Patel Engineering bags Rs 1,700 cr hydropower project in Arunachal Pradesh; stock rises 2%

Shares of Patel Engineering Ltd climbed on Thursday following the civil construction firm's announcement of signing a memorandum of understanding (MoU) with the Government of Arunachal Pradesh for a major hydropower project.

At last check on Thursday, Patel Engineering shares were trading 1.88% higher at Rs 31.40 on the BSE, against their previous close of Rs 30.82. In the preceding session on Wednesday, the counter had closed 6.09% higher.

The MoU entails the restoration and development of the 144 MW Gongri Hydropower Project located in the West Kameng District of Arunachal Pradesh. The project, situated on the Gongri river near Dirang town, was previously terminated but has been revived under the state’s Arunachal Pradesh restoration of terminated large hydropower policy under special circumstances, 2025. Notably, this marks the first project to be revived under this specific framework, Patel Engineering said in a filing to exchanges.

The total estimated value of the project is Rs 1,700 crore, with a completion timeline of approximately four years. The execution will be carried out on a BOOT (Build-Own-Operate-Transfer) basis for a lease period of 40 years, after which ownership will transfer to the state government.

Commenting on the development, Kavita Shirvaikar, Managing Director, Patel Engineering, said, "We are proud to partner with the Government of Arunachal Pradesh in reviving the Gongri Hydroelectric Project. This collaboration underscores our commitment to renewable energy and sustainable development".

According to data from Trendlyne, the momentum indicator relative strength index (RSI) for the stock stands at 42.1, indicating it is in the mid-range. However, the money flow index (MFI) is at 18.2, suggesting the stock is in a strongly oversold zone.