Railways has released another significant KAVACH tender, this time from BLW:
I wasn’t expecting one more tender this year, but this indicates that the Kavach TAM may be higher than what was earlier visible.
BLW’s latest tender covers 2679 loco equipment sets. Considering the rate of Rs.80 lakh per unit, the tender value comes to roughly 2100 crore.
Here’s the tally of major Loco Kavach tenders floated in the current year:
CLW: 5600 crore
ICF: 1900 crore
BLW: 2100 crore
That brings the total to nearly 9,600 crore of fresh loco Kavach orders expected to be awarded soon, indicating meaningful incremental demand for all OEMs.
Important point to note here is, the delivery condition is VERY STRICT, same as it was in the 2024 CLW tender:
OEMs to supply within 12 months, and, “NO EXTENSION OF DELIVERY PERIOD” allowed.
With the ongoing execution of last year orders + more orders this year.. The theme looks even more interesting than ever! :)