Sunday's blast in Varachha, that wrecked three houses and has claimed 43 lives so far, is likely to take a toll on the health of the Rs 500 crore (Rs 5 billion) diamond ancillary industry. The industry manufactures a typical plate and small instruments used for cutting and polishing diamonds.
The state government has decided to be strict with industrial units operating in residential areas.
On his visit to Surat on Monday, Gujarat chief minister Narendra Modi called for a probe into the incident and said the use of residential complexes for such purposes is "illegal".
Modi said detailed investigations were required to find a long-term solution to the problem (of industrial units in residential areas).
"I have sought details of all surveys conducted so far in this connection to formulate a long-term plan for the safety of residential areas," he said.
Modi was briefed about the incident and the rescue operations by Surat Municipal Corporation commissioner G R Aloria and collector Manoj Kumar Das.
"This incident is not going to affect the Rs 35,000-crore (Rs 350 billion) diamond industry in Surat directly as these ancillary units have nothing much to do with the diamond cutting and polishing units. They only manufacture various instruments (including emery-cutter) used for cutting raw diamonds," said Pravin Nanavati, president of the Surat Diamond Association.
He agreed that it (the blast) may affect the ancillary industry in the city "to some extent".
"Units with furnaces of around 900 degree centigrade temperatures must be more careful. I do not find anything wrong with the chief minister's decision to call for a probe," Nanavati added.
"We have been running such (ancillary) units for long and no such incident has ever taken place as we have taken enough precautions.
Sunday's incident is unfortunate but that should not be an excuse to close down ancillary units here till the government can make alternative arrangements for us," said the owner of an emery-cutting unit at Varachha Road.
"The state government should provide land or an industrial complex from where all these units will be able to function safely. The jewellery park should be made operational as early as possible and ancillary units must be provided space there as well," he added.
SMC commissioner Aloria said: "We will carry out a detailed probe into the matter. Till we finish the investigation, we cannot comment on whether we are going to close down such units in residential areas."
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