HBL Engineering Limited, formerly known as HBL Power Systems Limited, has recently announced a significant achievement with the receipt of a Rs. 1,522.40 Crore order from Chittaranjan Locomotive Works for the supply, installation, and commissioning of the Train Collision Avoidance System (TCAS) (also known as KAVACH) equipment. This order is a major milestone for the company and will be implemented in 2,200 locomotives, contributing to railway safety by preventing train collisions.

A Transformative Step for HBL Engineering

The company has undergone a name change from HBL Power Systems Limited to HBL Engineering Limited effective November 13, 2024. This rebranding aligns with the company’s broader vision of expanding its portfolio in engineering and technology solutions. This Rs. 1,522.40 Crore order is a part of that strategic shift and underscores HBL Engineering’s commitment to enhancing railway safety and adopting modern technology solutions in the transportation sector.

Key Terms of the Order

The order from Chittaranjan Locomotive Works involves the installation of TCAS (KAVACH), a cutting-edge on-board collision avoidance system, which will be integrated into 2,200 locomotives. The timeline for completion of this order is set at 12 months from the date of the purchase order, which means the project will be completed by December 2025. This technological advancement will ensure that the locomotives are equipped with modern safety systems to reduce the risks of accidents on the tracks.

The total value of the order is Rs. 1,522.40 Crores, excluding applicable taxes, making this one of the largest contracts HBL Engineering has received in recent years. It reinforces the company’s position as a leading player in providing safety and engineering solutions for the railways.

No Related Party Transactions

It is important to note that none of the promoters or their group companies have any interest in this transaction. Additionally, the order does not fall under related party transactions, ensuring that the contract is transparent and conducted at arm's length.

Company’s Future Outlook

With the successful securing of this order, HBL Engineering Limited is poised to expand its presence in the engineering solutions sector. The company is continuously exploring new opportunities in railway technology, defense and energy, aligning itself with the government's push for modernization of infrastructure. The TCAS (KAVACH) system is an essential technology for enhancing railway safety, and this order positions HBL Engineering as a key player in this critical sector.

This order also highlights the company’s continued growth trajectory and its ability to deliver large-scale projects within stringent timelines. The TCAS KAVACH installation in locomotives will likely bring increased business opportunities for HBL Engineering in the future, particularly in domestic and international railway projects.

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