High Court stays Andhra’s Swiss Challenge model

amaravatiHyderabad High Court stays Andhra’s Swiss Challenge model method for development of its new capital Amaravati.

A petition filed by Aditya Constructions and NVN Engineers challenging the government’s decision to adopt the Swiss Challenge model, in which Singapore consortium has 58 per cent stake and the remaining 42 per cent is held by the Andhra Pradesh government. Admitting the petition, Justice M.S. Ramachandra Rao directed the state to file its response and adjourned the hearing till October 31.

Under the Swiss Challenge model, the government or its agency invites a developer to present a bid. Other prospective developers are then asked to offer counter bids. If their bid is lower, the first bidder is asked to submit a fresh bid. If the first bidder comes up with lower bid, it gets the project, and if it fails, the one with lower bid wins the project.