Chennai (Rajeev Sharma): The Tamil Nadu government has placed orders for nearly 1.28 lakh gold rings under its newly announced welfare programme for babies born in government hospitals, with the first phase estimated to cost around ₹220 crore.
The Tamil Nadu Medical Services Corporation (TNMSC) has awarded the supply contract to two major jewellery companies, Joyalukkas and Kalyan Jewellers. The allocation has been divided in a 70:30 ratio, with Joyalukkas responsible for 89,949 rings and Kalyan Jewellers supplying the remaining 38,550.
The first batch comprises 1,28,499 rings made of 22-carat gold. Each ring is expected to contain approximately one gram of gold. The government has estimated that the initial four-month requirement will cost about ₹220 crore, although the final expenditure could change depending on fluctuations in gold prices.
The broader programme envisages the distribution of 4,41,667 one-gram gold rings over a year. A budgetary provision of ₹755.83 crore has reportedly been made for the full-year implementation.
The scheme is scheduled to be formally launched on September 15, coinciding with the birth anniversary of former Tamil Nadu Chief Minister and Dravidian leader CN Annadurai. Children born in government hospitals from June 22 will be covered under the initiative, according to the government.
The tender process has, however, attracted political attention. Eleven companies reportedly participated in the bidding process conducted by TNMSC on July 14. Joyalukkas emerged as the lowest bidder after quoting a symbolic charge of one paisa, excluding the cost of gold and covering other expenses associated with processing, transportation, insurance and BIS certification.
Kalyan Jewellers subsequently matched the quoted service charge after the bids were disclosed to the other participating companies.
The unusual bidding outcome became a point of discussion in the Tamil Nadu Assembly, with opposition parties raising questions about the procurement process. They also questioned the use of TNMSC for purchasing gold rings, arguing that the corporation’s traditional responsibilities are centred on medicines, medical equipment and healthcare infrastructure.
Joyalukkas defended its bid, saying the gold itself accounts for the overwhelming portion of the overall procurement value and that the company had offered only a nominal service charge above the prevailing price of gold.
The government, meanwhile, has maintained that the initiative is intended to encourage families to choose government hospitals for childbirth while strengthening public confidence in the state’s healthcare system.
Officials have described the programme as a welfare measure intended to mark the birth of children delivered in government-run facilities. The government also says the scheme is meant to recognise motherhood and promote greater use of public healthcare services.
With gold prices continuing to influence the overall cost of the programme, the expenditure on the initial batch may vary from the preliminary estimate. The state will reportedly pay for the gold component according to prevailing market rates.
The procurement has therefore emerged as both a major welfare initiative and a subject of political scrutiny, with the government defending its objectives while questions remain over the tendering mechanism and implementation through TNMSC.
