Key Contract Details:
- Project Scope: Installation of Kavach across 402 kilometers of the Ahmedabad Division of Western Railway.
- Project Duration: The order is to be completed within 730 days from the issuance of the purchase order.
- Consortium Lead: HBL Engineering Limited is the lead member of the consortium with Shivakriti International.
- Domestic Order: The contract is awarded to a domestic entity.
- Promoter Involvement: No promoters or promoter group companies have any interest in the transaction.
- Related Party Transactions: The contract does not fall under related party transactions.
Strategic Significance
Kavach is India’s indigenous train collision avoidance system (TCAS), developed to enhance railway safety by preventing train collisions through automatic braking and real-time signaling. This contract reinforces HBL Engineering’s position as a key player in the railway safety and signaling sector.Market Impact
With this new contract, HBL Engineering Limited strengthens its foothold in the railway infrastructure space, aligning with the Indian government’s "Make in India" and railway modernization initiatives. The execution of this project over the next two years will add significant revenue to HBL’s books, further enhancing its market valuation.This development marks another milestone in HBL Engineering’s journey as a leading provider of railway safety solutions.