KMEW targets 14 vessels yearly at Palghar by February 2027

Knowledge Marine & Engineering Works Limited targets completion of Phase 1 of its Palghar shipyard by February 2027, with management stating that the development can unlock capacity to build up to 14 vessels annually. The current construction list includes 38 units across six categories, led by 10 electric ferries, 10 accommodation boats and 10 work boats.

When will KMEW complete Phase 1 of the Palghar shipyard?

KMEW targets February 2027 for Phase 1 completion of the Palghar shipyard. Management says the completed phase can support up to 14 vessels a year and position the yard for larger-scale commercial operations, but the presentation does not report a commissioning milestone or a capital-expenditure figure.

The target falls within the scheduled execution periods of several disclosed shipbuilding orders. The Inland Waterways Authority of India contract for 10 hybrid electric passenger ferries runs from 19 June 2026 to 19 April 2027, while the contract for four cutter suction dredgers and ancillary units runs from 9 October 2025 to 9 October 2027.

KMEW says it will build its entire green-tug fleet at the Saphale Shipyard, describing captive demand as a way to control construction costs, quality and delivery timelines. Its charter-and-hire order book identifies three 60-ton bollard-pull battery-electric green tugs as under construction, with operating contracts due to begin between 1 December 2027 and 18 September 2028.

What capacity and facilities are planned at KMEW's Palghar shipyard?

KMEW plans two slipways, a block-erection berth, two fabrication shops and preparation facilities at the Palghar site. Slipway 2 is the largest listed structure at 310 metres by 30 metres, compared with 150 metres by 30 metres for Slipway 1 and 100 metres by 30 metres for the block-erection berth.

The layout also includes Fabrication Shop A and Fabrication Shop B, each measuring 75 metres by 30 metres. Plate preparation and pipe preparation areas are each specified at 60 metres by 20 metres, while the aluminium and outfitting shop is listed at 20 metres by 37.5 metres.

KMEW states that the site is less than 2 kilometres from the open sea. The layout summary also shows 125 metres of length, less than 24 metres of breadth and less than 5 metres of draft, although the presentation does not define these dimensions as a vessel-size limit or specify the number of berths available after Phase 1.

What vessels is KMEW building at the shipyard?

KMEW lists 38 vessels being built at KSL across six categories. The list comprises 10 accommodation boats, 10 work boats, four cutter suction dredgers, three green tugs, 10 electric ferries and one speed-cum-chase boat.

The 10 accommodation boats and 10 work boats are identified for the Inland Waterways Authority of India. The company also lists four cutter suction dredgers for the authority, alongside 10 hybrid electric passenger ferries with 20-passenger capacity, indicating that the yard pipeline combines dredging-related equipment with passenger and port-support vessels.

The three green tugs are shown for Visakhapatnam Port Authority, V.O. Chidambaranar Port Authority and Mumbai Port Authority. KMEW also lists one speed-cum-chase boat for Paradip Port Authority, whose five-year charter contract is scheduled to start on 18 September 2026.

The presentation separately says KMEW aims to have a portfolio of five green tugs by the end of the year, without identifying the relevant financial or calendar year. It says a growing green-tug portfolio could standardise construction and improve capital-expenditure efficiency, but gives no quantified construction-cost saving.

How large is KMEW's shipbuilding order book?

KMEW reports Rs 257.90 crore of shipbuilding orders, with Rs 164.42 crore remaining and 36% completed. This was a higher reported completion rate than dredging at 33% and charter and hire at 3%, although charter and hire was the largest segment by total contract value.

The shipbuilding order book comprises Rs 68.38 crore for dredger ancillary units, Rs 127.12 crore for four cutter suction dredgers and ancillary units, and Rs 62.40 crore for 10 hybrid electric passenger ferries. The balance values are Rs 33.53 crore, Rs 74.73 crore and Rs 56.16 crore respectively, showing that the ferry contract had Rs 56.16 crore yet to be executed.

The ferry order has a 10-month contract period ending on 19 April 2027. The dredger ancillary-units order is scheduled to end on 6 April 2027, while the four-dredger order has a scheduled end date of 9 October 2027, extending beyond the February 2027 Phase 1 target.

How does the shipyard fit KMEW's wider order book and fleet plan?

KMEW's total order book is Rs 2,095.22 crore, including Rs 1,139.69 crore in charter and hire, Rs 697.63 crore in dredging and Rs 257.90 crore in shipbuilding. The balance contract value across all three segments is Rs 1,732.55 crore, with overall completion reported at 20%.

The charter-and-hire book includes three battery-electric green-tug contracts with a combined value of Rs 929.52 crore. The V.O. Chidambaranar Port Authority contract is valued at Rs 367.09 crore, Visakhapatnam Port Authority at Rs 325.71 crore and Mumbai Port Authority at Rs 236.72 crore, each with a 15-year duration.

KMEW's port-ancillary craft fleet lists 29 vessels, including three green tugs under construction and one 60-ton bollard-pull ASTDS tug under construction. The company says constructing green tugs internally can create captive demand for the yard, while the disclosed construction programme also covers third-party vessel orders for port authorities and the Inland Waterways Authority of India.

The shipyard plan sits alongside a dredging-expansion objective of adding 12,000 cubic metres of hopper capacity. KMEW currently lists 20 dredging vessels, including four trailing suction hopper dredgers, nine cutter suction dredgers, two grab dredgers, two backhoe dredgers and three hopper barges.

Conclusion

KMEW's Palghar plan links a February 2027 Phase 1 target and up to 14 vessels of annual capacity to an active construction programme of 38 vessels. Its Rs 257.90 crore shipbuilding order book is smaller than the Rs 1,139.69 crore charter-and-hire book, but the yard is also intended to support construction of the company's battery-electric green-tug fleet.

The next disclosed milestones are the 6 April 2027 scheduled completion of dredger ancillary units, the 19 April 2027 end date for the 10 electric ferries and the 9 October 2027 end date for four cutter suction dredgers. Investors can also monitor whether KMEW meets the February 2027 Phase 1 target and provides further detail on commissioning, spending or realised annual output.