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Adani Ports places ₹450 Crore order for 8 harbour tugs to be constructed by Cochin Shipyard, share price of the shipbuilder hits upper circuit

Adani Ports and Special Economic Zone Ltd said that the new tugs will significantly improve the efficiency and safety of vessel operations in Indian ports

Shares of Cochin Shipyard hit 5% upper circuit on December 27 after it received an order for building eight state-of-the-art harbour tugs from Adani Ports and Special Economic Zone Ltd (APSEZ). The estimated value of the contract is ₹450 Crore, and the tugs are expected to begin delivery in December 2026 and continue until May 2028.

APSEZ said in a media release that the new tugs will significantly improve the efficiency and safety of vessel operations in Indian ports. Notably, a tug, also known as a tugboat, is a powerful and highly maneuverable vessel designed primarily for towing or pushing larger ships, barges, and other maritime structures. Their crucial role in port operations lies in their ability to help large ships navigate through narrow channels, dock at berths, or leave harbors under challenging conditions such as strong currents, high winds, or restricted visibility.

“This initiative aligns with the government’s Make in India and Aatmanirbhar Bharat initiatives by boosting local manufacturing and enhancing self-reliance in the maritime sector,” said APSEZ in a stock exchange filing.

“This initiative underscores the importance of sustainable practices in shipbuilding and reinforces the strategic significance of the maritime industry in India’s economic growth,” added the company.

APSEZ Director and CEO Ashwani Gupta said, “By leveraging local manufacturing capabilities, which are world-class, we aim to contribute to the ‘Make in India’ initiative while ensuring that our operations meet international standards of safety and efficiency.”

Earlier, APSEZ had ordered the construction of two 62-tonne bollard pull ASD (Azimuthing Stern Drive) tugs at Cochin Shipyard Ltd for Ocean Sparkle Ltd, both of which were delivered ahead of schedule and deployed at Paradeep Port and New Mangalore Port. The construction of three additional ASD tugs is currently underway, bringing the total order to 13 tugs. The induction of new vessels will provide a younger fleet for efficient and reliable services in the port sector.

The order for 8 new tugs boosted the share price of Cochin Shipyard, which rose by 5% to reach ₹1,539.05, and stayed there as it is the upper circuit. The stock’s market capitalisation has reached ₹40,489 crore. However, the share price is still lower than its 52-week high of ₹2,979.45.

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OpIndia Staff
OpIndia Staffhttps://www.opindia.com
Staff reporter at OpIndia

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