The Cabinet approved the proposal under which tenders will be floated for supply of THR worth Rs 1,200 crore, official sources said.
Women and Child Welfare Department will call for an EoI to provide ration through the scheme under which breakfast and ready made lunch is to be supplied to children between 6 months to 3 years of age, those between 3 to 6 years who have lower than average weight and also pregnant housewives.
The tender process came under criticism from the Opposition which said it will remove small women self-help groups (SHGs) from competition, and alleged it favours a handful of suppliers.
"It is necessary to select a bidder on technical ground and not on commercial ground. Otherwise, the contractor may submit a low cost tender to grab the contract," said the cabinet note.
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He said the Bombay High Court has clearly said that SHGs should get the tender of supplying ration though they don't have extruder machines (food processing equipment).