Case study on Bhushan Steel fire accident,2013

Presented By:
1. Nikita Kejriwal 5. Anandu Nair
2. Vandana Rudola 6. Anjali Joshi
3. Anupriya Sharma 7. Pratik Shanischara
4. Richa Prasad

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Content
1. Introduction of Bhushan Steel
2. Case study briefing
3. Causes & Reasons for accident
4. Legal Sections according to IPC and Factories Act,1948
5. Statistics & After Effect
6. Precautions
7. Suggested precautions & Conclusion

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Introduction
• Established in 1988 by Shri Brij Bhushan Singhal
• 3rd Largest secondary steel producer in India
• One of the cold rolled steel plant
• Manufacturing units:
• Maharastra (Khupoli Unit)
• Uttar Pradesh (Sonibabad Unit)
• Orrisa (Meramandali Unit)
• Tata Steel acquired bhushan steel plant as bhushan energy in May.
• Sales Turnover as per 2018-19: Rupees20891.90 Cr

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 Plant Overview

Authorities locked main gate

after incident

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Case study briefing
• Bhushan Steel Plant witnessed a tragic accident on 13 Nov, 2013.
• The the blast furnace 2 of Bhushan Steel Plant caught fire killing 1 and left 19
seriously injured.
• The state Directorate of Factories and Broilers, Malay Kumar Pradhan, sealed the
furnace soon after the incident to avoid further mishaps.
• According to the company, about 120 workers and technical staff were present in
the area where the incident occurred.
• The accident reportedly damaged a truck and a JCB machine near the site. A plant
wall was collapsed owing to the same reason.
• Injured workers were soon shifted to the SCB Medical in Cuttack.
• The CEO of Bhushan Steel along with blast furnace in-charge Naveen
Tyagi and operating head Meghpal Singh were arrested.

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 After accident photo

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Cause & Reasons for accident
• Lack of Permissions from Government.
• Reason for explosion
• How accident was triggered?
• What is a slag pipe & blast furnace?
• Lack of precaution
• Damage and Causalities occurred.

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Sections applicable as per IPC
• Section 287 (Negligent conduct with respect to machinery)
• Section 337 (Causing hurt by act endangering life or personal safety of others)
• Section 338 (Causing grievous hurt by act endangering life or personal safety of
others)
• Section 304 (Punishment for culpable homicide not amounting to murder)
• Section 34 (Acts done by several persons in the commission of offences)

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Continued…
8
Sections applicable as per Factories Act,1948
• Breach of Section 87: Dangerous operations
• Specifying the manufacturing process
• Prohibition or restricting the employment of women and children to work
• Providing the protection
• Prohibiting,restricting or controlling the use of any specific material.
• Provision for supply of safety equipments
• Possible Penalty for breach of section 92.
• Twenty five thousand in case of death and five thousand in case of serious
bodily injury.

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Sections applicable as per Factories Act,1948
• Breach of Section 41
• Section 41A: Constitution of site appraisal committees.
• Section 41B: Compulsory disclosure of information by the occupier.
• Section 41C: Specific responsibility of the occupier in relation to hazardous
process.
• Section 41E: Emergency Standards
• Possible Penalty for breach of section 41.
• Fine up to two lakh rupees
• Imprisonment up to seven years

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Statistics
47 factory workers
are injured and three
Fatalities Reported in year 2013-2016 die in accidents. Data
800
700 from the Labour and
600
500
Employment Ministry
400 reveal that in three
300
200 years (2013-2016),
100
0
3,562 workers lost
Gujarat Maharastra Tamil Nadu Chhattisgrah Andhra their lives while
Pradesh 51,124 were injured
in accidents that
occurred in factories
across the country.
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After Effects
• Workers, blamed lack of safety measures for the tragedy and incensed labourers
demonstrated in front of the company's main gate and also blocked the
national highway.
• CEO Atulya Kumar Verma, blast furnace in-charge; Naveen Tyagi and operating
head Meghpal Singh were arrested.
• On the basis of an inspection report, the district administration had sealed the
new blast furnace area of the steel plant at Meramunduli.
• Three of the 11 injured undergoing treatment in Cuttack have been shifted to a
private hospital as their condition turned critical.

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Suggested Precautions
• Section 31:Pressure plant (section 31)
• Section 36: Precautions against dangerous fumes
• Section 37: Explosive or inflammable dust,gas etc
• Section 41-B: Compulsory disclosure of information by the occupier of every
factory
• Section 41-C:specific responsibility of the occupier in relation to hazardous
process
• Section 41-F: Permissible limits of exposure of chemical and toxic substances

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Conclusion
• Incident occurred due to lack of proper precautions and lack of procedures
followed during the constructions and permissions.
• The court of the chief judicial magistrate and assistant sessions judge imposed a
fine of Rs 10 lakh on two senior Bhushan Steel officials or face imprisonment. The
two officials were convicted for violating the Factory and Boilers Act.
• The government lawyer added that there were 80 more cases pending on 17th
April 2015 in the court against the company officials.

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 Thank you!

Source: Hanover Research on best practices in matrix organization structures

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