Tamil Nadu’s Rs 755-crore newborn gold ring scheme: Why a 1-paisa bid made headlines

Chennai: Tamil Nadu has awarded work orders for its new ‘Thaimaman Thanga Mothiram’ scheme, under which newborns delivered at government hospitals will receive one-gram gold rings.

The tender drew attention after Kerala-based jeweller Joyalukkas emerged as the lowest bidder, quoting just one paisa for making and other associated charges per ring, apart from the cost of the gold. Kalyan Jewellers later agreed to match the same quote.

Under the final work orders, Joyalukkas will supply 70% of the rings and Kalyan Jewellers the remaining 30%. Together, the two companies are expected to supply 1,28,499 rings over four months, covering eligible births from June 2026.

The larger government programme involves the procurement of 4,41,667 one-gram gold rings and has been announced at an estimated cost of Rs 755.83 crore. The scheme is scheduled to be formally launched on September 15, the birth anniversary of former Chief Minister C. N. Annadurai.
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How the one-paisa bid emerged

The Tamil Nadu Medical Services Corporation invited tenders on July 14, with around 11 firms participating through the state’s tender portal.

Joyalukkas quoted Rs 0.01 towards additional charges, including making charges, insurance, transportation and BIS hallmarking, apart from the cost of the gold itself. Under the state’s tender rules, the lowest quote was subsequently shared with the other participating bidders to see whether they were willing to match it.

According to The Hindu, Kalyan Jewellers was the only other bidder to agree to the one-paisa quote, leading to the two companies receiving the work orders.

The tender figures highlight how sharply the additional-cost bids varied. Other bidders reportedly quoted amounts ranging from a few hundred rupees to several thousand rupees for these costs, making the one-paisa quote a striking feature of the procurement process.
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What the Tamil Nadu scheme provides

The ‘Thaimaman Thanga Mothiram’ initiative was announced to provide a one-gram gold ring to babies born in government hospitals and primary health centres, along with essential baby-care items. The scheme is intended to benefit families using the state’s public healthcare system.

The government had announced the scheme at a total cost of Rs 755.83 crore. The actual gold component is separate from the one-paisa service-related quote submitted by Joyalukkas.

The first batch of work orders now covers 1,28,499 rings for a four-month period. The broader procurement target is 4,41,667 rings.

For Tamil Nadu, the tender outcome marks the next step in implementing a high-value welfare scheme, while the unusually low additional-cost bid has become one of the most closely watched aspects of the procurement.

The scheme is scheduled to be launched on September 15.