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Project Tendering registers 41 percent Y-o-Y jump in H1/FY23

Project tendering activities across the country saw a positive increase in terms of both number of tenders and tender value in the first half of the fiscal 2022-23. As against 19,686 project tenders worth Rs 3,60,416 crore announced in H1/FY22, the country saw announcement of 27,850 tenders worth Rs 6,05,257 crore in H1/FY23. The tendering activity in terms of number witnessed an increase of 41.47 percent Y-o-Y, while in terms of value a healthy growth of 67.93 percent Y-o-Y in the H1/FY23.

As many as 74 high-ticket (Rs 1,000 crore and above) tenders worth Rs 1,52,879.2 crore were issued in H1/FY23, while during the same period a year earlier, 37 high-ticket tenders worth Rs 87,098.5 crore were published.

By Ownership

Project tendering activities in India are dominated by the public sector units and agencies. During the period tendering activities increased both at Central and states level.

The state government agencies issued 21,719 tenders worth Rs 3,90,528 crore during H1/FY23 as against 15,311 tenders worth Rs 1,84,823 crore published in H1/FY22. In terms of number the state government agencies witnessed 41.85 percent Y-o-Y positive growth, while in terms of value a sharp growth of 111.29 percent Y-o-Y was registered.

On the other hand, the Central government floated 5,533 project tenders worth Rs 2,11,040 crore in H1/FY23 as compared to 4,113 project tenders with a contract value of Rs 1,72,842 crore issued during H1/FY22.

By Sectors

In the first half of this fiscal, of the five major sectors, Manufacturing, Services & Utilities (Infrastructure), Electricity and Irrigation registered positive growths while Mining could not see increased project tendering activities.

The Infrastructure sector accounted for 38.80 percent in terms of number and 64.94 percent in terms of tender value in H1/FY23. The sector saw 25,004 project tenders worth Rs 5,16,436 crore being floated in H1/FY23 as against 18,014 tenders worth Rs 3,13,095 crore in same period a year earlier. The sector accounted for 90 percent of the total tenders issued in first half of this fiscal.

Within the sector, Water Supply Schemes, Roadways and Community Services remained frontrunners and together accounted for xxx percent of the total tenders floated in the Infrastructure segment.

The Water Supply sector with 6, 826 tenders worth Rs 1,05,016.65 crore stood at the top of the table in the first half of this fiscal. In the similar period of the last year the sector had seen issuance of 3,516 tenders worth Rs 33,487 crore. The sector accounted for 28.35 percent of the total tenders published in H1/FY23.

The Uttar Pradesh State Water & Sanitation Mission floated 12 tenders worth Rs 18,451.60 crore for design, execution and O&M of water supply schemes in Allahabad, Ballia, Firozabad, Unnao, Chandauli, Mathura and Agra districts of the state.

The Rural Water Supply & Sanitation Department, Andhra Pradesh published five mega-value tender worth Rs 7,910 crore for drinking water supply project in Chittoor, East Godavari, West Godavari, Prakasam and Guntur districts of the state.

The Roadways sector ranked second with 6,195 tenders worth Rs 1,87,152 crore in H1/FY23 and accounted for 22.24 of the total tenders issued during the period. A year earlier, as many as 5,318 road building tenders were issued in the first half, with an aggregate value of Rs 1,12,996 crore.

Three nodal agencies — the National Highways Authority of India (NHAI), the Ministry of Road Transport & Highways (MoRTH) and the National Highways & Infrastructure Development Corporation (NHIDCL) — were the leading tenderers in this sector.

NHAI floated 18 high-ticket tenders for highway works worth Rs 30,452.59 crore in H1/FY23.

The largest tender issued by NHAI was of Rs 4,994.79 crore for the construction of a six-lane bridge & its approaches  (part of Patna Ring Road) across the River Ganga from 8.480 km near Sherpur to 23.000 km near Dighwara in Bihar.

The second largest tender worth Rs 3,737.51 crore issued by NHAI was for setting up a four-lane elevated corridor at Danapur-Bihta section in Bihar.

The National Highways & Infrastructure Development Corporation floated a tender worth Rs 3,253.58 crore for the construction of a uni-directional Singhpora-Vailoo tunnel & its approach road in Jammu & Kashmir.

As many as 4,814 tenders with an aggregate job work value of Rs 50,258 crore were issued in the Community Services sector in H1/FY23, as against 3,620 tenders worth Rs 34,690 crore floated in H1/FY22.

