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There were no immediate reports of any casualties.
While workers suspected some people to be trapped inside, the factory management told police there was no loss of human lives.
“We have been able to contain 50 per cent of the fire”, said a police officer from Malur police station, adding no one has been able to go inside.
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Fire fighters were making all efforts to douse the fire.
Big drums of oil were exploding one after the other, making it difficult for fire fighters to venture closer to the factory, police sources said.