Sigachi accident: Confusion over ex gratia of Rs 1 crore

Conflicting statements from Chief Minister A Revanth Reddy and the CMO have created confusion over whether the Rs.1 crore ex gratia to Sigachi accident victims will come from the State government, the company, or both

Hyderabad: Confusion continues over the ex gratia to be paid to victims of the Sigachi Industries accident at Pashamylaram, where the death toll has touched 40, after the company on Wednesday announced Rs 1 crore compensation for the families of each deceased worker.

The ambiguity stems from Chief Minister A Revanth Reddy’s conflicting statement, both during his visit to the accident site on Tuesday and later through an official release issued by the Chief Minister’s Office (CMO).

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During his media interaction at the site, Revanth Reddy initially stated that the government would direct Sigachi Industries to pay Rs 1 crore as ex gratia. However, when asked whether the State government would also contribute, he gave an evasive response: “The victims are getting Rs 1 crore, what is the need to talk about the company’s share and the government’s share?”

Later, while answering queries from the national media, the Chief Minister said, “I have told my people to give Rs.1 lakh for the deceased’s family and Rs.50,000 for the injured as immediate expenditure from contingency funds. At the same time, I have told my people, Rs.1 crore for victims’ families, Rs.10 lakh for major injuries and Rs.5 lakh for the other injured. Medical treatment, the government will take care of everything.”

He reiterated that “Rs.1 crore is compensation, Rs.10 lakh and Rs.5 lakh for whoever is injured,” though he did not clarify whether the Rs.1 crore would be entirely from the government or include the company’s share.

Subsequently, the CMO issued a statement stating that the Chief Minister had announced Rs.1 crore ex gratia would be given to the families of the deceased. The statement also mentioned that Rs.1 lakh would be provided to bereaved families and Rs.50,000 to those injured as immediate relief.

Further, the CMO stated that the government would bear the entire cost of medical treatment for the injured and has instructed officials to ensure the children of victims are admitted to government residential schools.

Now, with Sigachi Industries declaring its commitment to pay Rs.1 crore ex gratia and promising full medical and rehabilitation support to the injured, questions remain over the extent of the State government’s contribution. It is unclear whether the government will restrict its support to Rs.1 lakh for the deceased and Rs.50,000 for the injured, or if it will supplement the company’s compensation package.