Shares of HBL Power, Kernex rise as Railway Minister gives update on deployment of 'Kavach' system

Kernex Microsystems and HBL Power Systems shares were trading higher on November 28 despite the markets trading in deep red. This, a day after Railway Minister Ashwini Vaishnaw gave an update to Lok Sabha on deployment of 'Kavach' system.

"Next phase of Kavach implementation is planned as under: Project for equipping 10,000 locomotives has been finalised. Bids for track side works of Kavach for approximately 15,000 RKm have been invited, out of which bids for about 9,000 Rkm have been opened. It covers all GQ, GD, HDN and Identified sections of Indian Railways," said Vaishnaw in a written reply on November 27.

On November 28, HBL Power's shares on BSE closed 1.62% higher at Rs 626.4 apiece while shares of Kernex were locked in 5% upper circuit at all-time high of Rs 1,110.75 apiece. The market capitalisation of Kernex is nearly Rs 1,800 crore while the m-cap of HBL Power is Rs 17,300 crore.

"Currently, 3 OEMs are approved for supply of Kavach System. To increase capacity and scale of implementation, trials and approval of more OEMs are at different stages. The cost for provision of Track Side including Station equipment of Kavach is approximately Rs 50 lakh/Km and cost for provision of Kavach equipment on locomotives is approximately Rs 80 lakh/Loco.
The funds utilised on Kavach works so far is Rs 1,547 crore. The allocation of funds during the year 2024-25 is Rs 1,112.57 crore. Requisite funds are made available as per the progress of works," said Vaishnaw.