SWISS CHALLENGE
- December 28, 2020
- Posted by: OptimizeIAS Team
- Category: DPN Topics
No Comments
SWISS CHALLENGE
Subject: Economy
Concept:
- Swiss Challenge method is one of the ways of awarding government contracts to private players.
- Without an invitation from government, a private player can submit a proposal to government for development of an infrastructure project with exclusive intellectual property rights. Then government has two options with it:
- Government can buy the intellectual property rights from the original proponent and call for a competitive bidding to award the project.
- Government allows other players with similar capabilities to submit their proposals. If any proposal is better than the proposal of the original proponent, the original proponent is asked to match with the other proposal. If he fails, then it would be awarded to the best bidder.
Swiss Challenge method in India
- Many states in India are using this method of awarding contracts for roads and housing projects.
- Several states included it in their infrastructure development acts. The Draft Public Private Partnership Rules, 2011 allow the use of Swiss Challenge only in exceptional circumstances – that too in projects in rural areas or to BPL populations.
- In 2009, the Supreme Court of India has approved the Swiss Challenge method for awarding contracts.
Advantages
- Swiss Challenge method would encourage the private players to bring innovation, technology and uniqueness in development of projects. It will bring in cost efficiencies, cuts the red tape and shortens the project timelines.