HBL Power Systems Limited on Monday said it has received a Letter of Acceptance (LoA) from Banaras Locomotive Works (BLW) for the supply, testing and commissioning of On-board KAVACH equipment (Version 4.0) for Indian Railways, with a total contract value of ₹800.36 crore, inclusive of 18% GST.
The order has been awarded by BLW, a production unit of Indian Railways based in Varanasi, and is classified as a domestic contract, the company said in a regulatory filing.
As per the terms of the agreement, HBL will be responsible for the end-to-end delivery of the KAVACH system, including installation, testing and commissioning across designated rolling stock. The entire contract is scheduled to be executed within 12 months.
KAVACH is India’s indigenous automatic train protection (ATP) system, designed to enhance railway safety by preventing signal passing at danger (SPAD), over-speeding and collisions. The system is a key component of Indian Railways’ nationwide safety modernisation programme.
HBL clarified that the transaction does not involve any related party and that none of the promoters or promoter group entities have any interest in Banaras Locomotive Works.
The company said the order further strengthens its position as a leading supplier of safety-critical electronics and signalling systems for India’s railway infrastructure, at a time when the government is accelerating investments in rail modernisation and digital safety technologies.