A sum of Rs 50 lakh each will be paid as compensation to the kin of the two workers who died in the gas leak incident in the Sainor Life Sciences unit at the Pharma City near Visakhapatnam on June 30.
Of the total, the factory management will contribute Rs 35 lakh and the balance will be given from the Chief Minister's Relief Fund, Visakhapatnam district Collector V Vinay Chand told PTI.
The Sainor management also promised a job to the eligible kin of each of the two deceased, he said.
He said the committee appointed to probe the mishap was expected to submit its report on Saturday.
The shift in-charge and the chemist were killed when hydrogen sulphide gas leaked while it was being pumped into the reactor in the drug manufacturing unit, official sources said.
Four other workers, who inhaled the gas, fell ill and were admitted to hospital in Gajuwaka and undergoing treatment.
Official sources said human error in pumping the gas into the reactor led to the mishap.
"It was hydrogen sulphide gas that leaked and not benzene as suspected.The reactor nozzle was loose while the gas was being pumped in. The shift in-charge and the chemist, who inhaled the dense gas closer to the reactor, had succumbed," the sources said.
The leak took place even as the tragic memories of styrene gas leak from the LG Polymers plant were still fresh in the public's minds.
The May 7 disaster had claimed 12 lives and affected around 500 people in Venkatapuram and other villages surrounding the plant. One of the worst industrial accidents in the city, it had raised many questions on the safety of people living around the industrial units.
This is not the first accident for Sainor or Pharma City. Two workers were killed and five injured in a blast at the same company in September 2015, according to activist and retired senior bureaucrat EAS Sarma, who pointed out that there have been 25 serious industrial accidents in the area since 2013.