Patel Engineering Ltd. has been declared the lowest bidder (L1) for a ₹1,593.08 crore contract for the Lower Arun Hydropower Project in Nepal. According to an exchange filing, the order has been awarded by SJVN Lower Arun Power Development Company Pvt. Ltd., a subsidiary of SJVN, for Package 2 of the 669 MW project located in the Sankhuwasabha district. The contract will be executed over a 54-month period and involves critical civil and hydro-mechanical works including construction of tunnels, surge shafts, pressure shafts, power house infrastructure and associated systems.
The scope of the project encompasses building key components such as head race tunnels, access adits, pressure shafts, butterfly valve chambers, as well as installation of steel liners and other supporting infrastructure required for efficient water conveyance and power generation. As reported by CNBC TV18, the contract involves construction of tunnels, surge shafts, pressure shafts, power house infrastructure and associated systems. The latest details reveal that the contract includes construction of Adit-5 and Adit-6 which provide access to the head race tunnel, as well as excavation of a 5.41-kilometer section of the tunnel with a 10.5-meter diameter. Additional components include surge shaft, pressure shafts, butterfly valve chamber, power house, switchyard, and tail race channel.
The project is strategically positioned near Tumlingtar, approximately 264 km from Siliguri, India, strengthening the company's presence in international infrastructure and hydroelectric development. This win follows the company's existing involvement in the nearby Arun-3 Hydropower project, highlighting a concentrated operational advantage in the region. The project's location near established infrastructure provides operational synergies and positions the company well for future hydroelectric developments in the region.
Commenting on the development, Managing Director Kavita Shirvairkar stated, "We are pleased to begin Q1 FY27 on a positive note, having been declared L1 for this important order of approximately ₹1,600 crore." According to CNBC TV18, Shirvairkar added that Nepal holds significant hydroelectric potential and the Lower Arun project is "a significant step toward harnessing that energy for sustainable growth." She emphasized the company's commitment to bringing world-class engineering and timely execution to the project, leveraging their ongoing work at Arun-3 Hydropower project and proven track record of completing over 85 dams and 40 hydroelectric projects throughout their 77-year history.
Following the announcement, shares of Patel Engineering jumped over 2% but have pared most of their gains since then. As reported by CNBC TV18, the company's shares were trading 0.88% up at ₹28.60 as of 11.15 am on Thursday, April 23. The stock has surged over 21% in the last month, while delivering a negative 32% return over the last 12 months.
