The Jharkhand batsman, who underwent a shoulder operation few weeks back, was selected in the India Red squad announced yesterday by the panel.
"Saurabh Tiwary has undergone a shoulder operation, and has therefore been ruled out of the NKP Salve Challenger Trophy, as a result," BCCI said in a release.
"The All-India Senior Selection Committee has picked Ishank Jaggi as his replacement in the India Red squad," it added.