The Bangladesh Navy has signed a deal with India’s Garden Reach Shipbuilders and Engineers (GRSE) for an 800-tonne ocean-going tug - a major contract to be signed under a $500-million line of credit that was extended to Bangladesh by India for the purchase of defence equipment.
The deal was inked in Dhaka on Sunday in the presence of representatives of GRSE and the Bangladesh Navy’s directorate general of defence purchases, reports The Indian Express.
It coincided with a four-day visit to Bangladesh by Indian Navy Chief Admiral Dinesh K Tripathi, which was aimed at strengthening bilateral defence relations between India and Bangladesh and to explore new avenues for naval cooperation.
As per GRSE, the ship worth approximately $21 million will be delivered to Bangladesh within 24 months as per the contract. The vessel will be nearly 61 metres long and 15.80 metres wide, with a maximum speed of at least 13 knots when fully loaded.
As per officials, the platform would help tow ships at sea, and will also be capable of carrying out rescue operations at sea.
The development comes amid an increasing Chinese footprint in Bangladesh’s defence market. Currently, the Bangladesh Navy has several warships of Chinese origin. It also bought two submarines from China in 2016.
A senior defence official said the deal is critical as it helps expand India-Bangladesh maritime engagement beyond joint exercises and training between the two navies.
The official added that apart from strengthening defence ties between the two countries, it will also be logistically convenient due to the close proximity of Kolkata-based GRSE shipyard to Bangladesh.
Among other countries, India has been closely looking at expanding its defence foothold in the Bangladesh market.
A senior defence official told The Indian Express that India has been encouraging Bangladesh to send its naval assets to Indian shipyards for repair and refit. The official said an Indian shipyard carrying out overhauls of its existing warships will not just boost the Indian defence industry, but also help Bangladesh save the time and costs incurred by the country to send its assets elsewhere.
“It also gives Bangladesh an opportunity to closely look at the excellent quality of shipbuilding in India, helping the country decide on its future procurements from India,” the official said.
Last month, both countries agreed to strengthen defence cooperation during Bangladesh Prime Minister Sheikh Hasina’s visit to India.
Last month, GRSE signed a contract with Germany’s Carsten Rehder Schiffsmakler and Reederei GmbH & Co to construct four multi-purpose vessels of 7,500 DWT each. It has earlier exported an offshore patrol vessel and a fast patrol vessel to Mauritius and Seychelles respectively.