In the first half of FY2025 (H1/FY25), the analysis of project tenders across major sectors by Projects Today, revealed divergent trends compared to H1/FY24. Except for the Mining and Infrastructure sectors, the Manufacturing, Electricity, and Irrigation sectors exhibited growth in both the number of tenders and their respective values.
Though the number of tenders increased impressively, the aggregate tender value declined by 9.1 percent in H1/FY25. A drop in the tender value issued by state government agencies led to a decrease in the overall value of tenders during this period. Compared to 24,177 project tenders worth Rs 6,19,033 crore announced in H1/FY24, the country saw the announcement of 42,406 tenders worth Rs 5,63,007 crore in H1/FY25.
This disparity between the increasing number of tenders and the declining total value suggested a strategic recalibration, likely pointing towards a focus on smaller-scale, cost-effective projects in certain sectors. In contrast, sectors such as Electricity witnessed significant investments aimed at long-term capacity building.
The project tendering landscape in H1/FY25 showed a mixed pattern. While the overall number of tenders increased across sectors, the total value of tenders dropped by 9.1 percent. The Electricity, Manufacturing, and Irrigation sectors led the way in growth, particularly the Electricity sector, which recorded a striking 469 percent rise in tender value. Conversely, the Mining and Infrastructure sectors registered a decline in value, with the Infrastructure sector experiencing a significant 14.6 percent year-on-year drop in tender value, despite an increase in tender numbers.
The Infrastructure sector continued to dominate the landscape regarding both the number of tenders and their values. However, despite growth in other sectors, the Infrastructure sector experienced a notable decline in tender value, even though the number of tenders surged. In H1/FY25, the sector saw the issuance of 39,300 tenders worth Rs 4,82,935 crore, marking a 14.6 percent decline in value compared to H1/FY24, when 22,149 tenders worth Rs 5,65,190 crore were issued. Consequently, its share in the total tender value fell from 91.30 percent in H1/FY24 to 85.78 percent in H1/FY25. Despite the reduced value, the Infrastructure sector remained the largest in terms of tender volumes and total investment size. Within this sector, Roadways, Railways, Community Services, and Water Supply Schemes led the way, accounting for 61.11 percent of the total tenders issued in the Infrastructure segment.
The Roadways sector, with 12,134 tenders worth Rs 1,90,730 crore, stood at the top of the table in the first half of FY2025. During the same period last year, the sector saw the issuance of 6,486 tenders worth Rs 1,70,943 crore. This accounted for 33.88 percent of the total tenders published in H1/FY25. Three nodal agencies—the National Highways Authority of India (NHAI), the Ministry of Road Transport & Highways (MoRTH), and the Maharashtra State Road Development Corporation (MSRDC)—were the leading tender issuers in this sector.
NHAI floated 26 high-ticket tenders for highway works worth Rs 40,714 crore in H1/FY25. The largest tender issued by NHAI was for Rs 7,434 crore for developing an eight-lane Nashik Phata to Khed section of National Highway-60 in Maharashtra under BOT (Toll) mode. Another notable tender worth Rs 3,653 crore issued by NHAI was for constructing a six-lane greenfield highway in Maharashtra, executed on BOT (Toll) mode.
The Railways sector ranked second with 2,551 tenders worth Rs 75,136 crore. The Rail Infrastructure Development Corporation (Karnataka) issued mega-value tenders with an aggregate value of Rs 1,423 crore for the design and construction of an elevated viaduct and other associated works for the Bengaluru Suburban Railway Project.
Metro Railway, Kolkata invited bids for constructing two underground metro stations, Birati and Michael Nagar, as part of the extension of the metro railway from Noapara to Barasat. The aggregate value of the tenders was Rs 1,330.47 crore.
The Community Services sector ranked third with 13,142 tenders worth Rs 73,982 crore in H1/FY25, accounting for 13.14 percent of the total tenders issued. In the same period last year, the sector saw the issuance of 3,912 tenders worth Rs 49,520 crore. Karnataka Industrial Areas Development Board published a mega-value tender worth Rs 2,319 crore for the infrastructure works of the MMLP block in Dharwad, Karnataka.
Tendering activities in the Water Supply sector declined in H1/FY25 compared to the previous year. Against 3,881 tenders worth Rs 1,19,806 crore issued in H1/FY24, H1/FY25 saw 4,479 tenders worth Rs 52,985 crore, indicating a 55.8 percent fall.
The Power Distribution sector saw the issuance of 2,558 tenders worth Rs 30,712 crore in H1/FY25 compared to 1,258 tenders worth Rs 46,467 crore in H1/FY24. Maharashtra State Electricity Distribution Company floated a tender worth Rs 690 crore for infrastructure development in the Chh. Sambhajinagar region.
The Electricity sector displayed remarkable growth in tender values, with 955 tenders worth Rs 22,062 crore in H1/FY25 compared to 606 tenders worth Rs 3,877 crore in H1/FY24, marking a 469 percent year-on-year growth. This significant increase boosted the sector’s share in total tender value from 0.63 percent in H1/FY24 to 3.92 percent in H1/FY25. The NHPC floated a high-value tender worth Rs 14,807 crore for the Dibang Multipurpose Project in Arunachal Pradesh.
The Irrigation sector also showed positive momentum in H1/FY25, with tenders increasing from 898 in H1/FY24 to 1,516 in H1/FY25. The total value of tenders grew by 17 percent, reaching Rs 51,425 crore compared to Rs 43,967 crore in the previous year. The Narmada Valley Development Authority issued tenders with an aggregate value of Rs 4,846 crore for micro-irrigation projects in Madhya Pradesh.
The Mining sector witnessed minor contraction. Although the number of tenders rose from 165 in H1/FY24 to 232 in H1/FY25, the overall tender value decreased by 1.3 percent, from Rs 4,027 crore in H1/FY24 to Rs 3,974 crore in H1/FY25. Central Coalfields issued a significant tender worth Rs 1,437 crore for the development and operation of the coal handling plant in Jharkhand.
Overall, H1/FY25 presented a complex picture of project tendering. While the number of tenders increased substantially, the reduction in overall value indicated a shift in focus towards more cost-effective projects and smaller investments, with a renewed emphasis on building capacity in sectors such as Electricity and Irrigation.
