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Project Tendering affected by COVID-19 induced lockdownProject tendering activities witnessed a downward trend in terms of both tenders issued and their collective value in Q1/FY22 as compared to Q4/FY21. As against 13,129 project tenders worth Rs 2,38,915 crore announced in Q4/FY21, the country saw announcement of 8,362 tenders worth Rs 1,39,561 crore in Q1/FY22. The tendering activity nosedived as states re-imposed partial or localised complete lockdown due to the second wave of COVID-19 pandemic.

As seen in the fresh projex arena, projects tendering too witnessed fall in mega-value tenders (Rs 1,000 crore and above) during April-June 2021 period. As against 36 high-ticket tenders worth Rs 73,525.08 issued in Q4/FY21, only 14 tenders worth Rs 31,834.97 crore were issued in Q1/FY22 indicating a fall of 56.7 percent.

The 14 mega tenders accounted for around 22.81 percent of the total value of Rs 1,39,561.24 crore project tenders issued in Q1/FY22.

Ownership

The government sector accounts for around 99 percent of the project tendering activities. Accounting for a share of 78.03 percent, state government agencies issued 6,525 tenders worth Rs 80,849 crore during Q1/FY22 as against 10,837 tenders worth Rs 1,47,925 crore published in Q4/FY21. The number of tenders floated witnessed a downfall of 39.79 percent and in terms of value, the tendering activities toppled by 45.34 percent by state-owned agencies. In addition to the COVID-19 2.0 wave, elections in major states like Assam, Kerala, Tamil Nadu and West Bengal also led to fall in tenders floated by state government agencies.

Re-surfacing of COVID-19 in the first quarter of FY21, also led to fall in Central government agencies sponsored project tenders. Such agencies, issued 1,713 tenders worth Rs 58,166 crore during Q1/FY22 as compared to 2,157 tenders worth Rs 90,444 crore published in Q4/FY21.

Major Sectors

The Services & Utilities (Infrastructure), Irrigation and Mining sectors remained frontrunners in tendering activities during the first quarter.

The Infrastructure sector accounted for 91.94 percent of the total tender value floated in Q1/FY22. However, on Q-o-Q basis it recorded a fall of 40.54 percent in terms of tender value. A total of 7,688 project tenders worth Rs1,18,564.08 crore were floated in the first three months of this fiscal as against 11,726 tenders worth Rs 1,99,409.56 crore issued in the previous quarter.

Within the Infrastructure sector project tendering activities in the Roadways, one of the happening and the major tendering sectors, clocked 2,422 road building tenders worth Rs 43,210 crore in Q1/FY22. Despite this, a steep downfall was seen both, in tender numbers (53.42 percent) and aggregate value (60.13 percent).

As against 27 mega-value highway-building tenders worth Rs 49,451.53 crore issued in Q4/FY22, only seven tenders worth Rs 11,229.47 crore were floated in Q1/FY22. The National Highways Authority of India (NHAI) issued all the seven high-value tenders.

NHAI floated a mega-value tender for development/construction of different stretches of Delhi-Amritsar-Katra Expressway in Punjab and Jammu & Kashmir (Package-14 to 16) worth Rs 5,495.16 crore under the Bharatmala Pariyojana.

Another notable tender by NHAI was for development of six-lane access-controlled greenfield highway of Delhi-Saharanpur-Dehradun Economic Corridor in Delhi and Uttar Pradesh on EPC mode (Package-1 to 3) under Bharatmala Pariyojana. The estimated value of the works is Rs 2,591.06 crore.

The Water Supply sector saw 1,887 tenders with a total value of Rs 14,846.94 crore being floated in Q1/FY22. In the previous quarter, 1,691 tenders worth Rs 22,156.93 crore were issued for various water supply projects.

The most noteworthy tender in this sector was issued by the Public Health Engineering Department, Rajasthan, for execution of the Hindoli-Nainwa Water Supply Project, Chambal-Bhilwara WSP (Phase-I), worth Rs 726.42 crore. In all, the Public Health Engineering Department, Rajasthan, floated 508 tenders for various works worth Rs 6,716.69 crore.

The Community Services sector slipped from second spot to third spot in Q1/FY22 vis-à-vis Q4/FY21. In all, 1,284 tenders with a total value of Rs 14,867.36 crore were issued in the latest quarter, as against 2,113 tenders worth Rs 19,282 crore floated in Q4/FY21.

The Central Public Works Department issued a mega-value tender worth Rs 3,408.81 crore for construction of Common Central Secretariat integrated buildings 1, 2 & 3 in Plot-137, New Delhi.

NBCC (India) floated tender for construction of the National Sports University at Koutruk in Manipur worth Rs 649.33 crore. The project involves multipurpose sports hall, administration and academic block, faculty residences and civic amenities.

Despite a fall of 16 tenders, the Hospital sector registered a healthy 53.94 percent growth in projects tenders in terms of value. The sector saw 298 tenders with a total value of Rs 11,914.25 crore being floated in Q1/FY22, as compared to 314 tenders worth Rs 7,739.33 crore in Q4/FY21.

The Andhra Pradesh Medical Services & Infrastructure Development Corporation issued seven tenders worth Rs 5,079.34 crore for establishment and strengthening of government medical colleges at various locations in the state.

The Mining sector remained almost at the same level during three months of this fiscal as compared to the preceding quarter. In all, 60 mining tenders with an aggregate value of Rs 9,597.33 crore were issued during Q1/FY22. The Q4/FY21 period witnessed 62 tenders with an aggregate value of Rs 9,857.36 crore being issued.

Two high-value tenders were issued during the latest quarter. Central Coalfields floated tender for development and operation of Patratu ABC underground project at Barkasayal area in Jharkhand worth Rs 5,198.02 crore. Tenders were also issued by the Mahanadi Coalfields for development and operation of Subhadra OCP (West of Gopalprasad West & Utkal-A block) at Subhadra area in Odisha worth Rs 2,261.84 crore.

The Irrigation sector was the most affected because of the state elections in Assam, Kerala, Tamil Nadu and West Bengal. As against 952 tenders worth Rs 26,705.83 crore issued in Q4/FY21, only 291 tenders worth Rs 9,819.26 crore were floated in Q1/FY22.  On Q-o-Q basis the fall was steep at 63.23 percent in terms of tender value.

Visvesvaraya Jala Nigam issued a notable tender for construction of Jagaluru branch canal of Upper Bhadra project for filling of nine tanks and drip network for 18,423 ha in Karnataka (JBC-Package-1) worth Rs 1,036.76 crore. During the period, Visvesvaraya Jala Nigam issued 13 work-related tenders worth Rs 3,958.82 crore.

Tenders by States

Among the states, the top 10 – Maharashtra, Rajasthan, Uttar Pradesh, Odisha, Madhya Pradesh, Karnataka, Gujarat, Andhra Pradesh, Telangana, Jammu & Kashmir – accounted for 67.90 percent of the total tenders announced across the country during Q1/FY22.

Maharashtra continued to top the chart in both the quarters. The state issued 993 project tenders valued at Rs 11,646 crore in Q1/FY22.  Rajasthan stood second with 953 tenders worth Rs 12,055.49 crore and Uttar Pradesh took third position with 663 tenders worth Rs 9,286 crore.

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