📌 At a glance:
- Client: South Western Railway, Indian Railways
- Contract Value: ₹253.56 crore
- Scope: Installation of KAVACH system across 778 RKM in Bengaluru & Mysuru divisions
- Execution Period: 18 months
- Stock: IRCON (NSE: IRCON | BSE: 541956)
🧾 About the Order
On May 20, 2025, IRCON International Ltd received a Letter of Acceptance (LOA) from Indian Railways for a major safety-tech upgrade involving:
- Survey, design, supply, installation, testing, and commissioning of KAVACH
- Deployment over 778 route kilometres (RKM)
- Covers Bengaluru and Mysuru Divisions under South Western Railway
🚧 What is KAVACH?
India’s indigenously developed Train Collision Avoidance System (TCAS), now branded as KAVACH. It uses AI & sensors to:
- Prevent head-on and rear-end collisions
- Auto-stop trains in emergencies
- Ensure speed control when approaching signals or obstructions
📊 Contract Snapshot
| Parameter | Details |
|---|---|
| Awarding Entity | South Western Railway (Indian Railways) |
| Type | Domestic Works Contract |
| Scope | Survey, Design, Installation of KAVACH |
| Timeline | 18 months from LOA |
| Value | ₹253.56 Cr (inclusive of all taxes) |
| Promoter Interest | None |
| Related Party | No |
🧠 EduInvesting Take
- This isn’t a decorative order — it’s core to Railways’ next-gen safety vision
- ₹250+ crore orders in IRCON’s book = strong revenue visibility for FY26–27
- Strategic tech contract = higher margin, credibility in rail automation
🛤️ Why It Matters
- Indian Railways plans to roll out KAVACH over 34,000+ km — this is just the beginning
- IRCON could emerge as a recurring partner if execution goes well
- Safety + infra = investor confidence cocktail
🎯 Verdict:
“Not just another rail order — this is IRCON’s ticket into India’s AI-driven railway future. Board now or miss the express.”
