Tamil Nadu Accelerates Infrastructure Development With PPP Model After 'Initial Success' To Become $1 Trillion Economy

The Tamil Nadu government is intensifying its focus on medium-to-large infrastructure projects under the public-private partnership (PPP) model, aiming to drive its ambitious $1 trillion economy goal, according to The Hindu.

The Tamil Nadu Infrastructure Development Board (TNIDB) serves as the nodal agency for spearheading these initiatives.

“We have seen initial success in executing projects under the PPP mode,” said Pooja Kulkarni, CEO of TNIDB, citing the Kilambakkam bus terminus as a key example.

The Chennai Metropolitan Development Authority (CMDA) has entrusted the operation and maintenance of the terminus to a private operator for 15 years, generating an annual revenue of over Rs 2.4 crore for the CMDA.

Further plans include the commercial redevelopment of old bus stands in locations such as Karur, Erode, and Hosur. “A feasibility study would be taken up,” Kulkarni added.

The PPP model will also be extended to projects such as multi-level parking facilities, with bids expected to be invited soon. These facilities are planned for Chennai and other cities.

Similarly, 24/7 water supply projects are being developed under this model, including ongoing initiatives in Coimbatore and upcoming plans for Salem city.

Under this framework, municipalities will determine tariffs while private operators manage development, operation, and maintenance.

Other significant PPP projects include bio-CNG plants in cities like Coimbatore, Madurai, Tiruchi, Tambaram, and Salem. Waste-to-energy projects are also underway, with bids for Chennai under evaluation and similar initiatives planned for other urban centres.

Tamil Nadu is also targeting large-scale infrastructure projects such as pumped storage and battery storage facilities, valued between Rs 4,000 and Rs 5,000 crore, with bids to be invited shortly.

These align with the State’s roadmap outlined in the Tamil Nadu Vision $1-Trillion report and the newly released PPP policy.

The report emphasises that modern, resilient, and sustainable infrastructure is essential for economic growth. It highlights the importance of clean energy, efficient water usage, urban planning, and waste management.

Addressing the historically low private investment in infrastructure, the government aims to create an investor-friendly framework to encourage sustainable, long-term partnerships with private sector players.