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Smart City 2.0 Tenders Reshape India’s Infrastructure Bids

Smart City 2.0 Tenders Reshape India’s Infrastructure Bids
Mannu Chaulia
March 6th, 2026

The tender ecosystem within the infrastructure sector in India is changing due to an increase in usage of AI technologies, digital infrastructure, and multimodal logistics planning from Government Authorities into their procurement bids. Though the industry commonly refers to "Smart City 2.0", this is not an official name for any of the current policies under Smart City Mission and therefore a conceptual/descriptive term at present.

However, tenders issued across rail, port, and urban infrastructure sectors clearly reflect the next phase of infrastructure development—where digital capability, automation and integrated logistics planning are becoming key technical criteria.

AI-Integrated Rail Infrastructure Tenders

The National High Speed Rail Corporation's Mumbai–Ahmedabad High Speed Rail project is one of India's most advanced technology-based infrastructure projects. The major civil contracts for the complete corridor have been awarded to various engineering firms such as Larsen & Toubro, and there are several other packages related to the construction of this railway corridor. These include AI-based systems for monitoring track and other assets, predictive maintenance technologies, and advanced signalling systems, as well as tenders for the development of multimodal integration at transit stations.

These tenders align with the planning framework of the PM Gati Shakti National Master Plan, which aims to integrate rail, road and logistics infrastructure under a unified digital planning platform.

High-speed rail stations are also being tendered as transit-oriented development hubs, combining mobility infrastructure with commercial spaces, digital utilities and urban transport connectivity.

Smart Port and Logistics Tenders

A second important infrastructure tender pipeline connected to the Vadhavan Port project located in the state of Maharashtra is a ₹76,200 Crore project being developed by the Adani Group. As opposed to traditional port projects which are focused mainly upon building a facility for handling cargo, the focus of the tender is to develop automated systems within the facility such as:

  • Automated Systems for Container Handling
  • AI Systems for Tracking Cargo;
  • Blockchain-based trade documentation
  • Integrated rail-road connectivity infrastructure

These features will ultimately allow the port to serve as a smart Logistics Hub by providing efficient cargo Handling and Transparency in Cargo Movement.

While renewable integration is expected as part of sustainability planning, it is important to note that green hydrogen infrastructure at the port remains an aspirational concept rather than a confirmed tender requirement at this stage.

Data Centre and Digital Infrastructure Tenders

A growing portion of infrastructure bids now includes data centre development and digital command infrastructure. Companies such as Adani Enterprises, Larsen & Toubro and Reliance Industries are expanding investments in hyperscale data facilities to support smart infrastructure projects.

These data centre solicitations are tied into the urban digital infrastructure identified in the following examples:

  • Integration Command Control Centre (ICCCC)
  • Smart grid monitoring systems
  • AI based Traffic / Mobility Management
  • Digital Twin for City Planning

Data infrastructures are becoming critical to future management of cities as evidence by Varanasi and Pune who are executing pilot projects using digital twin technology.

Multimodal Infrastructure Bids

Infrastructure tenders are focusing primarily on creating multimodal logistics hubs which combine different transport modes, including rail, road and water transport into an efficient end-to-end supply chain. The latest round of freight corridor construction and energy-efficient rail transport investments shows an increasing focus on the following facilities in new tenders:

  •  Terminals for rail logistics
  • Clusters of smart warehousing
  • Transport systems powered by renewable energy sources
  • Digital tracking systems for freight

These types of projects are intended to improve supply chain efficiency and reduce logistics costs throughout the country by allowing cargo movement without interruption between different transportation modes.

Changing Evaluation Criteria in Infrastructure Tenders

Infrastructure procurement frameworks are gradually evolving beyond pure cost-based bidding. In many complex projects, technical capability, digital integration and ESG compliance are becoming significant evaluation factors.

In several bids, these parameters can account for 35–40% of the technical scoring, reflecting reforms across digital procurement platforms such as the Government e Marketplace.

Despite these changes, the L1 (lowest cost) bidding model still dominates most public infrastructure tenders. What is changing is the increasing participation of technology consortia, where EPC companies collaborate with digital infrastructure firms to strengthen their technical proposals.

Conclusion

India’s infrastructure tenders are gradually shifting toward a model where digital capability is as important as construction capacity. Rail corridors, ports, logistics hubs and urban infrastructure projects are now being tendered with built-in requirements for AI monitoring systems, data infrastructure and multimodal integration.

Projects led by agencies such as National High Speed Rail Corporation Limited and large infrastructure developers including Larsen & Toubro and the Adani Group illustrate how tenders are evolving from traditional EPC contracts toward technology-enabled infrastructure ecosystems.

Even though the phrase “Smart City 2.0” remains an informal industry term, the structure of upcoming bids clearly shows that India’s next infrastructure cycle will be driven by AI, digital infrastructure and integrated logistics planning.

 


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