The Surat Municipal Corporation issued a mega-value tender worth Rs 1,080 crore for construction of a state-of-the-art high-rise office building at Majura-Khatodara in Gujarat.

The Central Public Works Department and Public Works Department of Maharashtra remained front-runner in issuing work related tenders H1/FY23. While, the Central Public Works Department floated 244 tenders worth Rs 4221.23 crore, the Public Works Department of Maharashtra issued 222 tenders valued at Rs 1935.58 crore.

A year-on-year comparison of tendering activities in the Railways sector indicated a jump of 75.20 percent in terms of number of tenders and a 75.01 percent growth in terms of tender value. As against 871 tenders worth Rs 28,597 crore issued in H1/Fy22, Railways issued 1,526 tenders worth Rs 50,050 crore in H1/FY23.

Rail Vikas Nigam (RVNL) published a high-ticket tender worth Rs 2,571.29 crore for design & construction of ramp & underground Metro railway works of Kolkata Metro from Mominpur to Esplanade.

The Electricity sector saw issuance of 596 tenders worth Rs 10,113.87 crore in H1/FY23 as against 422 tenders worth Rs 8,683.12 crore in H1/FY22.

In August 2022, the Department of Power of West Bengal floated a high-value tender worth Rs 4,700 crore for the development of 900 MW Bandu Pumped Storage Project at Ajodhya Hill Area in Purulia district.

Another high-ticket tender worth Rs 1,173.23 crore was issued by Maharashtra Energy Development Agency for setting up a off-grid solar photovoltaic water pumping system under Mahakrishi Urja Abhiyan PM-KUSUM Scheme in Maharashtra.

Reflecting the increased intention for setting up non-conventional power plants, during H1/FY23 around 269 tenders worth Rs 3,057.14 crore were issued in the Solar-based Power sector, while 90 tenders worth Rs 5,107.28 crore were published in the Hydel-based Power sector.

The Irrigation sector saw floatation of 1,653 tenders worth Rs 61,856 crore in H1/FY23. This included 15 mega-value tenders worth Rs 33,523.78 crore.

The Water Resources Department of Madhya Pradesh issued five mega value tenders with an aggregate value of Rs 14,217.91 crore. This included a Rs 4,806.95 crore tender for the construction of Hatpipaliya pressurised pipe lift irrigation project in Dewas district and a Rs 4,635.92 crore tender for the construction of Hathpipaliya lift irrigation project, pressurized pipe irrigation network also in the Dewas district.

The Narmada Valley Development Authority published six mega-value tenders worth Rs 13,094.34 crore. Of this, the notable one was issued for the construction of dam on Shakkar river and setting up a micro-irrigation system for Shakkar micro irrigation project in Narsinghpur in Madhya Pradesh.

In terms of tender value, the Mining sector registered a fall of 22 percent on a Y-o-Y basis during H1/FY23.

As against 129 mining-related tenders worth Rs 17,791 crore issued in H1/FY22, 150 tenders worth Rs 13,711 crore were issued in H1/FY23.

Three mega tenders were published in this sector for the following project works. A Rs  4,241.09 crore tender for the development and operation of Sanghamitra OCP in North Karanpura Coalfields of Central Coalfields. A Rs Rs 3826.01 crore tender for the development and operation of Bhubaneswari Expansion OCP in Talcher coalfields by the Mahanadi Coalfields and a Rs 1,092.36 crore tender for the development and operation of Parasea Belbaid Reorganisation UG in Paschim Bardhaman of Eastern Coalfields.

States

Maharashtra topped the chart with 4,051 tenders worth Rs 67,618 crore issued in H1/FY23. A year earlier, 2,342 project-related tenders worth Rs 27,110 crore were issued in the state.

Karnataka replaced Rajasthan as the second ranker in terms of number of project tenders issued in H1/FY23. The state saw issuance of 2,283 project tenders valued at Rs 41,143 crore. The state was followed by Madhya Pradesh with 2,099 project tenders worth Rs 65,220 crore.

The top 10 states — Maharashtra, Karnataka, Madhya Pradesh, Rajasthan, Gujarat, West Bengal, Odisha, Jammu & Kashmir, Chhattisgarh, Uttar Pradesh – together accounted for 70.44 percent of the total number of tenders issued during H1/FY23. A total of 19,618 tenders worth Rs 4,05,796 crore were issued by these 10 states.

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