States may have to offer bids, compete now to get projects, events

Different weightage would be assigned to each parameter, to arrive at a cumulative score. The state with the highest score would be the winner for a particular project, institution or event.

Written by Amitav Ranjan | Amitabh Sinha & Anubhuti Vishnoinew Delhi | Updated: October 17, 2016 8:37 am
swiss Challenge method, Pm Modi,  Modi govt, Modi governmwent, NDA, UPA, swiss development method, swiss challenge, swiss private company contracts, Railway, infrastructure bids, developmental projects, gdp, india news, latest news, indian express The Challenge route has been widely used in recent years, with the Central government approving redevelopment of 400 railway stations via this method.

The Centre plans to introduce bidding among states for infrastructure projects, hospitals, educational institutions and for hosting national events. According to a communication from the Cabinet Secretariat, the NDA government plans to adopt the Swiss Challenge Method for “selection of location” for future IITs, IIMs, AIIMS, ports, refineries, LNG terminals and food processing units, as well as film festivals, national games and Pravasi Bhartiya Divas, among others.

Depending on the issue, states would have to compete over ease of providing land, extent of fiscal concessions, connectivity, provision of utilities, speedy statutory clearances, and quantum of employment to be generated.

Different weightage would be assigned to each parameter, to arrive at a cumulative score. The state with the highest score would be the winner for a particular project, institution or event.

“The basic intent of the Challenge Method is to provide a transparent, objective and merit-based decision-making process, that may be adopted for site selection across various sectors and to encourage competition among states to offer the best-suited sites and commit resources in terms of infrastructure support, financial incentives etc,” says the letter.

Each department has been asked to submit a list of projects, institutions or events under them with a matrix of indicative parameters and possible weight assigned to each parameter to the Cabinet Secretariat by this month.

The collated list would then be put up in the public domain for any state to start the bidding. A state’s original offer would be made public so as to invite competing counter proposals that would have to better the initial offer.

Under the Swiss Challenge Method, if a third party’s bid is more efficient, the first bidder is asked to resubmit a fresh bid. If the first bidder comes up with a better proposal, it gets the project, and if it fails, the one with the more efficient bid wins the project.

The Challenge route has been widely used in recent years, with the Central government approving redevelopment of 400 railway stations via this method. It has also been used by states to award roads and housing contracts.

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  1. I
    indian
    Oct 17, 2016 at 1:08 am
    Well done. We need compeion to grow
    Reply
    1. M
      MyTake
      Oct 17, 2016 at 12:34 am
      AKayia, Kanayia and even Rahulia will have to look for job now!lt;br/gt;lt;br/gt;May be they can look for some work in Bollywood as it needs some "extra" from time to time! These people can be very "good" comedian "extra"!
      Reply
      1. M
        MyTake
        Oct 17, 2016 at 12:32 am
        Bright idea! lt;br/gt;lt;br/gt;Lazy b u m m e r s will be out in no time and will not get time to do polytricking and sickular work!!
        Reply
        1. M
          MyTake
          Oct 17, 2016 at 12:36 am
          Now the sickulars can do as much vote bank politics as they want to their hearts and minds content! lt;br/gt;lt;br/gt;People can even encourage they comedian to do that for a change for some fun!
          Reply
          1. P
            Pissgt;Ongt;Brahmans
            Oct 17, 2016 at 2:02 am
            By the way is against the Consution to discriminate states.
            Reply
            1. P
              Pissgt;Ongt;Brahmans
              Oct 17, 2016 at 5:19 am
              I love your analysis
              Reply
              1. P
                Pissgt;Ongt;Brahmans
                Oct 17, 2016 at 2:01 am
                Terrible idea. This guarantees poor states will never be developed. I believe this goes against the Consution. The Consution says the nobody can be discriminated on basis on social status. Center cannot go against written rule of Consution
                Reply
                1. C
                  C S
                  Oct 16, 2016 at 11:33 pm
                  While the idea looks good it should not result in the least developed states being left out in the location of projects, just because they cannot compete with the developed states like Haryana, Maharashtra, Gujarat and TN. The criteria for selection have to tailored depending upon the projects/events.
                  Reply
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