CHENNAI: The state government has issued orders to establish the Tamil Nadu Infrastructure and Construction Corporation (TNICC) as a wholly-owned State Public Sector Undertaking (PSU) to execute major infrastructure and construction projects worth more than Rs 200 crore.
According to a Government Order (GO) issued by the public works department on November 6, the TNICC will undertake government construction projects assigned by various departments, besides providing project formulation, design, and quality control services.
The move follows an announcement made by PWD Minister Aadhav Arjuna while moving the demand for grants for the department in the Legislative Assembly on August 18, 2026.
The GO said the rapid pace of urbanisation and the increasing scale and complexity of infrastructure requirements had necessitated the creation of a dedicated agency with professional expertise and operational flexibility to execute large-value projects.
Modelled broadly on NBCC (India) Limited, the corporation is expected to streamline project implementation through centralised project management and modern technology. It will also explore revenue generation through project management and consultancy services.
Apart from executing government projects, TNICC will construct buildings on unused government land to generate revenue for the state. It will also be eligible to participate in tenders floated by private companies, subject to following the prescribed procedures.
The corporation will also be entrusted with developing townships, industrial hubs, technology parks, IT cities and business parks, besides providing architectural designs and quality control services.
It will float and manage tenders, while contractors will execute the projects. All works must be awarded through open competitive bidding on the 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 must have separate funding arrangements and a specified agency fee payable by the user department. Any further increase in capital, expansion of operations or creation of manpower will be considered separately.
The authorised share capital of the corporation has been fixed at `15 lakh, with an initial paid-up capital of `10 lakh. The government will consider administrative and financial sanction for a `1 crore corpus at a later stage, based on a board-approved business plan or Detailed Project Report and the availability of budgetary provision.
TNICC may get Rs 1.2K cr new Secretariat project
The new Secretariat complex is estimated to be worth Rs 1,200 crore. Against this backdrop, there is a possibility that the complex could also be entrusted to the newly formed corporation. However, PWD officials told TNIE that no decision has been taken in this regard.
