Haryana cabinet approves to adopt the guidelines for project execution and public procurement under Swiss Challenge method

Haryana Cabinet which met under the Chairmanship of Chief Minister, Manohar Lal Khattar here today, approved the proposal of Industries and Commerce Department to adopt the guidelines for project execution and public procurement of development works under Swiss Challenge Method. The Swiss Challenge Method is a bidding process to help private sector initiative in spotting public need projects. It is also in consonance with the Maha Nivesh Yojana of the State Government wherein the government would support development of iconic projects in manufacturing enterprises, tourism, logistics and wholesale markets, which would bring mega investment to the State.

The Haryana State Industrial and Infrastructure Development Corporation (HSIIDC) had constituted a committee of officers to deliberate on the applicability of Swiss Challenge Method for mega investment projects. It aimed at attracting mega investments and new technology, finances and expertise in projects with minimum investment of Rs 6,000 crore and to give a fillip to the industrial growth and to improve the level of infrastructure in the state by development of iconic projects. It was observed that a few state governments like Rajasthan, Andhra Pradesh, Madhya Pradesh, Karnataka and Central Government Organisation like Indian Railways have already adopted Swiss Challenge Method for project execution and procurement for development works, with minimum investment limit of Rs 50 crore or less. For Haryana, minimum investment limit as approved by Cabinet will be Rs 100 crore.

The Swiss Challenge Method is an offer made by the original proponent to any authority that is administrative department, board, corporation or agency of the government at his own initiative or on demand of the government ensuring his process to be best in terms of effectiveness including both the factors cost and time to perform a certain task. The Detailed Project Report (DPR) submitted by the project proponent would be shared with the prospective bidders so as to ensure fair compensation and for providing an opportunity for a participatory competitive bidding process. The bids would be invited by way of international competitive bidding. If the best bid in the open competitive bidding is superior to the proposal of the project proponent would be given an opportunity to match its proposal with that of the most advantageous bidder within a specified period.

In case, the project proponent agrees to match the best bid, within the time period specified, the project proponent would be selected and awarded the project. In case, the original proponent declines to match the best superior bid, within the period specified, the best superior bid would be selected and it would be awarded the project. A State-level empowered committee would be constituted by the State Government under the chairmanship of Chief Secretary with designated members therein for consideration, examination and approval of the projects received.

The final approval would be accorded by the State Cabinet. There is also a provision for constitution of an oversight committee to be constituted by the State Government consisting of such members as may be decided by the government on a case to case basis. The certainty of success under this methodology is ensured as at least one willing private partner is available right from the beginning. There is time and cost saving on pre-project activities and feasibility studies whereas in other methodologies, these studies have to be conducted in advance by the authority.