Knowledge Marine & Engineering Works Limited (BSE: 543273 | NSE: KMEW) has been awarded a ₹127.12 crore work order by the Inland Waterways Authority of India (IWAI) for the design, construction, and supply of 4 Cutter Suction Dredgers (CSDs) and ancillary units, including 4 work boats and 4 accommodation boats, under the Capacity Augmentation of National Waterway-1 (River Ganga). The project is to be executed over 18 months in two phases, with the first phase delivering 2 CSDs, 2 work boats, and 2 accommodation boats within 14 months, followed by the second phase within 18 months.
The vessels will be deployed for the Jal Vikas Marg Project, aimed at improving navigability and infrastructure along National Waterway-1, supporting IWAI’s mission to modernize inland water transport. This marks KMEW’s fifth order from IWAI, building on its recent deployment of 9 CSDs across India for national waterways projects.
Strategic Importance and Market Alignment
The contract aligns with the Indian government’s ₹69,725 crore 4-Pillar Maritime Development Plan, which encourages domestic shipbuilding and capacity expansion. Key benefits for KMEW include:
- Expanded Market Opportunities: The government plans to inject ₹4.5 lakh crore and add 5 million gross tonnage, creating significant demand for vessels.
- Financial Support: Continuation of the Shipbuilding Financial Assistance Scheme (SBFAS) until 2036 with a corpus of ₹24,736 crore, and the establishment of a Maritime Development Fund of ₹25,000 crore to reduce borrowing costs.
- Operational Advantages: Leveraging KMEW’s in-house shipbuilding expertise, now enhanced with a newly acquired shipyard in Maharashtra, enabling high-quality commercial vessel production.
- Strategic Alignment: Supports the “Make in India” initiative and reduces reliance on foreign ships, ensuring a protected domestic market.
CEO Comment
Mr. Sujay Kewalramani, CEO of KMEW, said:
“We are proud to announce a repeat order from IWAI for the design, construction, and supply of 4 CSDs, 4 work boats, and 4 accommodation boats. The competition was tough, but our experience and in-house capabilities position us well to deliver on time. This strategic diversification into commercial shipbuilding aligns with the government’s Make in India initiative and reinforces our commitment to nation-building through maritime infrastructure. With our recently acquired shipyard, we now have a potential business pipeline of over ₹200 crore for the next two years, laying the foundation for a sustainable order book and long-term growth.”