Sigachi Says Will Pay Rs.1 Cr to Victims' Kin

Hyderabad/Mumbai: Sigachi Industries managing director and CEO Amit Raj Sinha on Wednesday said that the explosion was caused by a dust blast in the dryer section of the pharma unit.

Referring to the company’s preliminary assessment, Sinha said, “There was no reactor blast. We don’t use solvents at this facility. It seems a dust explosion took place.”

He had come to the accident site on Wednesday for the first time after the explosion and said that a third-party investigation was ongoing.

In a regulatory filing to stock exchanges earlier in the day, the company said that 40 people had died and 33 were injured in the accident. However, the company official retracted the statement, stating that it was an overcalculation.

“Sigachi Industries Ltd has committed to an ex gratia compensation of Rs.1 crore to each of the families of the deceased, while those injured will receive full medical and rehabilitation support,” the company’s statement said

Sinha said he was devastated by the sequence of events and thanked various government departments, local leaders, and rescue teams for their support. He said all hospitals treating the injured were being attended by Sigachi staff round-the-clock.

“Our representatives from vice-president level to the manager level are manning hospitals 24x7,” he said, and added that the company was clearing all hospital bills as and when patients were discharged.

When asked if old equipment was used at the factory, he said, “The building is old, but the machines are regularly refurbished. Motors and running equipment are changed. Old equipment cannot run. It’s incorrect to say old equipment was running.”

Addressing confusion around the number of casualties, he said: “We are still collating it with the authorities here to do the mathematics to ensure that the least number of missing people are unaccounted for.”

On contractual labourers and unlisted workers, he said they were working with the authorities to account for everyone.

Asked why there was little visibility of the company in the aftermath, Sinha said the executive vice-chairman himself had been stationed at the government hospital’s mortuary and other top officials were handling different parts of the response. “Right now, our focus is on helping families. Once the investigation is complete, we will sit with the authorities to decide what to do at the site.”