This means that in order to be considered, all fresh bids will have to be higher than the 'original highest bid'. However, 'original highest bidder' will have the right of first refusal - the opportunity to match the highest bid under the fresh process within 15 days. If the 'original highest bidder' does not use this option and the highest bidder in the fresh process refuses to honour his bid, his bid security will be forfeited, they added.

In case, no fresh bid is received to challenge the 'original highest bid', the government may consider awarding the contract/assignment at the price quoted in this bid, despite it being lower than the reserve/expected price, officials said.

The right of first refusal contained in the Swiss Challenge Method serves twin purposes. First, it encourages private participation and secondly, the contract is awarded at the best competitive price ascertained from the bids received.

The divestment process is on in Uttar Pradesh in key sectors like sugar mills and tourism.