**Executive Summary**
This document is the answer provided by the Minister of State for Labour and Employment to Unstarred Question No. 407 in Lok Sabha, concerning risk management in chemical manufacturing units. The response outlines the government's approach to occupational safety, health, and welfare of workers through the Factories Act, 1948 (now subsumed in the Occupational Safety, Health and Working Conditions Code (OSH&WC), 2020, effective from 21.11.2025) and mentions third party audits, and penalties for contraventions. The question was scheduled to be answered on 02.02.2026.
**Key Points / Main Content**
* **Legislative Framework:**
* The Factories Act, 1948, ensures occupational safety, health, and welfare in factories.
* The Act and its rules are enforced by States/Union Territories.
* The Factories Act, 1948, is now subsumed under the Occupational Safety, Health and Working Conditions Code (OSH&WC), 2020, effective from 21.11.2025.
* **Equipment Replacement:**
* Mandating the replacement of obsolete equipment after its certified safe life is beyond the scope of the Directorate General Factory Advice Service & Labour Institutes (DGFASLI) and falls under the jurisdiction of States/UTs.
* **Third-Party Audits:**
* The OSH & WC Code, 2020, includes a "scheme" for 'Third Party Audit and Certification' by empanelled experts assigned randomly through a web-based system.
* Auditors conduct safety audits, provide certification, and submit reports to employers and Inspector-cum-Facilitators.
* **Penalties:**
* The OSH&WC Code, 2020, outlines penalties for offenses and punishments for violations of safety provisions leading to accidents.
**Impact Analysis**
**States / Union Territories**
* **Impact:** Responsible for enforcing the Factories Act, 1948, and its rules, as well as the OSH&WC Code, 2020, regarding occupational safety, health, and welfare.
* **Action Required:** Enforce regulations regarding the replacement of obsolete equipment and third-party audit schemes for chemical factories.
**Employers**
* **Impact:** Subject to safety regulations under the Factories Act and the OSH&WC Code, 2020, and must comply with audit and certification requirements.
* **Action Required:** Participate in third-party safety audits, address audit findings, and ensure compliance with safety regulations to avoid penalties.
**Auditors**
* **Impact:** Required to conduct safety audits and provide certifications through a randomized, web-based scheme.
* **Action Required:** Conduct thorough safety audits, provide certification, and submit reports to employers and Inspector-cum-Facilitators.
**Workers**
* **Impact:** Benefit from ensured occupational health, safety and welfare through the enforcement of the Factories Act and the OSH&WC Code, 2020.
* **Action Required:** Raise safety concerns with their employer and relevant authorities.
Key Entities Referenced
Occupational Safety, Health and Working Conditions Code (OSH&WC), 2020: A labor code that subsumes the Factories Act, 1948, with provisions for occupational safety, health, and working conditions.
The Factories Act, 1948: An act ensuring occupational safety, health, and welfare of workers in factories.
Directorate General of Factory Advice Service & Labour Institutes (DGFASLI): An organization providing advice on factory-related matters.
Ministry of Labour and Employment: The government ministry responsible for labor and employment policies.
GOVERNMENT OF INDIA
MINISTRY OF LABOUR AND EMPLOYMENT
LOK SABHA
UNSTARRED QUESTION NO. 407
TO BE ANSWERED ON 02.02.2026
RISK MANAGEMENT IN CHEMICAL MANUFACTURING UNITS
407. SHRI PARSHOTTAMBHAI RUPALA:
Will the Minister of LABOUR AND EMPLOYMENT be pleased to
state:
(a)whether the Government has taken or proposes to take measures
to mandate timely replacement of obsolete equipment in chemical
factories after expiry of their safe operational life through the
Directorate General of Factory Advice Service and Labour
Institutes, in coordination with State Governments and
stakeholders;
(b)if so, the details thereof;
(c)the details of the scientific, technical and regulatory methodology
adopted to determine the safe operational lifespan of factory
equipment;
(d)whether the third-party safety audits in chemical factories are
being conducted within unusually short time-frames;
(e) if so, whether such compressed audits may undermine safety and
heighten the risk of major or fatal industrial accidents; and
(f)the details of the accountability framework in place to fix
responsibility on management, auditors and regulatory authorities
in cases of safety non-compliance or accidents?
ANSWER
MINISTER OF STATE FOR LABOUR AND EMPLOYMENT
(SUSHRI SHOBHA KARANDLAJE)
(a) to (f): The Government has enacted the Factories Act, 1948 for
ensuring the occupational safety, health and welfare of the workers
employed in the factories registered under the Act. There are
elaborate provisions to ensure the occupational health, safety and
welfare of workers under the Act and the rules framed thereunder.
The Factories Act, 1948 and the rules framed thereunder are enforced
by States / Union Territories.
Contd..2/-:: 2 ::
Further, the Factories Act, 1948 has been subsumed in the
Occupational Safety, Health and Working Conditions Code
(OSH&WC), 2020. The OSH & WC Code 2020 has come into force with
effect from 21.11.2025. Mandating the replacement of obsolete
equipment in chemical factories after the completion of their
certified safe life is outside the purview and scope of activities of
Directorate General Factory Advice Service & Labour Institutes
(DGFASLI). It is under the purview of the States / UTs.
The OSH & WC Code, 2020 envisages ‘Third Party Audit
and Certification’ for providing a "scheme" to empanel experts by the
appropriate Government. Such experts shall be assigned Third Party
Audit and certification in a randomized manner through a web-based
scheme to carry out safety audit and certification along with
submitting the report to the concerned employer and Inspector-cum
Facilitator. Under the OSH&WC Code, 2020, there are provisions for
penalties for offences and punishments for contravention of
provisions of duties relating to safety provisions resulting in an
accident.
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