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Mega tenders dominated project tendering in FY22Project tendering activities across India is getting back to normalcy post lifting of COVID-19 induced restrictions, nationwide vaccination drive and unlocking of the economy. As per the initial findings of Projects Today, as many as 44,853 project-related tenders were floated in FY22 as compared to 41,128 tenders issued in FY 21, an increase of nine percent Y-o-Y. The tender numbers would have been still higher but for the elections held in five major states in the month of March 2022.

In an effort to contain COVID-19 pandemic, two years back, on 24 March 2020, the first nationwide lockdown was announced. This led to a disruption in economic activity. To bail out India’s economic crisis due to COVID-19 pandemic, the Centre announced mega stimulus package worth Rs 20 lakh crore under the Atmanirbhar Bharat Abhiyaan to step up economic activities pace in the second half of FY21. With economic activity coming back to normalcy by the end of FY21, the second wave of COVID-19 hit India badly in the first quarter of FY22. The tendering activity nosedived as states re-imposed partial or localised complete lockdown.

However, with the nationwide vaccination drive, and unlocking of the economy, tendering activities gained momentum from the second quarter of FY22. In the subsequent two quarters, the tendering activity picked further pace. As a result, the yearly trends turned positive both, in terms of value as well as in number of tenders issued in FY22.

In terms of tender job value, the aggregate amount increased by 12 percent on a Y-o-Y basis in FY22. The country saw announcement of tenders worth Rs 9,08,339 crore in FY22 as against tenders worth Rs 8,11,545 crore floated in FY21.

Moreover, as many as 109 mega-value tenders (Rs 1,000 crore and above) with an aggregate value of Rs 2,22,576.4 crore were issued in FY22. These high-ticket tenders accounted for almost 25 percent of the total value of project tenders issued during the period.

By Ownership

Public Sector Units (PSUs) and Agencies account for a major chunk of the tendering activities in India. The positive growth trends were seen at both the State and Central levels.

Accounting 79.52 percent of the total tenders issued, state government agencies issued 35,667 tenders worth Rs 5,22,737 crore during FY22 as against 32,582 tenders worth Rs 4,66,126 crore published in FY21. Central government agencies issued 8,625 project-related tenders worth Rs 3,79,819 crore during FY22 as compared to 8,058 tenders worth Rs 3,43,559 crore in FY21.

By Sectors

In FY22, the Services & Utilities (Infrastructure) and Irrigation sectors remained frontrunners in tendering activities. These two sectors accounted for 96.07 percent of the total tenders issued during the period.

A total of 40,794 project tenders worth Rs 7,76,669 crore were floated in the Infrastructure sector in FY22. A year ago (FY21), the sector saw issuance of 36,554 work related tenders worth Rs 6,55,393 crore.

Within the Infrastructure sector, Roadways, Water & Sewerage Pipeline & Distribution and Other Community Services had a lion’s share in the total number of tenders issued.

The Roadways sector, despite a slight fall in total number of tenders and aggregate tender value on a Y-o-Y basis, remained the leading sector in project tendering activity. The sector saw issuance of 12,202 tenders with an aggregate value of Rs 3,06,028 crore in FY22 and accounted for 27.20 percent of the total tenders floated. A total of 12,234 tenders worth Rs 3,16,730 crore were floated in FY21.

In terms of value, three road building nodal agencies, the National Highways Authority of India (NHAI), the Ministry of Road Transport & Highways (MoRTH), and the National Highways & Infrastructure Development Corporation (NHIDCL), topped the table.

NHAI issued 784 road building tenders with an aggregate value of Rs 1,23,172.05 crore during FY22. Of this, 44 were mega value tenders totalling Rs 62,419.01 crore. Further, during the year, NHAI floated five noteworthy tenders worth Rs 8,580.09 crore for four-/six-lane access-controlled greenfield Delhi-Amritsar-Katra Expressway on hybrid annuity model (HAM) under the Bharatmala Pariyojana.

Of the other two nodal agencies, MoRTH floated 467 tenders with an aggregate value of Rs 25,114.43 crore during the fiscal and NHIDCL issued 180 work related tenders worth Rs 18,450.46 crore.

