Kolkata, PSU shipyard Garden Reach Shipbuilders and Engineers (GRSE) Ltd on Monday signed an agreement with the Bangladesh Defense Ministry to build ocean-going tugs for the neighboring country, an official said.

He said the agreement was signed in the presence of Commodore Shantanu Bose (Retd), Director (Shipbuilding), GRSE, and Commodore AKM Maroof Hasan, Director Procurement (Navy), Directorate General of Defense Procurement, Ministry of Defense of Bangladesh.

According to information provided by GRSE to the National Stock Exchange and BSE, the ship, worth approximately US$21 million, will be handed over to Bangladesh within 24 months as per the contract.

The ship will be approximately 61 meters long and 15.80 meters wide, with a maximum speed of at least 13 knots when fully loaded.

The GRSE official said the primary roles of the tug will include towing ships at sea both side and aft, assisting them during berthing and casting and assisting in turning through pushing and pulling.

The ship will also have the capability to conduct rescue and relief operations at sea.

The contract follows the defense PSU's recent agreement with a German shipping company for the delivery of four multipurpose cargo ships.

In June, GRSE signed a US$16.6 million contract with state-owned Bangladesh Inland Waterways Transport Authority (BIWTA) to build a trailing suction hopper dredger.

Additionally, the shipyard is executing an order to build six patrol boats for the Sustainable Coastal and Marine Fisheries Project of the Fisheries Department of Bangladesh.