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As the government plans new high-speed and dedicated freight corridors to boost the country's logistics and economic architecture, a Tata Group company and a railway system integrator are eyeing opportunities worth ₹1 lakh crore from deploying the indigenous automatic train protection system, Kavach. Tata Elxsi and NOVA Control Tecnologix, a subsidiary of e2E Rail, have joined hands for developing and deploying Kavach, a train protection system developed by Research Designs & Standards Organisation (RDSO) and opened for private sector participation.
How the Estimate Grew
Sourajit Mukherjee, Director and CEO of NOVA Control Tecnologix and e2E Rail, told ET Infra that the total outlay when Kavach was first starting to get implemented was estimated at about ₹50,000 crore. But with increasing adaptability, Indian Railways adopting the system even for lower-density routes, the dedicated freight corridor, and new high-speed rail corridors also being planned with the Kavach ecosystem, the companies are now looking at a capex of around ₹1 lakh crore over the next six to seven years, only on Kavach.
- Revised Kavach opportunity: ₹1 lakh crore over 6-7 years
- Original Phase-I estimate: ₹50,000 crore
- Additional signalling modernisation pipeline: ₹1 lakh crore
- Total combined market by 2031: ~₹2 lakh crore, split among 8-10 companies
- Target once certified: 2,000-3,000 locomotives fitted per year, 1,000+ km of stations/routes rolled out per year
Beyond Kavach: Signalling and Product Lines
NOVA Control Tecnologix, in partnership with Tata Elxsi, is looking beyond the order potential for Kavach and is developing other product lines for Indian Railways, which combined with the Kavach system, presents a business opportunity worth ₹2 lakh crore. Mukherjee said there are several signalling modernisations running in parallel which are already picking up, alongside another ₹1 lakh crore capex planned by 2031 by Indian Railways, describing the combined ₹2 lakh crore market by 2031 as an enormous amount of opportunity to be catered for by a group of around 8-10 companies.
Also Read: PM Modi Flags Off India's First Hydrogen-Powered Train
Working on Kavach 4.0
Both companies are currently working on the latest Kavach 4.0 version, which enables enhanced accuracy, signalling and train control operations through robust data exchange via optical fibre network between stations. Kavach operates through continuous real-time communication between trackside systems and locomotives with an aim to prevent accidents. The prototype developed through the collaboration has received approval from RDSO for field trials and is currently undergoing testing, with both hardware and software modules being developed.
What Kavach Costs
Jayaraj Rajapandian, Head – Aerospace, Rail and Off-Highway at Tata Elxsi, told ET Infra that operational deployment of indigenous train protection, which will have a flexible architecture, will cost one-fifth less compared to similar systems deployed in advanced economies. He attributed this cost optimisation primarily to localisation, with engineers completely designing and developing the Kavach system from India.
Rajapandian said the Kavach architecture developed through the collaboration is modular and scalable, integrating artificial intelligence and machine learning, and that between Tata Elxsi and e2E or NOVA, the product being targeted as an architecture for Kavach 4.0 is also feature-ready in terms of Kavach 5.0, while also covering cyber security. According to Indian Railways, Kavach 5.0, which will be deployed on Vande Bharat 4.0 locomotives, is expected to significantly reduce inter-train headway, enabling a higher frequency of train operations while maintaining safe and efficient movement.
What's Next
Rajapandian said that since Kavach 5.0 is only a software update on top of the same architecture, it can also be carried forward for future readiness programs, with the product designed to meet global regulations and enable potential expansion into international markets. NOVA Control Tecnologix and Tata Elxsi are expecting their first Kavach trial order to begin in September and are aiming for full-scale commercialisation by the end of 2027-28. The investment in design and development is a 50:50 partnership, with NOVA committing ₹100 crore for safety-critical items over the next two to three years.
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