Bangladesh Cancels $21-Million Contract with Indian Defence Shipyard GRSE for Advanced Ocean-Going Tug

Reading Time: 3 minutes In a noteworthy development within South Asia’s defence procurement landscape, the Government of Bangladesh has officially cancelled a $21-million contract awarded to Garden Reach Shipbuilders & Engineers Ltd (GRSE), an Indian state-owned shipyard, for the construction of an advanced ocean-going tug intended for the Bangladesh Navy. The cancellation marks a setback for the Indian shipbuilder and signals a subtle shift in Bangladesh’s defence acquisition policies amid evolving geopolitical considerations. The contract, announced and signed in previous years, aimed to deliver a modern ocean-going tug designed to enhance the Bangladesh Navy’s maritime operational support capabilities. The tug was to serve a critical role in towing naval vessels, conducting salvage operations, and assisting in search and rescue missions within Bangladesh’s territorial waters and extended maritime zones. Background and Context While official statements detailing the rationale behind the contract cancellation have not been released, defence analysts speculate that the