Tamil Nadu MSME Bodies Seek Separate SIPCOT Land Policy
ECONOMY & POLICY

Tamil Nadu MSME Bodies Seek Separate SIPCOT Land Policy

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.

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.

Related Stories

Gold Stories

Next Story
Equipment

Terex to Acquire Keestrack, Expanding Crushing Portfolio

Terex Corporation has signed a definitive agreement to acquire Keestrack, a manufacturer of mobile crushing, screening and related equipment for the aggregates, recycling, construction and demolition industries. Financial terms were not disclosed.Founded in Belgium in 1988, Keestrack serves customers in more than 65 countries through a network of over 70 distributors. The acquisition will expand Terex Materials Processing’s crushing and screening portfolio and add manufacturing and distribution capabilities.After completion, Keestrack will continue as an independent brand within the Terex Ma..

Next Story
Infrastructure Energy

IES Taskforce Reviews Final Report on Power-Sector Digital Platform

The India Energy Stack (IES) Taskforce has reviewed its Final Report in New Delhi. The document sets out a strategy, architecture, governance framework and pathway to scale IES as digital public infrastructure for India’s power sector. The Ministry of Power constituted the Taskforce in June 2025.The report was presented by Prince Dhawan, Executive Director, REC Limited, and Swetha Ravi Kumar, Executive Director, FSR Global. Dr Ram Sewak Sharma, Chairperson of the Taskforce, outlined the way forward.IES is a common set of open standards and protocols designed to let utilities, regulators, mar..

Next Story
Infrastructure Urban

LANXESS, HINCOL Partner on Road Construction Technologies

LANXESS India and Hindustan Colas Private Limited (HINCOL) have signed a Memorandum of Understanding to assess technical and commercial opportunities in bitumen and asphalt modification for India’s infrastructure market.The companies will conduct laboratory and commercial-scale evaluations of Addipave CR 36, LANXESS’ cross-linking technology for polymer-modified bitumen (PMB). LANXESS will provide the product, technical expertise and trial support, while HINCOL will contribute testing facilities, operational support and performance assessments under local conditions. The trials will examin..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code