The Year 2009 saw 551 less number of project tenders floated as compared to the year 2008. In addition to the general economic slowdown, the fall in project tenders during 2009 was also because of the nation-wide General Elections conducted during April - May and the subsequent state assembly elections in major states like Andhra Pradesh, Haryana, Jharkhand, Orissa, Maharashtra, etc. The elongated election process and the accompanying code of conduct deters policy announcements, tender floatations, awarding of contracts, etc. during the period.

In all, 40,933 project tenders worth Rs 312,056 crore were floated in 2009 as against 41,484 project tenders worth Rs 326,136 crore floated in 2008. Of the 40,933 tenders, 29,369 tenders worth Rs 170,645 crore were by State Government agencies, 10,939 tenders worth Rs 140,083 crore were by Central Government agencies and the balance 625 tenders were by Private Companies.

The Year 2009 saw around 5,587 tenders being reinvited, 4,715 corrigenda were issued for extension of submission date, change in costs and other amendments in original notices, while 187 tenders were cancelled.

Further, of the total tenders floated in 2009, 415 were of high value (Rs 100 crore or more). The largest tender in terms of estimated value of work was floated by the Government of Andhra Pradesh. On 18 Jul 2009, the state invited RfQs for the development of Hyderabad Metro Rail Project on PPP basis. The cost of project was estimated at Rs 12,132 crore. The government had to reissue the tender as the original award of the tender to Maytas Infrastructure of the Satyam group was scrapped.

Sectoral Distribution

During 2009, the Roadways sector topped the sector-wise list with 17,369 project tenders worth Rs 173,860 crore. While the national highway builder, NHAI floated 269 project tenders worth Rs 89,136 crore for development of national highways under various phases of NHDP, a few state governments like Bihar, Maharashtra, Orissa and Uttar Pradesh floated sizeable number of project tenders for upgradation of existing roads.

Community Services, Railways and Irrigation followed the sector-wise list with 8,824 tenders worth Rs 45,972 crore, 4,062 tenders worth Rs 29,156 crore and 3,081 tenders worth Rs 20,486 crore, respectively. Tamil Nadu, Maharashtra and Chhattisgarh were the active tender inviters in the Community Services sector while in the Irrigation sector, Maharashtra, Andhra Pradesh and Karnataka were very much active.

In the Railways sector, Central Government agencies-East Central Railway (516 tenders), East Coast Railway (422 tenders) and Central Railway (390 tenders) were most active during 2009 for execution of various works through the tendering process. Water Supply, Power Distribution and Thermal Power sectors also witnessed good number of tenders being floated during 2009.

In the Thermal Power sector, a total of 1,154 projects tenders worth Rs 4,252 crore were floated during 2009. NTPC (396 tenders) and BHEL (179 tenders) were most active in inviting tenders for execution of various works for its ongoing projects during 2009. In the same sector, private companies invited 90 project tenders during 2009.

State-wise Distribution

The top five states-Maharashtra, Orissa, Uttar Pradesh, Karnataka and Tamil Nadu-together cornered 52 per cent of the total project tenders floated across the country in 2009. These five states together floated 21,390 project tenders worth Rs 127,916 crore in 2009.

Maharashtra not only topped the list of states in terms of both number of tenders floated and job work, but also floated 39 per cent more tenders during 2009 as compared with 2008. In all, the state floated a record 10,120 project tenders worth Rs 50,748 crore during 2009 as against 7,285 tenders worth Rs 55,506 crore floated in 2008. Roadways, Community Services, Railways and Irrigation were the sectors the state was more active in tendering.

Uttar Pradesh and Tamil Nadu retained their place among the top five tendering states during 2009. In all, 2,780 tenders worth Rs 16,609 crore and 2,474 tenders worth Rs 22,512 crore respectively were floated in Uttar Pradesh and Tamil Nadu.

Increased tendering activities for construction and upgradation of rural roads under PMGSY helped Orissa to come close to the leader Maharashtra. In all, state invited 3,247 tenders worth Rs 13,553 crore in 2009. Sizeable number of tenders in the Irrigation, Roadways and Power Distribution sector helped Karnataka to enter the Top five tendering states list in 2009.

Private Sector

In the Year 2009, project tendering by the Private Sector jumped up to 625 tenders worth Rs 1,328 crore from 532 tenders worth Rs 725 crore floated in 2008. Majority of project tendering activities by Private companies were seen in the Metals, Petroleum Oil & Gas, Community Services and Power (Hydro & Thermal) sectors during the 2008 & 2009.

Subdued tendering activities by the Sterlite group Companies (Vedanta Aluminium, BALCO and Hindustan Zinc) led to a sharp fall in private tenders from 77 tenders in 2008 to 42 tenders in 2009 in Metals (Aluminium & Copper) sector. The Sterlite group is one of the largest tender issuers in the private sector. The group companies invited 32 tenders in Metals sector during 2009 as against 67 tenders floated in 2008.

Private project tendering in the Community Services sector recorded a small increase during 2009. As against 67 tenders floated in 2008, the year 2009 saw the number inching up to 82 in 2009. Bulk of these tenders were floated by educational institutions for construction of academic buildings across the country. In 2009, the Private sector also saw 121 project tenders being floated in the Power (Hydro & Thermal) sector. OP Jindal, Adani and the Abhijeet Group accounted for majority of the private power project tenders floated in 2009.