Project Tendering gained traction in Q1-Q3/FY23

By Team Projects Today

42,384 tenders were floated

Project tendering activities saw a jump of 37.92 per cent in terms of number of tenders issued in the first three quarters of FY23 (Q1-Q3/FY23). As against 30,730 project tenders worth Rs 6,31,220 crore announced in Q1-Q3/FY22, the country saw announcement of 42,384 tenders worth Rs 10,18,057.22 crore in Q1-Q3/FY23.

As many as 131 mega-value tenders (Rs 1,000 crore and above) with an aggregate value of Rs 2,36,764.27 crore were issued in Q1-Q3/FY23. These mega tenders accounted for 23.26 percent of the total value of project tenders issued during the Survey period.

Ownership

The government sector accounted for around 97.78 percent of the project tendering activities. Uptick in tendering activities was seen both at the Central and State levels during Q1-Q3/FY23. Accounting for 78.24 percent of total tenders issued, the state government agencies issued 33,162 tenders worth Rs 6,34,150.59 crore during the first nine months of this fiscal as against 24,209 tenders worth Rs 3,44,046.26 crore published in Q1-Q3/FY22. Similarly, the tendering by the Central government agencies also saw increase in terms of both number as well as value of tenders issued in Q1-Q3/FY23 vis-à-vis Q1-Q3/FY22. In all, 8,279 project tenders with a contract value of Rs 3,78,888.95 crore were issued by the Central government agencies during Q1-Q3/FY23 as compared with 6,151 tenders worth Rs 2,84,024.54 crore in Q1-Q3/FY22.

The nine-month period also saw good increase in Private tenders. As against 370 tenders worth Rs 3,149.29 crore announced in Q1-Q3/FY22, 943 tenders worth Rs 5,017.68 crore were issued in Q1-Q3/FY23.

Major Sectors

The Services & Utilities (Infrastructure) and Irrigation sectors remained front-runners in tendering activities in the first nine month of FY23 and accounted for 95.70 percent of the total tender values floated in Q1-Q3/FY23. The infrastructure sector saw 38,147 project tenders worth Rs 8,95,660.63 crore being floated in the first three quarters of this fiscal as against 28,101 tenders worth Rs 5,49,785.44 crore in the same period a year ago. Among the major sub-sectors, Roadways, Water Supply and Community Services remained highly active in issuance of project tenders.

The Water Supply sector too entered a higher growth trajectory in Q1-Q3/FY23. Aggregate tendering activity in this sector grew by 86.59 per cent from 6,079 tenders worth Rs 84,082.45 crore in Q1-Q3/FY22 to 11,343 tenders worth Rs 1,89,298.32 crore in Q1-Q3/FY23.

In this sector, Public Health Engineering Department, West Bengal (1,999 tenders, worth Rs 11,840.90 crore) and Public Health Engineering Department, Chhattisgarh (1,036 tenders, worth Rs 3,807.80 crore) were most active agencies in tendering.

Further, on a single day, Madhya Pradesh Jal Nigam Maryadit (MPJNM) floated 32 tenders for the execution of multi villages water supply schemes in different districts of Madhya Pradesh. The aggregate value of these tenders was Rs 16,723.04 crore.

The Roadways sector accounted for 21.63 percent of the tenders issued during the period. Reflecting the increasing pace of project execution, the sector saw issuance of a record 9,169 tenders worth Rs 3,51,962.27 crore during Q1-Q3/FY23. The sector issued 8,184 tenders worth Rs 2,10,640.34 crore in the first three quarters of the preceding fiscal. Of the 131 mega tenders issued during the first nine months of FY23, 68 tenders (Rs 1,05,391.50 crore) were issued in this sector.

The most notable tender in this sector was floated by the Mumbai Metropolitan Region Devp. Authority (MMRDA) for the construction of an underground road tunnel to provide connectivity between Orange Gate, Eastern Freeway to Marine Drive, Coastal Road in Mumbai at a cost of Rs 6,327 crore.

In terms of number as well as value, the National Highways Authority of India (NHAI) was the front runner with 960 tenders worth Rs. 1,76,521.80 crore during Q1-Q3/FY23. The most notable tender issued by the NHAI was for the construction of a six-lane bridge and its approaches across Ganga River as part of Patna Ring Road (NH-131G) in the state of Bihar on EPC Mode. The value of the work was estimated at Rs 4,994.79 crore.

Apart from this, the NHAI also issued a high-value tender worth Rs 3,737.51 crore for the construction of a four-lane elevated corridor and at-grade improvements of Danapur-Bihta section and upgradation of the existing two-lane carriageway to four-lane carriageway from design Ch. 19.870 to design Ch. 23.500 of Bihta-Koilwar section (Total Length 25.081 km) in the state of Bihar on EPC Mode.

Of the 131 mega-value tenders issued during Q1-Q3/FY23, the NHAI alone accounted for 59 tenders worth Rs 85,778.92 crore.

In terms of value, the Ministry of Road Transport & Highways (MoRTH) stood second with 357 tenders valued at Rs 20,215.42 crore. It was followed by the National Highways Infrastructure Development Corporation (NHIDCL).

