HBL Engineering Limited (formerly known as HBL Power Systems Limited) has received two major Letter of Acceptance (LoA) for the provision of KAVACH systems in India. These orders were awarded to the HBL-Shivakriti Consortium, with HBL Engineering acting as the lead member of the consortium. The total value of these contracts amounts to Rs. 499.68 Crores, inclusive of GST at 18%. The details of the orders, as per the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, are as follows:

Details of the Orders

1. Order for KAVACH Systems on Western Railway

   • Project: Provision of KAVACH Systems (version 4.0) for the Viramgam – Rajkot – Okha Section of the Rajkot Division of Western Railway.

   • Contract Value: Rs. 244.68 Crores, including GST.

   • Completion Timeline: The order is to be completed within 730 days from the appointed date.

2. Order for KAVACH Systems on North Central Railway

   • Project: Provision of KAVACH Systems (version 4.0) on the Dholpur – Bina Section of the Jhansi Division of North Central Railway.

   • Contract Value: Rs. 255.00 Crores, including GST.

   • Completion Timeline: The order is to be completed within 700 days from the appointed date.

Key Highlights

• Both orders are awarded to the HBL-Shivakriti Consortium, with HBL Engineering as the lead member.

• The contracts are domestic in nature, with no involvement from international entities.

• These orders pertain to the installation of the KAVACH safety system, which is designed to enhance the safety features of Indian Railways.

• There is no involvement of the company's promoters in these contracts, and the transactions are not classified as related party transactions.

Importance of the Orders

These contracts are significant for HBL Engineering, as they represent a substantial contribution to the company’s revenue. The KAVACH system is a vital technology for railway safety, and winning these contracts underscores HBL Engineering’s leadership in the field of advanced safety systems for Indian Railways.

Conclusion

The orders for KAVACH systems are a major step forward for HBL Engineering, as they solidify the company’s position in the railway safety segment. With a total value of Rs. 499.68 Crores, these contracts will significantly boost the company’s financial performance over the next few years. The company remains committed to delivering the projects within the stipulated timelines, maintaining its reputation for quality and reliability.

The company will continue to provide updates on the progress of these orders as they move forward.

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