Construction space tenders increases by 11% YoY in FY22: Ind-Ra
ROADS & HIGHWAYS

Construction space tenders increases by 11% YoY in FY22: Ind-Ra

India Ratings and Research (Ind-Ra) told the media that the amount of overall tenders floated across all divisions in the construction space increased by 11% year-on-year (YoY) in FY22 to Rs 8,901 billion, representing the impetus shown by the central and state governments in improving the order inflow on the Covid-19 pandemic hit season.

In FY22, the overall tender inflows increased 11% YoY to Rs 8,901 billion, after increasing 38% YoY in FY21.

Out of the overall tenders floated, irrigation, roads, and other real estate segments on a combined basis contributed about 78% to the overall tenders floated.

Other than these segments, there were incremental tender inflows from power, railways, and other industrial segments, although they contributed just 18% to the overall tenders floated.

The tenders floated increased incrementally, majorly contributed by both Uttar Pradesh and Maharashtra at Rs 888 billion and Rs 872 billion each in FY22. In FY22, the tenders declared from both the states contributed 20% to the overall tenders (10% each) floated across India.

The orders floated were majorly from Swachh Bharat Mission schemes and Bharatmala Expressway projects. Rajasthan and Madhya Pradesh followed next with 7% and 6% share, each.

In FY22, out of the overall order awards, 40% of the orders were contributed by roadways (FY21: 27%), 12% by water (including irrigation; 10%), and 17% by railways (21%). In FY21, while the mining segment had witnessed an increase of 1115% YoY in the order awards, it dropped 58% YoY in FY22.

The overall orders awarded increased 10% YoY in FY22, majorly on the revival account of the engineering, procurement, and construction (EPC) sector post-Covid-19 pandemic.

The rating agency said Ind-Ra, declared by the central government in February 2022, believes the thrust on the EPC sector would continue in FY23 as well.

Image Source

Also read: As many as 428 infra projects hit cost overruns of Rs 4.98 lakh cr

India Ratings and Research (Ind-Ra) told the media that the amount of overall tenders floated across all divisions in the construction space increased by 11% year-on-year (YoY) in FY22 to Rs 8,901 billion, representing the impetus shown by the central and state governments in improving the order inflow on the Covid-19 pandemic hit season. In FY22, the overall tender inflows increased 11% YoY to Rs 8,901 billion, after increasing 38% YoY in FY21. Out of the overall tenders floated, irrigation, roads, and other real estate segments on a combined basis contributed about 78% to the overall tenders floated. Other than these segments, there were incremental tender inflows from power, railways, and other industrial segments, although they contributed just 18% to the overall tenders floated. The tenders floated increased incrementally, majorly contributed by both Uttar Pradesh and Maharashtra at Rs 888 billion and Rs 872 billion each in FY22. In FY22, the tenders declared from both the states contributed 20% to the overall tenders (10% each) floated across India. The orders floated were majorly from Swachh Bharat Mission schemes and Bharatmala Expressway projects. Rajasthan and Madhya Pradesh followed next with 7% and 6% share, each. In FY22, out of the overall order awards, 40% of the orders were contributed by roadways (FY21: 27%), 12% by water (including irrigation; 10%), and 17% by railways (21%). In FY21, while the mining segment had witnessed an increase of 1115% YoY in the order awards, it dropped 58% YoY in FY22. The overall orders awarded increased 10% YoY in FY22, majorly on the revival account of the engineering, procurement, and construction (EPC) sector post-Covid-19 pandemic. The rating agency said Ind-Ra, declared by the central government in February 2022, believes the thrust on the EPC sector would continue in FY23 as well. Image Source Also read: As many as 428 infra projects hit cost overruns of Rs 4.98 lakh cr

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