Bangladesh has scrapped a $21 million (approximately ₹180 crore) defence agreement signed in 2023 with Kolkata-based Garden Reach Shipbuilders & Engineers (GRSE) for an 800-tonne ocean-going tug. The contract, signed under India’s $500 million line of credit for defence cooperation, included the design, construction, and delivery of a 61-metre-long tug within 24 months.
Context of the Deal
The tug, capable of reaching speeds of at least 13 knots under full load, was to be supplied to the Bangladesh Navy. The agreement had marked a milestone in India-Bangladesh defence cooperation and was finalized during Indian Navy chief Admiral Dinesh K Tripathi’s visit to Bangladesh in July 2023 to boost maritime collaboration.
Political Shift and Strategic Setback
The cancellation follows the removal of former Bangladeshi Prime Minister Sheikh Hasina in August 2024. Her ouster has led to a downturn in bilateral relations. India had previously ramped up defence ties with Bangladesh, particularly in response to the latter’s increasing military procurement from China, including its first diesel-electric submarines.
