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Bangladesh cancels Rs 180-crore defence contract with India amid diplomatic strain

Bangladesh cancels Rs 180-crore defence contract with India amid diplomatic strain

India Today23-05-2025

Bangladesh has cancelled a big-ticket defence contract valued at Rs 180.25 crore with Kolkata-based public-sector shipbuilder amid the deterioration in relations between New Delhi and Dhaka.The Garden Reach Shipbuilders & Engineers Ltd (GRSE), operating under the Indian Ministry of Defence, officially informed the stock exchange on Wednesday, stating, "We wish to inform you that the Government of the People's Republic of Bangladesh has cancelled the order."advertisementThe contract awarded to GRSE was for the construction of an Advanced Ocean-Going Tug for Bangladesh. These specialised vessels are designed for long-distance towing and salvage operations in open waters.
This defence cancellation comes at a time when the relationship between India and Bangladesh is under strain, especially due to the growing closeness of Bangladesh's interim government chief advisor, Muhammad Yunus, to China and his recent controversial remarks, particularly concerning India's northeastern states.The move is also widely perceived as a retaliatory measure following India's announcement to withdraw transshipment facilities for Bangladesh's cargo exports to third countries. This came after Yunus, during a recent visit to China, controversially described the Northeast as "landlocked" and asserted that Dhaka is the "only guardian" of the ocean in the region.advertisement

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