On 22nd December, 1996 at a.bout 1545 hours M/s PIAC Boeing-747 aircraft Reg No. AP-AYW had a ground fire incident in which APU Compartment at the tail caught fire after APU was started for aircraft towing operation. Subsequent to normalAPU start-up and stabilization of its rpm at 100 percent the APU audio(bell) and video(light) warning signals came on simultaneously. In response to the situation the operator in the cockpit pulled the 'Fire·Handle' of "Fire Extinguishing Bottle" and thereafter the fire warnings went 'OFF '. While no personal injury was caused the aircraft tail structure was severely burnt.