Joyalukkas Quoted One Paise for Gold Ring Scheme as Goodwill Gesture, Says Minister

Health Minister K.G. Arunraj on Monday stated that jewellery firm Joyalukkas quoted one paise and emerged as the lowest bidder for supplying one-gram gold rings under the Thaimamam Thanga Mothiram Thittam as a goodwill gesture without any profit motive.

The one-paise bid had sparked controversy in recent days, prompting the Health Department to issue a press release confirming that work orders were awarded to Joyalukkas and Kalyan Jewellers in a 70:30 ratio after the latter agreed to match the lowest quote.

Seeking to clear the air on the matter, Dr. Arunraj explained that the scheme comprises two separate components: the cost of gold and additional service charges. These additional charges cover making charges, packaging, transportation, insurance, and BIS hallmarking. The tender was floated strictly for these additional charges, rather than the baseline price of gold.

“The gold price is fixed. The India Bullion and Jewellers Association publishes the rates in the morning and evening. We are taking the a.m. (morning) rate. This rate applies to Joyalukkas too,” the Minister said.

When the tender was opened, 11 firms were found eligible. Dr. Arunraj said officials were surprised by the one-paise quotation and contacted Joyalukkas to verify whether the entry was a typographical error. The company confirmed that it was acting without a profit motive as far as this specific scheme was concerned and had submitted the bid as a goodwill gesture.

The Health Department then shared the L1 price of one paise with the other 10 eligible bidders to determine if any would match the rate. Kalyan Jewellers agreed to match the price, following which 70% of the contract was awarded to Joyalukkas as the lowest bidder and the remaining 30% to Kalyan Jewellers.

Dr. Arunraj said that the fair and transparent tender process will help the State government save ₹20 to ₹25 crore a year. He emphasized that the State government did not hold prior discussions with any firm and that the tender was not floated by predetermining companies.