Rawat, a 22-year-old soldier, had lost his life in the 1962 Indo-China war.
The film will be directed by Khanduri and produced by Rakeysh Omprakash Mehra.
"It's a biopic so we have to be careful with what we are showing. It is a difficult film, but the story is worth telling. We have to take care of the grace of the martyr," Khanduri told PTI.
"At the same time we have to make sure the entertainment quotient is high so that it (story) enthralls the audience. Films like 'Paan Singh Tomar', 'Neerja' are best examples of reality meets entertainment," said the "Ek Chalis Ki Last Local" fame director.
"We have been taking help of family and Army officials for the film. They are quite co-operative," said Rajiv Tandon, CEO, Rakeysh Omprakash Mehra Pictures Pvt Ltd.
The makers are yet to zero-in on on the lead actor for the film.
When asked if they would go for an established star, Rajiv says, "We will have a casting agent do the job for us. We will not have anyone in the film just for the heck of it. Whoever suits the role, we will go with it."
The film will go on floors this year and it will be shot primarily in Arunachal Pradesh.
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