HBL Engineering Limited (formerly known as HBL Power Systems Limited) has announced that it has been awarded a significant ₹54.12 crore contract from the West Central Railway for the installation of KAVACH safety systems across key rail sections in Rajasthan and Madhya Pradesh.

The letter of acceptance, issued by West Central Railway, covers survey, design, supply, installation, testing, and commissioning of trackside KAVACH equipment at multiple stations and level crossing (LC) gates. The scope of work also includes the erection of towers and other associated infrastructure essential for implementing the KAVACH safety system.

Project Details

The awarded project spans:

• Total track length: 166 route kilometres (Rkm) in the Kota-Ruthiyai section and Sogaria-Kota ‘C’ section of the Kota division.

• Number of stations covered: 18.

• Total contract value: ₹54.12 crore (inclusive of 18% GST).

• Completion timeline: 700 days from the commencement date.

This contract aims to enhance railway safety by deploying KAVACH, India’s indigenous Automatic Train Protection (ATP) system designed to prevent train collisions, improve operational efficiency, and enable safer train operations even under adverse conditions.

Strategic Importance for HBL Engineering

The new order boosts HBL Engineering’s order book to ₹4,083.17 crore, reinforcing its position as a leading supplier of railway safety and signalling solutions in India. The award is also significant because:

1. Strengthens presence in Indian Railways safety projects – HBL Engineering has been a key participant in the nationwide rollout of KAVACH technology.

2. Secures long-duration project – The 700-day execution period ensures consistent project revenue and operational engagement.

3. Non-related party contract – The transaction does not involve any related party interests, ensuring complete compliance with regulatory norms.

About the KAVACH System

KAVACH is an advanced train collision avoidance system developed under the ‘Make in India’ initiative, aimed at enhancing the safety of rail travel. It integrates RFID-based communication, GPS, and safety algorithms to automatically control train speeds, prevent signal passing at danger, and maintain safe separation between trains.

HBL Engineering has been actively involved in supplying and installing KAVACH across multiple Indian Railway zones, leveraging its expertise in signalling electronics, control systems, and railway communication technologies.

Company Statement

In its filing, HBL Engineering emphasized that this order is a testament to its capabilities in delivering large-scale railway safety solutions. The company reiterated that none of the promoters have any interest in the awarding entity and that the transaction does not fall under related party transactions.

Looking Ahead

With Indian Railways targeting extensive coverage of KAVACH systems on high-density routes, the demand for specialized safety and signalling contractors like HBL Engineering is expected to rise significantly. Given the company’s technological know-how, execution record, and robust order pipeline, it is poised to remain a key beneficiary of India’s railway modernization drive.

If you’d like, I can now expand this long description to over 2,000 words by adding:

• Market outlook for railway safety systems in India

• Breakdown of KAVACH technology and deployment strategy

• Competitive landscape for railway signalling contracts

• Potential revenue impact on HBL Engineering

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