Roads, Railways account for nearly half of tenders awarded last year: Report

The FY 2022 edition of the Project Tracker report disclosed the data about tenders worth above Rs 250 billion. According to the report, roads accounted for 34% of the tenders announced last year, followed by irrigation projects (22%), buildings, which also include hospitals and hotels (20%), railways (8%), power projects (6%), while ports, airports, mines and other industrial projects account for remaining 10% tenders announced last year.

New Delhi:Roads, railways and irrigation sectors are some of the biggest beneficiaries of the government’s capital expenditure push as roads and railways alone account for nearly half of the tenders announced by the Centre and State governments last year. According to the Project Tracker report of India Ratings and Research, which compiles the sector and state-wise data of execution work awarded to engineering, procurement and construction companies, both the Centre and State governments awarded tenders for Rs 8900 billion, which is an increase of 11% over the tenders awarded in the previous year (FY 2020-21).

The FY 2022 edition of the Project Tracker report disclosed the data about tenders worth above Rs 250 billion. According to the report, roads accounted for 34% of the tenders announced last year, followed by irrigation projects (22%), buildings, which also include hospitals and hotels (20%), railways (8%), power projects (6%), while ports, airports, mines and other industrial projects account for remaining 10% tenders announced last year.

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Roads, irrigation projects and buildings (including hospitals and hotels) were the top three sectors in terms of the number of tenders announced in the preceding year as well with 39%, 25% and 17% share respectively. “The overall tender inflows in FY22 grew 11% YoY to Rs 8,901 billion, after growing 38% year-on-year in FY21. Out of the overall tenders floated, roads, irrigation and other real estate segments (including hospitals and hotels) on a combined basis contributed around 78% to the overall tenders floated,” said the report.

According to the report, other than these segments, there were incremental tender inflows from railways, power and other industrial (including gas & oil, basic chemicals and telecom) segments, although they contributed only 18% to the overall tenders floated. The report said it signifies the impetus shown by the Central and State governments in increasing the order inflow during the Covid-19 pandemic hit season.

Uttar Pradesh, Maharashtra top in tenders

According to the data compiled by the economist, Uttar Pradesh and Maharashtra account for one-fifth of all the tenders announced during the last financial year. While Uttar Pradesh floated tenders of Rs 888 billion, Maharashtra was marginally lower at Rs 872 billion, both accounting for 10% of the tenders floated last year. “The orders floated are majorly from Bharatmala Expressway projects and Swachh Bharat Mission schemes. Rajasthan and Madhya Pradesh followed next with a share of 7% and 6%, respectively,” said the report.

Roads and railways dominate work awarded last year

According to the data, out of the overall order tenders awarded in the last financial year, roads and highways accounted for 40% of the orders, while railways accounted for 17% and water-related projects, including irrigation and projects, accounted for 12% of the tenders awarded last year. In FY 2020-21, roads accounted for 27% of the tenders awarded while railways accounted for 21% share and irrigation and water projects accounted for 10% share.