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Swiss Challenge: A New PPP Variant to Spur Up Competition in Indian Highway Sector

NEWS

India is readying to throw down a so-called Swiss challenge at private developers of highways which allows companies to come forward with unsolicited ideas and grants the first right of refusal to the developer that prepares the detailed project report. The ministry of road transport and highways is finalizing a proposal to allow this method for some projects for the first time.

Source: ET

SNP Insights:

This new PPP variant is expected to spur up private particiaption as well as help to create a competitive atmosphere in the Indian highway sector. Under this mechanism, private parties are expected to come up with new innovative technologies to solve the problems like construction of sustainable road infra in difficult areas like hilly terrains of himalayas, beach roads etc. which will reduce the burden on government in creating a well developed road infra across the country.

Source: SNP Infra Research