Industry associations in Tamil Nadu have urged the State Industries Promotion Corporation of Tamil Nadu (SIPCOT) to restore preferential access to industrial land for micro, small and medium enterprises (MSMEs), arguing that auction-based allotment could disadvantage smaller entrepreneurs competing with financially stronger companies.

The Industrial Waste Management Association and the Manufacturers Association of Vallam-Vadagal Industrial Park made the request in separate representations to SIPCOT’s managing director. They sought the restoration of application-based allotment for MSMEs and the reservation of a portion of industrial plots exclusively for smaller enterprises.

The associations said the earlier system assessed applications and project proposals before allotting land on long-term leases. This approach, they said, enabled entrepreneurs with viable manufacturing plans but limited financial resources to establish industrial units and expand their operations.

They said the auction-based mechanism placed smaller enterprises in competition with larger corporations possessing greater financial strength. The groups argued that this could make it difficult for first-generation entrepreneurs to secure land at competitive prices, potentially restricting the creation and expansion of small manufacturing units and affecting employment generation.

The associations have sought a separate allotment mechanism for MSMEs, with preference for manufacturing projects supported by viable proposals and demonstrable employment-generation potential. Their representations come as Tamil Nadu expands its industrial footprint, with the State identifying 14,839.62 acres across 30 locations for new industrial parks under SIPCOT’s land-bank creation initiative. Land acquisition is also under way for another 44 proposed parks.

SIPCOT’s published land-allotment procedure provides for application scrutiny and objective evaluation by an allotment committee when multiple applications are received for a plot. The associations have nevertheless urged intervention, saying equitable access to industrial land is important for nurturing first-generation entrepreneurs, strengthening the MSME sector and promoting balanced industrial development across Tamil Nadu.