Kavach, an automatic train protection (ATP) system, was indigenously developed by the Research Designs & Standards Organisation (RDSO) for the Indian Railways. Its primary objective is to prevent train accidents by ensuring trains do not pass signals at danger (SPAD) and by averting collisions.
Initially conceptualized as the Train Collision Avoidance System (TCAS) under the Atmanirbhar Bharat initiative in 2012, Kavach aims to achieve zero train accidents.
Its implementation by Indian Railways marks a significant step forward in enhancing rail safety. By incorporating advanced technologies such as sensors and automated braking systems, Kavach addresses human errors like Signal Passing at Danger and over-speeding.
Presently, three Indian Original Equipment Manufacturers HBL PowerSystems, Kernex, and Medha are authorized to manufacture the Kavach system. Indian Railways plans to expedite the adoption of Kavach ATP technology across 10,000 km of its busy networks through a ₹5,000 crore mega tender, according to recent reports.
Kavach, developed through a collaboration between the Railway Ministry’s Research Design and Standards Organisation, Medha Servo Drives, HBL Power Systems, and Kernex Microsystems, was included in the Atmanirbhar Bharat initiative as part of the 2022 Union Budget.
“Tenders for commissioning Kavach on close to 10,000 km of Railway network is proposed to be initiated soon. The system, which has received a patent, has been approved for commissioning by additional vendors, including MNCs such as Japanese firm Kyosan. This will allow faster roll-out of the system,” Railway, IT and I&B minister Ashwini Vaishnaw told Mint on Saturday.
Here are three Major stocks involved in the development, manufacturing, and deployment of the Kavach system, poised to potentially benefit as Indian Railways floats a ₹5,000 crore tender for the Kavach safety system.
HBL Power Systems Ltd
On Tuesday, HBL Power Systems Ltd saw its shares rise by 12% to ₹533.60 per share on the stock exchange, reflecting a market capitalization of ₹14,247 crores.
The company specializes in manufacturing and servicing a diverse array of products, including various types of batteries like Nickel Cadmium, Lead Acid, Lithium, and Silver Zinc, along with e-mobility solutions.
Furthermore, HBL Power Systems Ltd has actively participated in deploying Kavach across numerous tracks and locomotives. This includes a notable contract with Eastern Railway for deployment covering 260 km of track and 120 locomotives.
Kernex Microsystems (India) Ltd
On Tuesday, Kernex Microsystems (India) Ltd saw its shares rise by 5% to ₹405.40 per share on the stock exchange, reflecting a market capitalization of ₹679 crores.
Kernex Microsystems Ltd specializes in manufacturing and providing Safety Systems and Software services for Railways. The company’s expertise in the Kavach system has positioned it as an attractive acquisition target for global entities such as Alstom.
Kernex Microsystems is actively involved in the production of the TCAS (Kavach) system, in collaboration with RDSO. Recently, the company secured a contract valued at ₹5.77 crores from Integral Coach Factory, Chennai, for the supply, installation, and commissioning of 08 Train Collision Avoidance System (TCAS) units, known as KAVACH.
Additionally, Kernex Microsystems has secured multiple contracts for supplying, installing, and commissioning the Kavach system, including a recent order from Integral Coach Factory, Chennai, for 8 TCAS units.
K E C International Ltd
On Tuesday, KEC International, India’s second-largest manufacturer of electric power transmission towers, saw its shares increase by 2% to ₹953.15 per share on the stock exchange, with a market capitalization of ₹23,958 crores.
To enhance its expertise and expand its presence in the TCAS Systems market, KEC International has partnered with Kernex Microsystems. This collaboration aims to capitalize on the synergies between both companies to deliver advanced Kavach Systems.
In 2023, KEC International secured two significant orders totaling Rs 600 crore for its Train Collision Avoidance System (TCAS), also known as Kavach.
Written by Omkar Chitnis
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