NHIDCL floated 97 tenders for various works worth of Rs 19,571.71 crore during the first three quarters of FY23. The nodal agency issued two remarkable tenders; one was for the construction of uni-directional Sudhmahadev-Dranga twin tube tunnel and its approach roads on Chenani-Sudhmahadev-Goha Road on NH-244; and another one was for the construction of uni-directional Singhpora-Vailoo Tunnel (Under Sinthanpass) in the Union Territory of Jammu & Kashmir on EPC mode. The aggregate value of both tenders was Rs 5,852.12 crore. The Community Services sector saw issuance of 6,826 tenders worth Rs 76,648.81 crore in the first three quarters of the current fiscal as against 5,492 tenders worth Rs 55,135.72 crore in Q1-Q3/FY22.

Project tendering activities in the Irrigation sector increased by 75.44 per cent during Q1-Q3/FY23 on a Y-o-Y basis. As against 1,376 tenders worth Rs 36,493.60 crore floated in Q1-Q3/FY22, the sector saw 2,414 tenders worth Rs 83,529.74 crore being floated in Q1-Q3/FY23. In terms of value of tenders, Water Resources Department, Madhya Pradesh (195 tenders, worth Rs 20,100.51 crore) and Narmada Valley Development Corporation (18 tenders, worth Rs 17,595.41 crore) were the frontrunners in tender floatation.

The most notable tender was floated by the Water Resources Department, Madhya Pradesh for the construction of Hatpipaliya pressurized pipe lift irrigation project in Dewas district of Madhya Pradesh, worth Rs 4,806.95 crore.

The Railways sector witnessed a growth in tendering activities by 72.32 per cent when compared to the same period a year earlier. In all, railways sector saw 2,173 tenders floated worth Rs 71,533.46 crore in the first nine months of FY23. A year ago, during Q1-Q3/FY22, around 1,261 railway work tenders worth Rs 50,012.06 crore were issued.

The Rail Vikas Nigam floated a notable tender worth Rs 2,571.29 crore for design and construction of the ramp and underground metro railway works from Mominpur to Esplanade including setting up four underground stations in connection with the Joka-Esplanade metro corridor in West Bengal.

Tendering activities in the Ports sector increased by 68.53 per cent on Y-o-Y basis. As against 143 tenders worth Rs 12,283.19 crore floated in Q1-Q3/FY22 the sector saw issuance of 241 tenders worth Rs 23,688.18 crore in first nine months of FY23.

The Karnataka Maritime Board floated tenders worth Rs 7,166.70 crore for development of two all-weather deepwater ports on DBFOT basis at Keni and at Pavinakurve in Uttara Kannada district of Karnataka. Another development agency, the Deendayal Port Trust issued a tender worth Rs 4,243.64 crore for the selection of concessionaire for the development of container terminal at Tuna Tekra on BOT basis in Gujarat.

In the Power Distribution sector 642 more tenders were floated during Q1-Q3/FY23 as against a year ago statistics. The 2,171 project tenders worth Rs 87,456.91 crore published in Q1-Q3/FY23 included a notable tender floated by Dakshinanchal Vidyut Vitran Nigam for the appointment of advanced metering infrastructure (AMI) service provider in all 21 districts of DVVNL & KESCo, Kanpur. The aggregate value of the tenders was Rs 4,576.11 crore.

However, the credit for issuance of most number of project tenders goes to Maharashtra State Electricity Distribution Co. The company issued 183 tenders worth Rs 15,586.78 crore. It was followed by Karnataka Power Transmission Corporation, which issued 133 tenders worth Rs 753.35 crore.

A few high-value tenders were also issued in the Mining sector during the first nine months of this fiscal. Of the 250 mining tenders worth Rs 20,422.57 crore issued during the nine months of FY23, six were of mega size with a total outlay of Rs 14,682.53 crore. Central Coalfields issued a noteworthy tender for the development and operationalisation of Sanghamitra OCP in North Karanpura Coalfields in Chatra & Latehar districts of Jharkhand with an aggregate value of Rs 4,241.09 crore. Another notable tender was floated by Mahanadi Coalfields for development of Bhubaneswari Expansion OCP (Bhubaneswari, Arkapal-A & Sakhigopal-A Blocks) in Talcher Coalfields, worth Rs 3,826.01 crore.

The Electricity sector saw issuance of 890 tenders worth Rs 14,374.50 crore in Q1-Q3/FY23 as against 627 tenders worth Rs 14,834.01 crore issued in Q1-Q3/FY22. The Department of Power, West Bengal floated a tender worth Rs 4,700 crore for the development of 900 MW Bandu pumped storage project at Ajodhya Hill Area in Purulia district of West Bengal.

States

Among the states, the top 10 — Maharashtra, West Bengal, Karnataka, Rajasthan, Madhya Pradesh, Gujarat, Odisha, Uttar Pradesh, Chhattisgarh and Jammu & Kashmir — accounted for 69.20 percent of the total tenders announced across the country during Q1-Q3/FY23.

Maharashtra topped the chart (in terms of number) with 6,769 tenders worth Rs 1,25,249.97 crore. West Bengal grabbed the second position with 3,364 project tenders worth Rs 34,879.11 crore. Karnataka stood third with 3,123 tenders worth Rs 70,572.16 crore, followed by Rajasthan with 2,866 work related tenders worth Rs 73,176.19 crore.