GAIL tragedy: Govt announces Rs 25 lakhs to families of victims

Pradhan and Naidu visited the GAIL pipeline explosion site that claimed 14 lives and injured another 20 people

Petroleum and Natural Gas Minister Dharmendra Pradhan and Andhra Pradesh Chief Minister N. Chandrababu Naidu visited the GAIL pipeline explosion site that claimed 14 lives and injured another 20 people, and announced an ex-gratia of 25 lakh rupees to the next of kin of those killed in the incident.

The fire broke out on a stretch of pipeline running through East Godavari District, engulfing buildings and burning victims to death, and again raising safety concerns over the country's energy projects. They ordered an inquiry into the blast and fire.

Many such projects are opposed by villagers on safety grounds.

The incident was the most deadly in the Indian energy sector since August 2013, when 28 people were killed in a fire at Hindustan Petroleum Corporation Limited refinery at Vizag in Andhra Pradesh.

Prime Minister Narendra Modi said victims and relatives would receive compensation. He said 200,000 rupees would be paid to relatives of the dead and 50,000 rupees for those injured, in addition to relief payments by the petroleum ministry and GAIL.

The latest fire occurred in a pipeline operated by state-owned energy company GAIL (India) Limited (GAIL.NS) and disrupted supplies to a power station and closed two gas fields.

The 18-inch pipeline supplies 0.5 million standard cubic metres of gas a day to a power plant operated by Lanco Infratech Limited, GAIL spokeswoman Vandana Chanana said.

State-run explorer Oil and Natural Gas Corp (ONGC.NS) has shut two of its gas fields that were supplying the fire-hit pipeline.