Shares of Patel Engineering Ltd ended 1.75% higher on 18th December. This increase followed the company’s announcement of signing a memorandum of understanding (MoU) with the government of Arunachal Pradesh. The MoU is for the restoration and development of the 144 MW Gongri Hydropower Project in the West Kameng district.

In an exchange filing, Patel Engineering said the Gongri Hydropower Project, which was earlier terminated, has been revived under the state’s newly notified “Arunachal Pradesh Restoration of Terminated Large Hydropower Policy under Special Circumstances, 2025.” The Gongri project is the first hydropower project to be restored under this policy. Furthermore, it has received approval from the state cabinet.

The total project cost is estimated at around Rs 1,700 crore, with construction expected to take about four years.

Commenting on the development, Managing Director Kavita Shirvaikar said the collaboration reflects the company’s focus on renewable energy and sustainable development. Additionally, it delivers socio-economic benefits to local communities.

Under the MoU, Patel Engineering will handle the entire project lifecycle. This includes preparation of the detailed project report (DPR), engineering and design, and procurement of equipment. Moreover, it covers construction of the dam and powerhouse, installation and commissioning of turbines and generators, and development of transmission infrastructure.

The project will be implemented on a BOOT (Build-Own-Operate-Transfer) basis with a 40-year lease period. After this, the asset will be transferred to the Arunachal Pradesh government.

Hydropower is a key part of Arunachal Pradesh’s growth strategy. It is aimed at expanding clean energy capacity, creating jobs, and supporting regional infrastructure development.

Separately, in November, the company secured two letters of intent worth Rs 798.19 crore for a coal excavation and transportation project in Chhattisgarh. As of the end of the September quarter, Patel Engineering’s order book stood at Rs 15,146.4 crore.

At 3:30 PM, shares of Patel Engineering ended 1.72% higher at Rs 31.28 on NSE.

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