NSW govt to push for State Mine Fire compo

Premier Mike Baird will push the case for federal compensation for people who lost homes in a massive NSW bushfire sparked by a military exercise.

An investigation report released on Tuesday into the State Mine Fire uncovered a litany of Defence Force failures.

The Defence Commission of Inquiry report described how Defence ignored the extremely hot weather on the day the fire started in 2013 and went ahead with their live-firing drill.

The State Mine Fire, as it became known, spread quickly and destroyed 50,000 hectares of land and three homes around the Blue Mountains.

Mr Baird was asked on Wednesday whether he would pursue compensation for the victims of the fire.

"Yes, we'll be having discussions with the federal government about it," he told reporters in Sydney.

His main focus was to make sure the families who had their homes destroyed in the fire were taken care of.

"But that is something we'll be taking up with the federal government," Mr Baird said.

His predecessor Barry O'Farrell had also previously indicated he would discuss the issue of compensation with the Abbott government.

The blaze started about midday on October 16, 2013 - a day of `high' bushfire danger - as army officers and students at Marrangaroo army base near Lithgow blew up two piles of eight high explosive anti-tank (HEAT) rounds that were past their operational use date.

The State Mine Fire occurred at the same time as dozens of other fires raged across the state, amid soaring temperatures, which altogether went on to destroy 248 homes, claim two lives and cause damage running into tens of millions of dollars.