Shares of Kernex Microsystems and HBL Power were rocketing on Tuesday morning as Indian Railways is set to roll out massive tender under the KAVACH programme.

What Happened: Indian Railways is actively rolling out tenders for 10,000 km of Kavach, an automatic train protection (ATP) system, worth around ₹5,000 crore.

So far, the public transporter has issued tenders for 6,000 kilometres of the Kavach system. Currently, it is deployed on 1,465 kilometres. The Indian Railway system spans over 1 lakh kilometres.

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Kavach is an indigenously developed automatic train protection (ATP) system by the Research Design and Standards Organisation (RDSO) in collaboration with three Indian firms. This security system not only controls the speeding of trains but also assists locomotive drivers in avoiding missed danger signals, ensuring safe train operations, especially in low-visibility conditions.

The system was not available on the tracks in Darjeeling where a collision occurred on Monday. In this incident, a goods train rammed into the Kolkata-bound Kanchanjunga Express from behind, resulting in the death of at least nine passengers and injuries to over 50 others.

Kernex and HBL are two of the OEMs approved for the installation of the system.

Price Action: Kernex Microsystem’s share price was locked in a 5% upper circuit at 406.10. HBL Power’s share price was up 6.87% to trade at ₹510.50 in early trade on Tuesday. The stock had initially gone up over 11% to hit an intraday high of ₹532.55.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.