The Bangladesh government has cancelled a contract worth $21 million for construction of an ‘Ocean-Going Tug’ with a Kolkata-based public service undertaking, Garden Reach Shipbuilders and Engineers Ltd (GRSE), information by the company to NSE and BSE India Ltd has revealed.
The decision follows India’s withdrawal of transhipment facility to Bangladesh for export of its cargo to third world countries. The order cancellation may be seen as another blow to India-Bangladesh ties after the neighbouring country’s marked silence through India-Pakistan hostilities earlier this month.
GRSE, a PSU under the Ministry of Defense, said the cancellation was expected and that the order would not impact GRSE’s finances.
“Meanwhile, on anticipated lines, an order for an Ocean-Going Tug for Bangladesh stands cancelled on mutual discussions between GRSE and the Customer. This order though would not have [an] impact on GRSE’s finances as the order is worth only US$ 21 million approximately (₹79.75 crore) and would have contributed a mere 0.8 per cent to GRSE’s existing order book of ₹22,680.75 crore as on March 31, 2025,” a press statement by GRSE said.
On May 22, the company had announced that it was the lowest bidder for the construction of Next Generation Corvettes (NGC) for the Indian Navy. “GRSE is the only Indian shipyard to have delivered 111 warships to the country’s maritime forces and friendly foreign nations, including 06 Missile Corvettes (Khukri and Kora Class) and 04 ASW Corvettes (Kamorta Class),” the company statement said.
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