Road and power sector rises as construction tenders swell by 96%
ECONOMY & POLICY

Road and power sector rises as construction tenders swell by 96%

India Ratings and Research (Ind-Ra) highlights that the fourth quarter of the fiscal year 2024 saw a 96% year-over-year rise in the number of construction tenders for roads and power, amounting to Rs 7,089 billion. This increase is characterised by a March Rush of increased tendering activity by the central and state governments. On the other hand, orders awarded decreased by 30% during that time, reaching Rs 1,623 billion the lowest growth rate during the previous eight quarters. .

The roads sector is dominating, with 49% of all tenders issued in the quarter, up from 33% the year before. The water and real estate segments came next, with corresponding contributions of 20% and 16%. In contrast, highways accounted for 31% of all contracts awarded, while the electricity sector, which comprises generation and distribution, made up 40% of all orders.

With two big value orders, the power segment made about 45% of the granted order book, demonstrating its dominance in the activity throughout the quarter. In terms of order awards and tenders, other industries, including railroads, mining, irrigation, sewage, and others, had differing degrees of activity. .

Krishan Binani, the Director of Corporate Ratings at Ind-Ra, commented on the future of the sector, suggesting an expectation for an increase in contract awards in the near future. He stated that tender awards could see significant upward momentum starting in June 2024, in line with historical announcements starting in the second quarter of the fiscal year 2025. .

Ind-Ra has kept a neutral outlook on the construction industry for the fiscal year 2025, citing continued government capital expenditure as well as a likely rebound in state and private spending to drive 10%?12% growth in Engineering, Procurement, and Construction (EPC) sector revenues. The centre capital expenditure increase is anticipated to be 17%, consistent with a pattern of lower investment during election years. This might be countered by state expenditures and sector-specific private capital expenditures.

Redefine the future of urban mobility! Join us at the Metro Rail Conference 2025 to explore groundbreaking ideas and insights. 👉 Register today!

India Ratings and Research (Ind-Ra) highlights that the fourth quarter of the fiscal year 2024 saw a 96% year-over-year rise in the number of construction tenders for roads and power, amounting to Rs 7,089 billion. This increase is characterised by a March Rush of increased tendering activity by the central and state governments. On the other hand, orders awarded decreased by 30% during that time, reaching Rs 1,623 billion the lowest growth rate during the previous eight quarters. . The roads sector is dominating, with 49% of all tenders issued in the quarter, up from 33% the year before. The water and real estate segments came next, with corresponding contributions of 20% and 16%. In contrast, highways accounted for 31% of all contracts awarded, while the electricity sector, which comprises generation and distribution, made up 40% of all orders. With two big value orders, the power segment made about 45% of the granted order book, demonstrating its dominance in the activity throughout the quarter. In terms of order awards and tenders, other industries, including railroads, mining, irrigation, sewage, and others, had differing degrees of activity. . Krishan Binani, the Director of Corporate Ratings at Ind-Ra, commented on the future of the sector, suggesting an expectation for an increase in contract awards in the near future. He stated that tender awards could see significant upward momentum starting in June 2024, in line with historical announcements starting in the second quarter of the fiscal year 2025. . Ind-Ra has kept a neutral outlook on the construction industry for the fiscal year 2025, citing continued government capital expenditure as well as a likely rebound in state and private spending to drive 10%?12% growth in Engineering, Procurement, and Construction (EPC) sector revenues. The centre capital expenditure increase is anticipated to be 17%, consistent with a pattern of lower investment during election years. This might be countered by state expenditures and sector-specific private capital expenditures.

Next Story
Infrastructure Urban

Bain Capital Invests in Dhoot Transmission Group to Accelerate Growth

Dhoot Transmission Group, a prominent manufacturer of automotive components, has announced a strategic growth investment from Bain Capital. This partnership with founder and CEO Rahul Dhoot will leverage Bain Capital's automotive expertise to drive innovation, expand global reach, and explore high-growth segments through acquisitions and partnerships.Founded in 1999, Dhoot Transmission Group specializes in manufacturing wiring harnesses for two-wheelers, three-wheelers, and other vehicles, including both internal combustion engine (ICE) and electric vehicle (EV) segments. The company has diver..

Next Story
Infrastructure Energy

Indian Oil Corp Eyes Sour Crude from Spot Market

Indian Oil Corporation (IOC), the largest oil refiner in India by capacity, is actively seeking to procure high-sulphur crude oil through spot tenders. This marks the company's first initiative to import sour crude oil since March 2022, according to insights shared by trade sources on Thursday. Sour crude, known for its higher sulphur content, is commonly used by complex refineries capable of processing such grades efficiently. In addition to the sour crude tender, IOC has also floated a separate tender for sweet crude oil, a variety with lower sulphur content that typically requires less int..

Next Story
Infrastructure Urban

Indian Carmakers Gear up for EV Push in 2025 Despite Global Slowdown

Automakers in India are preparing to launch nearly a dozen new electric car models this year, many targeting the premium market. These vehicles are expected to feature extended driving ranges and faster charging capabilities, aimed at attracting consumers amid a global slowdown in demand for electric vehicles (EVs). Electric cars are set to dominate India's five-day auto show in New Delhi starting Friday. The event will showcase models from Vietnamese newcomer VinFast, alongside domestic players such as Maruti Suzuki and Mahindra & Mahindra, as well as international competitors including BYD,..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000