Kolkata | PSU shipyard Garden Reach Shipbuilders and Engineers (GRSE) Ltd on Monday signed an agreement with Bangladesh's defence ministry to construct an ocean-going tug for the neighboring country, an official said.

The pact was signed in the presence of Commodore Shantanu Bose (retd), director (shipbuilding) of GRSE, and Commodore A K M Maruf Hassan, director of purchase (Navy) at the Directorate General Defence Purchase of Bangladesh's ministry of defence, he added.

The ship, worth approximately USD 21 million, will be delivered to Bangladesh within 24 months as per the contract, according to information given by GRSE to the National Stock Exchange and BSE.

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

The tug's primary roles will include towing ships at sea, both alongside and astern, assisting them during berthing and casting off, and aiding in turning through pushing and pulling, the GRSE official said.

The vessel will also have the capability to carry out rescue and salvage operations at sea.

This contract follows the Defence PSU's recent agreement with a German shipping company for the delivery of four multipurpose cargo vessels.

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

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