Vizag Gas Leak Tragedy: Is LG Polymers to be blamed for Negligence?
| Case Code: BECG182 Case Length: 11 Pages Period: 2020-2022 Pub Date: 2023 Teaching Note: Available |
Price: Rs.300 Organization: LG Polymers India Pvt Ltd. Industry: Chemicals Countries: India Themes: Business Ethics, Corporate Ethics,Corporate Responsibility,Corporate Governance |
Abstract Case Intro 1 Case Intro 2 Excerpts
Excerpts
The Disaster Unfolds
In the early hours of May 7, 2020, people living in the vicinity of the LGPI plant began experiencing a pungent smell. People who had been fast asleep woke up with throat irritation, burning in the eyes, and skin irritation..
What caused the incident – official negligence?
In the following days, several facts were revealed, which shed new light on why the incident could have occurred. The preliminary findings of the Andhra Pradesh Forensic Science Laboratory revealed that the accident was due to human error, as the temperature of the storage tank containing styrene was not maintained below 20 degree Celsius..
The aftermath of the incident – who was responsible?
In June 2021, the National Green Tribunal (NGT) took up the gas leak case at LGPI suo motu and constituted a five-member joint monitoring committee (Bench) to conduct an investigation into the incident. The Bench was headed by Justice Adarsh Kumar Goel (Goel), a former High Court judge, and had as its members – a Principal of a college, a Professor of chemical engineering, and two scientists...
The Road Ahead
As many as 19,893 persons living in the affected villages were given compensation of Rs.10,000 each by the AP Government in May 2020. Victims undergoing treatment on ventilators got Rs. 1 million each; others who were hospitalised got Rs 0.1 million each. The AP state government also provided some amount of compensation to all people who had to visit the hospital, the families who had fled the area, and those who lost cattle in the disaster..
Exhibits
Exhibit I: About Styrene
Exhibit II: Details of Organizations
Exhibit III – LGPI Lapses in the Overall Functioning of the Plant
Exhibit IV: Additional Regulations Not Conformed by LGPI
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