Tamil Nadu sanctions state PSU for large government construction projects
The Tamil Nadu Infrastructure and Construction Corporation will undertake state government building works valued at more than Rs 200 crore.
The Tamil Nadu government has sanctioned the establishment of a state public sector undertaking (PSU) to execute major construction works, according to BusinessLine on Sunday. The entity, named the Tamil Nadu Infrastructure and Construction Corporation (TNICC), will handle state government building projects costing more than Rs 200 crore.
A Government Order dated November 6, 2026, confirmed the establishment of TNICC as a wholly owned state PSU. The corporation will follow the Tamil Nadu State Highways Authority (TANSHA) model by floating and managing tenders, with contractors executing the works.
Minister for Public Works and Sports Development Aadhav Arjuna had stated in the State Assembly on August 18, 2026, that the corporation would be built to high standards to compete with prominent private firms. The corporation's scope includes developing townships, industrial hubs, tech parks, IT cities, and business parks.
TNICC will also participate in national and global bids for construction projects floated by private companies. Additionally, the entity may provide project formulation, architectural design, quality control, and project management consultancy services to user departments.
The proposal for the corporation was submitted by the Engineer-in-Chief and Chief Engineer (General) of the Public Works Department in Chennai. The official suggested modelling the TNICC on NBCC (India) Limited, a Navratna enterprise under the Union Ministry of Housing and Urban Affairs, with adaptations for state requirements.