As per data collated by Projects Today, during Q3/FY20, a total of 4,649 project-related tenders were floated with an aggregate value of Rs 1,51,807 crore. The aggregate value of works proposed through tendering process saw a positive rise of around four percent in Q3/FY20 when compared with the preceding quarter. The overall value of work proposed through tendering process stood at Rs 1,45,671 crore in Q2/FY20.
However, the number of tenders floated during Q3/FY20 were 10 percent less than such tenders issued in the preceding quarter. As against 4,649 tenders floated in Q2/FY20, a total of 5,161 project tenders were floated during Q3/FY20.
Tender by Ownership
Although the government sector accounts for around 99 percent of the project tendering activities, among the central and state agencies, the various state owned agencies account for bulk of the project tendering.
Accounting for 70.14 percent, the state government agencies issued 3,261 tenders worth Rs 67,901 crore during Q3/FY20 as against 3,647 tenders worth Rs 96,728 crore published in Q2/FY20. The 30 percent fall in tender values and 10.6 percent fall in the number of tenders floated by the state owned agencies may be attributed to the recent state Assembly elections held in major states like Haryana, Maharashtra and Jharkhand. We expect this trends to reverse in Q4/FY20.
Though the Central government could not increase the number of total tenders floated in Q3/FY20 vis-à-vis Q2/FY20, the aggregate tender value offered shot up by 72.4 percent in the quarter ended December 2019. In all, 1,306 project tenders with a contract value of Rs 83,322 crore were issued by the Central government during Q3/FY20 as compared to 1,429 tenders worth Rs 48,335 crore in Q2/FY20.
Roadways remains frontrunner in project tendering
Among the major sectors, where increased number of tendering is done by the implementing authorities, Roadways, Railways, Power Distribution, Real Estate and Tourism sectors saw healthy tendering activities in Q3/FY20.
Roadways maintained its high growth rate of 50+ percent in the last two quarters. Two Central government owned agencies — National Highways Authority of India (NHAI) and National Highways & Infrastructure Development Corporation (NHIDCL) were found very active in Q3/FY20.
NHAI, which issued 162 tenders related to various road works worth Rs 12,713 crore in Q2/FY20, published 170 tenders worth Rs 43,203 crore in Q3/FY20. During the period, NHAI issued tenders for eight packages for construction of eight-lane access-controlled expressway under Vadodara-Mumbai Expressway project. The nodal agency invited bids for roadworks for Phase-1 Packages VI, VII, VIII, IX, X and Phase-2 Packages XI, XII, XIII on Hybrid Annuity mode (HAM) under Bharatmala Pariyojana with an aggregate value of Rs 10,057 crore.
The National Highways & Infrastructure Development Corporation (NHIDCL) also floated some major tenders during the period. A total of 28 tenders with work order worth Rs 5,195 crore were issued by NHIDCL. One of the notable tenders issued by the agency was for design, engineering, supply and construction of four-lane bridge over Brahmaputra river between Dhubri and Phulbari in the states of Assam and Meghalaya. The value of the work is Rs 3,548.5 crore.
In all, the Roadways sector issued 1,266 tenders worth Rs 64,976 crore in Q3/FY20 and accounted for 27.23 percent of the total share of the project tendering during the quarter. In the preceding quarter the sector had seen issuance of 1,470 tenders worth Rs 41,426 crore.
The Railways sector floated 392 tenders worth Rs 19,692 crore in Q3/FY20. When compared to the previous quarter, in terms of value the sector reported a positive growth of 46.59 percent. However, in terms of number, a deceleration of 9.47 percent was posted during the same period. In Q2/FY20, the Railways had issued 433 tenders worth Rs 13,433 crore.
The Rail Vikas Nigam remained the frontrunner during Q3/FY20 and issued 14 tenders worth Rs 7,740.63 crore. RVNL issued four major tenders (under Packages 1, 7A, 7B and 9) for works in connection with new BG line between Rishikesh-Karanprayag in Uttarakhand. The aggregate value of these major tenders was Rs 5,980 crore. The work involves construction of tunnel, bridges & formation works.
Apart from this, the Bangalore Metro Rail Corporation also issued five work-related tenders for a total value of Rs 1,339 crore. Of these, two major tenders were for construction of elevated structures at metro stations — Central Silk Board, HSR Layout, Kodibeesanahalli, Marathahalli & K R Puram of Bengaluru Metro Rail Project worth Rs 1,325 crore.
