HBL Engineering wins ₹145.83 crores Western Railway deal for Kavach system rollout over 428 km within two years.
HBL Engineering Limited has announced a significant milestone by securing a ₹145.83 crores contract from Western Railway for the implementation of the Kavach system, an advanced safety initiative. The project has been granted under the guidelines of Regulation 30 of the Securities and Exchange Board of India (SEBI) Listing Obligations and Disclosure Requirements (LODR) regulations, 2015.
Project scope and coverage
The letter of acceptance issued by Western Railway outlines the deployment of the Kavach system across 48 railway stations. The entire stretch to be covered spans 428 kilometres, showcasing the vastness of the project. This strategic safety upgrade reflects Western Railway's commitment to enhancing rail safety infrastructure.
Contract timeframe
The project is expected to be completed within 730 days from the commencement date, ensuring a structured and time-bound execution. The substantial investment underscores the growing emphasis on integrating advanced safety systems in the Indian Railways network.
Corporate governance compliance
In adherence to SEBI regulations, HBL Engineering has confirmed that none of its promoters or promoter group companies has any interest in the transaction. Furthermore, the company has clarified that the transaction does not fall under the Related-party Transaction (RPT) category, ensuring full compliance and transparency.
Looking ahead
This contract not only strengthens HBL Engineering's portfolio in the rail safety segment but also aligns with India's broader goal of enhancing railway safety standards. As the project moves forward, it is expected to significantly bolster the safety and efficiency of rail operations in the Western Railway zone.
HBL Engineering's continued commitment to delivering high-quality infrastructure projects reinforces its reputation as a trusted partner in India's transportation sector.
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