TN Investment Promotion Commission reviews MoUs worth Rs 1.14 lakh crore; seeks Rs 1,600 crore additional subsidy

CHENNAI: The Tamil Nadu Investment Promotion Commission (TNIPC), at its first meeting, reviewed the progress of investment projects worth over Rs 1.14 lakh crore and discussed measures to accelerate industrial development, simplify business approvals and boost exports.

The meeting, chaired by Chief Secretary M Sai Kumar at the Secretariat on Friday was attended by senior officials from various departments and representatives of leading industrial organisations.

In a statement siad that according to the review, 112 Memorandum of Understandings (MoUs) involving investments of over Rs 1.14 lakh crore and promising employment opportunities for 1,42,271 persons have been signed since May 2026. Of these, 83 projects have reached the land acquisition stage or beyond, achieving 74.11 per cent progress in implementation.

The commission also reviewed 37 industrial-related announcements made under the Vetri Tamilagam Vision Document, of which implementation has commenced for 18 announcements.

On the proposed Industrial Policy 2027, the commission directed officials to expedite its preparation following consultations with various stakeholders since July 2026.

To improve the ease of doing business, the government has announced more than 25 reforms through 23 government orders covering 11 departments since May 2026. These include removing the requirement for agricultural department clearance for converting dry lands for industrial purposes and extending the validity of private school recognition certificates from three years to 20 years.

Of the 21,753 applications received through the Single Window Portal for industrial approvals and clearances, 19,323 applications (96.4 per cent) have been disposed.

The commission noted that Rs 2,000 crore in industrial subsidy had been disbursed during the past six months, compared with the annual disbursement of Rs 1,700 crore earlier. It sought an additional allocation of Rs 1,600 crore to extend subsidies to new projects arising from MoUs.

The commission also reviewed the State's export performance and initiatives to increase merchandise exports from the existing 59 billion to 72 billion dollars.

Among its key decisions, the commission directed all departments to strictly adhere to the mandatory 21-day deadline for granting industrial approvals. It also recommended introducing deemed approval provisions after the deadline and taking action against officials responsible for violations.

Further, the Tamil Nadu Power Distribution Corporation (TNPDCL) will permit industries to establish their own high-tension and extra-high-tension electricity connections. Developers of large projects will also be allowed to procure the required electrical equipment themselves.

The commission directed SIPCOT to assess industrial electricity and water requirements for the next 10 years and identify unused industrial plots for allocation to prospective investors.

It also reviewed the progress of major projects, including Tamil Nadu Knowledge City, Arivagam AI City, Coimbatore Digital FinTech Centre and the Tiruchirappalli Multimodal Logistics Hub.

The commission further discussed establishing a Global Capability Centre (GCC) corridor to generate high-skilled employment in information technology, artificial intelligence, engineering design and research and development.

Tourism-related projects will also be treated as industrial projects and processed through the Single Window Clearance System for faster implementation.