Bangladesh has reportedly cancelled a $21 million contract with Kolkata-based defence shipyard Garden Reach Shipbuilding & Engineers (GRSE) for the construction of an advanced ocean-going tug amid fraught ties with India. The agreement, signed last year, involved the design, construction, and delivery of a 61-metre, 800-tonne tug within 24 months, Times of India reports. It was the first major project under the $500 million defence line of credit extended by India to Bangladesh, which became operational in 2023. The signing coincided with a four-day visit to Bangladesh by Indian Navy chief Admiral Dinesh K Tripathi, aimed at strengthening defence ties and exploring maritime cooperation. bdnews24.com is attempting to obtain a statement on the matter from Bangladeshi officials.