Bharat Heavy Electricals Secures ₹22.87 Crore Railway Order for Kavach Equipment
Bharat Heavy Electricals Limited (BHEL) has received a ₹22.87 crore order from South Western Railway for the supply and installation of Kavach equipment. The project involves designing, developing, and installing on-board and trackside Kavach equipment at various railway locations. BHEL will manufacture the equipment at its Bengaluru plant and complete the project within 18 months. This order strengthens BHEL's position in the railway safety equipment sector and aligns with India's 'Make in India' initiative.

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Bharat Heavy Electricals Limited (BHEL), a leading engineering and manufacturing company, has clinched a significant order from Indian Railways, reinforcing its position in the railway safety equipment sector.
Order Details
BHEL has received an order worth ₹22.87 crore from the South Western Railway, a division of Indian Railways, for the supply and installation of Kavach equipment. The contract encompasses a comprehensive scope of work, including:
- Design and development of Kavach equipment
- Supply of on-board Kavach equipment for locomotives
- Supply of trackside Kavach equipment for various railway locations
- Installation, trial, and commissioning of the equipment
Project Scope and Timeline
The project involves installing Kavach equipment at multiple railway infrastructure points, including:
- Stations
- Level Crossings (LC)
- Intermediate Block (IB) signaling
- Automatic Block Signaling (ABS) locations
BHEL is expected to complete this project within 18 months, as stipulated in the contract terms.
Manufacturing and Execution
The Kavach equipment for this order will be manufactured at BHEL's Bengaluru plant, showcasing the company's domestic manufacturing capabilities. This aligns with the Indian government's 'Make in India' initiative, promoting local production and self-reliance in critical sectors.
Significance of Kavach System
Kavach, which means 'armor' in Hindi, is an indigenously developed Automatic Train Protection (ATP) system. It is designed to enhance railway safety by preventing train collisions and ensuring adherence to speed limits. The implementation of Kavach is a crucial step in modernizing India's railway infrastructure and improving passenger safety.
Impact on BHEL
This order strengthens BHEL's footprint in the railway sector, particularly in safety-critical systems. It demonstrates the company's ability to secure contracts in competitive bidding processes and highlights its expertise in advanced railway technologies.
The contract, while not significantly large in monetary terms for a company of BHEL's size, is strategically important. It positions BHEL as a key player in the ongoing modernization of Indian Railways, potentially opening doors for more extensive contracts in the future.
Conclusion
The ₹22.87 crore order from Indian Railways for Kavach equipment represents a positive development for Bharat Heavy Electricals Limited. It not only contributes to the company's order book but also reinforces its role in enhancing railway safety infrastructure in India. As BHEL moves forward with the execution of this project, it will be interesting to observe how this contract influences its position in the railway equipment market and its potential for securing similar orders in the future.
Historical Stock Returns for Bharat Heavy Electricals
1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
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-0.16% | +7.70% | +2.62% | +18.12% | -14.02% | +530.95% |