Mumbai-based infrastructure giant Patel Engineering Limited (PEL) has reached a significant milestone by being declared the lowest bidder (L1) for a major hydropower contract in Nepal. The project, valued at ₹1,593.08 crore (inclusive of VAT), was awarded by SJVN Lower Arun Power Development Company (P) Ltd. (SLPDC), a wholly-owned subsidiary of the Indian public sector undertaking, SJVN.
Project Scope and Significance
The contract relates to Package 2 of the 669 MW Lower Arun Hydro-Electric Project located at Sankhuwasabha district of Nepal. The package entails complicated civil and hydro-mechanical activities necessary for building up the required project infrastructure. The major jobs include excavation and lining of 5.41 kilometers long Head Race Tunnel, construction of surge and pressure shafts, and powerhouse. Furthermore, steel linings, gates, and hoists will be installed and roads constructed.
The project is strategically located near Tumlingtar, just 35 km away from the Arun-3 Hydropower project, where Patel Engineering is already active. This proximity allows the company to leverage its existing resources and expertise in the region. The entire project is scheduled to be completed within 54 months.
Leadership Perspective
Commenting on the win, Ms. Kavita Shirvairkar, Managing Director of Patel Engineering, expressed her optimism for the new financial year. “We are pleased to begin Q1 FY27 on a positive note, having been declared L1 for this important order of approximately ₹1,600 Crores,” she said. She highlighted that the project is a vital step toward Nepal’s energy independence and regional prosperity, adding, “We are committed to bringing world-class engineering and timely execution to Lower Arun, ensuring it becomes a benchmark for development in the region.”
Market Reaction
This announcement, made on Thursday, April 23, 2026, immediately generated a positive reaction from the stock market. The shares of Patel Engineering rose by over 2% in the early trading sessions after this filing was done. Although the price of the shares later stabilized at about ₹28.60 (an increase of 0.88%), the statement highlights the company’s dominance in the renewable energy industry and its capability to win lucrative foreign contracts.
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