Hitachi bags order worth Rs 160cr to speed up electrification of Indian Railways

19 Jan 2022 , 04:10 PM

Hitachi Energy Ltd announced that it has won orders exceeding Rs 160cr to support the electrification of the country’s rail routes. Indian Railways, being the fourth largest railway network, plans to achieve 100 percent electrification of broad-gauge routes by 2023.

Its share settled at Rs 2800 in today’s trade against its previous closing price of Rs 2656.35, up by Rs 143.65 or 5.41%. Hitachi performed well in today’s trade following the announcement. The scrip touched intraday high of Rs 2,800 and a low of Rs 2,592.20. 

Hitachi Energy received orders from the government of India’s electric locomotive manufacturers Diesel Loco Modernisation Works (DMW), and Chittaranjan Locomotive Works (CLW), for traction transformers for passengers and freight locomotives in the October-December 2021 period.

India’s drive towards net zero carbon emissions considers electrification as a key element. In a conference held at the UN climate change conference, India committed to shifting to electricity for transport and reducing the economy’s carbon intensity by 45% by 2030. India’s efforts to electrify all routes by 2023 is an important outlook to achieve these targets.

N Venu, Managing Director and CEO of Hitachi, highlighted that electricity is the backbone of the entire energy system and at Hitachi Energy, the company is committed to the accelerated electrification and decarbonization of the world’s a transportation and rail sectors.

He further added, “Hitachi’s longstanding relationship with the Indian Railways and receipt of new orders are advocates reasons for Hitachi Energy being regarded as a trusted partner of choice for the rail industry. India strives to develop a clean and reliable electric rail network to build back better, supporting the movement of people and goods whilst reducing the environmental impact.”

Hitachi energy has an estimated base of over 30,000 units of these transformers enabling essential train functions such as ventilation, lighting, traction, signaling, braking, and communication.