Hyderabad, May 28, 2026: HBL Engineering Ltd has received a Letter of Acceptance (LoA) from Chittaranjan Locomotive Works (CLW) for a railway safety systems contract valued at ₹1,714 crore, strengthening its position in India’s rapidly expanding rail modernization and safety infrastructure market.
According to a regulatory filing, the contract involves the supply, installation, testing and commissioning of on-board Kavach locomotive equipment (Version 4.0), the indigenous automatic train protection system being deployed across the Indian Railways network.
The order, awarded by CLW, is valued at ₹1,714 crore excluding Goods and Services Tax (GST). The project is scheduled to be completed within 12 months.
Kavach is India’s indigenously-developed train collision avoidance system designed to improve railway safety by preventing signal passing at danger (SPAD), overspeeding and collisions. The government has accelerated its rollout across key railway corridors as part of broader efforts to modernize the national rail network.
The latest order is expected to significantly enhance HBL Engineering’s order book and reinforces the company’s role as a key technology partner in the implementation of railway signalling and safety solutions.
Formerly known as HBL Power Systems Ltd, HBL Engineering has emerged as one of the major suppliers of Kavach systems and related railway electronics. The company has been a significant beneficiary of increased government spending on railway safety infrastructure and indigenous technology adoption.
The company clarified that the transaction does not qualify as a related-party transaction and that neither its promoters nor promoter group entities have any interest in the awarding authority.
The contract marks another major milestone in the nationwide deployment of Kavach, which Indian Railways has identified as a critical component of its long-term safety and operational efficiency strategy. https://www.hblelectronics.com/images/hbl-home-slider-nw1.png
