TN Budget 2026: Space technology district, AI city announced in Tamil Nadu Budget

CHENNAI: The Tamil Nadu government on Wednesday announced that Thoothukudi and Tirunelveli districts will be developed as Space Technology Investment Districts, leveraging the upcoming ISRO spaceport at Kulasekarapattinam, while unveiling plans to establish an Artificial Intelligence (AI) Technology City to position the state as a hub for advanced technologies.

Presenting the first Budget of the Tamilaga Vettri Kazhagam (TVK) government in the Assembly, Finance Minister N Maria Wilson said the proposed Space Technology Investment District would be anchored around ISRO's upcoming rocket launch facility at Kulasekarapattinam in Thoothukudi district.

The minister said the government would establish a Space Vehicle Common Technical Facility in collaboration with IN-SPACe, the Centre's agency responsible for promoting and facilitating private sector participation in the space sector. The facility will provide world-class infrastructure for private companies, startups and research organisations operating in the space technology ecosystem.

He also announced the creation of an AI Technology City, named "Arivagam", to support companies working in artificial intelligence, deep-tech and quantum technologies.

The proposed city will house an Artificial Intelligence University, an international skill development centre, semiconductor manufacturing and testing laboratories, innovation incubators and modern residential facilities. It will function as a dedicated hub for implementing both government and private AI initiatives.

To prepare the project, the government has earmarked Rs 5 crore for a feasibility study, the minister said.