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Madhya Pradesh scraps school uniform tender, opts for direct cash transfers

Madhya Pradesh will distribute school uniforms through direct bank transfers instead of a contentious tender process. The state cabinet has approved direct benefit transfers of ₹600 to over 58 lakh students' accounts.

LSN India · 29 September 2026

Madhya Pradesh scraps school uniform tender, opts for direct cash transfers

Madhya Pradesh has abandoned its school uniform procurement tender in favour of a direct cash transfer scheme, marking a significant policy reversal. Chief Minister Mohan Yadav's cabinet approved the decision to deposit ₹600 directly into the bank accounts of approximately 5.8 million government school students through the Direct Benefit Transfer (DBT) mechanism.

The shift abandons the earlier plan to distribute ready-made uniforms through a tender process, which had drawn considerable scrutiny and controversy. The cabinet's decision represents a move toward empowering families with direct financial support rather than in-kind distribution of school uniforms.

Under the new arrangement, students will receive the funds directly, allowing families greater flexibility in procuring uniforms according to their preferences and local market conditions. The DBT-based approach is expected to streamline the process and eliminate intermediaries in the procurement chain.

The decision underscores the Madhya Pradesh government's effort to enhance the efficiency of welfare distribution mechanisms in the education sector. Officials indicated that the direct transfer method would ensure faster disbursement and greater transparency compared to traditional procurement procedures.