The rollout of India’s ambitious Green Tug Transition Program (GTTP), launched by the Ministry of Ports, Shipping and Waterways to replace conventional fuel-powered harbour tugs with cleaner alternatives, has slowed amid prolonged delays in finalising key tenders after price bids were opened months ago.
Two major ports — New Mangalore Port Authority and Chennai Port Authority — are yet to award contracts for battery-electric harbour tugs after seeking repeated price reductions from the lowest bidder, Underwater Services Company Ltd, a unit of Samson Maritime Ltd.
At New Mangalore Port Authority, the financial bids for hiring a 60-ton bollard pull battery-electric tug for 15 years were opened on September 8, 2025, with Underwater Services Company emerging as the lowest bidder at a day rate of ₹6,25,444.
However, during a negotiation meeting held on December 1, 2025, the port authority asked the company to match lower rates discovered in subsequent green tug tenders floated by Jawaharlal Nehru Port Authority and VO Chidambaranar Port Authority, where day rates of ₹5,89,500 and ₹5,96,695 respectively were quoted, sources said.
Following informal discussions with the port authority, Underwater Services Company initially offered to lower its rate to ₹6,10,000 per day. Subsequently, on February 11, 2026, New Mangalore Port Authority formally asked the bidder to match the rates discovered at VO Chidambaranar Port Authority and Visakhapatnam Port Authority, where the day rate stood at ₹5,94,468.
In response dated February 16, 2026, the company revised its offer to ₹6,08,000 per day. Sources said the port authority is now expected to seek further reductions in line with rates discovered at Paradip Port Authority.
A similar situation has unfolded at Chennai Port Authority. When price bids for hiring a green tug were opened on March 30, 2026, Underwater Services Company emerged the lowest bidder with a quoted day rate of ₹5,94,400.
During negotiations on April 9, 2026, Chennai Port Authority asked the bidder to match the ₹5,89,500 day rate discovered at Jawaharlal Nehru Port Authority, a request that was initially declined.
The port authority later emailed the company on April 24 asking it to “reconsider” the quotation. Underwater Services Company subsequently offered a 0.5 percent discount, reducing the rate to ₹5,91,428 per day.
On May 14, 2026, Chennai Port Authority again sought parity with the JN Port Authority rate of ₹5,89,500, which the company eventually agreed to. Despite this, the contract is yet to be awarded, sources added.
The GTTP was formally launched in August 2024 with the release of standard operating procedures aimed at accelerating the transition to greener harbour tug operations across India’s major ports.
The first phase of the programme, running through December 2027, envisages procurement or chartering of seven green tugs by six major ports — Jawaharlal Nehru Port Authority, Deendayal Port Authority, Paradip Port Authority, VO Chidambaranar Port Authority, Visakhapatnam Port Authority and New Mangalore Port Authority — based on standardised specifications issued by the Standing Specification Committee.
The initial fleet will comprise battery-electric tugs, with flexibility to adopt emerging green technologies such as hybrid propulsion, methanol and green hydrogen in future phases.
By 2040, the government aims to transition all tugs operating at major ports to green propulsion systems, creating a standardised and environmentally sustainable harbour tug fleet across the country.
So far, Deendayal Port Authority, Jawaharlal Nehru Port Authority, VO Chidambaranar Port Authority and Visakhapatnam Port Authority have awarded contracts for green tug operations.
