Bharat Heavy Electricals Limited (BHEL) secured an order worth ₹22.87 crore from South Western Railway to deploy the Kavach train protection system. The project is set to be completed within 18 months. The contract involves design, development, supply, installation, trials, and commissioning of both on-board and trackside Kavach equipment. Manufacturing will take place at BHEL’s Bengaluru facility.
On 12 September 2025, Bharat Heavy Electricals Ltd (NSE: BHEL) shares closed at ₹228.40, down 0.30% or ₹0.68 from the previous session. The stock opened at ₹228.50 and reached an intraday high of ₹230.51 before slipping to a low of ₹226.80. At the day’s close, BHEL’s market capitalization stood at ₹79,590 crore. The stock currently trades well below its 52-week high of ₹291.10 but remains above the 52-week low of ₹176.00, reflecting recent market volatility.
Order Award and Scope
Indian Railways’ South Western Railway zone issued a Letter of Intent to BHEL on September 11, 2025, for the installation of the Kavach train protection system. The contract covers design, development, supply, installation, trials, and commissioning. Both on-board locomotive equipment and trackside systems will be installed at various locations in the railway network as part of the project.
Technical Coverage
The Kavach system will be fitted to locomotives and also at stations, level crossings, intermediate block sections, and automatic block signaling points. This integrated safety system aims to reduce accidents by preventing trains from running past danger signals, overspeeding, or colliding, thereby improving the overall safety of the rail network.
Manufacturing and Execution
The manufacturing for this order will be done at BHEL’s Bengaluru plant, which specializes in transportation and signaling projects. The contract value is ₹22.87 crore, including GST. A timeline of 18 months has been set for the company to deliver the project, highlighting BHEL’s commitment to timely completion of important railway safety solutions.
The ₹22.87 crore contract reinforces BHEL’s role in improving Indian Railways’ safety infrastructure through the deployment of the Kavach system. With execution scheduled for completion in 18 months, the project underscores the growing focus on technology-driven safety measures across the national railway network.