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Bangladesh has reportedly cancelled a defence contract worth $21 million with an Indian public sector shipbuilder, Garden Reach Shipbuilders & Engineers Ltd (GRSE).
The GRSE, which operates under India’s Ministry of Defence, formally notified the matter to the local stock exchange on Wednesday.
“We wish to inform you that the Government of the People’s Republic of Bangladesh has cancelled the order,” the company wrote.
Indian news portals said the cancelled deal was signed to construct an advanced ocean-going tug for Bangladesh, a specialised vessel intended for long-distance towing and salvage operations in open seas.
“The cancellation is widely seen as a retaliatory response to India’s recent decision to revoke transshipment facilities for Bangladeshi cargo exports to third countries,” India Today wrote in a report.