Government of TN introduces Tamil Nadu Investment Promotion Commission

View of Fort St. George, headquarters of the Tamil Nadu Secretariat in Chennai. Representative image. File | Photo credit: B. Jothi Ramalingam

The Government of Tamil Nadu issued an ordinance establishing a 20-member Tamil Nadu Investment Promotion Commission headed by the Chief Secretary to facilitate and promote FTA-related investments, investments by persons of Tamil origin outside India and similar other investments.

According to the government order, the chief secretary will be the chairman of the commission and the secretary, industry, investment promotion and commerce will be the convenor member.

secretaries of various departments such as municipal administration and water supply; Home, Prohibition and Excise; artificial intelligence, information technology and digital services; environment, climate change and forests; Finance, micro, small and medium enterprises; Housing and urban development; Natural resources; Rural Development and Panchayat Raj; Energy; Good working conditions and skills development; Revenue and Disaster Management; Business Taxes and Registration; and Water Resources will be ex-officio members.

Apart from them, Commissioner of Land Reforms, Commissioner of Land Management, Member-Secretary of Tamil Nadu Pollution Control Board and Executive Director and CEO of Guidance Tamil Nadu will also be ex-officio members of the commission.

The order stated that the state government’s objective was to transform Tamil Nadu into a $1.5 trillion economy by 2036 and achieving this target would require not only attracting investment commitments but also ensuring their timely conversion into grounded projects, commercial operations and employment opportunities in predictable timelines.

Notification

The establishment of the Tamil Nadu Investment Promotion Commission was announced by the newly formed TVK-led government during the Governor’s inaugural address to the Legislative Assembly on 18 June 2026.

Following this, the state government introduced an amendment to the Tamil Nadu Ease of Doing Business Act, 2018 during the budget session of the Tamil Nadu Assembly to strengthen the institutional framework to promote ease of doing business in Tamil Nadu and to create the Tamil Nadu Investment Promotion Commission to facilitate, coordinate and monitor high-value and strategic investments. The bill was later passed.

The amended law shortened the period for obtaining permits under 22 state laws and other subordinate legislation to 21 days, excluding state and local holidays, to encourage investment.

the role of the commission

The commission would review the course and progress of large, strategic and high-impact investments involving proposed capital investments of ₹200 million or more, investments expected to generate employment for 5,000 persons or more, investments linked to free trade agreements, investments by persons of Tamil origin outside India and other investments specified by the government.

The commission would function as a specialized high-level body to advise, supervise and review all investment promotion and facilitation, project preparation, employment generation and export promotion activities in the state. It would review the progress of investments up to the phase of grounding and commencement of operations and issue directions to the relevant authorities, concerned departments or nodal agencies for timely granting of clearances, incentives and other necessary approvals. The Commission’s instructions would be binding.

It would further review the allocation and utilization of industrial land allotted for projects which have not commenced commercial operations by SIPCOT, TIDCO, SIDCO, ELCOT and TAHDCO and recommend measures for optimum utilization of the land. The Commission would also monitor and review the investments and projects undertaken by TIDCO, TIDEL and TICEL.

Published – 06 Nov 2026 14:07 IST