HBL partners with Ashoka Buildcon for Kavach supply in EPC contract

28 Jun 2023 CW Team

According to the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as stated in SEBI Circular CIR/CFD/CMD/4/2015 dated 9th September 2015, it is conveyed that HBL Power Systems (HBL) has engaged in a contract with Ashoka Buildcon (ABL). This contract pertains to the supply of the Kavach component of an EPC contract secured by ABL in September 2022.

The contract between ABL and East Central Railway, valued at Rs. 220 crores (including GST at 18%), is intended for the implementation of Kavach and OFC network over a distance of 417 km and 60 locomotives. The deployment will span from Pradhankhunta in Jharkhand to Deen Dayal Upadhyay station in Uttar Pradesh.

As for the ABL contract with HBL, it amounts to Rs 135 crore (including GST at 18%). This sum covers the supply and installation of all equipment related to the Kavach system, subject to RDSO approval.

The delivery and commissioning of the contracted services are expected to be completed within a period of 18 months.

It should be noted that HBL is one of the three OEMs approved by RDSO. The extent of an RDSO-approved "OEM" vendor's value in EPC contracts for Kavach varies significantly. This discrepancy is determined by various factors, such as the number of locomotives per kilometer of the contract, the number of stations, the length of the Optical Fibre Cable, and whether it comprises 24 cores or 48 cores.

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