Shares of KEC International rose 0.85% to Rs 838.65 on the BSE.
The contract involves the provision of KAVACH, the indigenous Automatic Train Protection (ATP) system developed under the 'Make in India' initiative. The project will be implemented on a UHF backbone along with optical fiber cable (OFC), and includes route diversity to ensure reliable and uninterrupted communication.
The scope of the project covers key railway sections under the Bhopal Division of West Central Railway, including the Itarsi (excluding)–Khandwa (excluding) and Bina (excluding)–Ruthiyai routes, along with additional associated segments within the division.
The contract, valued at Rs 151.41 crore, is to be executed within a period of 600 days.
According to the company, there is no interest of the promoter, promoter group, or group companies in the entity that awarded the contract. Additionally, the contract does not qualify as a related party transaction, and therefore, the question of it being conducted at arm’s length does not arise.
Kernex Microsystems (India) is engaged in the manufacture and sale of safety systems and software services for Railways.
KEC International is a global infrastructure Engineering, Procurement and Construction (EPC) major. It has a presence in the verticals of Power Transmission & Distribution, Civil, Transportation, Renewables, Oil & Gas Pipelines and Cables & Conductors. It has a footprint in 110+ countries (includes EPC, Supply of Towers and Cables). It is the flagship Company of the RPG Group.