Overview

Andhra Pradesh is the seventh largest State in India area wise and its economy is the 8th largest in India with a GDP of USD 110 Billion (source). When Government procurement is calculated at 20% of the GDP, the State of Andhra Pradesh is estimated to procure USD 22 Billion in a year. About 300 procuring entities in the State advertise tenders in the State of Andhra Pradesh. These agencies are of different types as in Universities, Women and Child Development, Urban Development Authority, Municipal Corporation, Transport Department, Religious institutions such as Tirumala Tirupathi Devasthanam, power generation companies and Irrigation departments. As of 2023, Andhra Pradesh has 26 districts, where the district administration regularly advertises a large number of tenders.

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Though the government of Andhra Pradesh employs more than 8 lakhs employees, there is need for additional human resources, whom the government hires as temporary staff. Primarily, manpower agencies are hired by the government to deploy these staff. Corporations such as Oil and Natural Gas Corporation, India Coal Ltd. and North Central Railway actively hired temporary staff. Hiring was done for posts such as staff for security services and operating transport shuttles. Interestingly, a hiring advertisement was published for fire-fighting servicemen as well.

Andhra Pradesh’s requirement for pump spares is largely driven by the fact that it is an agrarian state with cast irrigation systems and groundwater extraction needs. Government agencies issued about 306 tenders for pump spares. Agencies like AP Power Generation Corporation Ltd., National Thermal Power Corporation and PSUs like Military Engineer Services were actively involved in the procurement of pump spares. Components such as control valves, slurry pump plug gate assembly and spares for evaporative cooling system type of pump spares were purchased by the government. Other pump spares procured by the government include hydraulic pumps, valves and AUMA make actuators.

Tenders for gearboxes in Andhra Pradesh are typically meant to cater to heavy-duty machinery, irrigation, and similar municipal services. Government agencies issued a total of two hundred and four tenders for gearboxes last year. Items procured via these advertisements included gear boxes for various machinery such as ESP CERM, CKC 315, ILMS gear boxes and butterfly valves. Agencies advertised tenders for purchasing bevel helical gearboxes as well. Key buyers were corporations such as National Thermal Power Corporation, APGENCO and IIT, Tirupati.

Andhra Pradesh government sought to ensure high-quality, energy-efficient LED lighting solutions for urban development, smart-city projects and rural electrification. The key buyers of LED light fittings in AP are: South Central Railway, APGENCO and Military Engineer Services. These organizations issued tenders for the purchase of several LED fittings like 9W light bulbs, LED-based auxiliary head light-tail light and 100W LED flood lights. Some advertisements were published for purchasing LED commercial displays and LED fittings for passenger lifts. A sum total of 204 tenders were issued for LED light fittings during the last year.

Water supply in Andhra Pradesh is a vital part of the state’s intense effort to provide potable water under various schemes such as Jal Jeevan Mission and NTR Sujala Pathakam. Four hundred and fifty-seven tenders were published for water supply. Government agencies like PRED, AP Municipality and PSUs such as Military Engineer Services were actively involved in executing water supply projects. These agencies sought to ensure proper operation and maintenance of water supply to all residential and industrial complexes across various zones in the State of Andhra Pradesh. Tenders were published for the construction of water lines, hiring labor for digging and laying pipes and replacing damaged pipelines. Repairing pipe beds, fixing pipeline breakdowns and providing interconnected domestic water supply pipes were also executed in these tenders. Water supply was ranked as the 5 largest spend area by tender count with 7414 tenders during the last financial year.

Andhra Pradesh has constructed about 17,799 public and community toilets as part of the Swachh Bharat Mission-Urban initiative. As part of their sanitation initiative the government agencies aim at constructing more toilets and maintaining existing ones. Key advertisers of the toilet construction tenders were Andhra Pradesh State Road Transport Corporation, Municipality Corporation of Rajahmundry and Military Engineer Services. Around 851 tenders were published by the government agencies in AP during the last year. These agencies advertised tenders for the construction and maintenance of toilets in bus depots and Sanitary Muster Office. Also, as a part of the toilet construction, the contractors were required to lay sewage pipes, exhaust fans, plaster and lay bathroom pipes.

