Factory of fire: Inside Sigachi's trail of ignored alarms, regulatory gaps

A reactor blast at the Sigachi pharma plant in Telangana's Pashamylaram has killed at least 40 people, including workers, and has brought factories and industries under the spotlight. Was it a lapse in safety, a failure of oversight, or something more systemic? And in the aftermath, one question echoes loudest: Who is responsible?

Sigachi Industries manufactures microcrystalline cellulose powder, a combustible and highly flammable dust used as a binder, disintegrant, filler, and lubricant in pharmaceutical production.

Official records from the Telangana Fire Department show the same pharmaceutical plant was hit by a similar, serious fire in September 2019, caused by an electrical fault, resulting in losses exceeding Rs 1 crore. And Sigachi is not the only site in Pashamylaram where fire is frequent. Out of 99 incidents of industrial fire in Sanagareddy district in the past eight years, at least 23 were reported in this industrial complex at Pashamylaram.

Pashamylaram hosts a tight cluster of high-risk chemical and pharmaceutical units, with over 60 plants involved in manufacturing bulk drugs, excipients like MCC, active pharmaceutical ingredients, and intermediates, many of which are prone to combustible dust and fire hazards. The area also houses critical infrastructure such as a zero liquid discharge, common effluent treatment plant, supporting sustainable wastewater management for these industries.

SIGACHI REACTS

"We are deeply anguished by the tragic accident at our Pashamylaram facility, which resulted in the loss of 40 valued team members and left over 33 injured. Our thoughts are with all those affected," Sigachi Industries said in a statement.

The company added that, contrary to media reports, "the accident was not caused by a reactor explosion at the plant".

It further stated, "Sigachi Industries Ltd has committed an ex-gratia compensation of 1 crore to the families of the deceased, while those injured will receive full medical and rehabilitation support. Our plant operations will remain temporarily suspended for approximately 90 days."

Telangana’s industrial zones - Jeedimetla, IDA Bollaram, Pashamylaram, and Patancheru — average one fire every two days, totalling nearly 190 incidents annually, or 1,522 over the past eight years. Just last year, the district collector, Valluru Kranthi, conducted inspections in the Pashamylaram Industrial Area, ordered the closure of Salubrious Industries, Vital Synthetics, and Venkar Chemical Limited plants for failing to meet fire safety standards.

This was followed by a fire at Salubrious on February 13, caused by the management’s neglect of mandatory safety protocols, the collector told local media.

Vital Synthetics, which produces drug intermediates, lacked essential fire safety equipment, including fire hydrants, portable extinguishers, and underground water storage tanks. The fire control board had previously issued notices to Vital Synthetics for non-compliance.

NO FIRE NOC?

Coming to Sigachi, in the run-up to its November 2019 IPO, the company’s red herring prospectus filed with SEBI admitted in Section 12 that it had not applied for several mandatory licenses and approvals. This included a fire no-objection certificate for its Telangana plant in the Pashamylaram Industrial Area, producing microcrystalline cellulose.

The Red Herring Prospectus outlines a company’s operations, finances, and risks ahead of an IPO, to gauge investor interest and provide transparency to potential investors.

Telangana State Disaster Response and Fire Services Director General Y Nagi Reddy told India Today that the building lacked a fire NOC for the current year - but also claimed that one wasn’t required in this case, underlining a grey area regarding the applicability of fire safety regulations under the Telangana Fire Service Act, 1999, and the Factories Act, 1948.

The prospectus also disclosed that Sigachi lacked a pollution certificate for its Gujarat plant and a fire safety audit for Pashamylaram. There's no public record confirming if these were obtained later.

SAFETY NORMS FLOUTED AT SIGACHI

Under safety norms for industries handling combustible dust, the Factories Act mandates exhaust systems, enclosed and vented machinery, regular dust removal, fire hydrants, heat sensors, portable extinguishers, underground water tanks, and two outward-opening exits per workroom.

DG Reddy said that Sigachi’s Telangana unit had only a few inadequate fire extinguishers, likely installed after the 2019 fire. The ageing building lacked key safety features like fire alarms, heat sensors, and automatic shutdown systems, pointing to serious lapses under the Telangana Fire Service Act. He remarked that the fire department’s safety audit was “as good as non-existent,” stressing that the onus lies squarely on the company owner to maintain fire safety systems as per industrial norms.

Additionally, there were structural safety issues, as there were no blast-resistant walls or roofs in processing areas. India Today’s ground input confirmed improper containment of microcrystalline cellulose, a highly inflammable material prone to static electricity. No third-party safety inspections have been conducted in recent years, and outdated machinery continued to be used despite worker warnings about safety risks.

UNANSWERED QUESTIONS

Time and again, lax safety compliance has led to shutdowns in this fire-prone hub, raising a critical question: Why isn’t a fire NOC mandatory in such high-risk zones? Reddy’s conflicting remarks on Sigachi's fire NOC requirement highlight regulatory gaps and inconsistent enforcement of fire safety norms in high-risk industrial zones.

"This was not an accident - it was waiting to happen," said Rajanala Sai Yashwanth, the son of one of the deceased. His 55-year-old father, Rajanala Venkat Jagan Mohan, who had served at Sigachi Industries for 20 years, died in Monday's explosion. He stated that workers had repeatedly requested management to replace unsafe machinery, but these warnings were ignored.

The company management has been charged with culpable homicide amounting to murder, grievous harm, and attempted murder.

- Ends