HBL Engineering Limited has received a Letter of Acceptance from Banaras Locomotive Works (BLW) for a substantial contract. The order, valued at ₹800.36 Crores (including 18% GST), is for the supply, testing, and commissioning of On-board KAVACH equipment (Ver.4.0). This domestic contract is expected to be completed within 12 months, marking a significant business development for HBL in the railway safety sector.
Major Contract Awarded by Banaras Locomotive Works
HBL Engineering Limited (formerly HBL Power Systems Limited) announced on February 11, 2026, that it has secured a major order from Banaras Locomotive Works (BLW), Varanasi. The entity awarding the contract is a Domestic entity.
Terms and Value of the Contract
The core component of the agreement involves the Supply, testing and commissioning of On-board KAVACH equipment (Ver.4.0). The broad commercial consideration for this contract is substantial, totaling Rs.800.36 Crores (inclusive of 18% GST). The contract specifies a clear timeline, requiring the entire scope of work to be completed within 12 months from the date of award.
Related Party Status Confirmation
HBL confirmed that none of the promoters or promoter groups have any interest in Banaras Locomotive Works. Furthermore, the company explicitly stated that the transaction would not fall under the Related Party Transaction category, confirming that the terms are conducted at “arms length.”
Source: BSE
