Bangladesh cancels ₹180cr contract with Indian defense shipyard
What's the story
Bangladesh has canceled a ₹180.25 crore ($21 million) defense contract with Kolkata-based shipbuilder Garden Reach Shipbuilders & Engineers (GRSE).
The deal was for the construction of an 800-tonne advanced ocean-going tug, which was to be delivered within two years.
The tug was part of a $500 million line of credit extended by New Delhi to Dhaka for defense purchases.
Diplomatic strain
Contract cancelation follows Yunus's controversial remarks
The cancellation of the contract is seen as a tit-for-tat move after India decided to withdraw transshipment facilities for Bangladesh.
This decision was taken after its interim government chief advisor, Muhammad Yunus, made controversial statements during his recent visit to China.
He had called India's northeastern states "landlocked" and claimed Dhaka is the "only guardian" of the ocean in the region.
On May 18, India imposed several restrictions on imports of Bangladeshi goods, including ready-made garments and processed food.
Contract details
Bangladesh Navy and GRSE signed contract last July
The contract was signed by officials of the Bangladesh Navy's Directorate General of Defence Purchases and GRSE in July last year.
The cancelled Ocean-Going Tug would be nearly 61 meters long (LOA), 15.80 meters wide, and 6.80 meters deep.
The tug's draught with a full cargo will be around 4.80 meters, and it will have a bollard pull capacity of 76 tons forward and 50 tons behind.
The vessel's maximum speed at full load will be at least 13 knots.