Patel Engineering Limited Declared Lowest Bidder for ₹ 1,593.08 Crore Lower Arun Hydro-Electric Project Package
Patel Engineering Limited (PEL) has been declared the Lowest Bidder (L1) for a major contract related to the Lower Arun Hydro-Electric Project (669 MW) in Nepal. The contract, valued at ₹ 1,593.08 crores (inclusive of VAT), is for Package 2 and was awarded by SJVN Lower Arun Power Development Company (P) Ltd. (SLPDC).The significant contract marks a key developmental milestone for Patel Engineering Limited, an infrastructure company with a presence in hydropower, tunnelling, and irrigation segments.
Contract Details and Scope
The project, situated in the Sankhuwasabha District of Nepal, encompasses the execution of critical civil and hydro-mechanical works essential to the Lower Arun Hydro-Electric Project.The scope of Package 2 is extensive, including:
- Construction of Adit-5 and Adit-6 leading to the Head Race Tunnel.
- Execution of the Part Head Race Tunnel, which measures 10.5 meters in diameter and extends 5.41 kilometers.
- Development of the Surge Shaft and its gates.
- Work on the Pressure Shaft, including the Butterfly Valve Chamber and Access Adit.
- Construction of the Power House, Switchyard, Surface Pothead Yard, and Tail Race Channel.
- Installation of steel liners for the Pressure Shafts, Draft Tube Gates and hoists, along with completing associated road works and supporting infrastructure.
The project is scheduled for completion within 54 months.
Contract Overview Summary
The core terms and conditions of the contract award are summarized below:| Detail | Description |
|---|---|
| Contract Awarding Entity | SJVN Lower Arun Power Development Company (P) Ltd. |
| Project Name | Lower Arun Hydro-Electric Project (669 MW) Package 2 |
| Total Consideration | ₹ 1,593.08 Crores (inclusive of VAT) |
| Execution Timeline | 54 months |
| Geographical Location | Sankhuwasabha District, Nepal |
| Contract Nature | International (Civil and Hydro-mechanical works) |
Company Insight
Patel Engineering Ltd., established in 1949, possesses a 77-year history and a proven track record in executing projects both domestically and internationally. The company has successfully completed over 85 dams, 40 hydroelectric projects, and more than 300 km of tunnelling for various clients, primarily central Public Sector Undertakings or state government organizations.In commenting on the development, Ms. Kavita Shirvairkar, Managing Director of Patel Engineering, stated that the award is a contribution towards Nepal's vision of energy independence and regional prosperity. She noted the company's commitment to bringing world-class engineering and timely execution to Lower Arun, particularly given its ongoing work at the Arun-3 Hydropower project located approximately 35 km from the Lower Arun site.
PATELENG Stock Price Movement
Shares of Patel Engineering Limited are edging higher to ₹29.15 as of 10:51 AM today, having gained 2.82% in live trading. The stock is demonstrating strong momentum, with 8.36 million shares transacting in the current session.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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