Indian Railways Awards Rs. 499.68 Crore Contracts for KAVACH System Implementation

Team Finance Saathi

    28/Mar/2025

What's covered under the Article:

  • Indian Railways awards Rs. 499.68 crore contracts for KAVACH system implementation in key railway divisions.

  • HBL-Shivakriti Consortium secures contracts for Viramgam-Rajkot-Okha and Dholpur-Bina sections.

  • Projects to enhance railway safety and signaling automation, to be completed in 700-730 days.

Indian Railways has taken a significant step toward modernizing its railway safety infrastructure by awarding contracts worth Rs. 499.68 crore for the implementation of the KAVACH system. The contracts have been issued to HBL-Shivakriti International (consortium), with HBL Power Systems leading the project as the principal entity. This move aims to enhance railway safety, improve signaling systems, and prevent accidents across key railway sections in India.

Contracts Overview

The contracts have been divided into two major sections:

  1. Viramgam – Rajkot – Okha Section (Western Railway):

    • Contract Value: Rs. 244.68 crore (inclusive of 18% GST)

    • Implementation Timeline: 730 days from the appointed date

    • Objective: Installation of KAVACH system to enhance signaling and rail safety

  2. Dholpur – Bina Section (North Central Railway):

    • Contract Value: Rs. 255.00 crore (inclusive of 18% GST)

    • Implementation Timeline: 700 days from the appointed date

    • Objective: Deployment of KAVACH for real-time monitoring and accident prevention

What is KAVACH?

KAVACH is an advanced Train Collision Avoidance System (TCAS) developed by the Indian Railways to improve operational safety. The technology uses automated braking, real-time signaling, and network-based communication to prevent accidents and streamline train movements. The system has been rigorously tested to ensure seamless integration with India's vast railway network.

Impact on Indian Railways

The deployment of KAVACH will:

  • Enhance Passenger Safety: Prevent train collisions and reduce accidents.

  • Improve Operational Efficiency: Optimize train schedules and reduce delays.

  • Strengthen Railway Modernization Efforts: Align Indian Railways with global safety standards.

Contract Details and Execution

  • The contracts were awarded to the HBL-Shivakriti International consortium, making it a domestic infrastructure project.

  • None of the promoters or group companies have any direct or indirect interest in the awarded contracts.

  • The projects do not fall under the Related Party Transaction (RPT) category, ensuring transparency in execution.

Future of Railway Safety in India

The adoption of the KAVACH system across railway networks is a part of the broader vision to modernize India's railway infrastructure. With additional investments and expansion plans, the Indian Railways is set to revolutionize railway safety and automation, ensuring a more efficient and secure transport system.

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