STN: HBL Engineering Limited has secured two separate contracts from South Central Railway. Both contracts are for work related to the Kavach Safety System. The total value of these contracts is ₹163.62 crore.
The company’s stock rose 5% after the announcement. It traded at ₹619 on the BSE during Monday’s session.
First Kavach Railway Contract: Vijayawada–Ballarshah Section
The first contract is worth ₹132.95 crore. Under this Kavach Railway Contract, HBL Engineering will install the Kavach Safety System on the Vijayawada–Ballarshah route.
This project will span 446 kilometers. It will also include work across 48 stations and on 10 locomotives.
South Central Railway has given HBL Engineering 18 months to complete the job.
Second Kavach Railway Contract: Upgradation Work
The second contract is for ₹30.67 crore. This Kavach Railway Contract focuses on upgrading the system from Version 3.2 to Version 4.0.
This upgradation will take place on the Mudkhed (including)–Manmad (excluding) route. The route spans 350 kilometers.
HBL Engineering has 24 months to complete this work.
Kavach System: A Brief Overview
Kavach is an automatic train protection system. It is developed in India to enhance railway safety. The system helps prevent train collisions and overspeeding.
Indian Railways is deploying Kavach on key routes to improve passenger safety.
HBL Engineering is among the few companies approved to install this system. The firm’s role in expanding Kavach coverage reflects its technical capabilities.
Impact on HBL Engineering’s Order Book
The two new contracts have pushed up HBL Engineering’s total order book. It now stands at ₹4,029.05 crore. This is an increase from ₹3,998.38 crore before these deals.
HBL Engineering has been expanding its presence in railway signalling and safety systems. These projects further strengthen its portfolio.
Growing Importance of Kavach Railway Contracts
Indian Railways plans to install Kavach across high-density routes. It aims to reduce accidents and improve network efficiency.
As more Kavach Railway Contracts are awarded, companies like HBL Engineering are expected to benefit. These projects also support the government’s ‘Make in India’ push for indigenous technology solutions.
HBL Engineering has stated that it will follow all project deadlines. It will also maintain quality and safety standards during the execution.
Conclusion
HBL Engineering’s latest win adds to its growing list of railway projects. The ₹163.62 crore worth of Kavach Railway Contracts will keep the company busy over the next two years.
With increasing adoption of the Kavach Safety System, the company is likely to secure more such orders in the near future.
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