Cabinet clears Swiss Challenge method policy for infra projects

Written By Sanjay Jog | Updated: Oct 25, 2017, 07:15 AM IST

The policy envisages implementation of roads, railways, waterways projects and cold storages for agriculture sector across the state through Swiss Challenge method

The Maharashtra cabinet on Tuesday cleared a comprehensive policy for the Swiss Challenge method on the lines of the existing policy in Andhra Pradesh, Karnataka, Kerala, Madhya Pradesh and Rajasthan. The policy envisages implementation of roads, railways, waterways projects and cold storages for agriculture sector across the state through Swiss Challenge method.

The government proposes to initially undertake projects worth Rs 25 crore for agriculture sector, Rs 200 crore for transport sector and Rs 50 crore worth for improvement of urban infrastructure.

Under the Swiss Challenge method, any person with credentials can submit a development proposal to the government. The proposal will be made online and a second person can give suggestions to improve and beat that proposal. The original proponent will get a chance to accept it if it is an improvement on his proposal. The original proponent gets the right to counter-match any superior offers given by the third party. The objective is to discourage frivolous project, or to avoid exaggerated project development costs.

The original proponent will be given an opportunity to match or better the best bid. In case the original proponent is not able to match the more attractive and competing counter proposal the project will be awarded to the counter proponent.

The project proponent will be paid the cost incurred on the preparation of detailed project report.

The bid documents under the Swiss Challenge method will be prepared as per the Centre's Model Concession Agreements. A high level empowered committee headed by the chief secretary will be formed to give approvals at various stages.

A public works department officer told DNA, "The Swiss Challenge method has been thoroughly indigenised in line with the recent rulings of the Supreme Court and the various high courts which had suggested certain guidelines to avoid the ill-effects of unsolicited proposals."