Patel Engineering Declared L1 Bidder For ₹1,593 Crore Nepal Hydropower Project Deal

Patel Engineering Limited has secured the lowest bidder (L1) position for a ₹1,593.08 crore contract related to Package 2 of the 669 MW Lower Arun Hydropower Project in Nepal.

The contract has been awarded by SJVN Lower Arun Power Development Company Pvt. Ltd., a subsidiary of SJVN.

Following the announcement, Patel Engineering shares closed at ₹28.46, up 0.39% on the National Stock Exchange on 23 April 2026.

What The Project Involves

The contract covers critical civil and hydro-mechanical works for the Lower Arun project. The scope includes construction of headrace tunnels measuring 10.5 meters in diameter and stretching for 5.41 kilometres, surge shafts, pressure shafts, a butterfly valve chamber, and a powerhouse with a switchyard and tailrace channel.

The package also includes installation of steel liners, draft tube gates and hoists, and associated road works and supporting infrastructure. The project is to be completed within 54 months. The project is located near Tumlingtar in the Sankhuwasabha district of Nepal, around 264 km from Siliguri, India.

Management Upbeat About The Win

Managing Director Kavita Shirvaikar said the company was happy to kick off Q1 FY27 with a large order of around ₹1,600 crore. She believes Nepal has enormous hydroelectric potential and sees the Lower Arun project as an important move toward tapping that energy for long-term, sustainable growth.

Shirvaikar also pointed out that Patel Engineering is currently working on the Arun-3 Hydropower Project, located just 35 km from the Lower Arun site. She said this gives the company a clear advantage in the region, and reaffirmed its commitment to delivering high-quality work on time.

The company also clarified that since the contract has been awarded by an international entity, it does not involve any related party transactions.

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About Patel Engineering

Established in 1949, Patel Engineering has built a strong track record in hydropower, tunnelling, and irrigation projects across India and internationally. The company has completed over 85 dams, 40 hydroelectric projects, and more than 300 km of tunnelling, working primarily with central PSUs and state government organisations.

Sources:

CNBC

Business Upturn