CG Power & Industrial Solutions ' subsidiary G.G. Tronics India has secured a major contract worth ₹433 crore from Chittaranjan Locomotive Works for the implementation of the Kavach train collision avoidance system. This comprehensive agreement marks a significant development in India's railway safety modernization efforts.

Contract Details

The contract encompasses a complete range of services for the Kavach system implementation:

Scope of Work

The comprehensive contract covers multiple critical phases of the Kavach system deployment. G.G. Tronics India will be responsible for the complete lifecycle management of the project, from initial supply through long-term maintenance support.

The key deliverables include:

• Supply of Kavach train collision avoidance system components
• Professional installation services
• Comprehensive testing protocols
• System commissioning and integration
• 11-year Annual Maintenance Contract support

Strategic Significance

This contract positions CG Power's subsidiary as a key participant in the Indian Railways' safety enhancement initiative. The Kavach system represents a critical component of India's railway modernization program, designed to prevent train collisions and enhance operational safety across the network.

The 11-year maintenance contract ensures long-term revenue visibility for G.G. Tronics India, providing sustained business engagement beyond the initial implementation phase. This extended service commitment demonstrates the company's capability to deliver comprehensive technology solutions with ongoing support infrastructure.

CG Power & Industrial Solutions Limited has secured relief from the Income Tax Department with a stay order on a substantial tax demand of Rs 33,01,61,769 for Assessment Year 2020-21. The company received the stay order on January 29, 2026, from the Assessing Officer, providing temporary respite while its appeal remains pending.

Stay Order Details

The Deputy Commissioner of Income Tax, Mumbai, accepted the company's stay application and issued an order with reference number ITBA/COM/F/17/2025-26/1085245545(1) on January 28, 2026. Under the terms of the stay order, the company must fulfill specific payment obligations while the majority of the demand remains suspended.

Timeline of Events

The tax dispute originated with the receipt of a Final Assessment Order on November 18, 2025, which raised the substantial tax demand for Assessment Year 2020-21. The company responded promptly by taking legal recourse through multiple channels.

Legal Proceedings

Being aggrieved by the assessment order, CG Power filed an appeal before the Income Tax Appellate Tribunal (ITAT), Mumbai, on January 16, 2026. The appeal challenges the additions and disallowances made in the final assessment order. Simultaneously, the company moved an application for stay of tax demand before the Assessing Officer on December 1, 2025.

The stay application was heard by the Deputy Commissioner of Income Tax, Mumbai, who directed the company to deposit the specified amount while keeping the balance demand stayed until the disposal of the appeal pending before the ITAT. This arrangement allows the company to continue its operations without the immediate financial burden of the full tax demand while pursuing its legal remedies.

Regulatory Compliance

The company has made the requisite disclosure under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. This disclosure follows the company's earlier communication dated November 18, 2025, when it first informed the stock exchanges about receiving the final assessment order and the subsequent tax demand.