Record Project Tendering in FY2023

By Mr. Shashikant Hegde, CEO, Projects Today

Project tendering activities saw a growth of 24.31 percent during FY2023 when compared to the previous year’s activities. A total of 55,759 project-related tenders were floated as against 44,853 tenders issued in FY2022.

In terms of tender job value, the aggregate amount increased by 49.63 percent on a Y-o-Y basis in FY2023. The country saw announcement of tenders worth Rs 13,59,117.59 crore in FY2023 as against tenders worth Rs 9,08,339 crore issued in FY2022.

The good amount of increase seen in tender values was also because of the increase in number and value of mega tenders (Rs 1000 crore or more) released in FY2023. As against 109 mega tenders worth Rs 2,22,576.39 crore published in FY2022, in all, 172 mega tenders worth Rs 3,08,842.82 crore were advertised in FY2023.

By Ownership

In India, private project promoters hardly go for public tendering for executing their projects. Hence, bulk of the project tendering activities are carried out by the public sector agencies. Accounting 77.50 percent of the total tenders issued; state government agencies issued 43,211 tenders worth Rs 8,59,402.27 crore during FY2023 as against 35,667 tenders worth Rs 5,22,736.96 crore published in FY2022. Central government agencies issued 11,209 project-related tenders worth Rs 4,91,902.58 crore during FY2023 as compared to 8,625 tenders worth Rs 3,79,819.21 crore in FY2022.

Major Sectors

In FY2023, the Services & Utilities (Infrastructure) and Irrigation sectors remained frontrunners in tendering activities. These two sectors accounted for 95.65 percent of the total tenders issued during the period.

A total of 50,330 project tenders worth Rs 12,03,914.07 crore were published in the Infrastructure sector in FY2023 as against 40,794 work related tenders worth Rs 7,76,668.89 crore issued in FY2022.

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

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. As against, the issuance of 9,194 tenders worth Rs 1,27,726 crore in FY2022, floated the current fiscal saw publishing of 13,979 tenders worth Rs 2,26,706.81 crore indicating a growth of 77.50 percent in terms of value and 52.04 percent in terms of numbers.

In this sector, Public Health Engineering Department (PHED), West Bengal; PHED, Chhattisgarh, PHED, Jammu & Kashmir; Kerala Water Authority and Maharashtra Jeevan Pradhikaran were the top five agencies in tendering activities in FY2023. These five agencies together accounted for the issuance of 6,513 tenders worth Rs 59,936.34 crore for implementing various water supply scheme related works.

Moreover, 19 mega tenders of Rs 1,000 crore or more were issued during the fiscal in this sector. The Uttar Pradesh State Water & Sanitation Mission floated eight tenders worth Rs 15,917.36 crore for the design, execution, and O&M of water supply schemes in Mathura, Agra, Unnao, Firozabad, Allahabad, Ballia and Chandauli districts of the state.

The Rural Water Supply & Sanitation Dept., Andhra Pradesh issued five mega tenders with an aggregate value of Rs 7,910 crore for putting in place drinking water supply infrastructures in East Godavari, West Godavari, Krishna, Guntur, Prakasam and Chittoor districts under the JJM Grant.

Madhya Pradesh Jal Nigam Maryadit issued four mega tenders with an aggregate value of Rs 6,012.45 crore for the execution of multi-village water supply schemes in Rewa, Sidhi, Sehore and Satna districts.

The Roadways sector saw a rise of 3.99 percent in terms of number of project tenders floated and a rise of 52.69 percent in terms of total tender value on a Y-o-Y basis. In all, 12,689 tenders worth Rs 4,67,262.42 crore were advertised during FY2023.

The most notable tender floated was by the Mumbai Metropolitan Region Devp. Authority for the construction of underground road tunnel connectivity between Orange Gate, Eastern Free Way to Marine Drive, Coastal Road at Mumbai. The aggregate value of the tenders is Rs 6,327 crore.

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

NHAI issued 1,226 road building tenders with an aggregate value of Rs 2,20,036.21 crore during FY2023. Of this, seventy-seven were mega value tenders totalling Rs 1,09,547.88 crore. Further, during the year, NHAI floated a tender worth Rs 4,994.79 crore for the construction of six-lane bridge and it is approaches across River Ganga as part of Patna Ring Road (NH-131G) starting from km 8.48 near Sherpur to km 23.00 near Dighwara in the state of Bihar on EPC mode.

Another NHAI tender was for the construction of four-lane elevated corridor and at-grade improvements from design Ch. 0.000 to design Ch. 19.870 of Danapur-Bihta Section with providing connectivity to the existing RoB near Danapur station (0.231 km), 1.35 km ramps & at-grade improvements to four lane section on Danapur side and upgradation of 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. The aggregate value of the tenders was Rs 3,737.51 crore.

