New Delhi, Oct. 3: The army has found more live shells while sifting through the steel scrap imported from Iran for the Ghaziabad-based Bhushan steel company.

On Thursday, 10 people were killed and 15 injured in an explosion while working with the scrap, meant to be melted down in the factory. The army was called in, leading to the recovery of 43 rocket shells.

A bomb disposal squad of the army and the National Security Guards are going through the scrap taken in 11 trucks to the secluded Kanha Upavan near the factory yesterday.

?Different kinds of shells have been found, some of which are live,? Major Sukhwant Singh, who is supervising the operation, told reporters. He refused to give any number, but police sources said five rocket shells were found today.

Singh said the operation has been temporarily stopped so that proper safety precautions could be taken.

So far, the bomb disposal squad has buried 14 rockets near a riverbed and will defuse them tonight, NSG officials said. The police sources said defusing may not take place at the Upavan and a different site was likely to be identified for the purpose.

The army team has reassessed the threat to the local population from the unexploded ordnance and sent a report to army authorities. They are awaiting clearance for shifting the shells and rockets, an army spokesman said.

The district magistrate has announced ex gratia payment of Rs 1.5 lakh each to the families of the blast victims and Rs 50,000 each to the seriously injured.

Bhushan Steel and Strips Limited, which was sealed following Thursday?s explosion, is taking legal steps against Mumbai-based Metco Marketing (India) Private Limited and Lucky Metals of Dubai for breach of contract.

?Our contract specified that the heavy metal scrap would be devoid of any material that can cause damage. After the explosion, we have taken legal action against the suppliers?,? vice-president Rahul Sengupta said.

The CPM asked the government to carry out an impartial inquiry into how the consignment of scrap containing explosives was cleared at the ports.

Extending support to a strike called by Citu, its labour arm, at Sahibabad on October 5 to protest against the blast deaths, it said: ?The presence of rockets and shells in the scrap being used in this company is unpardonable.?