HBL Engineering Limited has secured a significant ₹800.36 crore contract from Banaras Locomotive Works to supply, install and commission onboard Kavach 4.0 systems for Indian Railways. The indigenous automatic train protection technology is designed to improve rail safety by preventing overspeeding, signal violations and collisions. The project will be executed over 12 months and forms part of Indian Railways's broader push to upgrade safety infrastructure across its network. This order strengthens HBL's growing presence in railway safety systems, driven by rising demand for Kavach deployment as the sector focuses on modernisation, automation and improved operational reliability.
Kernex Microsystems has entered into a strategic joint venture with Bharat Heavy Engineering to develop advanced signalling solutions for the Kavach railway safety ecosystem. According to reports from CNBC TV18, the joint venture will focus on developing a Moving Block System integrated with Automatic Train Supervision (ATS) and Automatic Train Operation (ATO) on the Kavach platform, along with Centralised Traffic Control (CTC). Kernex will hold a 51% stake in the JV, while Bharat Heavy Engineering will own the remaining 49%, with shareholding subject to change based on project scope.
The momentum behind Kavach development comes as Indian Railways continues to step up investments in safety and communication infrastructure. As reported by CNBC TV18, the national transporter has approved projects worth ₹1,364.45 crore, including deployment of Kavach systems, expansion of optical fibre cable networks, and replacement of legacy signalling systems. In the Southern Railway zone, Kavach equipment will be installed on 232 locomotives at a cost of ₹208.81 crore under the larger ₹27,693 crore umbrella programme, with a ₹2,950 crore allocation earmarked for the zone including deployment of Kavach Version 4.0. The ministry stated that Kavach equipment, which prevents train collisions, will be installed on 232 locomotives in Southern Railway at a cost of ₹208 crore.
According to CNBC TV18 reports, Northern Railway has cleared projects worth ₹400.86 crore to strengthen communication infrastructure, including large-scale optical fibre cable deployment across Ambala, Delhi and Lucknow divisions. North Central Railway will see optical fibre cable deployment across 2,196 route kilometres at a cost of ₹176.77 crore. In South Central Railway, projects worth ₹578.02 crore have been approved to replace panel interlocking systems with electronic interlocking across 49 stations. The rail ministry noted that these works aim to enhance the capacity and reliability of communication systems across divisions, which are critical for modern signalling and Kavach deployment.
As reported by CNBC TV18, companies linked to the Kavach ecosystem are already seeing strong traction. HBL Engineering reported orders worth ₹1,375.36 crore during the quarter for Kavach equipment, while KEC International had earlier indicated that it secured three TCAS orders year-to-date in partnership with its JV partner. Railway stocks linked to the Kavach project, including HBL Engineering, Kernex Microsystems, RailTel, Concord Control Systems, and KEC International, are expected to remain in focus amid these fresh developments around the Kavach railway safety ecosystem and rising government spending. The latest contract win by HBL Engineering further validates the strong market demand for Kavach technology and infrastructure modernisation across Indian Railways.
