Project tendering activities exhibited substantial growth in the number of tenders, although there was a notable decline in tender value in the first quarter of FY25. Specifically, the number of tenders increased by 19% year-on-year in Q1/FY25. However, the total value of these tenders saw a significant drop of 59%.
In Q1/FY24, 13,666 project tenders amounting to Rs 3,47,558 crore were announced. In contrast, Q1/FY25 witnessed 16,038 tenders worth Rs 1,42,493.35 crore. The extended general election period caused companies to delay their large-size tenders, resulting in fewer high-value tenders (Rs 1,000 crore and above) being issued. Only 10 mega-value tenders worth Rs 22,107.13 crore were released in Q1/FY25, compared to 33 such tenders worth Rs 59,778 crore in Q1/FY24.
Most sectors, excluding Mining and Electricity, saw a significant year-on-year decrease in the total value of tenders. Despite this, the Infrastructure (Services & Utilities), Electricity, and Irrigation sectors remained dominant in the first quarter of the current fiscal year.
In the Infrastructure sector, despite issuing 2,291 more tenders, the total tender value fell by 64%. Q1/FY25 saw 14,909 tenders worth Rs 1,13,142.17 crore, compared to 12,617 tenders worth Rs 3,16,739.12 crore in Q1/FY24. Within this sector, the leading activities were in Roadways, Water & Sewerage Pipeline & Distribution, and Other Community Services & Railways.
The Roadways sector maintained its leading position in Q1/FY25 with 3,968 tenders worth Rs 29,333.12 crore, compared to 3,514 tenders worth Rs 84,829.07 crore in Q1/FY24. The absence of mega tenders led to a 65.42% decline in the total tender value year-on-year.
In terms of value, the National Highways Authority of India (NHAI) and the Ministry of Road Transport & Highways (MoRTH) were the leaders. However, of the 414 tenders issued by the NHAI, only one was of significant size. The Rs 1,397.84 crore tender was for constructing a four-lane section of the Patna-Arrah-Sasaram corridor in Bihar on HAM Mode.
The Railways sector moved up from third place in Q1/FY24 to second in Q1/FY25, surpassing the Water & Sewerage Pipeline & Distribution sector. In Q1/FY25, 1,856 tenders worth Rs 28,458 crore were issued, compared to 1,482 tenders worth Rs 53,836 crore in Q1/FY24. The East Central Railway issued a major tender worth Rs 1,0111.76 crore for a double line track construction in the Gaya Detour section.
The Other Community Services sector improved from fourth place in the previous year to third in Q1/FY25. It saw the issuance of 4,929 tenders worth Rs 24,898.34 crore in Q1/FY25, compared to 2,161 tenders worth Rs 27,144 crore in Q1/FY24. The Karnataka Industrial Areas Development Board issued a tender worth Rs 879.95 crore for infrastructure works at the Dharwad Industrial node.
The Irrigation sector ranked fourth in total tender value, supported by five mega tenders worth Rs 10,122.51 crore from the Water Resources Department, Madhya Pradesh. Despite this, the sector’s total tender value decreased by 36.92% year-on-year. Q1/FY25 saw 550 tenders worth Rs 15,913.66 crore, compared to 473 tenders worth Rs 28,228.81 crore in Q1/FY24.
In the Water Supply sector, 1,803 tenders worth Rs 12,976.16 crore were issued during Q1/FY25, compared to 2,286 tenders worth Rs 84,275.34 crore in Q1/FY24. A notable tender in this sector was for the construction of the Madhuvan Reservoir in Bihar, valued at Rs 911.05 crore.
The Solar Power sector saw 189 tenders worth Rs 7,778.17 crore in Q1/FY25, compared to 134 tenders worth Rs 2,027 crore in Q1/FY24. The SJVN issued tenders worth a total of Rs 7,000 crore for setting up 1,200 MW ISTS-Connected Solar PV Power Projects across India.
