Page 24 - Banking Finance July 2019

COVER STORY

SWISS

CHALLENGE

METHOD -

A Real Solution to Bridge Gap

in Infrastructure in India

o be on the path of development, we need to Swizz Challenge Method as One of The
T look forward towards innovative ways by Methods of Infrastructural Development:

adopting modern equipment-based technology
There are various methods of Infrastructural Development
to ensure expeditious growth of infrastructure.
In this direction the public as well as private sector are trying in India and they are known as various investment models.
to come up with all kind of innovative ideas, one of which is Importantly there are two, which are popularly known as:
the Swiss challenge system. i. BOT (Build Operate Transfer) &
ii. EPC (Engineering, procurement and construction)
The system has been successfully experimented in various
countries and is now being used in India. The aim of this BOT is a model used to finance large projects, typically
article is to analyze the working of Swiss challenge system, infrastructure projects developed through public private
its functioning and its impact along with some inherent partnership. Here usually government grants a concession
loopholes on countries including India. to a private company to finance, build and operate a project
for 10 to 20 years then transfer the ownership to
government. viz. 'Highway Toll Collection'. these are mostly
TGreenfield projects.
About the author
EPC is a particular form of contracting arrangement used in
Ms. Sutopa Sinha
some industries where the EPC contractor is made
Sr. Manager, Faculty
Staff Training Centre responsible for all activities from design, procurement,
Union Bank Of India
construction, commissioning and handover of the project to
Bhuwaneshwar
the end user or owner.

24 | 2019 | JULY | BANKING FINANCE