Project tendering activities in the Water & Sewerage Pipeline & Distribution sector registered positive yearly growth in terms of both number as well as value when compared to a year ago statistics. The sector which saw issuance of 5,305 tenders worth Rs 91,819 crore in FY21, floated 9,194 tenders worth Rs 1,27,726 crore in FY22, a growth of 39 percent in terms of value and 73 percent in terms of numbers.

Three state government agencies, the Uttar Pradesh State Water & Sanitation Mission, Narmada Water Resources, Water Supply & Kalpsar Department and Madhya Pradesh Jal Nigam Maryadit issued eight high-ticket tenders during the fiscal. The Uttar Pradesh State Water & Sanitation Mission floated four mega value tenders worth Rs 7,420.11 crore for the execution of Water Supply Schemes in Unnao and Ballia districts.

The Narmada Water Resources, Water Supply & Kalpsar Department issued two tenders worth Rs 3,448.72 crore for engineering, procurement and construction (EPC) works for the pipeline project from Tappar Dam to Darasdi Dam (Southern Link) and from Tappar Dam to Nirona Dam (Northern Link) in Gujarat state.

Similarly, Madhya Pradesh Jal Nigam Maryadit floated two tenders with an aggregate value of Rs 2,242.38 crore for the execution of Gandhisagar-1 and 2 Multi-Villages Scheme (MVS) in 1,735 villages of Mandsau, Neemuch and Ratlam districts.

The Other Community Services sector, comprising educational institutes, hostels, libraries, etc. posted a yearly increase of 30.55 percent in terms of tender value. As against 8,369 project tenders worth Rs 60,418 crore issued in FY21, 7,733 tenders worth Rs 78,880 crore were floated in FY22.

The Central Public Works Department floated two high-ticket tenders. First a tender worth Rs 3,408.81 crore was floated for the construction of Common Central Secretariat Integrated Buildings 1, 2 & 3 including operation & maintenance for five years in Plot-137 of New Delhi.  The second noteworthy tender was for the construction of Executive Enclave in Plot No 36/38, New Delhi, including operation & maintenance for five years. The value of this tender was Rs 1,171 crore.

Apart from this, the Department of Employment & Training, Tamil Nadu floated a major tender worth Rs 2,201 crore for transforming 71 state government ITIs into Technology Centres.

The Power Distribution sector registered healthy growth in FY22 vis-a-vis FY21.  Aggregate tendering in this sector grew from 1,754 tenders worth Rs 15,720 crore in FY21 to 2,056 tenders worth Rs 21,671 crore in FY22. In this sector, the Jharkhand Urja Sancharan Nigam floated 16 tenders worth Rs 2,176.93 crore during the survey period.

As many as nine high-value tenders totalling Rs 29,432.43 crore were issued in the Telecom Services sector. Bharat Broadband Network issued nine mega-value tenders for the development, creation, upgradation, operation & maintenance of Bharat Net in the Licensed Service Area across the states like Uttar Pradesh, Punjab, Haryana, Himachal Pradesh, Rajasthan, Madhya Pradesh, Karnataka, Kerala, West Bengal, among others.

Two major tenders each were issued in the Ports and Shipping Infrastructure sectors in FY22. In the Ports sector the Gujarat Maritime Board floated a tender worth Rs 3,800 crore for the selection of developers for setting up a greenfield port near village Nargol and the Andhra Pradesh Maritime Board issued a tender worth Rs 3,650.07 crore for the construction of a greenfield port at Machilipatnam.

In the Other Shipping Infrastructure sector, the Syama Prasad Mookerjee Port Trust issued a high-value tender worth Rs 1,720 crore for dredging in Haldia channel, West Bengal; while the Andhra Pradesh Maritime Infrastructure Development Corporation floated a major tender worth Rs 1,496.85 crore for construction of five Fishing Harbours under Phase-II at Budagatlapalem, Pudimadaka, Biyyaputhippa, Vodarevu and Kothapatnam coastal villages.

In the Tourism & Recreation sector, Yamuna Expressway Industrial Development Authority issued one of the biggest high-value tenders worth Rs 10,000 crore for the development and operation/maintenance of the International Film City in Sector-21, Yamuna Expressway Industry Development Area (Phase-1) of Gautam Buddha Nagar district in Uttar Pradesh on design, build, finance, operate and transfer (DBFOT) model.

