Daijiworld Media Network - Chennai

Chennai, Oct 25: The Tamil Nadu government's procurement of 5.32 lakh bicycles for Class 11 students in government and government-aided schools could cost around Rs 392 crore, exceeding the Rs 277 crore allocated for the scheme in the 2026-27 budget by nearly Rs 115 crore.

The government plans to distribute 2.37 lakh bicycles to boys and 2.95 lakh to girls across the state. While distribution usually takes place by November, officials had earlier targeted December this year. However, the process could now extend until March 2027 under the existing tender conditions.

Three companies competed in the financial bidding process, which was opened earlier this week. Hero Cycles emerged as the lowest bidder, quoting Rs 7,235 per bicycle for boys and Rs 7,476.60 for girls. The supply also includes helmets and water bottles.

At the quoted rates, the total procurement cost would reach approximately Rs 392 crore, around 40% higher than the budget allocation.

Minister for Backward Classes Welfare V Sampath Kumar said the department would negotiate with the companies on Monday before finalising the prices.

“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 The New Indian Express.

The minister also noted that bicycle distribution had extended until March in previous years. The department would discuss ways to expedite the process during Monday's negotiations, he said.

“We will streamline the process next year,” Sampath Kumar added.

The outcome of the negotiations will determine the final procurement cost and whether the government can bring the expenditure closer to the amount allocated for the scheme.