Jewellery industry major Joyalukkas has been selected as the lowest (L1) bidder for the Tamil Nadu government’s Rs 755-crore ‘Thaimaman Thanga Mothiram’ scheme, under which 4.42 lakh newborn babies will receive 1-gram gold rings.
Under the tender, Joyalukkas quoted a symbolic service charge of just 1 paisa above the prevailing gold rate. 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. The cost of the gold will be borne by the Government of Tamil Nadu at the prevailing market rate. This is considered one of the pet schemes of Chief Minister C Joseph Vijay.
The scheme covers newborn babies delivered in government hospitals in Tamil Nadu. The initiative will cover eligible newborns from June 22, 2026, until the end of the current financial year. According to a media report, the nearest bidder (L2) was GRT Jewellers India, and Vummidi Bangaru Jewellers was L3.
“We are honoured to be associated with the Government of Tamil Nadu’s Thai Maman Thanga Mothiram Thittam. This is a meaningful initiative that touches the lives of thousands of families across the state. Our decision to quote just 1 paisa above the prevailing gold rate reflects our commitment to contributing to this important welfare programme without seeking additional commercial margins. We will ensure that every ring supplied meets the highest standards of purity, quality and hallmarking,” said Joy Alukkas, Chairman and Managing Director, Joyalukkas Group.
The tender is valued at approximately Rs 755 crore, with the gold component forming the major part of the overall procurement value. Joyalukkas’ 1-paisa quote reflects the company’s commitment to supporting the Government of Tamil Nadu’s welfare initiative rather than pursuing commercial margins from the programme.
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. By extending the benefit to babies born in government hospitals, the scheme seeks to support families accessing public healthcare across the state.
With a strong presence across Tamil Nadu and decades of expertise in jewellery manufacturing and retail, Joyalukkas is well positioned to execute this large-scale supply efficiently and with the highest standards of quality and transparency, the company said in a statement. The official work order is expected to be issued shortly, following which Joyalukkas will commence the supply of rings in coordination with the concerned government departments.
The trend of near-zero bids in government and public sector companies started in the early 2010s. One such instance was the Rs 15,000-crore initial public offering (IPO) of Coal India (CIL) a decade ago, when investment bankers quoted 1 paisa.
Another instance of an aggressive bid was when JM Financial quoted only Rs 1 for Oil and Natural Gas Corporation’s purchase of Hindustan Petroleum Corporation.
