KMEW wins ₹66.11 crore IWAI order for 10 hybrid ferries

Deal snapshot: IWAI awards 10-vessel contract

Knowledge Marine & Engineering Works Limited (KMEW) has secured a ₹66.11 crore order from the Inland Waterways Authority of India (IWAI) to design and construct 10 hybrid electric passenger ferries. The project sits within India’s push to expand cleaner transport options on inland waterways. The company said the order has been awarded to a consortium that includes its subsidiary, Knowledge Shipyard Private Limited (KSPL). The total contract value is stated as inclusive of applicable taxes. The ferries are specified to be hybrid-electric passenger vessels, with a fixed passenger capacity per unit. The order adds to the group’s stated focus on green maritime infrastructure.

What KMEW has been contracted to deliver

The scope covers the full build cycle and readiness of the ferries. IWAI’s order includes design, construction, supply, testing, and commissioning of the vessels. KMEW also indicated the scope includes detailed vessel engineering and class approvals. The work also includes integration of hybrid-electric propulsion systems. Navigation and safety equipment are part of the contracted scope as well. The vessels are designed with a capacity of 20 passengers each. In total, the project calls for 10 ferries of the same category.

Contract value split: construction vs maintenance

KMEW disclosed that the overall value is ₹66.11 crore, inclusive of applicable taxes. The company split the total into two components. Construction of the ferries accounts for ₹65.52 crore. Maintenance and support account for ₹0.59 crore. This structure highlights that the bulk of the contract value is tied to building and delivery milestones. The post-delivery obligations are meaningful in duration, even if smaller in rupee terms.

Timelines: 10 months build, 60 months support

The project comes with a defined execution schedule. KMEW said the design, construction, supply, testing, and commissioning are to be completed within 10 months from receipt of the work order. After that, the consortium will provide maintenance and support for 60 months. This arrangement extends the operational relationship with IWAI beyond the delivery window. It also creates a longer compliance and service obligation for the consortium. The timeline is clearly bifurcated into an execution phase and a maintenance phase.

Consortium structure and KSPL’s first government shipbuilding win

The order has been received by a consortium that includes subsidiary Knowledge Shipyard Private Limited (KSPL). KMEW described the project as KSPL’s first external commercial government order. That makes the award a milestone for the shipbuilding arm’s third-party order traction. KMEW also positioned the win as strengthening its presence in the green maritime infrastructure segment. While KMEW has operated across multiple marine services, the company highlighted the strategic significance of this shipbuilding order for the subsidiary.

Policy backdrop: Harit Nauka and inland green transition

KMEW linked the award to the Government of India’s initiatives under Harit Nauka – Inland Vessels Green Transition Guidelines. The guidelines aim to accelerate sustainable inland water transportation. Hybrid-electric ferries fit within that transition theme, particularly for passenger movement on waterways. IWAI has been a key implementing agency for inland waterways development. Against that backdrop, the project aligns with broader public-sector procurement and decarbonisation-linked infrastructure goals.

Promoter shareholding disclosure for FY26

KMEW also disclosed promoter holding details as of March 31, 2026. The Promoter and Promoter Group held 1,31,08,670 equity shares on that date. The company confirmed that none of these shares were encumbered during the financial year ended March 31, 2026. The disclosure adds context for investors tracking pledging and promoter collateralisation. It also provides a dated reference point for ownership disclosure tied to the same period as the contract communication.

Wider order flow: green tugs, ports, and waterways

Beyond the IWAI ferries, the provided updates reference a string of other KMEW contracts and tenders across ports and waterways. KMEW received a work order from New Mangalore Port Authority valued at ₹10.66 crore (inclusive of GST) for hiring one RSV type IV security patrol boat with manpower (excluding high speed diesel) for five years. Separately, KMEW received a Letter of Award from Visakhapatnam Port Authority for manning, operation, maintenance, and technical management of a contractor-owned ASTDS-GTTP tug valued at ₹384.33 crore (inclusive of taxes) over 15 years. Another green tug-related update references a Letter of Intent from V.O. Chidambaranar Port Authority for hiring a 60-tonne bollard pull capacity battery-operated electric tug with manning, operations, maintenance, and technical management valued at ₹385.76 crore (inclusive of taxes) over 15 years. There is also a disclosure about an IWAI work order for procurement of 4 cutter suction dredgers and ancillary units under Capacity Augmentation of National Waterways-1 (River Ganga), without a value specified in the provided text.

Analyst coverage context: Nuvama’s initiation and order book reference

The content also cites a comprehensive investment report by Nuvama Research that initiated coverage on KMEW with a ‘BUY’ rating and a price target of ₹2,500. The report describes KMEW’s transition from a small repair unit into a maritime player spanning dredging, ship owning, and marine construction. It references India’s Maritime Amrit Kaal Vision 2047 as a demand driver. It also states a projected revenue CAGR of 63% through FY28, supported by an order book exceeding ₹2,000 crore. These are third-party research assertions as referenced in the provided material.

Key facts table: IWAI hybrid ferry contract

Why this matters: positioning in green inland shipping

The IWAI contract is notable because it ties KMEW and KSPL directly to a green transition-linked inland waterways programme. The work combines ship design, build execution, and hybrid propulsion integration within a defined time window. The long maintenance period extends accountability beyond delivery and can influence how project performance is evaluated. The value split shows the contract is primarily an engineering and manufacturing delivery assignment, with a smaller service tail. And for KSPL, the company has flagged it as a first external commercial government shipbuilding order, which may be relevant in assessing the subsidiary’s expansion from internal or limited work into broader public procurement.

Conclusion

KMEW’s ₹66.11 crore IWAI order for 10 hybrid electric passenger ferries adds a defined inland passenger vessel programme to its broader set of marine and port-linked contracts. The consortium must complete delivery within 10 months and then support operations for 60 months. The next concrete milestones will be tied to the work order start date, build progress, testing, and commissioning steps under the project schedule.