KMEW Propels Inland Waterways Vision with Key IWAI Shipbuilding Contracts
KMEW Secures Major IWAI Shipbuilding Contract
Knowledge Marine & Engineering Works Limited (KMEW) has announced a significant milestone with the award of a fifth work order from the Inland Waterways Authority of India (IWAI). This contract, valued at ₹127.12 crores, involves the design, construction, and supply of four Cutter Suction Dredgers (CSDs) along with ancillary units, including work and accommodation boats. The project aims to enhance the navigability of National Waterway-1, a crucial component of India’s inland water transport infrastructure.
Details of the Contract and Its Impact
The newly awarded contract will be executed in two phases over a total duration of 18 months. In the first phase, KMEW is set to deliver two CSDs, two work boats, and two accommodation boats within 14 months. The second phase will see the completion of the remaining vessels within the stipulated timeframe. These vessels are integral to the Jal Vikas Marg Project, which focuses on augmenting the capacity of National Waterway-1.
KMEW’s expertise in shipbuilding is underscored by its successful deployment of nine CSDs for various projects across India in the past year. The company is now poised to leverage this experience to provide state-of-the-art vessels for the IWAI, aligning with the government’s broader initiative to modernize inland water transport.
The recent INR 69,725 crore 4-Pillar Maritime Development Plan further supports KMEW’s growth trajectory. This plan aims to enhance the Indian shipbuilding sector, creating a favorable environment for companies like KMEW to thrive. With a significant investment of ₹4.5 lakh crore and an increase of 4.5 million gross tonnages in capacity, the market for shipbuilding is set to expand dramatically. KMEW’s alignment with the “Aatmanirbhar Bharat” vision positions it advantageously for government contracts and incentives, reinforcing its strategic direction in commercial shipbuilding.
Financial and Operational Advantages for KMEW
The financial support schemes included in the maritime development plan, such as the extension of the Shipbuilding Financial Assistance Scheme (SBFAS) until 2036, will provide KMEW with easier access to capital for expansion. This financial backing, along with the establishment of a Maritime Development Fund, will lower borrowing costs and enhance the company’s competitiveness in the market.
KMEW’s operational capabilities are also strengthened by its recent acquisition of a shipyard in Maharashtra, which is expected to generate over ₹200 crores in business over the next two years. By building more than 90% of its operational crafts in-house, KMEW has demonstrated strong internal capabilities, which will be crucial as it scales up its commercial shipbuilding operations.
Mr. Sujay Kewalramani, CEO of KMEW, expressed pride in securing this repeat order from IWAI, emphasizing the company’s commitment to supporting national maritime objectives. He highlighted the strategic importance of this diversification into commercial shipbuilding, which aligns with the government’s Make in India initiative. KMEW aims to build a sustainable order book that contributes to national development while ensuring high-quality service delivery.
As of the latest trading session, KMEW shares were priced at ₹2389.10, reflecting a notable increase from the previous close of ₹2252.65. The stock reached an intraday high of ₹2402.50, indicating strong market interest in the company’s future prospects.
