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Rashtriya Chemicals and Fertilisers' Chembur plant in Mumbai was shut down after decomposition of the accumulated ammonium nitrate phosphate, which had came into contact with sparks resulting in fumes.
The incident occurred around 12.30 pm when workers were removing some abandoned equipment by welding and cutting.
"The sparks resulted in decomposition of accumulated material lying nearby, which generated fumes," RCF Chairman U S Jha told PTI.
Earlier reports had suggested that a majot fire had broke out in the fertilizer plant. However, fire personnel later clarified that there was no fire and the decomposition was controlled by the fire brigade personnel by spraying water, he said.
There were no casualties and nobody was injured in the incident, he said, adding that it took some time to bring the situation under control due to inaccessibilty of the place. The plant was shut down and production would resume on Wednesday night, he said.
The company would institute an internal inquiry into the incident, Jha said.
He said an RCF team went to the adjacent colonies to check and assess the situation and found no cause for panic.