Lok Sabha Question No. 3712 (UNSTARRED), answered on 2021-03-18
Subject: Fire Accidents in Crackers Manufacturing Units
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Manickam Tagore B

## GOVERNMENT OF INDIA MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION NO. 3712 TO BE ANSWERED ON 18.03.2021

## FIRE ACCIDENTS IN CRACKERS MANUFACTURING UNITS

## 3712.         SHRI MANICKAM TAGORE B:

Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state:

- (a) whether  the  Government  is  concerned  about  the  continuous  fire  accidents  in crackers manufacturing units in Sivakasi, Tamil Nadu and if so, the details thereof;
- (b)    whether the Government would come forward to set up any investigation/experts team to find out the actual reasons behind such accidents and if so, the details thereof;
- (c) the total  number of fire accidents that happened during the last four  years in fire  manufacturing  industries  and  the  compensation  provided  by  the  Government  to the affected victims/families;
- (d) whether the Government is concerned that firework units, mostly comprising MSMEs in Sivakasi, are indefinitely closed due to huge financial crisis as well as the ban of crackers ;
- (e) if  so,  whether  the  Government  has  decided  to  retrieve  those  sick  or  closed MSME units with the help of financial package; and
- (f) if  so,  the  details  thereof  along  with  the  financial  package  offered  by  the Government to make those closed MSME units functional?

## ANSWER

## MINISTER OF MICRO, SMALL AND MEDIUM ENTERPRISES (NITIN GADKARI)

- (a): Yes, Sir. The Government is concerned about the repeated fire accidents in the cracker manufacturing units in Sivakasi, Tamil Nadu. There are 952 firework units in Tamil Nadu as per the licenses issued by the District Revenue officer (DRO) and the Petroleum and Explosives Safety Organization (PESO). The details of firework units are as follows:
- (i) Firework units with DRO License
- (ii) Firework Units with PESO
- 259 nos.
- 693 nos.

Government and PESO have taken steps for conducting regular inspection of fireworks factories licensed by them.  During the inspection, if any, serious violations are  noticed,  penal  action  as  per  the  provisions  of  Explosives  Rules,  2008  is  taken. Organizing training programmes, awareness campaign on use of Green Crackers are ongoing activities  for  prevention  of  such  accidents.  A  separate  Fire  Works  Welfare Board has also been set up to get compensation on accident / injuries from the Welfare Board.

- (b): The  District  Administration  has  formed  7  special  squads,  consisting  of  the officials  of  Revenue  Department,  Police  Department,  Fire  and  Rescue  Department, Labour Welfare Department, Industrial Safety and Health Services. The squads will inspect  and  review  the  functions  of  fireworks  units.  It  is  observed  that  the  factory accidents occur mostly due to the following reasons:
- i.     Friction
- ii.    Improper composition of chemicals
- iii.   Usage of decomposed chemicals
- iv.   Mishandling of chemicals
- v.    Usage of more chemicals than permitted
- vi.   Employing more number of people than permitted numbers.
- (c): As per the information provided by Department for Promotion of Industry & Internal Trade under the Ministry of Commerce & Industry and Government of Tamil Nadu,  the  total  number  of  fire  accidents  that  happened  during  last  4  years  in  fire manufacturing  industries  and  compensation  provided  by  the  Government  to  the affected victims/families is as under:

| Year    |   Number of Accidents |
|---------|-----------------------|
| 2016-17 |                    16 |
| 2017-18 |                    10 |
| 2018-19 |                    16 |
| 2019-20 |                    14 |

(Source: DPIIT)

The District Administration, Government of Tamil Nadu has given compensation as follows:

| Year    |   Number of Death | Amount of Compensation (Rs.)   |
|---------|-------------------|--------------------------------|
| 2017-18 |                 1 | 1.00 lakh                      |
| 2018-19 |                 2 | 2.00 lakh                      |
| 2019-20 |                17 | 51.00 lakh                     |
| Total   |                20 | 54.00 lakh                     |

(Source: Government of Tamil Nadu)

The District Administration has also given compensation for 19 injuries for an amount of Rs. 19.00 lakh)

(d): The Hon'ble Supreme Court has permitted the fire work units to manufacture green crackers and ordered that the fire crackers manufacturing units shall manufacture  fire  crackers  in  accordance  with  the  standard  prescribed  by  new composition recommended by National Environmental Engineering Research Institute (NEERI) and prescribed by PESO.

(e) & (f): Government  has  announced  a  comprehensive  package  of  Rs.20  lakh crore, including for MSMEs, under Aatmanirbhar Bharat Abhiyan (ABA). Announcements pertaining to MSMEs are given below:

- i. Emergency  Credit  Line  for  MSMEs:  Government  has  operationalized  Rs. 3,00,000 crore collateral free loan scheme w.e.f. 23.05.2020 which is likely to benefit 45 lakh MSMEs.
- ii.   Rs. 20,000 crore Credit Guarantee Scheme for Subordinate Debt (CGSSD) for the stressed MSMEs.
- iii.  Reserve Bank of India (RBI) vide its circular dated 01.01.2019 has indicated that  MSME  account  can  be  restructured  on  or  before  31.03.2020.  The borrower  will  continue  to  be  classified  as  Standard  Asset  till  the  date  of restructuring.  The  same  has  further  been  extended  up  to  31.03.2021  vide RBI's circular dated 06.08.2020.
- iv.    RBI  has  provided  the  relief  measures  and  the  CRR  of  all  the  banks  to  be reduced by 100 basis points to 3% of net demand and time liabilities w.e.f. March, 28, 2020, which would inject Rs. 1,37,000 crore across the banking system.
- v.   In addition, Ministry of MSME has taken initiatives to provide employment opportunities to people including migrant workers in 116 districts of 6 States under  Garib  Kalyan  Rojgar  Abhiyaan.  Under  PMEGP,  Margin  Money (subsidy)  amounting  to  Rs.  216.45  crore  has  been  disbursed  for  setting  up 6218 units till 31.01.2021.

*****