CHENNAI: The Tamil Nadu government’s procurement of 5.32 lakh modern bicycles for distribution to Class 11 government and government-aided school students across the state could cost 40% more than the Rs 277 crore allocated for the scheme in the 2026-27 budget.
While the government usually distributes bicycles by November, it had earlier targeted December for this year’s distribution. However, the process could extend until March 2027 under the current tender conditions.
Three companies were in contention for the financial bid, which was opened earlier this week. Hero Cycles emerged as the lowest bidder to supply 2.37 lakh bicycles for boys and 2.95 lakh for girls, along with helmets and water bottles.
The company quoted Rs 7,235 per boys’ bicycle and Rs 7,476.6 per girls’ bicycle. At these rates, the total procurement cost would be about Rs 392 crore, which is Rs 115 crore above the allocation.
Minister for Backward Classes Welfare V Sampath Kumar said that the department would hold negotiations with the companies on Monday. “We fixed the prices at only 5% higher than the previous year’s rates.
However, given the higher specifications, the companies may have quoted higher prices. We will negotiate with them in the presence of the technical team and a committee comprising heads of the beneficiary departments, among others, before finalising the prices,” he told TNIE.
He added that bicycle distribution had extended until March in previous years as well, and the department would discuss the feasibility of expediting the process during Monday’s negotiations. “We will streamline the process next year,” he said.