Tamil Nadu sets up new infrastructure corporation to execute projects above Rs 200 Cr

Chennai: In a major initiative aimed at accelerating infrastructure development, the Chief Minister C. Joseph Vijay-led Tamil Nadu government has established a dedicated public sector corporation to oversee the execution of large-scale construction projects, with the proposed Rs 1,200 crore Secretariat complex emerging as a potential assignment.

The newly-constituted Tamil Nadu Infrastructure and Construction Corporation (TNICC) will function as a wholly state-owned enterprise, primarily handling government construction projects valued at more than Rs 200 crore.

The corporation is expected to introduce greater professionalism, efficiency and accountability in implementing major infrastructure projects.

The government’s decision comes amid growing demand for modern public infrastructure, driven by rapid urbanisation and the increasing complexity of construction projects.

The new agency will provide an institutional mechanism for coordinating major works, reducing implementation delays and strengthening quality monitoring.

The corporation will operate broadly on the lines of NBCC (India) Limited, a central public sector enterprise specialising in construction and project management.

It will adopt centralised project supervision, advanced construction technologies and professional consultancy practices to improve project delivery.

The initiative follows an announcement made by Public Works Minister Aadhav Arjuna during the Assembly’s discussion on departmental grants on August 18.

The Public Works Department subsequently issued a Government Order on November 6 formally approving the corporation’s establishment.

TNICC will undertake construction assignments from various government departments and provide architectural design, project planning, engineering consultancy and quality control services.

Its responsibilities will also extend to developing townships, industrial centres, technology parks, IT cities and commercial complexes.

The corporation can commercially develop unused government land to generate additional revenue. It may also participate in private sector construction tenders, subject to applicable regulations.

However, actual construction will be undertaken by contractors selected through transparent competitive bidding on the government’s electronic procurement platform, in accordance with the Tamil Nadu Transparency in Tenders Act.

Each project will have separate funding arrangements, with the department concerned paying a specified agency fee.

The corporation has been established with an authorised share capital of Rs 15 lakh and an initial paid-up capital of Rs 10 lakh.

A proposed Rs 1 crore corpus will be considered subsequently, subject to an approved business plan and budgetary availability.

Significantly, the government may entrust TNICC with constructing the proposed new Secretariat complex, estimated to cost Rs 1,200 crore. However, no formal decision assigning the project to the corporation has been announced.

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