Mumbai, India – In a significant development bolstering its order book and green technology portfolio, Knowledge Marine & Engineering Works Limited (BSE: 543273, NSE: KMEW), a prominent player in the marine engineering space, has formally announced the receipt of a major work order from the Visakhapatnam Port Authority (VPA).
Contract Overview: A 15-Year Commitment to Green Maritime Operations
The company, in a regulatory filing dated November 19, 2025, informed the BSE and NSE that it has received a Letter of Award for the “Manning, Operation, Maintenance and Complete Technical Management of contractor Owned 01 No. ASTDS-GTTP Tug.”
The contract carries a substantial value of ₹384.33 Crores (Rupees Three Hundred Eighty-Four Crores and Thirty-Three Lakhs Only), inclusive of taxes. This long-term agreement is set to be executed over a period of 15 years, ensuring sustained revenue visibility for KMEW.
Strategic Significance: Second Green Tug Order Solidifies Market Leadership
This contract marks KMEW’s second order for a state-of-the-art Green Tug, firmly establishing the company as a forerunner in India’s maritime decarbonization journey. The order falls under the Government of India’s Green Tug Transition Programme (GTTP), a key initiative of the Maritime India Vision 2030.
The awarded tug is a 60 Ton Bollard Pull Capacity Electric Tug, designed with advanced battery operating systems and zero-emission technology. This aligns with global and national initiatives aimed at reducing carbon emissions and marine pollution in port operations.
Management Commentary: A Validation of Capability and Technology
Mr. Sujay Kewalramani, CEO of Knowledge Marine & Engineering Works Ltd, commented on the achievement, stating, *“Securing the second green-tug order under a long 15-year operating period is a strategic milestone for KMEW and a strong validation of our technology, reliability, and execution capability.”*
He further emphasized the operational synergies, noting, “The construction of Two Green Tugs together will help us in leveraging construction and procurement synergies that directly lower capex costs… streamlining documentation, faster decision cycles, and shared technical resources further enhance efficiency.”
Financial and Market Implications
This repeat, long-term order underscores several positive aspects for KMEW:
- Revenue Stability: A 15-year contract provides a predictable and long-term revenue stream.
- Synergy Benefits: Bulk procurement and replicated engineering for two green tugs are expected to lead to significant capital and operational expenditure savings.
- Market Positioning: This win strengthens KMEW’s credibility and positions it as a fully qualified contender in the rapidly expanding green-tug market, which the company estimates to be approximately ₹12,000 crore.
- Track Record: Successfully securing a second order enhances the company’s track record, improving its competitive standing for future tenders from other major ports.
About the Green Tug Transition Programme (GTTP)
The GTTP is a pioneering Government of India initiative with an estimated investment of ₹10,000 crore. Its goal is to decarbonize the maritime sector by replacing conventional diesel-powered harbor tugs with zero-emission alternatives, primarily powered by electricity. The program is a cornerstone of India’s commitment to sustainable maritime operations under the Harit Sagar Green Port Guidelines and its broader climate goals.
Useful Websites for Investors:
For comprehensive financial and market information, investors are advised to refer to official sources:
- Knowledge Marine & Engineering Works Ltd. Website
- BSE Limited
- National Stock Exchange of India Ltd.
- SEBI Useful Links Page
Disclaimer:
This article is based on a regulatory filing made by Knowledge Marine & Engineering Works Limited to the BSE and NSE. It is intended for informational purposes only.
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