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The aggregate value of work proposed through project tendering registered a growth of 18.58 percent Q-o-Q in Q2/FY19. In all, 8,580 project tenders worth Rs 1,91,985 crore were published in Q2/FY19 as against 8,352 tenders worth Rs 1,62,338 crore floated in Q1/FY19.

The uptick in the tendering process was mainly due to increased tendering activities by state government-owned entities. Tendering by these entities registered a growth of 39.66 percent in Q2/FY19 when compared with the preceding quarter.

Although the government sector accounts for nearly 99 percent of the project tendering activities, bulk of the tendering is done by state government-owned agencies. Accounting for 78.53 percent, the 6,935 tenders worth Rs 1,50,582 crore issued by state governments during Q2/FY19 compared well with Q1/FY19 figures of 6,284 tenders worth Rs 1,07,814 crore.

As against this, a sharp fall was seen in tendering by the Central government. The share of total project tender values floated by the Central government agencies came down to 21.46 percent in Q2/FY19 from 33.32 percent in Q1/FY19. In all, 1,543 project tenders with a contract value of Rs 41,157 crore were issued by the Central government during the latest quarter.

Major sector-wise, Services & Utilities (Infrastructure) topped the table by accounting for 87.14 percent of the total project tender value floated in Q2/FY19. The sector saw a positive growth of 21.19 percent Q-o-Q with 7,598 tenders worth Rs 1,67,304 crore being floated in Q2/FY19. In the previous quarter, 7,330 tenders with work order worth Rs 1,38,042 crore were issued.

Within the Services & Utilities sector, Roadways, Community Services and Water Pipelines & Distribution were the leading sectors in issuing tenders. Roadways with 2,894 project tenders, valued at Rs 62,547 crore, accounted for around one-third of the total value of the tenders issued in Q2/FY19.

Among the tender issuers, the Public Work Departments of state and Central government issued the highest number of roadways tenders in the latest quarter. It was followed by the National Highways Authority of India (NHAI) which floated tenders (231) worth Rs 13,788 crore in Q2/FY19.

Community Services, comprising sub-sectors like Hospitals, Tourism & Recreation, Water Pipelines and Distribution, registered a strong growth of 169 percent Q-o-Q in Q2/FY19. Under this segment work orders worth Rs 32,587 crore were proposed through tendering in Q2/FY19 as against Rs 12,113 crore floated in Q1/FY19.

A notable project tender floated in this sector was for investigation, design and construction of roads, water supply for land pooling schemes at Kuragallu, Nowluru & Nidamarru villages in Andhra Pradesh. The tender value was Rs 1,644.56 crore.

Project tendering activities in the Railways, one of the major tendering sectors, nearly halved in Q2/FY19. As against 824 tenders worth Rs 21,163.87 crore issued in Q1/FY19, only 469 tenders worth Rs 10,524.15 crore were issued in Q2/FY19. Traditionally, fresh tenders on large scale are issued by the Railways in the post-budget quarter.

A 26.7 percent rise was seen in tendering in the Irrigation sector in Q2/FY19. A total of 507 tenders with an aggregate value of Rs 18,813 crore were issued in Q2/FY19 against 559 tenders worth Rs 14,849.41 crore in the preceding quarter.

The Narmada Water Resources, Water Supply & Kalpsar Department issued one of the notable tenders in this sector. The scope of work included construction of 1.637 km long Bhadbhut barrage comprising river diversion work under Phase-1 development programme in Gujarat. The cost of work was Rs 2,376.28 crore.

On reflection, the uncertainties faced by a number of thermal power projects, tendering activities nearly halved in Q2/FY19. In all, 295 project tenders valued at Rs 3,666 crore were floated in the latest quarter.

One of the most notable tenders was floated by THDC India for steam generator and associated packages, including site levelling for Khurja Super Thermal Power Project (STPP) (2×660 MW) located at Dushahara village in Khurja taluka of Bulandshahr district of Uttar Pradesh. The estimated value of the contract is Rs 3,555.55 crore.

Among the states – Andhra Pradesh, Maharashtra, Madhya Pradesh, Bihar, Odisha, Rajasthan, Jharkhand, Gujarat, Telangana, Tamil Nadu – accounted for 59.5 percent of the total value of the project tenders announced across the country in Q2/FY19. While Maharashtra floated the highest number of tenders (1,468) worth Rs 23,211 crore, Andhra Pradesh accounted for the highest aggregate value of tenders worth Rs 27,390 crore during the Q2/FY19.


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