Knowledge Marine & Engineering Works Limited (KMEW) has secured its second major order for a Green Tug, strengthening its position in India’s clean maritime transition. The latest contract, valued at Rs 3.84 billion including taxes, has been awarded by the Visakhapatnam Port Authority.

The 15-year contract covers manning, operating, maintaining and providing full technical management for one ASTDS GTTP Green Tug owned by the contractor. The long duration of the agreement reflects continued confidence in KMEW’s technical capability and execution track record.

The order reinforces KMEW’s expanding role in deploying environmentally responsible vessels in India. The Green Tug uses an advanced battery system enabling zero-emission operations, supporting the client’s sustainability targets and aligning with global decarbonisation efforts across port operations.

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

The award strengthens KMEW’s standing under the Government of India’s Green Tug Transition Programme (GTTP), which aims to replace conventional diesel-powered tugs with clean-energy alternatives at major ports. The repeat order underscores the company’s strong performance under this national initiative.

With two orders now secured, KMEW expects significant cost advantages through shared procurement and construction synergies. Bulk ordering for both tugs allows better price negotiation, lower logistics costs and streamlined component selection. Replicating engineering designs and workflows across both vessels will reduce overheads and shorten delivery timelines, improving project economics and creating a scalable model for future Green Tug deployments.

This win also strengthens KMEW’s credentials for upcoming public and private tenders in the expanding Green Tug market, which is valued at nearly Rs 120 billion, driven by India’s decarbonisation agenda and rising demand for low-emission maritime assets.

India’s GTTP, running from October 2024 to December 2027 with an investment of Rs 100 billion, aims to shift from diesel-powered harbour tugs to zero-emission vessels. It supports India’s climate commitments under the Paris Agreement and advances sustainable port infrastructure. Maritime India Vision 2030 further targets a sixty per cent share of renewable energy at major ports, a thirty per cent reduction in emission intensity per tonne of cargo and transitioning half of port vehicles to cleaner fuels.

The Harit Sagar Green Port Guidelines encourage the adoption of cleaner propulsion systems for port craft. Major ports, including Deendayal, Jawaharlal Nehru, Paradip, V.O. Chidambaranar, New Mangalore and Visakhapatnam, have already floated GTTP tenders, with both private shipbuilders and PSUs competing actively.

KMEW has expressed strong interest in long-term participation in these tenders, positioning itself for stable growth while contributing to India’s broader shift towards sustainable maritime operations.

KMEW CEO Sujay Kewalramani said the second Green Tug order marks a strategic milestone for the company. He noted that the 15-year contract validates KMEW’s technological strengths, safety standards and cost-efficient performance. He added that the achievement enhances the company’s credibility with port authorities, shipyards and regulators, strengthening its prospects for future large-scale decarbonised vessel projects.

He said constructing both Green Tugs simultaneously will allow KMEW to benefit from major cost efficiencies through shared engineering designs, standardised components and common workflows. Each new vessel, he added, will offer improved technology, a better cost structure and stronger operational reliability as the company scales its green maritime portfolio.