top of page
Writer's pictureMGMMTeam

GRSE Secures Landmark Deal with Bangladesh Navy Under $500 Million Credit Line

The Bangladesh Navy has signed a landmark deal with India's state-run Garden Reach Shipbuilders and Engineers (GRSE) for the construction of an 800-tonne ocean-going tug. This agreement marks the first major contract under a $500-million line of credit extended by New Delhi for defense purchases, signaling a significant step in bilateral defense cooperation between the two nations. The signing ceremony took place in Dhaka on Sunday, highlighting the strengthening ties between India and Bangladesh in the realm of defense.


The Bangladesh Navy operates vessels procured from different countries, though many of its frontline warships and two attack submarines are of Chinese origin. (Representative image)


The contract signing coincided with a four-day visit by Indian Navy chief, Admiral Dinesh K Tripathi, to Dhaka. Admiral Tripathi's visit aimed to bolster bilateral defense ties and explore new avenues for naval cooperation. 


Vessel Capability

The GRSE stated that the primary functions of the tug will encompass towing ships both alongside and astern at sea, assisting in berthing and casting off, and facilitating turning maneuvers through pushing and pulling. Additionally, the vessel will possess capabilities for conducting sea rescue and salvage operations. Its secondary duties will include providing firefighting support and limited pollution control measures to ships at sea.


According to the defense PSU, the tug will be highly durable, capable of operating in sea state 5 (with wind speeds of 17-21 knots and wave heights of 2-3 meters), equipped with a dynamic positioning - 2 system. This advanced computer-controlled system enables the vessel to maintain its heading and position without the need for mooring lines or anchors.


On June 22, GRSE finalized a contract with a German company for the delivery of at least four multi-purpose cargo vessels, totaling approximately $45 million.


Bangladesh Navy Inks Major Deal with India's GRSE Under $500 Million Line of Credit

The $500-million line of credit, operationalized last year, has enabled Bangladesh to finalize several minor deals with India, including the acquisition of bailey bridges and vehicles. This recent agreement with India's state-run Garden Reach Shipbuilders and Engineers (GRSE) for an 800-tonne ocean-going tug represents the first major contract under this line of credit, marking a significant step in the defense cooperation between the two nations. 


“This is the first major deal under the line of credit and will enable Indian shipyards to gain a foothold in Bangladesh,” one the people cited above said.


The Bangladesh Navy operates a diverse fleet of vessels procured from various countries, with many frontline warships and two attack submarines originating from China. 


India Eyes Expanding Defense Market in Bangladesh

During Prime Minister Sheikh Hasina’s visit to India last month, both nations committed to strengthening defense cooperation with a long-term perspective. India is positioning itself as a key supplier of military hardware to Bangladesh, offering specialist vehicles from Tata and Mahindra, Tejas combat aircraft, and Dhruv light helicopters. Additionally, India aims to provide maintenance for Bangladesh's Russian-origin equipment, highlighting the expanding defense ties between the two neighbors.


India and Bangladesh are exploring collaboration on maintaining Bangladesh’s Russian-origin aircraft, including Mi-17-1V helicopters, Antonov An-32 transport aircraft, and MiG-29 jets. With India’s established maintenance facilities and experience operating these aircraft, this partnership could enhance Bangladesh’s operational readiness and streamline maintenance processes.


GRSE Expands Export Horizons with New Deals

Kolkata-based Garden Reach Shipbuilders and Engineers (GRSE) is bolstering its export portfolio, having recently signed a deal with Germany’s Carsten Rehder Schiffsmakler and Reederei GmbH & Co for building four multi-purpose vessels. GRSE, which built India's first exported warship for Mauritius in 2014 and a fast patrol vessel for Seychelles in 2021, is currently working on six patrol boats and a dredger for Bangladesh, reinforcing its position as a key player in international shipbuilding.


Comments


bottom of page