Kavach rollout sets stage for ₹50,000 crore train protection opportunity

India’s plan to scale up its indigenous automatic train protection system, Kavach, is expected to unlock a ₹50,000 crore market over the next six to seven years as Phase-I implementation gathers pace, senior executives at Nova Control Tecnologix and Tata Elxsi told Business Standard.

Deeptech firm Nova Control Tecnologix, a subsidiary of Etoe Transportation Infrastructure, and Tata Elxsi have joined hands to co-develop Kavach 4.0.

The partnership, announced in October, positions Nova as the primary OEM responsible for manufacturing, testing and integration, while Tata Elxsi will handle hardware and software design, prototyping, safety certification and cybersecurity engineering. Both companies are also targeting export markets across Southeast Asia, Africa and West Asia.

Sourajit Mukherjee, director and chief executive officer of Nova, said the rollout presents a sizeable opportunity for the industry. “The average cost of installing the Kavach system per kilometre is ₹50–60 lakh, and Indian Railways has about 40,000 km likely to be covered initially. For each locomotive (loco), the initial investment will be ₹70–80 lakh."

"This means the safety segment is expected to see enormous demand for companies in the sector. Overall, Phase-I of Kavach could see investments of around ₹50,000 crore,” he said, adding that deployment across the network is expected within six to seven years.

Inside Kavach

Kavach is an indigenously developed ATP system that automatically applies brakes if a loco pilot does not act within prescribed speed limits, and supports safer operations during adverse weather. Field trials began in 2016, and the system was adopted nationally in 2020.

As of October 2025, government spending on Kavach stands at ₹2,354 crore, with ₹1,673 crore allocated for FY26.

The expansion aligns with Indian Railways’ rising focus on safety, with expenditure climbing from ₹39,463 crore in 2013-14 to ₹1.16 trillion in 2025-26.

Tata Elxsi’s Jayaraj Rajapandian said the upcoming architecture has been designed with long-term upgrades in mind. “From a technology standpoint, we are future-proofing our architecture so that when Kavach 5.0 comes, including cybersecurity and moving block, it becomes easier to adopt within the existing solution. This way, it will not require a major overhaul after Kavach 4.0. Compared to others in the industry, we will have a more future-ready architecture, enabling a smoother rollout of Kavach 5.0 whenever it comes,” he said.

Kavach Version 3.2 is currently deployed on 1,465 route km of South Central Railway and 80 route km of North Central Railway. Kavach 4.0, approved late last year, has been commissioned on the Palwal–Mathura–Kota–Nagda section (633 rkm) of the Delhi–Mumbai route and the Howrah–Bardhaman stretch (105 rkm) of the Delhi–Howrah route. Another 15,512 rkm is slated for rollout next.

Mukherjee added that a wider ecosystem of qualified vendors will be crucial, “It is not possible for just two or three players to deploy the system at the pace required. The Research Designs & Standards Organisation has opened up the ecosystem, and more than 10 players have approached it for approval."