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Andhra Pradesh may challenge Swiss Challenge

If the first bidder comes up with a better proposal, he gets the project, and if not, the most efficient bid wins the project.

Vijayawada: Singapore-based firms that had tied up with the TD government to develop the state’s new capital city Amaravati may face some serious trouble, if one goes by Mangalagiri MLA Alla Ramakrishna Reddy’s statement on Wednesday.

The MLA said that if need be, the YSRC government will not hesitate to approach relevant courts against the Swiss Challenge method adopted by the previous government.

Addressing capital region farmers at Rayapudi on Wednesday, Mr Reddy said that the state government will not hesitate to move court even in London against the Swiss Challenge method.

The AP Capital Region Development Authority and Singapore-Amaravati Investments Holding Ltd had signed a Concession and Development Agreement on June 7, 2018, under the Swiss Challenge method. Amaravati Development Partners was incorporated in India by SAIH and Amaravati Development Corporation, an agency of the AP government, for joint development of the 684-hectare start-up area in Amaravati.

Under the Swiss Challenge method, a government invites bids for a public project, and then publishes the bid, before inviting competing counter proposals to either match or better the initial proposal. If a third party’s bid is more efficient, the first bidder is asked to submit a fresh bid.

If the first bidder comes up with a better proposal, he gets the project, and if not, the most efficient bid wins the project.

Mr Reddy also said that the AP government, if need be, will seek a CBI inquiry into irregularities that took place in the land pooling for the new capital city Amaravati.

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