Tamil Nadu has cleared the formation of a state-owned infrastructure corporation to oversee government construction projects worth more than Rs 200 crore, signalling an effort to strengthen its institutional capacity to deliver large-scale public infrastructure.
The Tamil Nadu Infrastructure and Construction Corp. will be set up as a wholly state-owned enterprise, modelled on NBCC (India) Limited, the Navratna public sector company under the Union Ministry of Housing and Urban Affairs, officials said on Sunday.
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The proposal was first unveiled by Public Works and Sports Development Minister Aadhav Arjuna in the state Assembly on August 18, 2026. The government formalised the decision through an order issued on November 6, giving the proposed corporation official approval.
As per the approved structure, TNICC will oversee government construction projects exceeding Rs 200 crore, adopting an operational model based on the one used by the Tamil Nadu State Highways Authority (TANSHA).
The corporation will be responsible for floating and managing tenders, while the actual construction work will be carried out by appointed contractors. The government order also allows the proposed entity to offer project formulation, architectural design, project management consultancy and quality control services to various government departments.
Participation in tenders floated by private entities will be undertaken through the prescribed process.
Beyond government infrastructure projects, TNICC is expected to explore opportunities in the private construction market and participate in national and international bidding processes for building projects floated by private companies.
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The corporation will also focus on developing revenue-generating infrastructure on unutilised government land. Its proposed areas of development include townships, industrial hubs, technology parks, IT cities and business parks.
Announcing the proposal in the Assembly, Arjuna had said the corporation would be established to meet world-class standards and compete with leading private-sector construction companies.
The decision was taken after the Engineer-in-Chief and Chief Engineer (General) of the Public Works Department, Chennai, submitted a proposal seeking government approval for setting up the entity.
The department argued that rapid urbanisation and the growing scale of infrastructure requirements had created the need for a dedicated institution with greater operational flexibility, professional expertise and streamlined decision-making powers.
According to the proposal, a specialised corporate structure would help the state respond more efficiently to emerging infrastructure demands while improving the execution of large-value construction projects.
The proposed corporation is also expected to work towards financial sustainability by generating revenue through consultancy, project management and other professional services, reducing its dependence on government-funded assignments over time.
The corporation is expected to improve project execution and construction standards through specialised expertise and dedicated management. It follows the DMK government's 2024 creation of TANSHA for major road projects, extending the model to large-scale government construction.
(With inputs from PTI)
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