Tamil Nadu government to review one paise TMTM gold tender bid

CHENNAI: The State government on Friday said it would hold fresh consultations with officials and experts on procuring gold through the Tamil Nadu Medical Services Corporation (TNMSC) for its flagship Thai Maman Thanga Mothiram (TMTM) scheme, as the AIADMK questioned both the procurement mechanism and an unusually low bid for the contract.

The tender for TMTM has become a political flashpoint after Joyalukkas emerged as the lowest bidder, reportedly quoting just one paisa towards making charges and wastage, as well as hallmarking, packing, insurance and transportation, excluding the prevailing gold price. Other bidders reportedly quoted additional charges ranging from Rs 410.97 to Rs 15,356.27.

The AIADMK questioned the unusually low quote and asked whether the government had sought a matching offer from Titan, in which the State is a major shareholder.

DMK MLA PH Manoj Pandian questioned the decision to entrust gold procurement to the TNMSC, which primarily handles medicines, medical equipment and other healthcare supplies.

Health Minister KG Arunraj defended the move. "TNMSC has been procuring baby kits given to mothers who deliver at government hospitals. The sole aim is to increase the number of deliveries in government hospitals. The TMTM scheme will also help increase deliveries in government hospitals," Arunraj said.

He said the gold would be procured through the TNMSC in accordance with existing norms and that the government would consult all stakeholders, including officials and experts, before taking a final decision. "There will be no irregularities in the procurement and distribution of gold rings. The government will ensure transparency," he said.

The scheme was a key promise in the TVK's election manifesto and envisages providing a one-gram gold ring to babies born to permanent residents of Tamil Nadu at government hospitals and health centres.

The TNMSC floated a tender in July for 4,41,667 one-gram, 22-carat gold rings, with 916 hallmarking mandatory. The government has earmarked Rs 755.83 crore annually for the scheme, which is scheduled to be launched by Chief Minister C Joseph Vijay on September 15, the birth anniversary of former Chief Minister CN Annadurai. Children born at government hospitals from June 22, 2026, are eligible.