Shares of CG Power and Industrial Solutions Ltd fell 2% after touching a day’s high of Rs 709.55 on 24th November, after the company announced that an order for KAVACH systems won by one of its units had been cancelled.

CG Power said in its exchange filing that G.G. Tronics India Pvt. Ltd. had received an order from Chittaranjan Locomotive Works in November 2024. The order was to supply Loco Kavach systems under the developmental category.

The order, worth about Rs 600 crore, now stands cancelled. It covered the supply, installation, testing, and commissioning of on-board KAVACH equipment as per RDSO specifications, along with 11 years of annual maintenance.

The delivery timeline was 12 months. It was subject to product development, independent safety assessment (ISA), RDSO approval, and full compliance with version 4.0 specifications. CG Power said the ISA and RDSO approvals are now in the final stage.

However, due to these approval delays, the supply could not start within the stipulated deadline. This led to the cancellation of the order.

Even so, G.G. Tronics will still be eligible for future tenders under the Developmental Category. The filing also noted that the company has made strong progress in developing and validating the Uniform Braking Algorithm. They are also defining braking parameters for multiple locomotive classes.

At 10:52 AM, shares of CG Power were trading 1.47% lower at Rs 699.75 on NSE.

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