THE government of Bangladesh has cancelled a $21 million contract awarded to Garden Reach Shipbuilders and Engineers Ltd (GRSE), an Indian public sector undertaking under the Ministry of Defence, for the construction of an advanced ocean-going tug, The Hindu reported.

According to the Indian publication, the cancellation closely follows India’s recent move to withdraw the transhipment facility previously extended to Bangladesh to export its cargo to third countries — a development that analysts interpret as signalling strain in bilateral relations.

In a regulatory disclosure submitted to the National Stock Exchange of India Ltd and BSE Ltd under the Securities and Exchange Board of India (Listing Obligations and Disclosure Require­ments) Regulations, 2015, GRSE confirmed that the government of Bangladesh had cancelled the order, originally placed in July 2024.

The cancellation adds to a series of geopolitical developments since the change in political leadership in Bangladesh following the fall of prime minister Sheikh Hasina’s government in August 2024. Observers note that ties between the two neighbours have become increasingly tense in recent months.

In a statement, GRSE also announced that it had emerged as the lowest bidder for the construction of Next Generation Corvettes (NGC) for the Indian Navy.

Published in Dawn, May 25th, 2025