NEW DELHI: The explosion at a firecracker factory in Tamil Nadu’s Virudhunagar district on Sunday, which killed at least 22 people and injured six others, has exposed what officials describe as a systemic regulatory failure.
The blast at the Vanaja Fireworks unit in Kattanarpatti village was so powerful that it was reportedly felt up to 10 kilometres away. Chief Minister MK Stalin called the incident “extremely painful” and sent two ministers to the site.
At the centre of the issue is India’s fragmented regulatory framework for hazardous industries.
Licensing and inspection of firework factories fall under the Petroleum and Explosives Safety Organisation (PESO), a body under the Ministry of Commerce and Industry based in Nagpur. However, it fails to conduct regular inspections due to severe manpower shortages.
Another key institution, the Directorate General of Fire Services, Civil Defence and Home Guards under the Ministry of Home Affairs, frames fire safety norms and guidelines across the country. However, it has no enforcement powers, leaving compliance entirely to state governments. A senior official noted that the two bodies operate in silos with little coordination or alignment.
PESO, established in 1898, regulates hazardous substances such as explosives, compressed gases, and petroleum products. It issues licences to firecracker units nationwide. However, official data shows a deep enforcement gap. According to the 2023–24 PESO annual report, only 12,299 of 1,36,410 licensed explosive units were inspected—just 9%. Under the Petroleum Act, inspections covered only 5.33% of 2,53,163 premises. Overall, just 6.62% of 3,89,573 licensed hazardous units were inspected, leaving 93% unchecked.
The report attributes this shortfall to “severe resource constraints” and vacant posts. PESO has 137 sanctioned Group A posts and 343 Group B/C posts, but 35 Group A and 111 Group B/C positions remain vacant, meaning roughly one-third of its workforce is unfilled. Despite these limitations, PESO generated Rs 301 crore in fees in 2023–24 but spent only Rs 57 crore on operations, maintaining a revenue surplus for five consecutive years.
The 2024–25 annual report of Department for Promotion of Industry and Internal Trade also noted weak adoption of its licensing system for district authorities. Meanwhile, the Directorate General of Fire Services’ advisories remain non-binding, as states are not obligated to enforce them. The result is a disjointed regulatory system.