CHENNAI: In a move aimed at speeding up regulatory clearances and improving the ease of doing business, Industries Minister S Keerthana on Wednesday introduced the Tamil Nadu Business Facilitation (Amendment) Bill, 2026, in the Assembly to establish the Tamil Nadu Investment Promotion Commission. The high-level body will be empowered to give binding directions to government departments and nodal agencies.
The commission, to be headed by Chief Secretary M Sai Kumar, will bring 22 state laws under a new investment facilitation framework to provide a streamlined, transparent and time-bound mechanism for regulatory approvals. The bill seeks to provide deemed approval for projects within 21 days, with certain exemptions.
It will amend the Tamil Nadu Business Facilitation Act, 2018, and empower the commission to facilitate “large, strategic and high-impact” investments. These include projects involving investments of Rs 200 crore or more, those expected to generate at least 5,000 jobs, ventures linked to free trade agreements, and investments by the Tamil diaspora.
As per the bill, where state laws or subordinate legislation prescribes a period of more than 21 days or do not specify a deadline, the approval period will generally be deemed to be 21 days.
Panel to also review undeveloped industrial lands
However, the legislation will not override longer deadlines prescribed under any central law. Industries secretary will be the member-convener of the panel that will have 20 other members appointed by the government. Up to five investment or industry experts may also be invited to its meetings as special invitees.
The proposed mechanism marks a shift from the largely advisory single-window bodies that have handled investor approvals in TN since 2018. According to the bill, directions issued by the commission to the state’s nodal agencies, single-window committees and government departments “shall be binding”.
The commission will also review undeveloped industrial lands. It will examine the utilisation of land allotted to various agencies, including the State Industries Promotion Corporation of TN (SIPCOT), TN Industrial Development Corporation (TIDCO), TN Small Industries Development Corporation (SIDCO), TN Adi Dravidar Housing and Development Corporation (TAHDCO) and Electronics Corporation of TN (ELCOT), among others.
Industry representatives welcomed the move, while calling for wider coverage of the time-bound approval mechanism and greater transparency in monitoring clearances.
M Ponnuswami, co-chairman of the Confederation of Indian Industry’s National Taskforce on Ease of Doing Business, said a time-bound approval mechanism was important for investors who needed certainty over clearances and timelines. However, he said the 21-day mechanism could have been extended to all projects.
“The government should also create pressure on other departments to adhere to timelines. It should publish a monthly dashboard showing how many projects were approved within the stipulated 21 days, how many exceeded the deadline and where the delays occurred,” he said, adding that this would give wider publicity to the government’s efforts.
A Viswanathan, president, Madras Chamber of Commerce and Industry, said, “We believe this mechanism can further enhance investor confidence and position TN as an even more competitive destination for domestic and global investments,” he said.
State to give power to private engineers to okay building plan
Registered private engineers across TN will soon be allowed to issue building plan approvals for residential, commercial and industrial buildings through third-party certification. The state has close to 2,000 registered engineers who will be authorised through a government order. The scheme will cover residential buildings up to 750 sq m FSI area, commercial buildings up to 300 sq m and factory buildings up to 2,500 sq m in approved industrial estates
