Tamil Nadu To Set Up New PSU For Infrastructure Projects Worth Over Rs 200 Crore

(MENAFN- KNN India) Chennai, Nov 10 (KNN) The Tamil Nadu government has ordered the establishment of the Tamil Nadu Infrastructure and Construction Corporation (TNICC), a wholly-owned state public sector undertaking, to execute major infrastructure and construction projects valued at over Rs 200 crore.

According to a Government Order issued by the Public Works Department on November 6, the corporation will undertake construction projects assigned by various government departments and provide project formulation, design and quality control services, The New Indian Express reported.

Modelled broadly on NBCC (India) Limited, TNICC will oversee project implementation through centralised project management and technology-based processes. It will also explore revenue generation through project management and consultancy services.

The corporation will be eligible to construct buildings on unused government land, develop townships, industrial hubs, technology parks, IT cities and business parks, and participate in tenders floated by private companies, subject to prescribed procedures.

TNICC will float and manage tenders, while contractors will execute the projects. All works will be awarded through open competitive bidding on the state's e-procurement portal in accordance with the Tamil Nadu Transparency in Tenders Act.

The corporation's scope may exclude commercial development of land parcels currently handled by Chennai Metro Asset Management Limited.

Each project assigned to TNICC will have separate funding arrangements and a specified agency fee payable by the concerned user department. Any further capital infusion, expansion of operations or recruitment will require separate consideration.

The authorised share capital of TNICC has been fixed at Rs 15 lakh, with an initial paid-up capital of Rs 10 lakh. The state government may consider providing a Rs 1 crore corpus based on a board-approved business plan or Detailed Project Report and availability of budgetary provisions.

The order follows an announcement by Public Works Minister Aadhav Arjuna in the Tamil Nadu Legislative Assembly on August 18, 2026.

(KNN Bureau)

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