Kernex Microsystems (India) Limited has clinched a significant contract worth ₹209.82 crore from the Dedicated Freight Corridor Corporation of India Limited (DFCCIL) for implementing the Kavach Train Collision Prevention System on the Eastern Dedicated Freight Corridor. This development marks a major milestone for the company in enhancing railway safety infrastructure.

Contract Details

The contract, awarded by DFCCIL, New Delhi, encompasses a comprehensive scope of work including:

• Survey
• Design
• Supply
• Installation
• Testing
• Commissioning of the Kavach system
• Installation of towers and other associated works

The project will cover a double line automatic signaling section spanning approximately 931 km, from New Boraki-New Khurja to New Bhaupur-New Unchdih-New Sonnagar on the Eastern Dedicated Freight Corridor.

Project Specifics

Kavach System

The Kavach Train Collision Prevention System is an advanced safety technology designed to prevent train collisions. Its implementation on the freight corridor infrastructure is expected to significantly enhance operational safety and efficiency.

Company Performance

This contract adds to Kernex Microsystems' growing portfolio of orders. The company reported that the cumulative orders received, along with consortium and partners, amount to ₹3,346.35 crore (including GST).

Market Impact

The securing of this substantial contract underscores Kernex Microsystems' strong position in the railway safety and signaling sector. It also highlights the increasing focus on advanced safety measures in India's railway infrastructure development.

As the project progresses, it will be interesting to observe its impact on Kernex Microsystems' financial performance and market standing in the coming quarters.

In a significant development for the Indian railway sector, the KERNEX-KEC Consortium has been awarded a substantial contract for implementing the KAVACH project by West Central Railways, Bhopal. The project, valued at Rs. 151.41 crore (including GST), marks another step forward in enhancing railway safety and efficiency.

Project Details

The Letter of Acceptance (LOA) issued to the KERNEX-KEC Consortium outlines the following key aspects of the project:

• Scope: Provision of KAVACH, an indigenous Automatic Train Protection (ATP) system, on UHF backbone along with Optical Fiber Cable (OFC) with route diversity.
• Location: The project covers Itarsi-Khandwa, Bina-Ruthiyai, and associated sections of Bhopal Division, West Central Railway.
• Timeline: The contract stipulates a completion period of 600 days from the date of the LOA.

KAVACH System

KAVACH, which means 'armor' in Hindi, is an indigenously developed ATP system designed to enhance safety in train operations. This technology is a crucial component of Indian Railways' modernization efforts, aimed at preventing train collisions and ensuring safer rail travel.

Financial Implications

The acceptance of this bid significantly contributes to Kernex Microsystems 's order book. According to the company's disclosure:

• The cumulative KAVACH orders received by Kernex Microsystems, along with consortium and JV partners, now total Rs. 3,136.53 crore (including GST).
• This latest contract accounts for approximately 4.83% of the total KAVACH orders received.

Contract Nature and Compliance

As per the regulatory filing, Kernex Microsystems has confirmed that:

• The contract is domestic in nature.
• There is no involvement of any promoter group interest.
• The project does not fall under related party transactions.

This transparency in disclosure aligns with the Securities and Exchange Board of India (SEBI) regulations.

The successful acquisition of this contract by the KERNEX-KEC Consortium underscores the growing emphasis on railway safety and the increasing adoption of indigenous technology in India's railway infrastructure. As the project unfolds, it is expected to contribute significantly to the enhancement of rail safety measures in the West Central Railways network.