Kernex Microsystems (India) Limited has entered into a joint venture with Bharat Heavy Engineering Private Limited to collaborate on the development of advanced railway signalling technologies. The partnership was officially announced on March 7, 2026.
The joint venture will focus on developing a Moving Block System integrated with Automatic Train Supervision (ATS) and Automatic Train Operation (ATO) on the Kavach platform, along with Centralised Traffic Control (CTC) capabilities. The initiative aims to support modernisation and safety improvements in India’s railway signalling infrastructure.
Structure of the Joint Venture
According to the agreement, the shareholding structure of the new joint venture will allocate 51% ownership to Kernex Microsystems and 49% to Bharat Heavy Engineering. However, the shareholding pattern may be adjusted in the future depending on the scale and scope of specific projects.
No Changes to Management Control
The company clarified that the joint venture arrangement will not affect the management or operational control of Kernex Microsystems. The agreement does not grant any special rights, such as the ability to appoint directors or impose restrictions on changes in the company’s capital structure.
Additionally, the listed entity will not face any additional liabilities or management restrictions as a result of this partnership.
Arm’s Length Transaction
Kernex Microsystems confirmed that the deal does not qualify as a related-party transaction and has been executed at arm’s length. The company also stated that no equity shares will be issued to Bharat Heavy Engineering under the terms of the agreement.
Disclosure and Termination Provisions
The company further clarified that there are no provisions related to nominee directors or potential conflicts of interest under the joint venture structure.
In the event of any modification or termination of the agreement, Kernex Microsystems will provide the required disclosures to the stock exchanges in accordance with regulatory requirements.
Summary:
Kernex Microsystems (India) Limited has formed a joint venture with Bharat Heavy Engineering Private Limited to develop advanced railway signalling solutions, including a Moving Block System integrated with ATS and ATO on the Kavach platform along with CTC. Under the agreement, Kernex will hold 51% stake and Bharat Heavy Engineering 49%, with flexibility for adjustments based on project requirements. The company confirmed that the arrangement does not affect its management control, involves no related-party transaction, and does not include any share issuance.
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