MP Govt to transfer cash to 55 lakh students for uniforms amid tender row

Around 55 lakh students studying in Government schools across Madhya Pradesh are likely to receive cash directly in their bank accounts for purchasing school uniforms during the 2026-27 academic session, following a dispute over the tender process for uniform procurement.

The decision has been taken after the uniform procurement process was halted amid allegations of irregularities and an interim stay by the Madhya Pradesh High Court. The state Government had initiated the process to procure uniforms through the Madhya Pradesh Textbook Corporation, but the tender was challenged by weaving organisations.

Students from Classes 1 to 8 in Government schools are provided two sets of uniforms or the corresponding amount by the Government. Under the existing arrangement, Rs 600 is provided per student. With around 55 lakh beneficiaries, the Government transfers about Rs 330 crore annually for uniforms. The practice of transferring money directly to students’ accounts has been followed in recent years.

In September 2025, the Government transferred around Rs 330 crore to the accounts of 55 lakh students, enabling families to purchase cloth according to their requirements and get uniforms stitched.

For the 2026-27 session, however, the School Education Department had planned to procure and supply uniforms through the Madhya Pradesh Textbook Corporation. The process was intended to replace the earlier system under which the responsibility of uniform supply was handled through the state education system.

The tender, issued by the Madhya Pradesh Textbook Corporation on June 3, 2026, was challenged before the High Court. Three weaving organisations, including representatives of the powerloom sector, approached the court, arguing that the tender process was contrary to provisions of the Madhya Pradesh Procurement Rules, 2023.

The High Court subsequently imposed an interim stay on the procurement process. With nearly four months having passed and the uniform procurement process remaining stalled, the department has decided to revert to the direct-benefit model for the current academic session.

Officials are expected to issue formal orders regarding the transfer of the uniform amount to students’ bank accounts shortly. The matter relating to the tender remains pending before the High Court.

The issue of Government school uniforms has remained contentious for several years, with questions periodically being raised over delays in supply, quality and procurement arrangements.

Earlier, the Government had also involved self-help groups in uniform preparation with the objective of providing employment to rural women.

However, complaints regarding quality and delays led to changes in the system.

The latest decision is aimed at ensuring that students receive financial assistance for uniforms without waiting for the completion of the stalled procurement process.