KMEW Wins Second Green Tug Order Worth ₹384.33 Crore From Visakhapatnam Port Authority

19 Nov 2025 , 11:44 AM

Knowledge Marine & Engineering Works Limited has received its second major order for a Green Tug, strengthening its position as a key player in India’s clean maritime transition. The latest order has been awarded by the Visakhapatnam Port Authority for a contract valued at ₹384.33 crore, inclusive of taxes.

The contract covers a period of 15 years and includes manning, operating, maintaining, and providing complete technical management for one ASTDS GTTP Green Tug that is owned by the contractor. The long duration of the order signals continued confidence in KMEW’s technical capability and project execution.

This order reinforces KMEW’s growing role in introducing environmentally responsible vessels in India. The Green Tug operates with an advanced battery system that enables zero emission performance. The technology supports the client’s sustainability targets and aligns with global efforts to reduce carbon output across ports.

The repeat order follows KMEW’s successful execution of its first Green Tug project. The company will implement the same proven battery management architecture in the new tug to ensure high reliability, safety and long term operational performance.

The award strengthens KMEW’s standing within the Government of India’s Green Tug Transition Programme. The programme aims to replace conventional diesel powered tugs with clean energy alternatives across major ports. The repeat order showcases the company’s strong operational performance under this national initiative.

With the second order in place, KMEW expects significant cost advantages due to shared procurement and construction synergies. Combined ordering for both tugs allows the company to negotiate better pricing, reduce logistics expenses, and streamline component selection.

Replicating engineering designs and project workflows across both vessels will reduce overheads and shorten timelines. These efficiencies improve the project’s overall economics and create a scalable model for future Green Tug deployments.

With this win, KMEW strengthens its credentials for upcoming government and private sector tenders in the growing Green Tug market. The opportunity in this space is estimated at nearly ₹12,000 crore, driven by India’s decarbonisation agenda and rising demand for low emission maritime assets.

India’s Green Tug Transition Programme and National Maritime Push

India has launched the Green Tug Transition Programme to shift from diesel based harbour tugs to zero emission units. The first phase runs from October 2024 to December 2027 and focuses on deploying electric and alternative fuel powered tugs across major ports.

Backed by an investment of ₹10,000 crore, the programme aims to reduce carbon emissions in maritime operations and limit pollution in coastal areas. It supports India’s climate commitments under the Paris Agreement and strengthens the country’s sustainable port infrastructure.

The Maritime India Vision 2030 provides a long term blueprint for building a clean and competitive maritime ecosystem. Some of its targets include increasing renewable energy usage to sixty percent at major ports, achieving a thirty percent reduction in emission intensity per ton of cargo, and transitioning half of port vehicles to cleaner fuels.

The Harit Sagar Green Port Guidelines further encourage cleaner propulsion systems for port crafts and vessels. All major ports have been directed to invite tenders for Green Tugs under the GTTP for fifteen year periods.

Ports such as Deendayal, Jawaharlal Nehru, Paradip, V O Chidambaranar, New Mangalore and Visakhapatnam have already issued tenders. Several private shipbuilders and PSUs are actively participating to support the government’s adoption of cleaner technologies.

KMEW has shown strong interest in long term participation in these tenders. This positions the company for stable growth while contributing to India’s broader shift toward sustainable maritime operations.

Management Comment

KMEW CEO Sujay Kewalramani said the second Green Tug order marks an important strategic milestone for the company. He noted that the fifteen year contract validates KMEW’s technological strengths, safety standards, and cost efficient performance.

He added that this achievement enhances the company’s credibility with port authorities, shipyards and regulators and positions KMEW as a strong contender for future large scale decarbonised vessel projects.

According to him, constructing both Green Tugs simultaneously will allow KMEW to leverage major cost efficiencies. Shared engineering designs, standardised components and common workflows will reduce project management time and strengthen financial performance.

He emphasised that each new vessel will benefit from more refined technology, improved cost structure and enhanced operational reliability as the company scales its green maritime portfolio.

For feedback and suggestions, write to us at [e-mail]