Garden Reach Shipbuilders Says No Reason Given By Bangladesh For Rs 180-Crore Cancelled Order
.png?downsize=1010:568 "Garden Reach Shipbuilders Says No Reason Given By Bangladesh For Rs 180-Crore Cancelled Order")
Garden Reach Shipbuilders & Engineers Ltd. said on Monday the Bangladesh government did not disclose the reason for a recent order cancellation.
Last week, Dhaka cancelled an order worth nearly Rs 180 crore for the construction of an advanced ocean-going tug.
The order, worth $21 million, was from the Directorate General Defence Purchase, Ministry of Defence, Bangladesh. The construction and delivery of one advanced ocean-going tug was to be designed, built and delivered in 24 months
"The reason for cancellation of contract has not been mentioned by the Government of Bangladesh," GRSE said in a stock exchange filing.
The total order value would have contributed only around 0.8% to GRSE's existing order book of Rs 22,680.75 crore as of the date of receipt of the order, the filing added.
The overall length of the tug would have been nearly 61 metres and the vessel was set to be about 15.8 metres wide, with a depth of nearly 6.8 metres. The ship's maximum speed with a full load was to be at least 13 knots.
Kolkata-based Garden Reach Shipbuilders is a public sector company that builds and repairs commercial and naval vessels. Its primary client includes the Indian Navy and Indian Coast Guard.
Ties between India and Bangladesh have been strained since the ouster of former Prime Minister Sheikh Hasina in August last year. The interim government under Muhammad Yunus has also moved closer to China, securing $2.1 billion in new deals.
Earlier this month, India implemented curbs on imports from Bangladesh on goods worth $770 million (Rs 6,600 crore), covering nearly 42% of bilateral imports. The move was seen in response to Dhaka's recent restrictions on Indian yarn, rice, and other goods, as well as the imposition of a transit fee on Indian cargo, which has marked a departure from past cooperation.
Shares of GRSE closed nearly 2% lower at Rs 2,727.15 apiece on the BSE. The shares have risen 68% on a year-to-date basis and 92% in the last 12 months.
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