Tamil Nadu: MSME bodies seek separate SIPCOT land policy, oppose auction-based allotment

CHENNAI: Two industryassociations in Tamil Nadu have urged the State Industries Promotion Corporation of Tamil Nadu (SIPCOT) to ensure preferential access to industrial land for micro, small and medium enterprises (MSMEs), warning that auction-based allotment could disadvantage smaller entrepreneurs competing with financially stronger companies.

In separate representations to SIPCOT’s Managing Director, the Industrial Waste Management Association and the Manufacturers Association of Vallam-Vadagal Industrial Park sought the restoration of application-based allotment for MSMEs and reservation of a portion of industrial plots exclusively for them.

The associations said the earlier system, which assessed applications and project proposals before allotting land on long-term leases, enabled entrepreneurs with viable manufacturing plans but limited financial resources to establish industrial units.

Under the auction-based mechanism they have raised concerns about, smaller enterprises face competition from larger corporations with greater financial muscle, making it difficult for first-generation entrepreneurs to secure land at competitive prices, they said.

The associations cautioned that restricted access to industrial land could impede the establishment and expansion of small manufacturing units, with implications for entrepreneurship and employment generation.

They have sought a separate allotment mechanism for MSMEs, along with preference for manufacturing projects backed by viable proposals and demonstrable employment-generation potential.

The representations come as Tamil Nadu seeks to expand its industrial footprint. The State has identified 14,839.62 acres across 30 locations for new industrial parks as part of SIPCOT’s land-bank creation initiative, while land acquisition is under way for another 44 proposed parks.

SIPCOT’s published land-allotment procedure provides for scrutiny of applications and objective evaluation by an allotment committee when multiple applications are received for a plot.

The associations have urged the corporation to intervene, arguing that equitable access to industrial land is essential to nurturing first-generation entrepreneurs, strengthening the MSME sector and ensuring more balanced industrial development across Tamil Nadu.