Cochin Shipyard Secures ₹250–500 Cr Svitzer Deal for Green Tugs
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- Last Updated: 18 Dec 2025 at 10:26 PM IST
Cochin Shipyard Limited (CSL) has secured a fresh international order that pushes it deeper into the global market for cleaner and more efficient work vessels. The state-owned firm said it has signed contracts with Denmark-based Svitzer to build a new series of electric transverse tugs. The order has been categorised as “significant,” which places its value somewhere between ₹250 crore and ₹500 crore.
But what makes this deal a standout moment for CSL as global ports shift towards cleaner tug technology?
What Has Svitzer Asked Cochin Shipyard to Build?
According to the filing, CSL will construct four TRAnsverse 2600E tugs, each about 26 metres long and capable of a 70-tonne bollard pull. These are fully electric vessels, designed for harbour operations that demand tight manoeuvring and reliable pushing power. Svitzer has also kept an option open for four more units, depending on how the programme progresses.
Work on the first set will run for the next few years, with deliveries expected to begin from late 2027. CSL said the vessels will follow Svitzer’s fleet renewal standards, which are being updated as the company gradually moves towards greener towage systems across its global network. The yard added that the partnership allows it to apply its own engineering strengths to a design that Svitzer has been refining for some time.
In its clarification, CSL also mentioned that the deal has no related party links and that none of the promoter group entities have any interest in the transaction.
The market’s immediate response was mild. On Friday, the stock inched up to ₹1,644 on the BSE, a 0.27% rise from the previous close. The share price, however, is still down more than 30% over the past six months, even though the company commands a market capitalisation of more than ₹43,000 crore.
How Does This Support India’s Maritime Goals?
The order supports several national objectives that aim to bring India into the global shipbuilding supply chain. Policy ideas under Maritime India Vision 2030 and the broader Maritime Amrit Kaal Vision 2047 encourage yards to take on more technologically complex vessels, especially those involving alternative fuels or electric systems. Winning foreign orders also helps Indian yards strengthen design capabilities, which is an essential requirement for long term competitiveness.
CSL has been building momentum through defence and commercial work. In late November, the Indian Navy commissioned INS Mahe, the first of eight Anti-Submarine Warfare Shallow Water Craft built by the yard. The ship has more than 80% domestic content and is equipped with DRDO-developed underwater sensors, lightweight torpedoes, and a range of electronic warfare systems. The Navy’s need for stronger coastal defence has kept this programme in focus.
The shallow watercraft project, however, has not been without delays. Engine and SONAR related supply challenges slowed both CSL and Garden Reach Shipbuilders & Engineers Ltd (GRSE), the two firms responsible for building the full set of sixteen vessels. CSL has launched six so far, while GRSE has launched all eight of its units. Both classes are targeted for full commissioning by 2028.
CSL has also been active on the commercial front. In November, it signed a major contract with French carrier CMA CGM for the construction of LNG powered container ships. Around the same time, it formed a 50:50 joint venture with Drydocks World to set up a dedicated ship repair cluster, which is expected to draw business from vessels moving across the Arabian Sea and the Indian Ocean.
What Comes Next for the Shipbuilder?
The Svitzer contract adds to CSL’s long running list of defence and clean energy related projects. It also provides revenue visibility for the next few years. The company had earlier declared an interim dividend of ₹4 per share for the current fiscal year. With multiple programmes underway, will the combination of naval work and global clean vessel orders help the stock find more stability in the months ahead?
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