The Nov. 22 blast destroyed the plant, severely damaged nearly a dozen houses, and left about 60 other homes in need of repair. But Danvers officials have since discovered the town's infrastructure was not unscathed. Damage to electric and sewer lines is causing reconstruction estimates to swell.

"Do we know the full extent of the damage? Definitely not," said town manager Wayne P. Marquis. "We really appreciate the help."

Meanwhile, the state and federal investigations into the blast continued yesterday as US Chemical Safety Board investigators interviewed employees of CAI Inc., which manufactured industrial inks in the building.

The firm had initially clashed with the agency over interview logistics, but a meeting yesterday at CAI's Georgetown headquarters resolved the impasse.

The $2 million aid package originated in conversations last week between Senate President Robert E. Travaglini and Danvers officials.

"Clearly the town doesn't have the capacity to absorb these types of costs," Travaglini said in an interview. "The Commonwealth has a responsibility to help."

Travaglini said the Senate plans later this week to amend a bill that would provide funds for flu pandemic preparedness to include the Danvers aid money. The money would be drawn from millions in unspent funds from an aid package passed last year to help refugees from Hurricane Katrina.

"It's not new money," said Travaglini, adding that there was widespread support for the measure on Beacon Hill.

State Senator Frederick E. Berry , a Peabody Democrat, is leading the effort.

The explosion "put a great burden on public safety and infrastructure budgets in Danvers," he said.

"The fund will help as the town discovers more and more problems. . . . We really don't know what it did to gas lines and water lines and so forth."

Under Berry and Travaglini's plan. Danvers officials would periodically have to make funding requests, subject to approval by lawmakers.

Marquis said overtime pay for fire and police would probably consume about half the eventual recovery costs. The city will continue to rack up overtime charges at the site through next April, he estimated.

Earlier this week, the US Chemical Safety Board said CAI officials had refused to make their employees available for interviews. The agency's lawyers were considering using subpoenas to compel testimony.

But CAI said its employees began answering questions yesterday. The firm said any previous tensions were the result of logistical problems rather than any unwillingness by CAI to submit to questioning.

Employees have already been interviewed by state investigators and the US Environmental Protection Agency.

"We've been cooperating fully since day one," said CAI spokeswoman Cheryl McLarney. "Nobody wants to get to the bottom of this more than us."

She said the wide-ranging investigation had taxed the small company's workforce even as it copes with the loss of one of its facilities.

"We're juggling a lot here," said McLarney.

Another firm, Arnel Inc., which makes industrial paints, also shared the facility.

US Chemical Safety Board officials confirmed that the impasse had been resolved and said the interviews with CAI would last through today.

The agency said it also requested hundreds of documents from CAI yesterday.