Southern Railway (SR) has issued a letter of acceptance (LOA) to Hyderabad-based Kernex-VRRC consortium to provide Kavach (Train Collision Avoidance System) for a total project cost of ₹311 crore.
Kavach will be in the Chennai-Gudur, Chennai-Arakonam and Arakonam-Renigunta sections of Chennai Division in Southern Railway for ₹173 crore. It also got order from SR to provide Kavach (Train Collision Avoidance System) along with Tower and 48 Fiber OFC as the back bone network in the Arakonam-Jolarpettai section of Chennai Division in Southern Railway for ₹138 crore, the company said in an announcement to the National Stock Exchange.
Kernex is a partner of said joint venture with a share of 60 per cent, says the release.
The company’s share price on the NSE closed at ₹1,301.30, up ₹61.90 (4.99 per cent).