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Ferdous Steel Ship Recycling Industries has been fined Tk 5 lakh by the Department of Environment (DoE) for dismantling the vessel MT Rasi without the necessary renewed environmental clearance at its Sitakunda, Chattogram yard.

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The department found that Ferdous Steel was carrying out ship-breaking operations without renewed environmental clearance and was fined Tk 5 lakh under the Environmental Damage Assessment method.

The DoE's Chattogram regional office imposed the penalty after an inspection and hearing. This action follows a fatal toxic gas incident on August 14, where nine workers died while dismantling the same vessel. The department found that ship-breaking operations were underway without updated environmental permits.

Under the Environmental Damage Assessment method, the company was directed to deposit the fine with the government within seven working days. Furthermore, Ferdous Steel is prohibited from resuming any ship-breaking activities until it secures renewed environmental clearance.

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The department directed the company to deposit the amount with the government within seven working days. It also ordered the yard not to resume ship-breaking activities until it obtains renewed environmental clearance.

Ashraf Uddin, assistant director of the DoE's Chattogram office, confirmed that a representative of the yard's owner acknowledged the violation during the hearing. The DoE warned that failure to comply with these directives could result in legal action, including the filing of a case. This incident has intensified scrutiny of Ferdous Steel's regulatory compliance, as the yard has faced previous labor-law cases.

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The hearing was held in the presence of a representative of the yard’s owner, who admitted to the violation.