Impressive Increase in Project Tendering

By Team Projects Today

Project tendering activities saw a jump in the number of tenders and tender value in the first three quarters of FY25 (Q1-Q3/FY25). As against 70,285 project tenders worth Rs 10,12,396 crore announced in Q1-Q3/FY24, the country saw the announcement of 1,01,983 tenders worth Rs 11,63,386 crore in Q1-Q3/FY25.

The sharp increase in the aggregate value of tenders during the first three quarters of FY25 can also be attributed to the increase in the number of mega tenders. As many as 129 mega-value tenders (Rs 1,000 crore and above) with an aggregate value of Rs 2,48,366 crore were issued in Q1-Q3/FY25. These mega tenders accounted for 21.35 percent of the total value of project tenders issued during the Survey period. During the same period of the last fiscal year, the country had seen the issuance of 72 mega tenders worth Rs 1,29,647 crore.

The most notable tender of Q1-Q3/FY25 worth Rs 14,807 crore was issued by the NHPC for the construction of the main dam including the Coffer Dam of Dibang Multipurpose Project, Arunachal Pradesh.

By Ownership

The government sector accounted for around 99.57 percent of the project tendering activities. An uptick in tendering activities was seen both at the Central and State levels during Q1-Q3/FY25. Accounting for 59.58 percent, the state government agencies issued 76,050 tenders worth Rs 6,93,192 crore during the first nine months of this fiscal as against 56,380 tenders worth Rs 6,62,056 crore published in Q1-Q3/FY24.

Similarly, the tendering by the Central government agencies also saw increases in both tender numbers and value in Q1-Q3/FY25 vis-à-vis Q1-Q3/FY24. In all, 24,906 project tenders with a contract value of Rs 4,65,158 crore were issued by the Central government agencies during Q1-Q3/FY25 as compared with 12,968 tenders worth Rs 3,46,702 crore in Q1-Q3/FY24.

Major Sectors

The Infrastructure and Irrigation sectors remained frontrunners in tendering activities in the first nine months of FY25 and accounted for 93.03 percent of the total tender values floated in Q1-Q3/FY25. The Infrastructure sector saw the publishing of 94,338 project tenders worth Rs 9,94,633 crore in the first three quarters of this fiscal as against 64,719 tenders worth Rs 9,18,465 crore in the same period a year ago. Among the major sub-sectors, Roadways, Community Services and Railways remained highly active in the issuance of project tenders. Together these three sectors accounted for around 55 percent of the total tender value issued in Q1-Q3/FY25. The Roadways sector entered a higher growth trajectory in Q1-Q3/FY25. Aggregate tendering activity in this sector grew from 23,247 tenders worth Rs 3,25,525 crore in Q1-Q3/FY24 to 29,774 tenders worth Rs 371854.47 crore in Q1-Q3/FY25. In both FY24 and FY25, the sector accounted for almost one-third of the total tender value issued in the country.

In this sector, the largest tender was floated by the National Highways Authority of India (NHAI) for the Development of an 8-lane elevated flyover at Tier-1 on a single pier including the upgradation of the existing road to 4/6 lane with 2 lane service road on both sides of Nashik Phata to Khed (km 12.190 to km 42.113) section of NH-60 in the State of Maharashtra on BOT (Toll) Mode. The value of the tenders was Rs 7,434 crore.

Another notable tender worth Rs 5,992 crore was issued by Maharashtra State Infrastructure Devp. Corpn. was for the construction of a 6-lane elevated highway corridor along with the improvement of the existing road from km 10.600 to km. 64.000 (Section Pune to Shirur of NH-753F - minimum design length 53.40 km.) in the State of Maharashtra on DFBOT (Toll) Mode.

Three nodal agencies — the Public Works Department, Maharashtra; National Highways Authority of India and XXXXXXXX? — were the prominent tender issuers.

Of the 129 mega-value tenders issued during Q1-Q3/FY25, NHAI alone floated 50 tenders for various road works worth Rs 85,429.15 crore.

PWD, Maharashtra floated 3,030 tenders for various works worth Rs 11,169.09 crore during the first three quarters of FY25. Roads & Buildings Department, Gujarat floated 1,819 tenders for various works worth Rs 11,639.68 crore during the first three quarters of FY25.

