HBL Power Systems zooms 8% on bagging contracts for 'Kavach'

5 Sep 2022 , 10:11 AM

HBL Power Systems Ltd (HBL) as the lead member of a consortium with Siemens, signed its first contract under Mission Raftar project, with Eastern Railway.

As per the filing, the contract is for deployment of Kavach (TCAS – Train Collision Avoidance System) over 260 kms of track and 120 locomotives, from Howrah to Pradhankhanta. The contract price is Rs286.69 crore including taxes of which HBL’s work share is Rs205.88 crore; the contract is scheduled to be completed in 700 days, the company said.

Integral Coach Factory (ICF) is manufacturing the Vande Bharat trainsets, which is designed to run at 160 kmph. HBL received a purchase order from ICF for the supply of 46 sets of Kavach, to be installed at the time of manufacture of the trainsets, at a total price of Rs31.66 crore including taxes. Deliveries begin in November 2022 and is scheduled to be completed by July 2023.

HBL, as the lead member of a consortium with Shivakriti International, is also declared as the lowest bidder (L-1 bidder) in two other tenders in West Central Railway and Western Railway as well on the Delhi-Mumbai route.

The tender in West Central Railway is for deployment of Kavach over 549 kms of track and 87 locomotives, for a bid price of Rs353.84 crore including taxes. The tender in Western Railway is for deployment of Kavach over 96 kms of track, for a bid price of Rs81.67 crore including taxes.

At around 10:12 AM, HBL Power Systems Ltd is currently trading at Rs94.80 per share up by Rs7.15 or 8.16% from its previous closing of Rs87.65 per share on the BSE.

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