In an exchange filing, the company said 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, which will be executed over a period of 54 months, involves critical civil and hydro-mechanical works, including construction of tunnels, surge shafts, pressure shafts, power house infrastructure and associated systems.
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The scope of the project includes building key components such as head race tunnels, access adits, pressure shafts, butterfly valve chambers, as well as the installation of steel liners and other supporting infrastructure required for efficient water conveyance and power generation.
Commenting on the development, Managing Director Kavita Shirvairkar said, “We are pleased to begin Q1 FY27 on a positive note, having been declared L1 for this important order of approximately ₹1,600 crore.” She added that Nepal holds significant hydroelectric potential and the Lower Arun project is “a significant step toward harnessing that energy for sustainable growth.”
“With our ongoing work at Arun-3 Hydropower project and our proven track record, we are committed to bringing world-class engineering and timely execution to Lower Arun,” Shirvairkar said.
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The company also clarified that the contract has been awarded by an international entity and does not involve any related party transactions.
Following the announcement, shares of the company jumped over 2%, but have pared most of their gains since then. Patel Engineering shares were trading 0.88% up at ₹28.60 as of 11.15 am. The stock has surged over 21% in the last month, while delivering a negative 32% return over the last 12 months.
