The Tamil Nadu government has issued work orders for nearly 1.28 lakh gold rings, costing approximately ₹220 crore, to two jewellery retail chains under the 'Maternal uncle gold ring scheme' for newborns. According to a government press release, the Tamil Nadu Medical Services Corporation (TNMSC) issued the work orders to Joyalukkas and Kalyan Jewellers on a 70:30 ratio to supply the required 1,28,499 gold rings for beneficiaries from June to September. The tender was valued at approximately ₹755 crore, with the gold component forming the major part of the overall procurement value. The nearest bidder (L2) was GRT Jewellers, while Vummidi Bangaru Jewellers was L3. The Kerala-based jewellery retail giant, which recently relocated its corporate headquarters from Thrissur to Kochi, emerged victorious by combining economies of scale, brand visibility and public welfare objectives.
Under the tender, Joyalukkas quoted a symbolic service charge of just 1 paisa above the prevailing gold rate, while Kalyan Jewellers submitted a matching price. As reported by The Hindu BusinessLine, the quote covers the supply of the gold rings along with applicable making charges and associated costs, with Joyalukkas offering the service at virtually no profit. According to sources at today's market rate in Tamil Nadu, a gold ring under this scheme will cost the government approximately ₹14,850 per gram. The cost of the gold will be borne by the Government of Tamil Nadu at the prevailing market rate. When asked about the economics of the bid, Joy Alukkas, CMD of the Joyalukkas Group, told BusinessLine that the decision to participate went beyond the commercial aspect, and the company was happy to contribute their capabilities toward a scheme with a strong social purpose. The company sees this as an opportunity to create long-term value while leveraging their brand strength, retail experience, and established customer base.
The scheme covers children born in government hospitals in Tamil Nadu, with the initiative covering eligible newborns from June 22, 2026, until the end of the current financial year. According to The Hindu BusinessLine, the 'Thai Maman Thanga Mothiram Thittam' is a welfare initiative aimed at providing a 1-gram gold ring to eligible newborn babies as a gesture of care, prosperity and social support. The scheme will be launched on September 15, marking the birth anniversary of Dravidian icon CN Annadurai. The official work order is expected to be issued shortly, following which Joyalukkas and Kalyan Jewellers will commence the supply of rings in coordination with the concerned government departments. 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.
The contract could provide Joyalukkas with significant brand visibility and reach among families across Tamil Nadu, where the company operates 26 showrooms across the state. As reported by The Hindu BusinessLine, Tamil Nadu represents a key market for the company, with significant potential to further strengthen their presence and serve customers across the region. However, others feel that while manufacturing costs are roughly 3-4% of gold cost, the company may offset these through inventory gains since gold prices have increased in recent days. The company's decision to participate reflects their commitment to contributing to welfare programmes without seeking additional commercial margins. Joyalukkas has stated that the tender is valued at approximately ₹755 crore with the gold component forming the major part of the overall procurement value.
The tender has become a subject of heated debate in the Assembly this week, with opposition parties questioning the procurement mechanism. According to The Hindu BusinessLine, DMK and AIADMK questioned the procurement mechanism and asked about 'a highly unusual tender outcome,' as the successful bidder had quoted ₹0.01 towards additional charges. Other competing firms had quoted additional charges ranging from ₹410.97 to over ₹15,000, according to opposition parties. DMK MLA P H Manoj Pandian raised questions in the Assembly about how procuring gold rings was beyond the scope of Tamil Nadu Medical Services Corporation, questioning the expertise that the department has to scrutinise tender bids. Health Minister Arunraj defended the move by stating that the scheme is vital to strengthen the public trust in state healthcare services.
