Amid rising public anger and government pressure, Telangana is negotiating with Sigachi Industries for ₹10 lakh compensation for the seriously injured and ₹5 lakh for others, alongside district relief payouts
Published Jul 02, 2025 | 4:15 PM ⚊ Updated Jul 02, 2025 | 4:15 PM
Sangareddy chemical factory blast (screengrab)
Synopsis: Following the explosion at Sigachi Industries in Telangana’s Pashamylaram Industrial Area that killed 40 and injured 33, the company has announced ₹1 crore ex-gratia to each victim’s family. However, compensation for the injured remains unclear. Amid public outrage and government pressure, questions over the company’s safety practices, accountability, and management’s absence from review meetings continue to grow
Following the devastating explosion at Sigachi Industries in Telangana’s Pashamylaram Industrial Area on 30 June 2025—which claimed 40 lives and left 33 others injured—the company has announced an ex-gratia compensation of ₹1 crore to the families of the deceased.
In a press release issued on 2 July, Sigachi Industries expressed anguish over the incident, describing the victims as “valued team members.” However, the company remained vague on monetary compensation for the injured, merely stating that “full medical and rehabilitation support” would be provided.
The compensation announcement comes amid mounting public anger and government pressure. The Telangana government has revealed it is in talks with the company to secure ₹10 lakh for those seriously injured and ₹5 lakh for others, in addition to ₹1 lakh and ₹50,000 respectively from the district administration for immediate relief.
Despite the scale of the tragedy, the company’s top management has faced criticism for their absence in official review meetings. Questions are also being raised over Sigachi’s safety practices and accountability. With a case registered against the company, it remains to be seen how it unfolds.
On 2 July, Sigachi Industries issued a press release announcing a compensation of ₹1 Crore for the deceased. “It is with anguish that we share details of the accident that occurred at the Sigachi Industries facility in Pashamylaram, Telangana, resulting in the loss of 40 valued team members and one that left over 33 injured,” the note read
“Sigachi Industries Ltd has committed to an ex-gratia compensation of INR 1-Crore to the families of the deceased,” they announced.
However, they were not as clear on compensation for the injured. “Those injured will receive full medical and rehabilitation support,” they stated making no mention of monetary compensation.
They also took the opportunity to dispute one specific detail regarding the incident. “As we await the results of the investigation, we would like to clarify that the accident was not caused by a reactor explosion at the plant, as mentioned in sections of the media,” they held.
Additionally, they also announced that the facility would suspend operations for the next 90 days.
An FIR was registered against the management of Sigachi Industries on the day of the incident. Registered at the BDL Bhanoor Police Station, about 14 kilometres North of the site, the Sangareddy Police filed it along sections 105, 110, and 117 of the Bharatiya Nyaya Sanhita (BNS):
The complaint revealed a grim reality of the conditions at the Sigachi Industries Plant. “”The Sigachi company management working with the same old machinery despite knowing that working with old machinery would cause heavy loss to property and man power wantedly continued the old machinery, due to which 13 deaths and several injuries occurred to company employees. Hence the complainant requested to take necessary legal action against the management of Sigachi Company,” the complainant, 21-year-old Yashwanth Rajanala, requested.
Yashwanth’s father, 55-year-old Venkata Jagan Mohan, a native of Odisha residing in Patancheru’s Teja Colony had died during the incident in the morning. “On 30.06.2025 at 11:00 hours, his father’s younger brother Ram Mohan Rao called him over the phone and informed that, on 30.06.2025 at about 09:30 hours, a fire broke accident took place in the Sigachi company, as a result some of workers of the company died at the spot and some of the workers received severe burn injuries. The deceased persons have been shifted to Govt. Area Hospital, Patancheru and preserved in the mortuary. Immediately, the complainant went to the Govt.Area Hospital, Patancheru and found his father’s dead body,” the complaint revealed.
Incidentally, Yashwanth is not the only one who pointed towards the company as responsible for the incident. Speaking to the press on the day of the incident, Telangana Fire Services Director General Y Nagi Reddy also noted that there was a lot of pressure on the dryer, which led to the explosion.
Speaking to South First, a local employee at a different factory also noted that the facility has narrow pathways and doors, making escape difficult for those inside.
Additionally, speaking at a meeting on the day after, on 1 July, the Chief Minister and Labour Minister G Vivek also raised questions regarding the company’s compliance with safety standards.
“Usually, such factories have many safety angles. However, that seems to be missing here,” Labour Minister Vivek noted, speaking to the Director of Factories. The Ministers also probed the Director regarding any flagged issued during the last inspection.
Subsequently, the Cabinet also criticised the company’s management for not being present at the meeting. “Such a big incident has occurred, so many lives lost. Why is the MD not here?” Revanth Reddy questioned the company representative. Further, IT Minister Sridhar Babu also took issue with the absence. “The government has shown up, reviewing the situation taking our time out, does your MD not have time. Why is he running these companies if he cannot come visit?” he asked.
The Chief Minister also announced that he directed the district administration to release ₹1 Lakh to the families of the deceased and ₹50,000 to the injured for immediate expenses.
Despite the state’s criticism of the company’s top management, there has been no public statement yet. Apart from the compensation press release, undersigned by the Company Secretary and the Compliance Officer.
(Edited by Ananya Rao)
