Neogen Chemicals Ltd. Suspends Production at Multi-Purpose Plant After Fire Incident; Estimated Reconstruction Time 9-12 Months
Neogen Chemicals Ltd. has received directions from the Gujarat Pollution Control Board (GPCB) regarding the fire incident that occurred at their Multi-Purpose Plant (MPP3) facility in Dahej SEZ on March 5, 2025. The GPCB has directed the company not to utilize the affected areas until they receive revocation or written approval from the Department of Industrial Safety and Health (DISH) and GPCB. An Environment Damage Compensation (EDC) cost of Rs. 34.60 lakhs has been imposed on the company, and a Bank Guarantee of Rs. 7.5 Lakhs is required for compliance assurance. The company has shifted production of critical select specialty products to other sites and is planning to minimize the impact on earnings. The estimated reconstruction time for the impacted facilities is 9-12 months.
Key Highlights
- Neogen Chemicals Ltd. received directions from GPCB regarding the fire incident at their MPP3 facility.
- Company is required to obtain revocation or written approval from DISH and GPCB before utilizing the affected areas.
- An Environment Damage Compensation (EDC) cost of Rs. 34.60 lakhs has been imposed on the company.
- Company has shifted production of critical select specialty products to other sites to minimize the impact on earnings.
- Estimated reconstruction time for the impacted facilities is 9-12 months.