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TenderDuring Q2/FY20, 4,857 project tenders were floated with an aggregate value of Rs 1,37,743 crore. This indicated a rise of 14 percent in tendering activities when compared with Q1/FY20 figures of 4,271 project tenders with an aggregate value of Rs 1,02,400 crore.

The uptick in the aggregate value of tendering process was enabled mainly because of increased tendering seen in the Water Supply and Roadways sectors.

The tendering activity in the Water Supply sector rose from a mere Rs 5,606 crore in Q1/FY20 to Rs 20,128 crore in Q2/FY20. Three mega tenders with an aggregate value of Rs 12,098 crore were floated by the Maharashtra Jeevan Pradhikaran, which lifted the overall value in this sector. The state government agency has taken up development of Marathwada Water Supply Grid in three packages in Bid (Beed), Aurangabad, Jalna, Latur & Osmanabad districts of Maharashtra.

In all, the state of Maharashtra saw 83 tenders worth Rs 13,415 crore being floated in the Water Supply sector.

Roadways is another sector to witness good increase in tendering activities in Q2/FY20 on Q-o-Q basis. The sector registered a growth of 59 percent Q-o-Q with 1,319 tenders worth Rs 39,177 crore being floated in Q2/FY20. The handsome growth in tendering activities led to increase in the share of the sector from 24.21 percent in Q1/FY20 to 27.16 percent in Q2/FY20. In the previous quarter, various work orders worth Rs 24,548 crore were invited through tendering in the Roadways sector.

The most notable Roadways tender of the quarter was issued by the Municipal Corporation of Greater Mumbai for pre-qualification for construction of twin tunnel below SGNP from Amar Nagar, Mulund to Film City Goregaon under the Goregaon-Mulund Link Road Project. The contract value of the tender was Rs 4,770 crore.

Another major tender was invited by the Ministry of Road Transport & Highways (MoRTH) for construction of two-lane road of Potin to Pangin section of NH-13 in nine separate packages with an aggregate value of Rs 3,397 crore.

Apart from this, the National Highways Authority of India (NHAI) also issued some major tenders for works of Delhi-Vadodara Greenfield Alignment on EPC basis. The nodal agency floated tenders with an aggregate value of Rs 5,926 crore across Madhya Pradesh and Rajasthan for construction of eight-lane access controlled expressway.

In all, NHAI invited 157 tenders worth cost Rs 11,130.08 crore while PWD, Maharashtra invited 258 tenders worth Rs 3,362.03 crore in Q2/FY20.

The Healthcare sector too entered a higher growth trajectory in Q2/FY20. Aggregate tendering in this sector grew from Rs 4,004 crore in Q1/FY20 to Rs 10,563 crore in Q2/FY20.

The most notable tender was issued by the Bihar Medical Services & Infrastructure Corporation for redevelopment of Patna Medical College & Hospital for setting up a 250-seat medical college and 5,462-bed hospital along with other buildings at the existing campus at Ashok Rajpath in Patna. The total value of the tender was Rs 4,832 crore.

Project tendering activities in the Railways, one of the major tendering sectors, saw a downfall of nearly 37 percent in Q2/FY20. As against 749 tenders worth Rs 18,689 crore issued in Q1/FY20, only 424 tenders worth Rs 11,783.62 crore were floated in Q2/FY20. A majority of these tenders were floated by the Delhi Metro Rail Corporation (14 tenders worth Rs 3,737 crore) and the East Central Railway (56 tenders worth Rs 765.25 crore).

The Community Services saw 786 tenders worth Rs 10,535.84 crore being floated in Q2/FY20. The sector accounted for a share of 16 percent of the total tenders floated during the latest quarter ended on 30 Sept 2019. The most notable tender in this sector was issued by the Central Public Works Department for construction of main campus of the Indian Institute of Technology, Jammu on EPC basis. The contract value of the project was Rs 608.45 crore.

Among the states, the top ten states – Maharashtra, Karnataka, Jharkhand, Tamil Nadu, Uttar Pradesh, West Bengal, Gujarat, Haryana, Bihar, Rajasthan – accounted for 67.20 percent of the total project tenders announced across the country.

Maharashtra and Karnataka claimed the top two positions in Q1 as well as Q2 of FY20. The state of Jharkhand over took Uttar Pradesh in Q2/FY20 to grab the third spot. However, we would see fall in tendering in Maharashtra and Jharkhand in Q3/FY20 as both the states have entered the election mode.

Major consultancy tenders were floated by:

  • Maharashtra Airport Development Company for financial feasibility study of Shirdi airport influence area city in Ahmadnagar district of Maharashtra.
  • Madurai Smart City for project management consultant (PMC) for improvement of water supply distribution system in ABD area under Madurai smart city in Tamil Nadu.
  • The Public Works Department, Assam for construction of Chief Minister’s residence, Ministers’ quarters at Dispur Capital Complex, Guwahati in Assam.
  • Madhya Pradesh Urban Development Company for selection of consultant for feasibility study & preparation of DPR for sewerage projects at various cities in Madhya Pradesh.
  • The Guwahati Metropolitan Development Authority for engagement of PMC for construction supervision & monitoring of 107 MLD South Guwahati West Water Supply project in Kamrup district of Assam.

In all, 4,857 project tenders worth Rs 1,37,743 crore were published during Q2/FY20. Among the floated tenders, 596 tenders were for providing various consultancy services. It also witnessed 125 expressions of interest (EoIs) being published for providing various services and execution of works.


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