Policies-Government Orders-Guidelines

Legal Framework

Policies & Acts

Institutional Framework

State High Level Clearance Committee (SHLCC)

For all proposals in excess of Rs. 500 Crores, the SWA for PPP will scrutinize the proposals and make its recommendations to the High Level Committee, headed by the Chief Minister, for approval. The Infrastructure Development Department (IDD), as the nodal department for PPP, with support from iDeCK, shall assist the concerned departments in the evaluation of all such projects. The Infrastructure Development Department (IDD) shall also assist the SWA for Public Private Partnership (PPP) and High Level Committee (HLC) in evaluating and deciding upon specific proposals.

GO on re-establishment of State High Level Clearance Committee

State Level Single Window Agency (SLSWA)

A Single Window Agency (SWA) has been set up at the State Level under the chairmanship of the Chief Secretary to approve the projects under PPP projects up to Rs. 500 Crores, and to recommend the projects above Rs. 500 Crores to the State High Level Committee under the chairmanship of the Chief Minister constituted under the Section 3 of the Karnataka Industries (Facilitation) Act 2002. In case of all PPP proposals up to Rs. 500 Crores, the concerned department shall, in consultation with the Infrastructure Development Department place them before the SWA for PPP headed by Chief Secretary for approval.

Minutes of SLSWA

Procedural Framework

For Normal Procurement

All contracts would be awarded on the basis of a transparent process, under the ambit of the Karnataka Transparency in Public Procurement Act(KTPP) Act (Act 29 of 2000),or under a “Swiss Challenge” format as set out in Clause 29, after getting exemption under section 4(g) of the KTPP Act. In all cases, the award criteria would spelt out upfront. The stages in the procurement process could be single stage or multi-stage, depending on the size or level of complexity of the project. For this purpose, GoK may use the services of suitably qualified independent advisers with the requisite technical knowledge. Generally, the stages in the procurement process would include:

Expressions of interest (EOI)/ Request for Qualifications (RFQ)
Request for Proposals (RFP29)
Technical and financial proposals
Signing of Agreements

The criteria used for selection would include objective technical/ financial parameters, such as:

Level of service, quality of assets offered;
Lowest present value of Viability Grant support
Lowest quantum of land
Lowest present value of asset based support from the Government;
Highest share (or present value of) of revenue;
Lowest unit value or present value of payments by GoK;
Highest upfront payment (or present value of upfront payments);
Highest present value of future payments;
Lowest concession period;
Lowest unit value or present value of user fees;
Highest premium on (or present value of) equity shares offered

A Private Sector Participant (Proposal Initiator) may submit a suo-moto/ innovative proposal (Original Proposal) to GoK/ GoK Agency for setting up an Infrastructure Project containing the following:

Articulation of the public need for the project
Requisite technical details, i.e., details of alignment/site, estimates of cost, etc.
Cost incurred by the Proposal Initiator for the development studies related to the project.

GoK would, in the first instance, assess the public need for the Infrastructure Project. In case the Infrastructure Project is found to satisfy a public need, GoK would assess the technical feasibility/ suitability of the Original Proposal and modify the same, if required. GoK may carry out additional studies for the project, if required.

After evaluating the proposals and considering it suitable, GoK would, put up competitive bidding for counter proposals (“Swiss Challenge”). The original proposal (except proprietary information and details of financial proposal) and contract principles of the Original Proposal would be made available to any interested applicants. If competitive bidding process results in a superior proposal, the Proposal initiator would be given an opportunity to match the competing counter proposal within a stipulated time-frame, and be selected as the project concessionaire. If the proposal initiator declines to match the superior counter proposal, then the applicant that has made the superior proposal would be selected as the concessionaire. Upon such selection, GoK/GoK Agency concerned shall cause/ arrange to reimburse to the Proposal Initiator, a part or the whole of the development costs, as determined upfront and declared in the bidding documents, and may recover the same from the successful bidder.

GoK would evaluate all proposals received for any Infrastructure Project. GoK may also choose to appoint suitable external advisors or consultants, where necessary, for the purposes of evaluation.

In order to facilitate expeditious project implementation, GoK would endevour to conclude the evaluation process for all Infrastructure Projects within 90 days from the date of submission of the final proposals. In the case of suo-moto proposals, GoK would decide to proceed with the bidding process within 180 days of their submission.

In any event, GoK would endeavour to provide all necessary State-level clearances and enable implementation of any Infrastructure Project being taken up through Public Private Partnerships within 180 days from the date of submission of the final proposals for such project.

(See the Infrastructure Policy – 2007 para 27-31)