Borewells play a vital role in AP’s water resource management, especially in the rural and drought-prone regions. As of March 2022, about 11000 borewells were drilled in Andhra Pradesh under the Jalaka scheme. Government agencies sought to drill borewells to provide a reliable water source. About 823 tenders for borewells were published last year. Primary buyers of tenders were Agricultural Marketing Department, Municipalities of AP and Atomic Minerals Directorate for Exploration and Research. The scope of work in the borewell tenders included installation of borewells, laying borewell pipes and installing water supply pipelines. Agencies also advertised for drilling and rewinding borewells.

Drain construction is a crucial part of the Swacch Bharat Mission and Atal Mission and Urban Transformation. Agencies published more than ten thousand drain tenders during the last financial year. Government agencies such as the AP Municipalities, Municipal Administration Department and National Thermal Power Corporation Ltd. were actively involved in constructing drainages across Andhra Pradesh. PSUs such as Military Engineer Services also issued tenders for drain construction and maintenance. Major tenders were for construction of underground drains, removal of silt from existing drains, repairs of manholes and procuring equipment like SealKit for hydraulic pumps.

The existing government funded hostels in Andhra Pradesh house up to eighty-three thousand students from diverse backgrounds. To address the increasing demand for hostel accommodation, government agencies advertised tenders for construction of new hostels and maintenance of the existing hostels as well. Key contributors to these hostel tenders were AP Education and Welfare Infrastructure Development Corporation and AP Medical Services and Infrastructure Development Corporation. The published tenders included construction of new hostels, repairs to existing hostels and provision of facilities. These facilities included the provisioning of sanitation, electricity and security. A total of 316 such hostel related tenders were published last year.

Andhra Pradesh as a state enjoys the presence of an extensive coastline and multiple river systems. The water from these rivers will need to channelized to the households for water supply. A total of four hundred and fifty-seven tenders were published the last financial year for water supply projects. Government agencies like Panchayati Raj Engineering Department and AP Municipalities were key contributors to these tenders. Many of the water supply tenders were published to execute the project objectives of the CPWS (Comprehensive Protected Water Supply). Also, tenders were published for the provisioning of water supply across various zones, construction of water treatment plant and hiring labor for the maintenance of water supply..

The provision of a well-functioning and accessible burial grounds across all regions in Andhra Pradesh is a key requirement. In the recent years, capacity issues are reported in the burial grounds. To address the increased demand of burial grounds, the government agencies in Andhra Pradesh advertised a total of 665 tenders for burial ground development and maintenance. Agencies like Greater Vishakhapatnam Municipal Corporation and Municipality of Andhra Pradesh published tenders for the burial ground development.

A supplier or contractor needs to visit the Andhra Pradesh e-Procurement website https://tender.apeprocurement.gov.in. To register in the platform, the user needs to click on the “new registration” button on the right-side panel, and then accept the terms and conditions. Then, the user is required to broadly input the following key details:

Contractor / supplier type: In this, the system allows the registration of individual contractors, national firms and international firms.
Digital signature: Regardless of the supplier type, the users are required to upload a valid digital signature certificate. The authorized signatory is auto filled into the form based on the details stored in the digital signature certificate. Besides the signing certificate, the user is required to upload an encryption certificate as well.
Primary company details: In this, the user is required to provide the company name, user credentials, email address and phone number. The system sends an One Time Password to both email and mobile, which the user needs to confirm to validate its contact information.
Office address: The contact information of the user is updated.
Registration details: In this section, the user is required to input the PAN details and GST details. The system requires the user to upload a scanned copy of the relevant certificates.
Bank details: The bank account information of the supplier is inputted under this section.

The application thus submitted is sent to the e-Procurement service provider, who will review and approve the same. If the service provider rejected the application, the user has the option to update its application and resubmit it for approval. After approval, the user gets notified about the status by mail. Then, the user can login and initiate bid submission.

What is the quarter on quarter break-up of the tenders published by the government agencies in Andhra Pradesh during FY 2023-2024?
A quarterly break-up of the tenders is provided below:

April 2023 - June 2023: 44802 tenders
July 2023 - September 2023: 40126 tenders
October 2023 - December 2023: 47237 tenders
January 2024 - March 2024: 40913 tenders.

Andhra Pradesh, comprising 26 districts, has a total of 125 urban local bodies, consisting of 17 municipal corporations, 79 municipalities, and 30 nagar panchayats. Notably, Guntur and Sri Potti Sriramulu Nellore, among the 29 districts, have been active in publishing tenders for various projects related to road construction, drainage systems, and pipe laying.

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