HBL Power Systems Ltd enters into contract worth Rs. 135 crores from Ashoka Buildcon Ltd for supply of Kavach.

HBL Power Systems Ltd. (HBL) has entered into a contract on 26 June 2023, with Ashoka Buildcon Ltd. (ABL) for supply of the Kavach part of an EPC contract won by ABL in September 2022.

The ABL contract with East Central Railway, is for Rs.220 crores (including GST at 18%) for deploying Kavach and OFC network over 417 km and 60 locomotives, between Pradhankhunta in Jharkhand and Deen Dayal Upadhyay station in Uttar Pradesh.

The ABL contract with HBL is for Rs.135 crores (including GST of 18 %). This includes the supply and commissioning of all equipment involved in the Kavach system requiring RDSO approval.

The delivery and commissioning is to be completed in 18 months.

HBL is one of three OEMs approved by RDSO. The share of an RDSO approved "OEM" vendor's value in EPC contracts for Kavach varies widely. The principal factors are the number of locos per km of contract, the number of stations, length of the Optical Fibre Cable and wheiher it is 24 core or 48 core.

EQUITYBULLS