The Community Services sector accounted for 13.03 percent of the tender issuance. Reflecting the increasing pace of project execution, the sector saw the issuance of a record 31,176 tenders worth Rs 1,51,549.24 crore during Q1-Q3/FY25. The sector issued 14,971 tenders worth Rs 1,00,208 crore in the first three quarters of the previous fiscal.

The largest tender in this sector was floated by the Central Public Works Department for the construction of common central secretariat buildings 6 & 7 in Plot No. 22B & C, Maulana Azad Road, New Delhi worth Rs 2,194.27 crore.

The Railway sector saw the issuance of 6,163 tenders worth Rs 1,22,056 crore in the first three quarters of this fiscal as against 4,490 tenders worth Rs 1,32,839 crore in Q1-Q3/FY24. Another notable tender in this sector was floated by the Rail Land Development Authority for the redevelopment of the New Delhi Railway Station and the construction of associated Infrastructure on Engineering, Procurement and Construction (EPC) Mode. The aggregate value of these tenders was Rs 2,469 crore.

The Power Distribution sector remained one of the frontrunners during Q1-Q3/FY25. However, when compared to the same period a year earlier, the sector witnessed a jump in the first three quarters of FY25. The Power Distribution sector saw 2,586 tenders worth Rs 66,025 crore being floated in Q1-Q3/FY24, an increase from 5,947 tenders valued at Rs 1,04,425 crore in Q1-Q3/FY25. The Irrigation sector floated 4,312 tenders worth Rs 87,666.04 crore in the first nine months of FY25. A year ago, during Q1-Q3/FY24, 3,529 irrigation work tenders worth Rs 64,592 crore were issued. The Water Resources Department, Madhya Pradesh with an aggregate value of Rs 3,993.81 crore for the Construction of a composite barrage on River Son of Sitapur-Hanumana Micro Irrigation Project in Sihawal taluka of Sidhi district of Madhya Pradesh. Of the 129 mega-value tenders issued during Q1-Q3/FY25, the Irrigation sector floated 20 tenders for various irrigation-related works worth Rs 40,427.71 crore. Project tendering in the Real Estate sector grew from 2,136 project tenders worth Rs 34,182.43 crore in three quarters of FY24 to 2,345 project tenders worth Rs 46,441 crore in Q1-Q3/FY25. NBCC (India) floated a tender for the development of Leisure Valley Phase-II residential apartments, Package-I at Plot No. GH 02 Sector - Tech Zone-IV, Greater Noida, Uttar Pradesh on a Design, Engineering, Procurement and Construction (EPC) basis. The aggregate value of the tenders was Rs 2,040.77 crore. A couple of high-value tenders were also issued in the Mining sector during the first nine months of this fiscal. As many as 668 mining tenders were issued with an aggregate value of Rs 6,155 crore. Central Coalfields issued two noteworthy tenders for planning, design, engineering, construction, fabrication, erection, supply, installation, testing, trial run and commissioning coal handling plant (51.0 MTY), at Magadh OCP consisting of all civil, structural, electrical and mechanical works and all other accessories and facilities required to make it complete in all respects on turnkey basis and operation & maintenance of plant for five years in Chatra district of Jharkhand, worth Rs 1,437.02 crore. The Electricity sector saw issuance of 1,719 tenders worth Rs 68,160 crore in Q1-Q3/FY25 as against 1,053 tenders worth Rs 19,501.22 crore in Q1-Q3/FY24. SJVN floated a tender for the selection of solar power developers for setting up 1200 MW ISTS-connected solar PV power projects across India under Tariff-Based Competitive Bidding, on Build-Own-Operate (BOO) basis worth Rs 7,000 crore.

By States

Among the states, the top 10 — Maharashtra, Rajasthan, Karnataka, Uttar Pradesh, Gujarat, Madhya Pradesh, Bihar, Telangana, Tamil Nadu & Jharkhand — accounted for 72.72 percent of the total tenders announced across the country during Q1-Q3/FY25.

Maharashtra topped the chart (in terms of value) with 14,335 tenders worth Rs 2,01,096.25 crore. Rajasthan grabbed the second position with 6,844 project tenders worth Rs 1,25,299 crore.

Karnataka stood third with 6,319 tenders worth Rs 86,323 crore, followed by Uttar Pradesh with 7,943 work-related tenders worth Rs 81,812.11 crore.