Berhampur, Aug. 1: Leakage of liquid caustic soda from Grasim Industries Limited,located on the outskirts of Ganjam town, which is about 30km from here, has sparked panic among local residents.

"Around 25 metric tonnes of caustic soda leaked from a fully filled tank on Friday night, but we have neutralised the chemicals. There is no cause for panic," said Pramod Panda, a senior manager of Grasim.

Local residents, however, alleged the company authorities diverted the liquid caustic soda to a pond through a canal near the Rushikulya river. "This may pose serious health hazards to those who use the river water," said Rabindra Nath Sahu of Badadeuli village. "Experts from the Regional Pollution Control Board, Berhampur, must visit here to see the impact it has had," Sahu said.

The Rushikulya riverbed was dry on Saturday and Sunday. There was rain for about an hour in the area today. "There is every possibility of the water getting mixed with caustic soda," said another villager, Hari Behera.

The sub-collector of Chartrapur, Sudhakar Sabar, said: "The block development officer of Ganjam, Jyoti Ranjan Nayak, has been deputed to inspect the spot and furnish a detailed report."

Nayak said: "The local residents staying near the site have nothing to worry about. Liquid caustic soda leaked from the vertical chamber of the tanker. But, the company authorities restored 20 metric tonnes of the liquid immediately. Only five metric tonnes of the liquid was spilled and that too was neutralised. The tanker leakage was due to hydraulic pressure."