India’s Knowledge Marine and Engineering Works (KMEW) has secured a 15-year contract from the Visakhapatnam Port Authority for the operation and management of a battery-powered tug. The contract is valued at INR3.84 billion ($45.5 million).
Under the agreement, KMEW will be responsible for the manning, operation, maintenance, and complete technical management of the vessel. The tug features battery operating systems designed for zero local-emission operations, aligning with India’s “green tug” transition programme (GTTP).
The company stated that securing this second order allows for synergy benefits in capital expenditure through consolidated procurement with key vendors. KMEW intends to replicate engineering, integration, and project-management workflows from its first “green tug” project to minimise design iteration and optimise resource allocation.
Sujay Kewalramani, CEO of KMEW, said, "The construction of two ‘green tugs’ together will help us in leveraging construction and procurement synergies that directly lower capex costs."
The contract supports the Indian Government’s initiative to replace diesel-powered harbour tugs with zero local-emission alternatives at major ports.
KMEW estimated the potential market for this type of harbour and coastal support vessels at approximately INR120 billion.