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Project tendering activities across the country have regained momentum post lifting of COVID-19 induced lockdown. With the unlocking of the economy, the tendering activities have increased both at state and Central level.

The number of project-related tenders floated in H1/FY22 increased to 19,474 tenders as against 15,731 project tenders issued in H1/FY21. This indicated a rise of 23.79 percent in tendering activities when compared with H1/FY21.

In terms of value, as against Rs 3,58,085.52 crore tenders issued in H1/FY22, the H1/FY21 saw issuance of tenders worth Rs 3,61,730.54 crore.

As many as 37 high-ticket tenders (Rs 1,000 crore and above) worth Rs 87,098.5 crore were issued in H1/FY22. Most of these were from the Roadways, Telecom Services and Coal sectors. The 37 mega tenders accounted for around 24.32 percent of the total value of Rs 3,58,085.52 crore project tenders issued in H1/FY22.

Ownership

Project tendering activities in India are dominated by the public sector units and agencies. Following the unlocking of the economy, in terms of number, tendering activities increased both at state and Central level.

The state government agencies issued 15,170 tenders worth Rs 1,84,130.26 crore during H1/FY22 as against 11,800 tenders worth Rs 1,81,414.12 crore published in H1/FY21. On the other hand, the Central government floated 4,043 project tenders worth Rs 1,71,229.53 crore in H1/FY22 as compared to 3,721 project tenders with a contract value of Rs 1,79,483.55 crore issued during H1/FY21.

Major Sectors

In the first half of this fiscal, the Services & Utilities (Infrastructure), Irrigation and Mining sectors remained frontrunners in tendering activities.

A total of 17,829 project tenders worth Rs 3,10,781 crore were floated in the first half of this financial year. The sector accounted for 91.55 percent of the total tenders floated during the period.

In this sector, three industries — Roadways, Other Community Services and Water & Sewerage Pipeline & Distribution — remained frontrunners.

The Roadways sector witnessed positive tendering activities in H1/FY22 as compared with the same period a year earlier in H1/FY21. The sector registered a growth in terms of both number as well as value during the period. In terms of number, the tendering activity in the sector jumped 36.12 percent in H1/FY22 as compared to H1/FY21.

In all, road building tenders worth Rs 1,12,023.94 crore were issued by various government nodal agencies during H1/FY22 as compared to Rs 1,09,866.40 crore being floated in H1/FY21. Furthermore, of the 37 high-value tenders, all 14 mega-value tenders worth Rs 20,982.63 crore were issued by the National Highways Authority of India (NHAI).

The nodal agency issued four notable tenders for construction of four-/six-lane greenfield Delhi-Amritsar-Katra Expressway worth Rs 7,023.13 crore. NHAI also floated two tenders for six-lane upgradable to eight-lane of Kanpur-Lucknow Expressway (Package-1 and 2) worth Rs 3,399.85 crore. As many as 340 tenders related to various highways works worth Rs 44,491.47 crore were issued by NHAI in H1/FY22.

The Other Community Services sector grabbed the second position with 3,582 tenders with a total value of Rs 34,488.02 crore in H1/FY22. In terms of value, the tendering activity in this sector jumped over 51 percent when compared to the same period a year earlier. In H1/FY21, 3,625 tenders worth Rs 22,771.58 crore were floated.

The Central Public Works Department floated a notable tender worth Rs 3,408.81 crore for construction of common Central Secretariat integrated buildings 1, 2 & 3, including operation and maintenance for five years in Plot-137, New Delhi.

The Water & Sewerage Pipeline & Distribution sector saw 3,491 tenders with a total value of Rs 33,417.23 crore being floated in H1/FY22, as against 1,723 tenders worth Rs 45,604.40 crore issued in H1/FY21.

The Public Health Engineering Department, Rajasthan, issued 912 tenders with an aggregate value of Rs 11,363.57 crore. Another nodal agency, the Rural Water Supply & Sanitation Department, Odisha, floated 132 water supply tenders worth Rs 2,471.92 crore in H1/FY22.

The Power Distribution sector too registered a healthy growth in H1/FY22 vis-a-vis H1/FY21. Aggregate tendering in this sector grew from 701 tenders worth Rs 7,284.22 crore in H1/FY21to 1,123 tenders worth Rs 10,712.89 crore in H1/FY21. In this sector, the Bihar State Power Transmission Company floated 16 tenders worth Rs 1,593.73 crore during the period.

In the Railway sector, 868 tenders with a total value of Rs 28,345.98 crore were floated in H1/FY22. The Uttar Pradesh Metro Rail Corporation issued a mega-value tender worth Rs 2,200 crore for design and construction of a tunnel from the start of underground ramp (near Fatehabad Road Metro Station) to the end of the ramp at Agra.

Apart from this, another major tender was floated by the Indian Railway Stations Development Corporation (IRSDC) worth Rs 1,285 crore for redevelopment of Surat and Udhna railway stations in Gujarat.

In the Telecom Services sector, Bharat Broadband Network issued nine high-value tenders worth Rs 29,432.4 crore. The scope of work includes development, creation, upgradation, operation & maintenance of Bharat Net in the Licensed Service Area across the states such as Uttar Pradesh, Punjab, Haryana, Himachal Pradesh, Rajasthan, Madhya Pradesh, among others.

The Irrigation sector saw 795 tenders worth Rs 19,073.57 crore being floated in H1/FY22. The Visvesvaraya Jala Nigam issued two major tenders worth Rs 1,880.64 crore for work of Upper Bhadra project in Karnataka. It also issued another major tender worth Rs 1,020.83 crore to undertake works of Madeswara Lift Irrigation Scheme in Karnataka.

Project tendering activities in the Mining sector also witnessed few mega-value tenders. In all, 126 mining tenders with an aggregate value of Rs 17,809 crore were issued during H1/FY22.

During the period, Central Coalfields issued two high-value tenders, while Mahanadi Coalfields and Bharat Coking Coal each issued one mega-value tender. These were:

  1. Central Coalfields issued tender for development of Patratu ABC Underground project in Jharkhand worth Rs 5,198.02 crore.
  2. Central Coalfields floated tender for development of Sanghamitra OCP in North Karanpura Coalfields in Jharkhand worth Rs 4,051.32 crore.
  3. Mahanadi Coalfields issued tender for development of Subhadra OCP (West of Gopalprasad West & Utkal-A block) in Odisha worth Rs 2,261.84 crore.
  4. Bharat Coking Coal floated tender for development of Kapuria underground mine and extraction of coal from Kapuria XVIIIA, L6, L5, L5&L6 combined, XVIC, XVIB, XVIA in Jharkhand worth Rs 2,244.6 crore.

A single high-ticket tender lifted the overall value in the Electricity sector in H1/FY22. NHPC issued a noteworthy tender worth Rs 4,086.19 crore for turnkey execution of 850 MW Ratle Hydro Electric project located at Kishtwar district in Jammu & Kashmir.

States

Among the states, the top 10 – Maharashtra, Rajasthan, Karnataka, Uttar Pradesh, Madhya Pradesh, Odisha, Gujarat, West Bengal, Jammu & Kashmir and Andhra Pradesh — accounted for 64.36 percent of the total tenders announced across the country during H1/FY22.

Maharashtra topped the table with 2,298 project tenders worth Rs 26,449.29 crore, followed by Rajasthan with 1,942 tenders worth Rs 29,699.95 crore. A total of 1,332 tenders with an aggregate value of Rs 25,762.08 crore were issued for various works across Karnataka.

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