Tamil Nadu government approves establishment of new body to execute construction projects worth over ₹200 crore

Representational image. File | Photo Credit: M. Moorthy The Tamil Nadu government has approved the establishment of the Tamil Nadu Infrastructure and Construction Corporation (TNICC) as a State public sector undertaking to streamline the execution of major infrastructure and construction works estimated over ₹200 crore.The move follows a Budget announcement and a proposal submitted by the Engineer-in-Chief and Chief Engineer (General), Public Works Department, highlighting the need to form a dedicated corporation to undertake large scale construction projects.FunctionsAccording to the Government Order (G.O.) issued recently, TNICC will function as an agency for user departments to take up government construction works exceeding ₹200 crore, on the lines of the Tamil Nadu State Highways Authority (TANSHA) model. It will float and manage tenders, while the execution of works will be carried out by contractors. The corporation may also provide project formulation, design and quality-control services to government departments.The corporation is envisaged as a professionally-managed and financially self-sustaining institution with operational flexibility to respond to the State’s growing infrastructure requirements. It will also seek to generate revenue through project management and consultancy services.Projects under its purviewAmong its proposed activities are the development of townships, industrial hubs, technology parks, IT cities and business parks. It will also construct buildings on unused government land to generate revenue for the government and provide architectural design and quality-control services.The new corporation would be involved in carrying out mega construction projects in the State as a response to the increasing infrastructure needs with modern technology. Modalities of the new corporation and appointment of the chairman and other members would be finalised shortly, said a senior official.TNICC may also participate in tenders floated by private international-level companies for construction projects.The government directive has also specified that all works undertaken by the corporation must be assigned through open competitive bidding on the e-procurement portal, in accordance with the Tamil Nadu Transparency in Tenders Act, 1998.Highlighting the need for a dedicated institutional mechanism with a corporate structure and professional expertise to take up large value projects, it said the proposed corporation is expected to centralise project management and operate on a commercial project management consultant model. It is broadly modelled on the National Buildings Construction Corporation (NBCC) India Limited, with modifications to suit the requirements of Tamil Nadu. Published - November 09, 2026 01:56 pm IST