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According to police, the plant produces pharmaceutical intermediaries and specialty chemicals.

"Preliminary investigations revealed that when the gas used for manufacturing active medicinal ingredients in the reactor in the fourth unit of the facility leaked owing to suspected failure and resulted in the explosion," Nuzvid deputy superintendent of police B Srinivasulu said. When the explosion occurred, more than 20 individuals were working in the unit.

Y S Jagan Mohan Reddy, the chief minister of Andhra Pradesh, expressed amazement at the occurrence. He announced ex-gratia payments of Rs. 25 lakh to each of the deceased's family, Rs. 5 lakh to each of the critically injured, and Rs. 2 lakh to each of the remaining badly hurt.