Nabin Maharjan of Satdobato, Lalitpur hasn't been able to sleep at night since the explosion at a gas plant in Patan Industrial Estate on Thursday that killed two people.

According to preliminary reports, an oxygen cylinder blew up while being refilled at the Sagarmatha Oxygen Plant. The government has not determined what caused the explosion.

Eyewitnesses said the blast was so powerful it sent oxygen cylinders flying out in all directions, hitting windows of nearby houses as high up as three or four storeys. Body parts of one dead worker was found scattered up to a radius of 300 metres.

Since the explosion at the factory, residents in adjacent neighbourhoods have been living in terror.

“I don’t think industrial estates should be allowed near residential areas,” said the 39-year-old Maharjan, whose house on Deepawali Marg lies a metre from the boundary wall of the industrial estate.

Patan Industrial Estate was established in 1962 when there were few houses in the area as part of Nepal's move to industrialise. It was built with Indian assistance and managed by Industrial District Management Limited, a government undertaking.

What was then an isolated site far from the city has turned into a teeming neighbourhood with hundreds of houses all around, and safety concerns have been raised over allowing hazardous industries so close to human settlements.

The explosion in the middle of a densely populated neighbourhood has exposed the risks of having industrial plants within city limits.

“The industrial area should be shifted to an appropriate place outside Kathmandu Valley,” Maharjan says.

Reena Pokhrel, who lives in a rented apartment and runs a shop near the industrial area, suggested that safety measures should be enforced to prevent such accidents in the future.

“The industrial area provides jobs to many people. I am sad about Thursday's incident.”

According to reports, Nepal's first elected government had a vision of creating economic development through industrialisation. The establishment of Balaju Industrial Estate with American assistance in 1959 was a major step in this initiative.

Starting with Balaju, 10 other industrial estates were built in various parts of the country over a period of 30 years, supported by the United States, India, Germany and the Netherlands.

In the early days, the industrial sector was characterised by a very small scale of operation and low investment, and mostly consisted of micro enterprises possessing low risk factors, according to the report.

Now the country’s economy has grown by leaps and bounds, and so has industrial production. Many industrial corridors have been established in uninhabited areas, mostly in the Tarai region, due to the risk factor.

Experts say that factories or commercial spaces dealing with dangerous chemicals or storing such materials should not be located in densely populated areas.

“The blast was massive, and it could have caused more damage,” said Maharjan.

Ghanashyam Upadhyaya, chief district officer of Lalitpur, told the Post that the accident was a serious incident and should not be taken lightly.

Home Minister Bal Krishna Khand has ordered an investigation. The probe panel has been given six days to submit a report.

While experts say that the government should shift industrial estates that pose a threat to humans and property to appropriate areas, it is easier said than done, say government officials.

"Hazardous industries should not be operated in urban centres," said Jagadish Chandra Pokharel, former vice-chairman of the National Planning Commission and an urban planner.

“When the industrial areas in the valley were established, they were not surrounded by dense settlements,” said Pokharel. “Now huge settlements have grown around them, and it’s a threat.”

Among the 10 industrial areas currently operating in the country, three are located in Kathmandu Valley—one in each of the three districts. All of them are now surrounded by residential houses.

Balaju Industrial Estate, the country’s first industrial zone, is spread over 670 ropanis. Currently, 97 factories operate in the area, 26 are under construction and eight have been closed.

The industrial area in Balaju provides employment to 3,506 individuals, and has an investment of Rs3.12 billion from the private sector and Rs62.2 million from the government sector, according to the official website of Industrial District Management Limited.

Patan Industrial Estate covers an area of 293 ropanis. Out of the 116 factories there, 113 are currently operating. They provide 1,600 jobs.

Small Industrial Area, which was later renamed Bhaktapur Industrial Area, was established in 1979 and is spread over 71.28 ropanis.

Cottage industries are predominant in Patan and Bhaktapur, and medium scale industries lead in Balaju.

“While industries that are hazardous and cause more pollution should be shifted outside the valley, we have to convert industrial areas located near dense settlements into a new kind of service sector in the coming days,” Pokharel said.

Narayan Prasad Regmi, joint secretary at the Ministry of Industry, Commerce and Supplies, said they carry out regular inspections of the industrial areas. The Nepal Bureau of Standards and Metrology also conducts periodic checks of the industrial areas, he said.

“We are waiting for the report of the fact-finding committee. We will proceed according to its recommendations.”

Government officials say it makes sense to shift industrial areas outside the valley not only because of potential accidents but also because of the pollution they cause.

“Besides the risk of accidents, there is a need to shift all industrial areas out of the valley because of the rising pollution. This has been a key topic of discussion for a long time,” Regmi said. “Shifting industrial areas outside the valley, however, is not easy.”

Over the years, Kathmandu has become one of the most polluted cities in the world in terms of air quality.

“However, for a temporary period, the potential security threats in the industrial areas will be identified, and more stringent precautionary measures will be taken,” Regmi said. “We are waiting for the report.”