To boost industrial growth in Tamil Nadu, the state government has earmarked an additional 45,000 acres for an industrial land bank, with 14,000 acres already acquired. New SIPCOT parks are being developed in less industrialized regions, including Thanjavur, Perambalur, Dharmapuri, and Theni districts, to promote equitable industrial development, according to Tamil Nadu Governor R.N. Ravi. In his customary address to the Assembly, which he chose not to read, the Governor highlighted these initiatives. He exited the Assembly after just three minutes, citing that the National Anthem had not been sung, prompting Speaker M. Appavu to read the prepared speech.
During a recent investment drive led by Chief Minister M.K. Stalin, Tamil Nadu secured over ₹7,500 crores in investments, expected to create around 11,500 jobs, including Ford’s commitment to resume manufacturing in Chennai. Since 2021, the state has attracted over ₹10 lakh crores in private investment pledges, thanks to persistent efforts from the government.
The state administration is focused on attracting investments in various regions to ensure comprehensive and inclusive growth. Foreign investments in the footwear sector are particularly revitalizing less industrialized districts like Perambalur, Ariyalur, Villupuram, Kallakurichi, and Ranipet. In southern Tamil Nadu, Thoothukudi is rapidly evolving into a hub for green hydrogen projects, while Tirunelveli is witnessing significant investments in solar cell and module production.
The western part of the state, notably Coimbatore and Hosur, is becoming a center for IT, aerospace, defense, electronics, and electric vehicles, while the northern region remains the leading automobile manufacturing hub of the country. This diverse investment landscape reflects the government’s commitment to fostering equitable and sustainable development across Tamil Nadu.
In the realm of business facilitation, the state government has introduced a Self-Certification Scheme aimed at expediting and streamlining building plan approvals. In just three months, 36,134 beneficiaries have successfully applied for and obtained online approvals for building plans with no manual intervention required.
Despite ongoing appeals for funding under the Samagraha Shiksha Scheme, the Union Government has not disbursed any funds this year, claiming the state has not implemented the National Education Policy. The funds, totaling ₹2,152 crores, are essential for maintaining school operations, paying teachers, and adhering to the Right to Education Act. The state bears the financial burden in the absence of these funds, severely impacting its finances and the future of 44 lakh students, 2.2 lakh teachers, and 21,276 support staff.
To bolster Tamil Nadu’s position in the spinning sector, the government has approved a ₹500 crore scheme with a 6% interest subvention over the next decade for technological upgrades. Tamil Nadu stands out as the only state providing ₹2.82 lakh for PMAY-G beneficiaries, contributing ₹1.72 lakh, or 60% of the total cost.
For rural infrastructure, the state has revitalized 9,653 kilometers of roads in the last two years through the ‘Mudhalvarin Grama Salaigal Membattu Thittam’, with an investment of ₹4,000 crores. This initiative has been extended for an additional two years to upgrade another 10,000 kilometers of roads.
Furthermore, to enhance market access for farmers, 157 regulated markets in Tamil Nadu have been integrated into the National Agriculture Market (e-NAM). Since 2021, these markets have facilitated transactions of 19.60 lakh metric tons of agricultural products worth ₹5,779 crores, resulting in e-payments of ₹4,055 crores that have benefited 16.13 lakh farmers, positioning Tamil Nadu as a leading participant in the e-NAM framework.
In response to the Chief Minister’s repeated requests over the past three years, the Centre has finally approved the long-awaited 50:50 equity share for the Chennai Metro Rail Phase II project, paving the way for its completion as per the original plan.
The 16th Finance Commission, led by Arvind Panagariya, recently visited Tamil Nadu and was presented with a persuasive case outlining the state’s demands. These included increasing vertical devolution to 50%, establishing a fairer formula for horizontal devolution that recognizes state performance, and allocating resources to address specific issues such as rapid urbanization, frequent natural disasters, and an aging population. The Commission expressed appreciation for the state’s memorandum, and there is hope that the current Finance Commission will embrace a progressive approach as outlined by the government.
