HBL Engineering Limited, formerly known as HBL Power Systems Limited, has announced a significant contract win with Western Railway. In a disclosure made on May 1, 2025, the company informed both BSE Limited and National Stock Exchange of India Limited (NSE) about the receipt of a Letter of Acceptance from Western Railway for the provision of the Kavach system.

The contract, valued at Rs. 145.83 Crores, includes 18% GST and spans the implementation of the Kavach system across 48 stations. This safety system will cover a total distance of 428 kilometers on Western Railway tracks. The contract is to be completed within a stipulated period of 730 days, ensuring that the system is fully installed and operational within this timeline.

Kavach is a train collision avoidance system that is a critical part of improving railway safety. The implementation of this system across 48 stations is a significant step in enhancing the safety standards of the railway network. HBL Engineering will be responsible for the execution of the project, marking another key milestone in its growing portfolio of railway safety projects.

According to the SEBI regulations, the company has provided the necessary details about the contract. The contract is a domestic deal, with HBL Engineering being the contractor. It is noteworthy that none of the promoter group or related parties of HBL Engineering have any interest in this transaction, ensuring that the deal is free from any conflicts of interest and is in compliance with the regulatory guidelines.

This contract is a substantial win for HBL Engineering, as it further establishes the company as a key player in the railway safety systems sector. With the company’s expertise in providing high-tech solutions for industrial and transportation needs, the award of the Kavach system contract enhances its credentials in delivering critical infrastructure solutions for the Indian railway system.

The contract's size, combined with its strategic importance in improving railway safety, reflects the growing demand for advanced technological solutions like Kavach in India's rapidly expanding railway network. This development is also aligned with the government's focus on upgrading railway infrastructure and ensuring passenger and operational safety.

In conclusion, HBL Engineering Limited continues to position itself as a leader in the domain of engineering solutions, with a strong emphasis on safety and technology. The company’s latest contract win reflects its capabilities and commitment to delivering high-quality solutions that contribute to national infrastructure development.

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