The announcement led to criticism by opposition INLD, with state chief Ashok Arora protesting Surjewala's nomination on the ground that a minister, who was also part of the selection committee, should not be shortlisted for the award.
He further alleged that the panel was dominated by the ruling Congress members and comprised only two members from the opposition parties.
Arora further sought a mechanism in which such selections are made in a "fair and transparent" manner.
Former Chief Minister and Leader of Opposition Om Parkash Chautala, presently lodged in a Delhi jail following his conviction in a teachers' recruitment scam, was also among the contenders, he said.
The award carries a cash prize of Rs 1 lakh, a trophy and a certificate.