The government has decided to use ‘Swiss Challenge’ method to upgrade 400 Railway Stations located in metros, major cities, pilgrimage centres and important tourist destinations across the country.
Swiss Challenge is a new bidding process to help private sector initiatives in core sector projects.
“This is a new method to award contracts for A1 and A category stations. Virtually 400 centres of the country will become centres of developmental activity,” Finance Minister Arun Jaitley said while briefing media persons after the Cabinet meeting on Thursday.
Hailing this move, Railway Minister Suresh Prabhu said that this e-bidding process leaves no discretion. “Stations will be developed to use land and air rights. (There will be) no selling of land. Customer service is our priority,” he tweeted after the Cabinet decision.
A Government statement said redevelopment will be on ‘as is where is’ basis, through open invitation from interested parties with their designs and business ideas including permitting commercial development of real estate by the Zonal Railways. These stations are to be developed by leveraging real estate development of land and air space in and around the stations, it mentioned.
Further, it added that this process will accelerate the redevelopment. At present redevelopment of stations is undertaken through the Indian Stations Development Corporation Ltd (IRSDC). But this body is able to undertake redevelopment of only a few stations, and since there is a need to redevelop a large number of stations, the new mechanism is being put in place.
Under the Swiss Challenge, an offer is made by the original proponent to the government ensuring his process to be best (in terms of effectiveness including both the factors cost and time) by his initiative as a result of his own innovative approach or on the demand of the government to perform certain task.
It further allows third parties to make better offers (challenges) for a project during a designated period with simple objective to discourage frivolous project, or to avoid exaggerated project development costs. Then accordingly, the original proponent gets the right to counter-match any superior offers given by the third party. Jaipur Development Authority has used this method for film city venture.
Terming this as very transparent method, Prabhu said there will be evaluation by independent experts and it will be very open. This will help in developing world class amenities, shopping etc while cities will get icons, he said adding, “It is very big step in passenger service, modernisation, mega investments and big job creation.”