Madhya Pradesh shifts to cash transfers for school uniforms after tender delays

The Madhya Pradesh government will directly transfer 600 rupees into the bank accounts of 5.8 million students to buy school uniforms. The state cabinet approved 348.07 crore rupees for the 2026-27 academic session to fund these uniform allowances for students studying in classes one to eight in government schools.

Tender Delays

State cabinet minister Chetan Kashyap stated that the administration failed to float the uniform tender on time amid allegations of irregularities. The government initially planned to provide stitched uniforms, but objections and a Madhya Pradesh high court stay order on July 16 halted the process. Local garment manufacturers and women's self-help groups had alleged that high financial turnover rules in the tender unfairly excluded them.

Policy Shift

Because the delay pushed the money transfer five months into the academic session, authorities chose the direct benefit transfer method to send funds to students and parents. Minister Kashyap added that the state will start a new process to provide uniforms on time from the next academic year. In a separate decision, the council of ministers approved a 20 percent horizontal reservation for Agniveers in uniformed state services like police and forest guards.

Context

Direct benefit transfers are often used by governments to bypass middlemen and send cash aid directly to citizens. This method is common in welfare schemes when administrative or legal delays prevent regular goods and services from reaching beneficiaries on time.