The Rail Land Development Authority invited bids for development of railway land on lease for 99 years at Ashok Vihar on Swami Narayan Marg, New Delhi, worth Rs 1,280 crore.
In Community Services sector, the Central Public Works Department remained the torchbearer in issuing tenders during Q3/FY20. The Central Public Works Department floated 16 tenders for various works with an aggregate value of Rs 1,916 crore. One of the major tenders issued by CPWD was for construction of permanent campus for the Indian Institute of Technology, Dharwad (Phase-1A) worth Rs 773.14 crore.
The UP State Construction & Infrastructure Development Corporation floated nine tenders for construction of various schools of Kendriya Vidyalaya Sangathan in the states of Chhattisgarh and Madhya Pradesh.
Apart from this, the Karnataka Housing Board floated 13 separate tenders under different packages for appointment of project management consultants (PMC) for construction of a first-grade college building at various places.
The Power Distribution sector saw issuance of 414 tenders worth Rs 4,822 crore in Q3/FY20 as against 437 tenders worth Rs 3,655 crore in Q2/FY20. In terms of number most of the tenders related to works of power distribution were floated in the state of Karnataka. The state floated 81 tenders for works in Bengaluru, Mysuru, Ballari, Belagavi, Davangere, Shivamogga, among others. The most notable tender was floated by the Bangalore Electricity Supply Company for conversion of 11 kV OH line into UG cable, running of new feeder in Hebbal division worth Rs 176.02 crore.
In terms of value, Bihar floated Rs 1,154.4 crore (26 numbers) tenders for power distribution related works. Most of these tenders were invited by the North Bihar Power Distribution Company (14 tenders) and South Bihar Power Distribution Company (10 tenders). Of the total, 18 tenders worth Rs 1,084 crore were for providing service connection with LT line extension and agriculture connection.
A major reduction was witnessed in Water & Sewerage Pipeline & Distribution. The sector which issued 396 tenders worth Rs 20,569.5 crore in Q2/FY20 floated 368 tenders worth Rs 5,507 crore in Q3/FY20. During the preceding quarter (Q2/FY20), three major tenders with an aggregate value of Rs 12,098 crore under Marathwada Water Supply Grid project was issued by Maharashtra Jeevan Pradhikaran, which lifted the overall tender in this sector.
In Q3/FY20, the notable tender was issued by the Visvesvaraya Jala Nigam worth Rs 614.56 crore for construction of gravity piped distribution network for tank filling from Chitradurga branch canal under Upper Bhadra project in Karnataka.
In the Real Estate sector, 228 tenders worth Rs 13,085 crore were floated Q3/FY20 against 241 tenders worth Rs 7,024 crore issued in Q2/FY20.
As per the latest update by the government, Pradhan Mantri Awas Yojana-Urban (PMAY-U) accomplished sanctioning of 1.03 crore houses. Out of 1.12 crore housing demand, 1.03 crore houses have been sanctioned and 32 lakh houses have been completed under the scheme.
Over the last six months, under PMAY 128 tenders have been issued across Andhra Pradesh, Tamil Nadu, Madhya Pradesh, Gujarat, Maharashtra, among others. Of this, Andhra Pradesh has issued 14 tenders worth Rs 3,396 crore followed by Jharkhand (24 tenders) and Madhya Pradesh (six) worth Rs 1,415 crore and Rs 1,350 crore respectively.
Registering a sharp surge in the tendering activity during Q3/FY20, among the states, Karnataka grabbed the top spot with 743 tenders worth Rs 18,391.42 crore in Q3/FY20 as against 545 tenders worth Rs 8,035 crore floated in Q2/FY20.
Maharashtra which topped the table in Q2/FY20 had to climb down to the third spot in Q3/FY20 mainly because of the slowdown in tendering activities due to the state assembly election held in October 2019. A total of 307 tenders with an aggregate value of Rs 13,795 crore were issued for various works across the state. For similar reason, Jharkhand and Haryana which ranked fourth and eight in the top 10 list did not make it to the list in Q3/FY20.
Among the states, the top 10 ones – Karnataka, Tamil Nadu, Maharashtra, Uttar Pradesh, Andhra Pradesh, Gujarat, Rajasthan, Madhya Pradesh, Telangana and West Bengal – accounted for 63.82 percent of the total project tenders announced across the country.