Deepak Nitrite runs for cover after 5 blasts at Vadodara plant

A portion of Deepak Nitrite's chemical manufacturing facility in the Nandesari industrial area on the outskirts of Vadodara city in Gujarat was engulfed by a major fire. Seven workers were hospitalised after inhaling smoke, while some 700 people living in the vicinity of the factory were shifted to safer places

Mumbai: Deepak Nitrite on June 2 witnessed five major chemical blasts at its manufacturing facility in the Nandesari GIDC area in Vadodara, which led to a major fire, the company officials are now knocking insurers' doors for getting its claim settled by them.

Smoke was visible from a long distance and 7-8 fire-fighters reached the spot to put out the fire.

An industry source revealed to Bizz Buzz that led by New India, there are quite a few non-life insurers having exposure to the company. The insurers affected by the explosion at Deepak Nitrite (with the co-share partners) include New India (45 per cent), Future Generali (12.5 per cent), ICICI Lombard (10 per cent), RSA (10 per cent), SBI (7.5 per cent), Tata AIG (5 per cent), RGICL (5 per cent) and Universal Sompo (5 per cent).

A senior official of ICICI Lombard told Bizz Buzz on condition of anonymity, "We will definitely part with a fair amount of settlement as per our share in the co-insurance and we are currently busy working on it."

Immediately after the accident, the company said in a statement, "We are monitoring the situation closely. The safety and well-being of all our employees, and that of the community itself around, is of foremost priority to us."

It went on, "All our manufacturing facilities are equipped with best-in- class systems and equipment that ensure environmentally sustainable production. Our teams are already on-ground facilitating every possible support.' The company's communication channels are open round-the-clock, and it will continue to provide updates and partner closely with all the relevant external stakeholders. Deepak Nitrite has said that the company is assessing the impact of the fire incident at its plant in Vadodara, Gujarat. However, there is no casualty due to the incident so far.

"Our emergency response team, with the support of local authorities and companies around Deepak Nitrite Limited brought the fire under control within a couple of hours. There has been no casualty, and few people are being given first aid treatment," the filing said. The company has kept all concerned authorities informed, and the plant operations are expected to resume in a day or two upon clearance of the damaged warehouse, it added.

"The cause of the fire is being investigated and the company is committed to extend all assistance to the relevant authorities investigating this matter," Deepak Nitrite said. On the expected quantum of loss/damage caused, the company said: "Impact of the incidence is being ascertained. Both, loss of assets as well as loss of business are covered under insurance."

A portion of Deepak Nitrite's chemical manufacturing facility in the Nandesari industrial area on the outskirts of Vadodara city in Gujarat was engulfed by a major fire on Thursday evening, district officials had said. Seven workers were hospitalised after inhaling smoke, while some 700 people living in the vicinity of the factory were shifted to safer places, they added.