The steering committee consists of two members each representing the partners to conduct a complete examination of the resourcefulness of both managers and other employees at Nocil's petrochemical and polymer divisions.

Redundant managers will be asked to opt for a VRS. Shell is picking up 49 per cent stake in the petrochemical company. The polymer division of Nocil will be merged with the petrochemical division and the entire line of management at the polymer division will be abolished. All managers and employees who become defunct as a result of this realingnment will be asked to retire or even leave.

According to a senior official at Nocil there would be atleasta 10-15 per cent cut in the number of top and senior managers and another 30 per cent cut in the number of employees in the company. Managers who remain in the organisation, say sources, will have a number of cuts in the allowances and perks.

The polyvinyl chloride unit (PVC) will be closed down from April 1, 1999. This decision was taken, according to sources, since the division is not bringing in any money cost-wise if the product is produced. The managers and the employees will be asked to leave or take up a VRS.

The restructuring is part of a new manpower policy to streamline the organisational setup at NOCIL. The employees are gradually beginning to feel the first impact of the new Shell-Montell management taking over the reins of power.

The company is currently negotiating with the banks for funds for implementation of the VRS. The cost of the VRS will later be compensated by Shell. The VRS is expected to be on the lines of the retirement scheme introduced in 1997-98, when the company doled outthree months of salary for every year of completed service.

Apart from manpower pruning, employees will also have to face up to some infrastructural cuts. Currently, there are two canteens functioning for the polymer and petrochemical division, whereas under the new policy there will be one canteen. There will also be common buses for transport instead of running separate buses for the employees of the two divisions.