Of the other two nodal agencies, NHIDCL floated 148 tenders with an aggregate value of Rs 28,098.37 crore and MoRTH issued 488 work related tenders worth Rs 28,033.29 crore. The Other Community Services sector, comprising educational institutes, hostels, libraries, etc. posted a yearly increase of 33.43 percent in terms of tender value and 14.65 percent in terms of numbers. As against 7,733 project tenders worth Rs 78,880 crore issued in FY2022, a total of 8,866 tenders worth Rs 1,05,248 crore were floated in FY2023. The largest tender is this sector was floated by Bagalkot Town Devp. Authority for design and construction for layout development and infrastructure works of roads, water distribution for Navanagar Unit-3 Area, Bagalkot in Karnataka. The aggregate value of the tenders was Rs 2,326.24 crore.

Indian Railways and its subsidiaries issued 3,125 tenders worth Rs 97,646.15 crore in FY2023 as against 1,852 tenders worth Rs 70,466.01 crore offered in FY2022.

The Power Distribution sector registered healthy growth in FY2023 vis-a-vis FY2022. Aggregate tendering in this sector grew from 2,056 tenders worth Rs 21,671 crore in FY2022 to 2,917 tenders worth Rs 1,50,565 crore in FY2023.

In this sector, 23 mega-value tenders (Rs 1,000 crore and above) with an aggregate value of Rs 51,260.98 crore were issued in FY2023 for smart prepaid metering works on DBFOT basis under RDSS.

Maharashtra State Electricity Distribution Co. floated 13 tenders for appointment of advanced metering infrastructure (AMI) service provider for smart prepaid metering in various regions of Maharashtra under RDSS scheme. The aggregate value of the tenders was Rs 33,618.20 crore. And Dakshinanchal Vidyut Vitran Nigam (DVVNL) floated a tender for appointment of AMI service provider for smart prepaid metering in all 21 districts of DVVNL & KESCo Kanpur in Uttar Pradesh worth Rs 4,576.11 crore.

In the Shipping Infrastructure sector, the Karnataka Maritime Board issued two high- value tenders together worth Rs 7,166.20 crore for development of all-weather deepwater greenfield ports at Keni and Pavinakurve in Karnataka. And the Deendayal Port Authority issued tender for development of container terminal at Tuna Tekra Deendayal Port worth Rs 4,243.64 crore.

The Irrigation 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 2,295 tenders worth Rs 55,843.58 crore in FY2022, floated 3,001 tenders worth Rs 1,09,802.04 crore in FY2023.

The Narmada Valley Devp. Authority issued a tender for construction of dam on Shakkar River in Narsimhapur district, Dudhi River in Hoshangabad district, Narmada River in Dindori district of Madhya Pradesh. The aggregate value of the tender was Rs 6,591.15 crore. And Water Resources Department, Madhya Pradesh issued a tender worth Rs 4,806.95 crore for construction of Hatpipaliya pressurized pipe Lift Irrigation Project in Dewas district of Madhya Pradesh.

The Electricity sector saw issuance of 1,223 tenders worth Rs 18,846.82 crore in FY2023 as against 869 tenders worth Rs 31,972 crore in FY2022. During FY2023, the Department of Power, West Bengal invited tender for development of 900 MW Bandu Pumped Storage Project at Ajodhya Hill Area in Purulia district of West Bengal DBFOT basis worth Rs 4,700 crore. The Mining sector too witnessed fall in tenders and rise in tender value in FY2023 vis-à-vis FY2022. In all, 270 tenders with an aggregate value of Rs 39,213 crore were issued during FY2023 as against 299 tenders worth Rs 21,660 crore issued in FY2022. This indicated a growth of 10.74 percent in terms of number and indicated a sharp fall of 44.76 percent in terms of value on a Y-o-Y basis.

The Coal sector stayed the frontrunner in issuing high-ticket tenders in FY2023. The sector saw issuance of five major tenders worth Rs 14,682.53 crore.

Mahanadi Coalfields issued two noteworthy tenders for the development and operation of Bhubaneswari Expansion OCP (Bhubaneswari, Arkapal-A & Sakhigopal-A Blocks) and Balabhadra OCP in Jharkhand with an aggregate value of Rs 2,550.46 crore. Central Coalfields Ltd. floated major tender for the development & operation of Sanghamitra OCP in North Karanpura Coalfields in Chatra & partly of Latehar district in Chhattisgarh worth Rs 4,241.09 crore.

States

Among the states, the top 10 — Maharashtra, West Bengal, Karnataka, Madhya Pradesh, Odisha, Rajasthan, Gujarat, Uttar Pradesh, Tamil Nadu, and Chhattisgarh accounted for 69.40 percent of the total tenders announced across the country in FY2023.

For the second consecutive year, Maharashtra occupied the number one position in tendering activities, with a total of 8,308 tenders worth Rs 1,94,584.44 crore during FY2023.

West Bengal jumped to second place with 5,019 tenders worth Rs 55,025 crore as against 2,644 tenders worth Rs 23,272.76 crore were issued in FY2022. The sharp jump in tender figures can be attributed to the 3,268 tenders the state issued for the execution of various water supply schemes under Jal Jeevan Mission. Karnataka settled for the third position with 4,268 tenders with an aggregate value of Rs 1,03,524 crore.