PTC Web Desk: The Tamil Nadu government has placed orders for nearly 1.28 lakh gold rings for newborn babies under its ‘Thaimaman Gold Ring Scheme’, with the first phase expected to cost around Rs 220 crore.

The scheme, announced as an election promise by the TVK government, is aimed at children born in government hospitals. The initiative is scheduled to be formally launched on September 15, the birth anniversary of former Tamil Nadu Chief Minister and Dravidian leader CN Annadurai.

Babies born from June 22 to be covered

Children born in government hospitals from June 22 will be eligible for the scheme. June 22 is the birthday of Chief Minister C Joseph Vijay.

For the initial four-month period, the government plans to distribute 1,28,499 gold rings. Each ring will contain approximately one gram of 22-carat gold.

The total gold requirement for this batch is estimated at around 128.5 kg, while the government has made a budgetary provision of Rs 755.83 crore for supplying 4,41,667 rings over a full year.

The final expenditure could change depending on fluctuations in gold prices, as the government has agreed to pay for the gold at prevailing market rates.

The Tamil Nadu Medical Services Corporation (TNMSC) has awarded the first set of orders to Joyalukkas and Kalyan Jewellers in a 70:30 ratio.

Joyalukkas will supply 89,949 rings, while Kalyan Jewellers will provide 38,550 rings.

According to the state government, 11 companies participated in the tender conducted on July 14. Joyalukkas emerged as the lowest bidder after quoting a service charge of just Rs 0.01, excluding the cost of the gold.

The company said its quote was a symbolic service charge, while expenses such as processing, insurance, transportation and BIS certification were included.

After the quoted price was shared with the other bidders, Kalyan Jewellers reportedly agreed to match the same rate.

Gold price to be paid separately

Officials estimate that the government will spend approximately Rs 14,850 per gram for the gold component based on current market rates in Tamil Nadu. The government has clarified that the price of gold will be paid according to the prevailing market rate, meaning the final cost of the scheme could vary as gold prices change.

Joyalukkas has also said that the gold component makes up the major portion of the overall procurement value.

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Opposition questions tender process

The tender process has triggered a political debate in the Tamil Nadu Assembly. Opposition parties, including the DMK and AIADMK, have questioned the procurement process, particularly the winning bidder's one-paisa service charge. They have also raised concerns about the decision to route the procurement through TNMSC.

Opposition leaders pointed out that competing bidders had quoted additional charges ranging from around Rs 411 to more than Rs 15,000.

The government has defended the scheme, saying it is intended to encourage childbirths in government hospitals and improve public confidence in the state's healthcare system.

Health Minister Arunraj said the initiative would help strengthen people's trust in government medical facilities while marking the birth of children in public hospitals.

According to the government, the Thaimaman Gold Ring Scheme is designed to celebrate motherhood and the birth of children while encouraging families to choose government hospitals for deliveries.

The first batch of rings is expected to cover eligible children born between June and September, with the larger one-year target set at 4,41,667 rings.