SN Corporation shipbreaking yard faces Tk26 lakh fine, three-month closure over explosion
Furthermore, the injured workers are to be compensated with 12 months’ salary, and all medical expenses related to their treatment are to be fully borne by the yard authorities
The Ministry of Industries (MoI) has imposed a fine of Tk26 lakh on SN Corporation Shipbreaking Yard following a deadly explosion on 7 September, which claimed the lives of six workers and injured six others.
In addition to the hefty fine, the yard has been ordered to halt all operations for three months as part of the punitive measures.
The ministry has also mandated that the families of the deceased victims receive compensation totalling Tk7 lakh per family. This includes Tk5 lakh under Section 45.3 of the Ship Breaking and Recycling Rules, 2011, and an additional Tk2 lakh as per the provisions of the Labour Law.
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Furthermore, the injured workers are to be compensated with 12 months' salary, and all medical expenses related to their treatment are to be fully borne by the yard authorities.
These penalties and directives were issued in a letter dated 18 September 2024, by Sanjoy Kumar Ghose, deputy secretary of the MoI, after a thorough review of the investigation report prepared by a probe committee formed to look into the explosion.
SN Corporation is owned by Shawkat Ali Chowdhury, chairman of the board of directors of Eastern Bank Ltd and Chairman of Finlay Properties Limited.
The fines imposed on SN Corporation include Tk10 lakh under Section 45.3 for safety violations, Tk1 lakh under Section 46.3 for failing to ensure safe working conditions and Tk10 lakh under Section 46.9 for operational misconduct.
Additionally, a Tk5 lakh fine was levied under Section 46.11, which also ordered the closure of the yard for three months.
In response to the incident, the ministry issued a 20-point recommendation aimed at preventing future accidents. Among the recommendations were key safety measures such as prohibiting the simultaneous operation of Hot and Cold work, ensuring proper ventilation while cutting tanks, engine rooms, and pump rooms, and evacuating gas before issuing Hot Work permits.
The letter also urged the yard to recruit trained and experienced workers, strictly follow the Ship Cutting Plan, and ensure that proper firefighting and rescue arrangements are in place when working on high-risk areas of ships.
Additionally, it called for the provision of adequate personal protective equipment (PPE) for all workers.
The ministry emphasised the importance of adhering to the Ship Breaking Recycling Rules-2011 to avoid future incidents and urged SN Corporation to implement the safety recommendations to prevent such tragedies from recurring.
The explosion at SN Corporation is yet another reminder of the critical need for strict safety measures in the shipbreaking industry, a sector that has seen numerous accidents over the years due to lax safety protocols. The Ministry's decisive actions underscore the government's commitment to worker safety and accountability within this hazardous industry, the ministry said.
