DRL responds to notice on nitrogen leak

The Director of Factories (DoF), the government agency overseeing the safety aspects at the factories, is likely to take up the matter related to the nitrogen gas leak at Dr Reddy's Laboratories here for prosecution next week, according to a senior DoF official.

The department recently received pharma major's reply to the showcause notice. "The report from the company has come. Some statutory procedures are to be done. They will be done by next week,'' the official told Business Standard. He declined to give the contents of the reply.

The government had issued a showcause notice asking the company to explain on the venting mechanism at the site of accident and sensor system, among others.

A chemist and a contract worker had died in the nitrogen gas leak last month at Unit III of Dr Reddy's Laboratories at Bollaram. The US Food and Drug Administration-approved plant produces active pharmaceutical ingredients. Access to the 'clean room' where the accident occurred continues to be restricted.

Pharma companies use nitrogen in areas where there is a possibility of sparks flying due to chemical reaction as the gas cuts down the oxygen availability.

The Factories Act (Section 104 A) puts the onus on the person (or the company) to prove that all practicable measures were taken. If found guilty, the punishment could be imprisonment for a term that might extend to two years or a fine of Rs 100,000 or both.

The DoF will also issue a circular giving out the technical specifications to all companies having similar process plants to ensure that similar accidents do not occur. The officials probing believe it to be the first accident of its kind that happened at a pharma unit involving nitrogen.

Also, the three-member committee set up to study whether the company adhered to safety standards is yet to submit its report. The committee comprises two officials from the DoF and a pharma expert. However, the DoF will not wait for the report to initiate action, if any, against the company. "The three-member committee will study various pharma-related processes at length where nitrogen is used,'' the official said, adding the report would take some more time.