The approval of Delhi LG VK Saxena marks another key reform in the DDA’s ongoing overhaul, credited with boosting revenues and reducing procedural bottlenecks.
BY PC Bureau
December 9, 2025: In a significant reform aimed at ending chronic delays in government tendering, the Delhi Development Authority (DDA) will for the first time adopt the Swiss Challenge Method for disposing of land and high-value public assets. The move—approved by Delhi Lieutenant Governor V.K. Saxena—seeks to eliminate the recurring problem of tenders being cancelled due to single bids, often resulting in years of delay, cost escalations, and stalled projects.
Officials said the mechanism will ensure that DDA always receives an amount higher than the reserve price—whether the property is auctioned or allotted on a long-term licence basis.
Under the Swiss Challenge Method, when only a single bid is received, the offer is placed in the public domain and becomes the new reserve price—higher than the initial reserve price. Competing bids are then invited through a fresh auction. The original bidder is also allowed to participate or match the highest counter-offer. This system safeguards public interest, ensures competitive price discovery, and prevents the authority from awarding projects on arbitrary or non-competitive terms.
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Aligned with DDA’s model Request for Proposal (RFP) framework for long-term licences of up to 55 years, the Swiss Challenge approach is expected to enhance transparency, promote market participation, and speed up disposal of high-value assets. It also shields the authority from the risks associated with under-valuation and failed tenders.
Officials noted that frequent single-bid scenarios have derailed several projects in the past. By reviving the process through a structured Swiss Challenge rather than scrapping and restarting the tendering cycle from scratch, DDA aims to ensure timely execution of strategic projects.
The method offers multiple advantages:
• prevents cancellation of tenders due to single bids,
• maximises revenue through competitive challenge rounds,
• strengthens fairness and transparency,
• enables faster decision-making on strategic assets, and
• ensures that DDA secures the best available financial terms.
This marks another major reform undertaken under the direct supervision of LG Saxena over the last three years. Earlier changes—including sale of unsold flats through first-come-first-served routes, auction of units, and long-term lease allotments—have already led to record revenues for DD
