Chennai, Nov 14 : The Tamil Nadu government has introduced a 21-day deadline for granting industrial clearances to speed up project approvals and attract more investments. Under the new system, industrial applications that are not processed within the stipulated period will receive deemed approval. Officials who fail to comply with the deadline may also face penalties.
The decision is part of the state’s ambitious plan to become a USD 1.5 trillion economy by 2036.
The decisions were taken at a meeting of the newly formed Tamil Nadu Investment Promotion Commission (TNIPC), chaired by Chief Secretary M Saikumar at the Secretariat.
According to an official press release issued on Saturday, the 20-member commission was established under Section 16-A of the Tamil Nadu Business Facilitation (Amendment) Act, 2026.
TN Investment Promotion Commission to Review Major Projects
The Tamil Nadu Investment Promotion Commission includes senior officials from key departments such as Finance, Information Technology, MSME, Energy, Revenue and Labour.
Representatives from three major industry bodies — the Madras Chamber of Commerce and Industry (MCCI), Confederation of Indian Industry (CII) and Federation of Indian Chambers of Commerce and Industry (FICCI) — are also part of the commission.
The TNIPC will monitor investment projects involving more than Rs 200 crore or those expected to generate over 5,000 jobs.
Tamil Nadu Signs Investment Deals Worth Rs 1.14 Lakh Crore
Reviewing the state’s industrial progress, Chief Secretary M Saikumar said Tamil Nadu had signed 112 Memoranda of Understanding (MoUs) worth more than Rs 1.14 lakh crore since May 2026.
These investment projects are expected to create employment opportunities for around 1,42,271 people.
Of the 112 projects, 83 have reached the land-allotment stage or progressed further.
The state has also received 21,753 applications through the Guidance Tamil Nadu single-window clearance portal, of which 19,323 have been processed.
Over 25 Reforms to Improve Ease of Doing Business
Since May 2026, the Tamil Nadu government has introduced more than 25 business reforms across 11 departments to simplify industrial approvals and improve the investment environment.
Some of the major reforms include:
- Waiving No Objection Certificate (NOC) requirements from the Agriculture Department and District Collectors for converting agricultural land for industrial use, as specified in the reforms.
- Extending the validity of municipal trade licences from three years to 10 years.
- Ensuring industrial plot allotments to Micro, Small and Medium Enterprises (MSMEs) within 30 days.
- Introducing a 21-day deadline for industrial clearances.
- Providing deemed approval for applications delayed beyond the prescribed period.
These measures are aimed at reducing delays, simplifying procedures and making Tamil Nadu a more attractive destination for investors.
Rs 2,000 Crore Subsidies Disbursed to Industries
The state government has disbursed subsidies worth Rs 2,000 crore over the past six months under its industrial incentive package.
Additionally, it has sought another Rs 1,600 crore to support upcoming industrial projects and encourage fresh investments.
Major Infrastructure Projects Under Review
The TNIPC reviewed several upcoming infrastructure and technology projects expected to strengthen Tamil Nadu’s industrial ecosystem.
These include:
- TN Knowledge City
- Arivagam AI City
- Coimbatore Digital Fintech Hub
- Tiruchirappalli Multimodal Logistics Hub
- TIDEL Neo Parks
- Proposed Global Capability Centre (GCC) Corridor
The projects are expected to support technology development, logistics, digital services and employment generation.
Industries Can Arrange Their Own Power Connections
The commission has directed the Tamil Nadu Power Distribution Corporation Limited (TNPDCL) to allow industries to execute High Tension (HT) and Extra High Tension (EHT) power connections independently.
Companies undertaking large industrial projects will also be allowed to procure the required electrical equipment on their own.
The commission has further instructed SIPCOT, TIDCO and ELCOT to identify unused industrial land parcels and allot them to investors.
These agencies have also been asked to assess the power and water requirements of proposed industrial projects for the next 10 years.
Tourism Projects to Get Single-Window Clearances
In another important decision, the Tamil Nadu government has decided to bring tourism projects on par with industrial ventures under the single-window clearance system.
The state will also organise district-level export conclaves to promote merchandise exports.
Tamil Nadu aims to increase its merchandise exports from the current USD 59 billion to USD 72 billion.
With faster industrial approvals, investment incentives, infrastructure development and simplified regulations, the state is seeking to strengthen its position as one of India’s leading investment destinations.
