Spending a few hours on GeM, CPPP, and state e-procurement portals would make it clear why healthcare is today amongst the fastest-growing procurement domains in India both in terms of volume and value. Not only did the ticket sizes increase substantially since 2020, tenders related to this vertical have also witnessed an uptick in the variety of procurement categories compared to pre-pandemic levels.
Before and After COVID
Prior to the pandemic, healthcare-related tenders were limited to either annual maintenance contracts, sporadic procurement of medical equipment, and a few civil works contracts. The situation changed fundamentally due to the emergency procurement of ventilators, oxygen generators, and diagnostic testing kits during the covid wave, resulting in a higher volume of procurements related to civil construction, EPC, medical technology, and long-term management services.
Today, the majority of healthcare tenders are traced back to the Prime Minister-Ayushman Bharat-Health Infrastructure Mission (PM-ABHIM). This mission, under which ₹64,180 crore has been allocated from 2021-22 till 2025-26, seeks to construct 9,519 Ayushman Arogya Mandirs, 5,456 Urban Health Centres, 2,151 Block PHCs, 744 IPHLs, critical care blocks, and disease surveillance facilities. Each of which entails multiple EPC and civil works contracts, followed by electrical, mechanical, and other works, such as the supply of medical equipment, lab instruments, fit-out, furniture, ICT system and HIMS, and operation and maintenance.
Besides the sudden spike in emergency tenders during 2020-21, the last two years have seen a shift towards higher value EPC works for new AIIMS, medical colleges, district hospitals, cancer and trauma centres, integrated diagnostic labs, and digital hospitals with project costs ranging between several hundred to thousands of crores and significantly higher eligibility criteria.
Who Are The Major Tenderers of Healthcare Tenders?
HSCC and CPWD – for EPC and civil works contracts
HITES and AIIMS – for technology tenders for MRI/CT scanners, modular OTs, and lab equipment
MoHFW, NBCC, National Health Mission, and State Health Departments and PWDs – for a wide range of tenders on a regular basis
State Medical Services Corporations – For rate contracts for equipment, medical consumables, and infrastructure development projects
State-level Tenders, Medical Services Corporations, and Rate Contracts
While the majority of healthcare infrastructure contracts originate from the Central government, state-level medical services corporations also regularly invite tenders for a range of equipment, consumables, and infrastructure development projects.
TNMSC invites rate tenders for MRI, PACS systems, anaesthesia, and brachytherapy bunkers while KSMSCL issues tenders for the supply and installation of drugs and medical equipment. The latter is particularly important for Karnataka’s health department which has been issuing tenders worth around ₹880 crore for 2025-26. WBMSCL plays a similar role in West Bengal. State PWDs also play an important role in this domain. In addition to regular tenders for civil construction, we have seen Sikkim’s 500-bed Namchi hospital and Gonda district hospital upgradation in Uttar Pradesh. While these tenders are smaller in value compared to those issued by the central government’s agencies, they come in significantly higher numbers and at a more frequent interval.
Union Budget 2026-27 and Future Outlook
The Union Budget 2026-27 indicates that the government’s focus on strengthening the healthcare infrastructure, in particular, will continue in the next fiscal. PM-ABHIM’s allocation for the fiscal has been raised to ₹4,770 crore, up 67.66% over the FY2025-26 revised estimate. ₹11,307 crore has been proposed for the PMSSY scheme for new AIIMS and medical colleges upgradation. This will trigger new EPC, technology, and IT tenders for the years to come, with AIIMS Darbhanga (project cost: ₹1,260 crore) being an important one this fiscal.
Who Are The Winning Contractors For Healthcare Tenders?
HSCC (India) Limited – A subsidiary of NBCC that has emerged as an executing agency for projects such as AIIMS Darbhanga (~₹1,261 crore) and the Haryana biomedical equipment (~₹528 crore) order. NBCC itself has bagged the AIIMS New Delhi trauma centre (~ ₹3,000 crore) contract. Meanwhile, L&T has secured the AIIMS Madurai hospital contract (~ ₹1,000 to 2,500 crore), a Cuttack multi-clinical block, and the IIT Kanpur super speciality hospital. Ahluwalia Contracts has secured the AIIMS Kalyani, AIIMS Nagpur, the National Cancer Institute in Jhajjar, and a Chamba medical college. Below the big three, a number of mid-sized construction and medical equipment OEMs also vie for state-level contracts.
The Long Road Ahead – Challenges & Winners
While larger healthcare infrastructure projects offer greater opportunities for developers, specialist contractors continue to thrive on equipment- and facility-specific contracts. At the same time, the longer gestation period for these projects, delays due to land acquisition and approvals, sluggish disbursement of payments, and complex coordination of multiple stakeholders add to the implementation challenges. Evolving technical specifications and localisation requirements under the Make in India also create additional complications for bidders. Thus, the winning bids for healthcare tenders continue to go to players with deep healthcare EPC expertise, medical equipment and digital health tie-ups, relevant domain experience, and presence across metro and smaller towns.
Which Healthcare Tenders Are Worth Bidding For?
Looking ahead, some of the highest-value tenders worth keeping an eye on include the furnishing and equipment contracts for the AIIMS Rajkot’s IPD towers. Haryana’s Kutail biomedical equipment procurement is also expected to see regular tenders. TNMSC and KSMSCL rate tenders for medical equipment, on the other hand, come out nearly every month and serve as an alternative to bigger EPC tenders issued by the central government. With the PMSSY funding, expect more EPC tenders for new AIIMS similar in value to Madurai and Darbhanga to emerge as land banks are built and permissions cleared.
Healthcare procurement in India shows no signs of slowing down. Tendering activity for this sector remains one of the most consistent across construction, medical equipment, digital health, and long-term management contracts.