In the Industrial & Software Parks sector, the NICDIT Krishnapatnam Industrial City Development floated a major tender worth Rs 1,190 crore for design, construction, testing, and commissioning of infrastructure works at Krishnapatnam Node under Chennai-Bengaluru Industrial Corridor (CBIC) in Andhra Pradesh.

Reflecting the fund crunch faced by several major states, the Irrigation saw decline in tendering activities in FY22. In all, 2,295 tenders worth Rs 55,844 crore were issued in FY22. A year ago, the sector had seen issuance of 2,687 tenders valued at Rs 93,225 crore.

The Irrigation & CAD Department, Andhra Pradesh issued two major tenders with an aggregate value of Rs 4,652.49 crore for developing HNSS main canal in Kurnool and Ananthapuramu districts. Similarly, the Irrigation & CAD Department, Telangana floated three tenders worth Rs 4,802.19 crore for earthwork, excavation and formation of canal embankment in Zaheerabad, Narayanked, Sangereddy & Andole assembly constituencies; and for setting up a Lift Irrigation scheme on Mukthyala Branch Canal of Krishna River in Chinthalapalem (M).

In all, the Irrigation & CAD Department, Andhra Pradesh issued 62 work related tenders worth Rs 9,519.28 crore and the Irrigation & CAD Department, Telangana floated 42 tenders worth Rs 8,168.52 crore.

The Electricity sector saw issuance of 869 tenders worth Rs 31,972 crore in FY22 as against 919 tenders worth Rs 8,456 crore in FY21. During FY22, five major tenders were issued in the Hydel-based Power sector. Of these, the following four were by the NHPC.

1. Turnkey execution of 1,856 MW Sawalkot hydroelectric project located in Ramban/Udhampur district, Jammu & Kashmir worth Rs 12,190.5 crore. This was the biggest tender issued in FY22.

2. Turnkey execution of 850 MW Ratle Hydro Electric Project located at Kishtwar district of Jammu & Kashmir worth Rs 4,086.19 crore.

3. EPC contract for execution of Dugar Hydro Electric Project (500 MW) at Luj village in Chamba district of Himachal Pradesh worth Rs 2,730.63 crore.

4. Construction of civil works of diversion tunnels, dam and spillway, main & auxiliary intakes, pressure tunnel of 500 MW Dugar HE Project (Lot-1) worth Rs 1,534.67 crore.

The Mining sector too witnessed fall in tenders and tender value in FY22 vis-à-vis FY21. In all, 270 tenders with an aggregate value of Rs 39,213 crore were issued during FY22 as against 327 tenders worth Rs 50,689 crore issued in FY21. This indicated a fall of 17.43 percent in terms of number and 22.63 percent in terms of value on a Y-o-Y basis.

The Coal sector remained the frontrunner in issuing high-ticket tenders in FY22. The sector saw issuance of 11 major tenders worth Rs 31,429.84 crore.

Central Coalfields issued three noteworthy tenders for the development of Patratu ABC Underground project and Sanghamitra OCP in Jharkhand with an aggregate value of Rs 12,734.82 crore. South Eastern Coalfields floated two major tenders for the development & operation of Pelma OC and Durgapur OC in Chhattisgarh worth Rs 5,078.3 crore.

By States

Among the states, the top 10 — Maharashtra, Rajasthan, Odisha, Madhya Pradesh, Karnataka, Uttar Pradesh, West Bengal, Gujarat, Tamil Nadu, Jharkhand — accounted for 64.71 percent of the total tenders announced across the country in FY22.

In the month of February and March 2022, elections were held across five states — Uttar Pradesh, Punjab, Uttarakhand, Goa and Manipur. This led to a fall in tenders floated by state government agencies.

As a result, Maharashtra overtook Uttar Pradesh and took the first spot with 5,180 project-related tenders worth Rs 89,963 crore during FY22. Uttar Pradesh which stood first in the FY21 with 4,660 tenders worth Rs 1,00,042 crore slipped to the sixth position with 2,731 tenders worth Rs 90,336 crore.

Rajasthan ranked second with 3,327 work-related tenders worth Rs 63,520 crore.  Odisha settled for the third position with 3,134 tenders with an aggregate value of Rs 36,111 crore.

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