Bangalore: IRCON International, a leading Public Sector Undertaking (PSU) under the Ministry of Railways, has awarded a Rs 101.55 crore contract to HBL Engineering Ltd for the installation of the Kavach train collision avoidance system in the Bangalore and Mysore divisions of South Western Railway. This significant contract will cover 85 stations, spanning 778 kilometers, and will also include two locomotives.
The contract is part of a major initiative by Indian Railways to enhance the safety features of its rail network. The installation of Kavach, which is an indigenous Train Collision Avoidance System (TCAS), will significantly reduce the likelihood of accidents by providing automatic signals to prevent train collisions. This is a critical step in ensuring the safety of passengers and freight in the region.
Read Also: IRCON Reports Q4 and FY25 Financial Results; Recommends Final Dividend
Contract Details and Timeline
Under the terms of the contract, HBL Engineering Ltd is required to complete the project within 18 months. The total contract value of Rs 101.55 crore includes an 18% Goods and Services Tax (GST). This development will contribute to the overall modernization and safety enhancement of India’s railway network, as part of the broader goal of “Zero Accident” operations in Indian Railways.
HBL Engineering’s Role in the Project
HBL Engineering Ltd, previously known as HBL Power Systems, is a well-established company specializing in the design and manufacture of batteries, e-mobility solutions, and industrial products. With expertise in defence, aviation, and electronics sectors, HBL Engineering has carved out a significant niche in the Indian and international markets for advanced technology solutions.
The company’s involvement in the railway sector is part of its continued diversification, and this project reflects the growing role of private players in the railway modernization efforts, especially in safety-critical technology solutions.
Impact on HBL Engineering’s Market Performance
Following the announcement of this major contract, shares of HBL Engineering Ltd saw a positive uptick, rising by 1.33% to Rs 571.50 on the Bombay Stock Exchange (BSE). Investors are optimistic about the company’s expanding role in critical infrastructure projects across various sectors.
Kavach System
The installation of the Kavach system across South Western Railway’s Bangalore and Mysore divisions marks a significant step in improving rail safety standards. As the project progresses, it is expected to set a precedent for future safety initiatives within Indian Railways, contributing to the government’s broader vision of modernizing the railway network and ensuring passenger safety.
