age of 60.
Eligibility: Minimum Age 40 and 10 Years of Service
The company has set specific criteria for the scheme:
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Age/Service: Only employees aged 40 or above who have completed at least 10 years of continuous permanent service are eligible.
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Grades: Applicable to Associates (Junior Associate IA to Associate V) at the Bara, CR, and Demag units.
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Exclusions: Employees declared unfit by Tata Main Hospital (TMH) or other medical officers are not eligible.
Pension Calculation Based on Age
The monthly pension is the core highlight of VSS 2.0. It is calculated based on the employee’s last drawn Basic Pay and Variable Dearness Allowance (VDA). This pension continues until the employee’s notional retirement age of 60. In the event of the employee’s death, the pension will continue to be paid to the nominee/joint account holder until the original 60-year term expires.
Pension Multipliers (Basic + VDA):
| Age Group | Pension Multiplier |
| 40 – 49 Years | 1.0x |
| 50 – 54 Years | 1.075x |
| 55 – 60 Years | 1.15x |
Medical and Housing Benefits
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Medical Insurance: Beneficiaries receive ₹3 lakh in group medical insurance until age 60.
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OPD Allowance: Jamshedpur unit employees will receive a ₹4,000 monthly OPD allowance.
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Post-60 Coverage: After age 60, employees can maintain a ₹1.5 lakh insurance cover by paying the premium themselves.
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Company Housing: Employees currently in company quarters can retain them for a maximum of 4 years or until age 58 (whichever comes first), subject to standard rents. Those over 58 must vacate within 30 days.
Other Dues and Salary Revision Benefits
Employees opting for VSS 2.0 will receive standard benefits including PF, Gratuity, and Leave Encashment. Furthermore, they will benefit from the pending salary revision (effective from October 1, 2023) once the agreement is finalized. This revision will also lead to a subsequent increase in their monthly pension amounts.
