Tamil Nadu Chief Minister C. Joseph Vijay holds a Cabinet meeting at the Secretariat, in Chennai, on July 16.
| Photo Credit: TNDIPR/ANI Video Grab
Chief Minister C. Joseph Vijay’s pet scheme of gifting a one-gram gold ring to each new-born child in Tamil Nadu’s government’s hospitals comes at a time when the agency nominated to make the gold purchases, the Tamil Nadu Medical Services Corporation (TNMSC), is struggling as it tries to maintain a lower stock-out ratio (percentage of medicines unavailable due to empty inventory). The TNMSC already has multiple handicaps, apart from the fact that its main duty is to keep hospitals stocked with essential medicines, medical supplies, surgical equipment, and other hospital needs.
According to the Tamil Nadu Health Department’s annual report for 2025-26, the TNMSC procured drugs and medicines worth Rs.910.72 crore for the financial year 2024-25. This year, the government is incurring an additional expenditure of about Rs.755 crore by asking this medical supplies arm to purchase gold rings for newborns. As per officials, the additional burden has been imposed on the TNMSC without any allocation of extra personnel. More important, there is no explanation as to why the medical supplies procurement arm is being tasked with buying gold rings.
The TNMSC floated a tender on July 13 stating its intent to buy about 4.4 lakh numbers of gold rings annually, each weighing one gram (22 carat, 916 with BIS hallmark). The scheme is expected to be formally launched on the birthday of former Chief Minister C.N. Annadurai, on September 15 this year. The gold ring scheme was one of the promises made in the Tamilaga Vettri Kazhagam’s manifesto ahead of the State Assembly election this year.
Named the Thaimaaman Thanga Mothirdam Thittam (which translates as maternal uncle’s gold ring scheme), the scheme basically is one wherein the State takes on the role of the maternal uncle and gifts gold to the child, a practice followed in many families in the State. The only difference is that the State uses taxpayer money to gift gold rings while families buy them from their own savings.
The cost per ring is fixed at about Rs.13,600, inclusive of packing, insurance, etc. A dedicated project management unit is expected to manage and monitor the scheme. At the current unit rate indicated, the money spent on procurement alone could be about Rs.600 crore, which means nearly Rs.150 crore has been set aside for logistics and scheme management.
Meanwhile, key government hospitals have been asked to stock the required number of rings on their premises. This adds a security burden on these hospitals, which might be forced to purchase safety lockers. Part of the funds will go towards this too.
Encouraging women to turn to government hospitals?
The TVK’s supporters say that institutional deliveries in government hospitals had declined in Tamil Nadu, and the scheme will encourage women to turn to government hospitals once again. Critics, however, point out that the money could have been far better used in buying hospital equipment and in extending existing medical facilities. Another criticism is that the scheme unnecessarily taxes the already overburdened office of the Deans of the hospitals, who already function under considerable pressure.
One question that has arisen with the new scheme is how it compares with the State’s Dr Muthulakshmi Reddy Maternity Benefit Scheme, under which pregnant women receive Rs.14,000 in cash in three instalments besides two nutrition kits worth Rs.4,000. This scheme has been studied widely and lauded by academics and policymakers. The present government has clarified that the Dr Muthulakshmi Reddy scheme will continue, and the new ring scheme will only be an add-on.
Joseph Vijay inspecting Chennai’s Government Hospital for Women and Children on July 8.
| Photo Credit:
Lakshmi/ANI
While the Dr Muthulakshmi Reddy Maternity Scheme costs Rs.18,000 per pregnant woman, the bare purchase component of the gold rings amounts to Rs.13,600. The money in the case of the former is deposited in the woman’s account while the ring is given to the newborn child. The “maternity scheme” insists on institutional delivery, ANC (antenatal care) visits, and child immunisation to access the grant at each stage.
While the costs are comparable, the maternity scheme benefits a family unit more because of the cash component, which can compensate—to some extent—the loss of employment during pregnancy and also pay for sundry expenses. The scheme also made it possible to effect behavioural changes because the cash transfer is conditional—incentives can be availed only if pregnant mothers undertake the antenatal check-ups and the immunisation of the child. In contrast, the ring scheme rewards the act of childbirth per se, with the only rider being that it takes place in a government hospital.
“The scheme is flawed,” said a former high-level bureaucrat. “This is not TNMSC’s core competence. There are several questions on both the priorities and the purchase itself.” Since gold rates move on a daily basis and the price fluctuations are significant, what would be the price point at which the government would buy, he wondered. Also, would the TNMSC be required to buy a gold purity checking machine to test the gold it buys? Is the TNMSC, a medical procurement agency with no expertise in gold purchase, the right arm for the scheme?
The other problem relates to health sector priorities. One former government doctor said that he could list several priority areas on which the government could spend the Rs.750-odd crore it has earmarked for the purchase of gold rings. “The reason even poor people decide to go to private clinics is because the care in government hospitals is poor. This is because of overcrowding, understaffing, and lack of equipment,” he said. “If these are set right at least in a few hospitals, more patients will benefit,” he added. And more pregnant women would opt for government hospitals.
The government, instead, seems to have decided to “buy” its patients back. And it is in no mood to listen to reason. Moreover, by implementing a rash guarantee made ahead of elections, the government seeks to show that it is sincere and will stick to all its promises.
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