Photo: BSS

CHATTOGRAM, Aug 19, 2026 (BSS) - The Department of Environment has imposed a fine of Tk 5 lakh on Ferdous Steel Ship Recycling Industries for continuing shipbreaking operations in Sitakunda despite the expiration of its environmental clearance.

This decision was made during a hearing conducted by the Department of Environment on Wednesday. 

The company has also been instructed to cease shipbreaking activities at the yard until the clearance is renewed. 

Jamir Uddin, Director of the Chattogram Divisional Office of the Department of Environment, told BSS that the fine of Tk 5 lakh was levied under various provisions of the Environment Protection Act 1995 for persisting with shipbreaking operations after the clearance had expired.

The environmental clearance for Ferdous Steel Ship Recycling Industries lapsed on August 12. But, the company continued to dismantle an old vessel named 'MT Rasi' at its facility. 

Tragically, on August 14, nine individuals lost their lives due to exposure to toxic gas on that ship. Following this incident, a team from the Department of Environment conducted an inspection of the yard. Later, representatives from the company were summoned for a hearing.
 
After the hearing, considering the environmental damage, a compensation amount of Tk 5 lakh was established through the Environmental Damage Assessment method. This amount has been mandated to be deposited into the government treasury within seven working days. 

Besides, the dismantling of MT Rasi has been ordered to halt until the environmental clearance certificate is renewed. Additionally, instructions have been issued to initiate legal proceedings against the company in the appropriate court and to pursue legal action.