Bangladesh cancels $21 million deal with Indian shipbuilding firm: Reports
The Garden Reach Shipbuilders and Engineers Ltd (GRSE) signed the contract with the Bangladesh Navy in July 2024, a month before a mass uprising ousted Sheikh Hasina from power
Bangladesh has cancelled a $21 million deal with a Kolkata-based state-run shipbuilding firm of India for the construction of an advanced ocean-going tugboat, according to Indian media reports.
According to a Hindustan Times report, the Garden Reach Shipbuilders and Engineers Ltd (GRSE) signed a contract for a tugboat with the Bangladesh Navy in July 2024, a month before a mass uprising ousted Sheikh Hasina from power.
It says the contract was signed as India and Bangladesh agreed to strengthen defence cooperation with a long-term perspective during Hasina's visit to India in June 2024.
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In a filing to the National Stock Exchange of India Limited on Wednesday (21 May), GRSE said, "...In terms of Regulation 30 and other applicable provisions of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (the 'SEBI Listing Regulations'), we wish to inform you that the Government of the People's Republic of Bangladesh has cancelled the order."
Several Indian media outlets, including Times of India, published stories on the matter quoting the stock market filing.
BBC Bangla also quoted GRSE's letter in its report on the matter.
The deal with the GRSE for an 800-tonne ocean-going tugboat was the first major contract under India's $500 million line of credit for defence purchases, the Hindustan Times report further reads.
The media also referred to "strained relations" between the two sides and India restricting imports of ready-made garments from Bangladesh only to Kolkata and Nhava Sheva ports.
Meanwhile, the Times of India called it a "nose-dive in bilateral ties."
According to a BBC Bangla report, the stock prices of GRSE were hit hard yesterday (22 May) morning as the news of the deal cancellation was made public. The company later recovered from the initial plunging.
The Bangladesh Navy or the Ministry of Defence has not made any statement yet regarding why the order was cancelled.
A high-ranking source in the Bangladesh government, seeking anonymity, told BBC Bangla that they have also learned about the order cancellation but could not say why or when this decision was taken.
The Indian company has also not provided any information regarding why Bangladesh cancelled the order.
