Tragedy at Sivakasi factory: Loss of life and business paves the way for introspection

At this time of the year, Sivakasi, which accounts for about three- quarters of India’s firecracker industry, usually bustles with activity — about 1,50,000 people work round the clock to cater to the demand for Diwali.

However, this year, Sivakasi resembles a ghost town.

On Wednesday, at least 54 people were charred to death and 50 injured when a devastating blaze swept through Om Sakthi Industries at Mudalipatti, about 10 km from here. About 1,500 units in Sivakasi and the adjoining Virudhunagar and Sattur regions are shut for four days, as government agencies are scheduled to inspect the units here.

Many say the town fell prey to the lack of regulation and poor safety measures at the industries here. Sivakasi has seen many such accidents in the past. According to reports, in the last 12 years, 88 accidents have claimed 237 lives. However, Wednesday’s tragedy was the worst in 90 years.
 

TINDERBOX TOWN

• Sivakasi accounts for 75 per cent of the country’s firecracker industry, which has been its lifeline for over a century
• The town does not have a speciality hospital to treat fire injuries. Government hospitals lack basic facilities like AC, required for fire victims
• 88 accidents have happened in the last 12 years in which 237 lives have been lost
• Over 700 illegal units have come in the last six years violating safety and taxation nets
• Chemical products are stored in excess of permissible levels, more employees work against the limit
• Space meant for safety establishment encroached upon

Typically, factories here are just concrete sheds accommodating four people, without electricity and adequate exits. Om Sakthi Industries is just one instance of how lack of regulation leads to accidents at the numerous illegal factories that have sprung up here.

K Mariappan, vice-president, Tamil Nadu Fireworks and Amorces Manufacturers Association, says according to Department of Explosives norms, cotton clothes are mandatory for workers and radios, mobile phones and other radio frequency-operated device aren’t allowed within 15 metres of places where explosives are stored. None of the illegal units adhere to these norms. The number of illegal manufacturing hubs is alarming, Mariappan says, adding the government should be more stringent. A week earlier, the deputy chief controller of explosives of Sivakasi had ordered Om Sakthi be shut, after it was found the company had flouted many rules — chemical products stored were more than permitted, the number of employees was more than that allowed and the space for safety purposes was encroached upon. According to norms, 1-1.5 cases of crackers can be manufactured in a room per day, while the Om Sakthi unit manufactured four to five cases a day. Also, against the stipulated 140-150 employees, the company employed 300-320 people.

A S P Arumugaselvam, director, Sri Kaliswari Fireworks, says, “Accidents happen only in unorganised units, which are not run by professionals.” The factory (Om Sakthi) was run by a floorman who earlier worked in one of the top five firecracker companies. The government must ensure rules are followed, Arumugaselvam adds.

In the last six years, about 700 illegal units have sprung up in the area; these do not follow rules. Also, these don’t come under the tax net. Organised firecracker companies pay 30 per cent of their revenue towards tax. Products by unorganised companies are about 50 per cent cheaper, and these companies don’t pay taxes as well, says M Siva Balan of Pooja Fireworks.

K Pandiarajan, member of the Virudhunagar legislative assembly and founder of leading human resources consultancy firm MaFoi, says, “Despite knowing the company (Om Sakthi) violated 40 rules, they (government agencies) let them to run the factory.” Another concern is Sivakasi, and its adjoining towns that depend on the firecracker industry, don’t have any specialty hospital for fire injuries and conditions in government hospitals are unsatisfactory and inadequate, he adds. The road infrastructure to factories is also dismal; a narrow six-km soil road connects about 100 factories, including Om Sakthi. This cannot be used by firefighting tankers and ambulances.

Securing a permit
If one wishes to set up a firecracker manufacturing company with up to 12 rooms, a licence from Chennai is mandatory. If the factory has more than 12 rooms, the licence is issued by the Chief Controller of Explosives, Nagpur.

Typically, when a company secures a licence to build fireworks, it acquires a huge plot of land. This, it leases to smaller, unrecognised units. In the case of Om Sakthi, too, the unit wasn’t run by the person who had secured the licence. “We are putting more pressure on department officials to control illegal factories, but nothing is happening,” says Arumugaselvam.

Industry scenario
While big companies have recorded a 15 per cent rise in orders, their smaller counterparts reported an annual drop of 30-50 per cent. Sri Kaliswari Fireworks, one of the top three companies here, expects to see 15 per cent growth. Arumugaselvam says as the festive season would continue till November this year, production was high. Low rains in these regions also aided a rise in production.

However, sales by small units, which account for a large part of sales, were hit. Many small units say sales fell 30-50 per cent. Siva Balan says during this time last year, his company sold 4,500-5,000; now, sales stand at 2,500-3,000. Stringent licence norms to set up points of sale in places metros like Chennai and poor rains hit sales. Sales were also hit by the number of marriage days falling from 95-100 days last year to 30-35 days this year.