CHENNAI, AUGUST 22: A heated political row has erupted in the Tamil Nadu Assembly over the procurement process for the state’s multi-crore newborn gold ring scheme. The controversy centers on an unusual bidding outcome where the winning firm, Joyalukkas, offered an unprecedented service charge of just one paisa. Despite the friction, the Tamil Nadu Medical Services Corporation proceeded to issue work orders for the initial batch of 1.28 lakh rings, valued at Rs 220 crore.
The political dispute intensified after rival bidders submitted service charges scaling all the way up to Rs 15,000. Both the DMK and AIADMK opposition blocks united to demand answers regarding the selection process. They challenged the state’s decision to route a jewelry contract through an agency built specifically for medical supplies and hospital infrastructure.
Addressing the financial structure of the competitive bidding process, Joyalukkas released a clarifying statement:
“The tender is valued at approximately Rs 755 crore with the gold component forming the major part of the overall procurement value. The firm quoted a symbolic service charge of just 1 paisa above the prevailing gold rate.”
Defending the strategy against legislative critics, Health Minister Arunraj maintained that the policy holds immense value for public healthcare integration. He stated that the scheme remains vital to reinforce community reliance on state-operated medical systems. The initiative guarantees a one-gram, 22-carat gold ring to infants born in government facilities, retroactively covering births from June 22 onward.
Kalyan Jewellers secured a 30 percent share of the order after matching the lowest bid under state transparency laws. The government expects the first wave of rings to arrive by mid-September for the official public launch.
