Chennai: Following intense negotiations with the manufacturer, the Tamil Nadu government has secured a substantial reduction in the procurement cost of free bicycles for government school students, slashing prices by over 27 per cent for boys and nearly 32 per cent for girls.
Officials sources on Saturday said that the authorities concerned have successfully negotiated a steep price reduction for the free bicycles procured for school students, bringing down costs that were initially fixed at over Rs 7,000 per unit.
The free bicycle scheme for government school students in Tamil Nadu was first introduced in 2001 during the AIADMK regime.
Implemented by the Backward Classes Welfare Department, the initiative initially covered only Adi Dravidar and Scheduled Tribe students studying in Class XI in government schools. In 2006, the scheme was expanded to benefit all Class XI students across both government and government-aided schools.
Following the formation of the TVK-led government under Chief Minister C Joseph Vijay, it was announced during the Backward Classes Welfare Department’s demand for grants that 5.32 lakh Class XI students in government and government-aided schools would be provided with modern bicycles equipped with helmets and water bottle facilities at a total cost of Rs 277 crore for the 2026–27 academic year.
A tender for this procurement was floated in August, drawing participation from three major bicycle manufacturers.
Hero Cycles initially came forward to supply a boy’s bicycle with a helmet and water bottle for Rs 6,820, bringing the total to Rs 7,235.10 inclusive of Rs 415.10 in tax.
For girls, the company quoted Rs 7,050, which totaled Rs 7,476.60 inclusive of Rs 426.60 in tax.
However, criticism emerged that these rates were significantly higher than the cost of bicycles distributed to government school students in neighboring Puducherry.
In response, an 11-member committee headed by the Secretary of the Backward Classes Welfare Department was formed to hold price-reduction talks with the company.
After nine rounds of negotiations, the manufacturer agreed to supply bicycles for boys at Rs 5,260 and for girls at Rs 5,130.
Under the revised pricing for boys, the base price is Rs 4,369.00, five per cent GST is Rs 218.45, the helmet costs Rs 560.50 including GST, and the water bottle costs Rs 112.10 including GST.
For girls, the base price is Rs 4,245.30, five per cent GST is Rs 212.27, with the helmet and water bottle priced identically at Rs 560.50 and Rs 112.10 respectively.
Through these negotiations, the price of a boy’s bicycle has been reduced by 27.29 per cent, saving Rs 1,975.10 per unit, while the price of a girl’s bicycle has dropped by 31.38 per cent, saving Rs 2,346.60 per unit.
Consequently, the formal contract to manufacture and supply the bicycles at these reduced rates has been awarded to the company.
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