Tamil Nadu issues work orders for 1.28 lakh gold rings to babies born in govt hospitals

Chennai: The Tamil Nadu government has issued work orders for nearly 1.28 lakh gold rings, costing approximately Rs 220 crore, to two jewellery retail chains under the 'Maternal uncle gold ring scheme' for newborns, a poll promise made by TVK, an official said on Saturday.

Over one lakh gold rings are required to implement the scheme for four months and the welfare initiative is set to be launched on September 15, marking the birth anniversary of Dravidian icon CN Annadurai.

Children born in government hospitals from June 22, the birthday of Chief Minister C Joseph Vijay, will benefit under this scheme.


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According to a ballpark estimate, Rs 220 crore would be the cost of the 1,28,499 rings (22-carat) weighing approximately 128.5 kg and the Tamil Nadu government has made a budgetary provision of Rs 755.83 crore for the supply of a total of 4,41,667 rings (for one year).

Though the final cost for the initial batch of rings may dynamically vary, the state government has undertaken to pay for the gold at the prevailing market rates.

Joyalukkas' 70 percent share will work out to 89,949 rings while Kalyan Jewellers' 30 percent share will comprise 38,550 rings.

According to sources at today's market rate in Tamil Nadu, a gold ring under this scheme will cost the government approximately Rs 14,850 per gram.

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The Tamil Nadu Medical Services Corporation (TNMSC) has issued the work orders to Joyalukkas and Kalyan Jewellers on 70:30 ratio to supply 1,28,499 gold rings required for the beneficiaries from June to September, the government said late on Friday.

The scheme, announced by Chief Minister C Joseph Vijay in the run-up to the April Assembly election, will cover the children born in state-run hospitals to encourage deliveries in government medical facilities.

"Following the government order to supply 4,41,667 gold rings weighing one gram each, 11 companies participated in the tender on July 14 by the Tamil Nadu Medical Services Corporation and submitted their price details through the TN Tenders portal," a government press release said.

Joyalukas submitted the lowest price of Rs 0.01 excluding the price of one gram of gold, including all additional charges such as processing fee, insurance, transportation, and BIS stamping.

When the winning price was disclosed, in accordance with the relevant laws, to 10 other bidders, Kalyan Jewellers submitted a matching price, it said.

"The Thaimaman Gold Ring Scheme is being implemented to strengthen the people's trust in the healthcare services of the Tamil Nadu government, commemorate the birth of a child born in government hospitals, and to celebrate the joy and importance of motherhood," it said.

The tender for the scheme became a subject of heated debate in the Assembly this week. Opposition DMK and AIADMK questioned the procurement mechanism and asked about "a highly unusual tender outcome," as the successful bidder had quoted Rs 0.01 (one paisa) towards additional charges.

Other competing firms had quoted additional charges ranging from Rs 410.97 to over Rs 15,000, according to the opposition parties.

In a statement, Joyalukkas said: "The tender is valued at approximately Rs 755 crore with the gold component forming the major part of the overall procurement value."

The firm said it quoted a "symbolic service charge of just 1 paisa above the prevailing gold rate."

The opposition questioned why the procurement was handled through the Tamil Nadu Medical Services Corporation and argued that the TNMSC was established solely to procure medicines, medical equipment, and construct healthcare buildings.

Health Minister Arunraj defended the move by stating that the scheme is vital to strengthen the public trust in state healthcare services.