CHENNAI: Jewellery retailer Joyalukkas — by quoting 1 paisa towards service charge for every 4,41,667 one-gram, 22-carat gold rings — turned out to be the lowest bidder among 11 key jewellers who participated in the tender for supplying gold rings to the government under the “Thaimaman Thanga Mothiram Thittam”. The contract’s overall value is estimated to be Rs 755 crore, as per sources.
As the surprisingly low bid prices made rounds on social media, leading to debates and political reactions on the nature of the tender process, the state health department issued a release on Friday night, stating that the contract has been awarded in 70:30 ratio to Joyalukkas and Kalyan Jewellers, the only other bidder that agreed to match the price.
According to the health department, Joyalukkas quoted the lowest price of Rs 0.01 per ring, excluding the prevailing price of one gram of gold but including all other additional charges such as making charges, insurance, transportation and BIS hallmarking.
“In accordance with the provisions of the TN Transparency in Tenders Act and Rules, the other 10 participating companies were asked whether they were willing to match the lowest bidder’s price. Only Kalyan Jewellers agreed to match the price quoted by the lowest bidder,” the release stated.
“The first phase will cover the distribution of 1,28,499 gold rings required for four months, from June onwards, to eligible beneficiaries,” the statement said. The second lowest bid was by GRT Jewellers (Rs 410.97), followed by Vummidi Bangaru Jewellers (Rs 822.97). “The quoted amount was submitted as per the pricing structure and terms prescribed in the tender,” Joyalukkas told TNIE.
Joyalukkas, in a statement, described its quote as a deliberate low-margin commitment to the welfare programme rather than a pursuit of commercial return. Its chairman and managing director Joy Alukkas framed the win as an opportunity to support a scheme that reaches “thousands of families” across the state.
Implemented by the Tamil Nadu Medical Services Corporation (TNMSC) from September 15, the scheme gives a ring to every baby born in a government hospital from June 22.
Each ring must carry the state emblem and a portrait of the CM. If a batch of rings fails testing, TNMSC can trigger a mandatory buyback at the higher of the original price or the prevailing benchmark rate, on top of liquidated damages capped at 10% of contract value.
Meanwhile, AIADMK IT wing on ‘X’ said the Joyalukkas bid price raises eyebrows and alleged that CM Vijay was the brand ambassador for Joyalukkas’s sister concern, Jos Alukkas. Former MLA Ezhilan Naganathan (DMK) said the TNMSC, known for procurement of quality medicines, has lost its pride with procurement of gold.