The shares of RailTel Corporation of India Limited under the Ministry of Railways can see a stir on Monday. The reason for this is that the company has received a big contract to put ‘armor’ at 71 stations of East Central Railway. The project will be implemented on the 502 km long route of Danapur and Sonpur divisions.
What is ‘Kavach’ system?
‘Kavach’ is an indigenous automated train protection system, which prevents the train collision by applying automatic brakes in case of mistake of the loco pilot. This system is designed to prevent red signal overshoots and accidents.
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Company’s response
RailTel has described this project as a major achievement for the company.
According to the company’s statement:
“This contract of Kavach project is one of the biggest signaling projects of RailTel so far. Its total cost is around Rs 288 crore. Its implementation will lead to a major improvement in railway safety and operational efficiency. ”
Statement of Chairman of RailTel
RailTel Chairman and Managing Director Sanjay Kumar said that “We are excited to be selected to implement the armor project in East Central Railway. RailTel will complete it with the highest quality and efficiency. ”
Share condition
- On Friday, RailTel’s stock fell 2.68% to close at Rs 305.30.
- On 18 February 2025, it fell to a 52-wheel of Rs 285.20.
- In July 2024, the stock reached its highest level of Rs 618.
This new Rs 288 crore project is expected to increase the shares of RailTel, but how much the market move will affect it, it will be clear in the coming days.
