Slowdown in project tendering activities continues

The slowdown witnessed in project tendering activities in March 2009 continued in April 2009 also. Earlier after the slump in October and November 2008, tendering activities picked up between December 2008 and February 2009. However, thereafter it once again slowed down considerably.

A slowdown in tendering activities by state government agencies led to a sharp fall in number of project tenders floated in March and April 2009. One of the main reasons for the same is the model code of conduct which came into existence following the announcement of the General Elections. With both state governments as well as the Central government according extra emphasis on infrastructure building, the project tendering activities should gather momentum once a new government takes over in Delhi.

In April 2009, 1,587 project related tenders worth Rs 6,343 crore were floated, out of which 938 tenders worth Rs 3,620 crore were by Central government agencies, 609 tenders worth Rs 2,716 crore by State government agencies and the balance 40 tenders were by private companies.     
 
Among the tenders published in April 2009, the most notable one was by KIOCL, a Government of India Enterprise. On 27 April 2009, KIOCL invited bids for selection of JV partner for setting up of an integrated steel plant in Karnataka. The integrated steel plant will have a minimum capacity of 1.5 million tpa in the first phase with a provision for expansion to five million tpa and beyond in the subsequent phases.

Another notable tender was announced by Delhi Metro Rail Corporation (DMRC). On 22 April 2009, DMRC invited bids for carrying out geo-technical investigation work for the Phase-I of Jaipur Metro Rail Project.

Among the major sectors, Railways topped the sector-wise list with 443 project tenders worth Rs 1,845 crore. Roadways, Community Services and Thermal Based Power sector followed the list with 441 tenders worth Rs 2,368 crore, 112 tenders worth Rs 491 crore and 111 tenders worth Rs 104 crore, respectively.

In the Wind Power sector, on 24 April 2009, Hindustan Petroleum Corporation, a Government of India Enterprise, invited bids for implementation of 25 MW wind power project including operation and maintenance at one location within any state of India. In the same sector, on 07 April 2009, GAIL (India), also invited bids for supply, installation and commissioning of 4.5 to 5.0 MW wind power project on turnkey basis in the state of Gujarat.

Among the states, Maharashtra topped the state-wise list with 168 tenders worth Rs 1,017 crore. Andhra Pradesh, Uttar Pradesh and Tamil Nadu followed the list with 145 tenders worth Rs 374 crore, 130 tenders worth Rs 339 crore and 95 tenders worth Rs 131 crore, respectively.

Private Sector
In the private sector, 40 project tenders were floated during April 2009, mainly in the Power, Aluminium and Petroleum Oil & Gas sectors. Some of the major tenders floated were by

• Nava Bharat Energy (India), part of Nava Bharat Ventures Group, for supply of thermal power plant equipments and execution of civil works for setting up of 150 MW coal fired power plant at Dharmavaram in East Godavari district and another 150 MW coal fired power plant at Paloncha in Khammam district of Andhra Pradesh.
• Cairn Energy India Pty for detailed engineering of Bhogat terminal in its Mangala development pipeline project.
• Bharat Aluminium Company, a Sterlite Group company, for bauxite mining at Kawardha and Barima mines in the state of Chhattisgarh.
• PEL Power, a group company of Patel Engineering, for steam turbine generator and auxiliaries package for 2x500 MW power project near Nagapattinam in Tamil Nadu.

• Monnet Power Company, a wholly owned subsidiary of Monnet Ispat and Energy, for supply, erection and commissioning of various packages on EPC/Turnkey basis for 2x525 MW at Malibrahmani in Angul district of Orissa.

Expressions of Interest (EoIs)
In April 2009, 46 EoIs related to Coal, Power, Hospitals and Roadways sectors were announced. Some major EoIs floated in the month were by

• Maharashtra State Power Generation Company, a Government of Maharashtra undertaking, for detailed exploration and preparation of geological report for Bhivkund coal block in Wardha Valley in Chandrapur district of Maharashtra.
• HLL Lifecare, a Government of India Enterprise, for setting up of a teaching block, 400 beds women and children hospital, a hostel complex and augmentation of existing specialities at JIPMER, Puducherry on turnkey basis.
• Rajasthan State Mines & Minerals, a Government of Rajasthan undertaking, for selection of JV partner for mining of lignite at Kasnau-Matasukh lignite project in Nagaur district of Rajasthan.
• Himachal Pradesh Power Corporation, a Government of Himachal Pradesh undertaking, for providing various consultancy services for Tidong Stage-II hydroelectric project in Morang tehsil of Kinnaur district  of Himachal Pradesh.
• Government of Jharkhand for supervision consultancy services for rehabilitation and upgradation of Gobindpur-Jamtara-Dumka-Barhet-Sahibganj road under Jharkhand State Roads project.

Empanelment of Consultants/Contractors
During April 2009, five notices were published, inviting applications for empanelment of consultants and contractors. Some of the major notices were:

• Central Public Works Department invited bids for the empanelment of contractors for civil and furniture works for Parliament Library Project in Delhi.
• Haryana State Agricultural Marketing Board invited bids for the empanelment of architects for its upcoming projects in Haryana.
• NTPC, a Government of India Enterprise, invited bids for enlistment of agencies/contractors for various works at Ramagundam super thermal power station in Karimnagar district of Andhra Pradesh.
  
  

  Project Tendering By Ownership
  Ownership	Rs.Crore	Tenders	Share%
  Central Government	3,620	938	59.1
  State Government	2,716	609	38.4
  Private (Foreign)	4	21	1.3
  Private (Indian)	4	19	1.2
  Grand Total	6,343	1,587	100

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