Tamil Nadu has laid the groundwork for a series of high-value infrastructure projects exceeding Rs 450 billion, to be executed under the public-private partnership model over the next two years. From aviation and power to water supply and waste management, the projects reflect a shift towards sustainable, climate-resilient urban and industrial development, positioning the state as a frontrunner in India’s green growth trajectory.
At the heart of this infrastructure rollout lies the proposed greenfield airport at Parandur, near Chennai, pegged at Rs 200 billion. The project, which has received in-principle clearance from the Centre, is now in the bidding phase and is expected to significantly decongest the existing Chennai International Airport, while supporting the state’s booming industrial and logistics sectors. Designed to be future-ready, the airport will be developed in accordance with global environmental standards, with emphasis on carbon neutrality, multimodal integration, and energy efficiency.
Complementing the state’s aviation ambitions is an equally bold push in the energy sector, with a clear focus on augmenting capacity through cleaner, more sustainable means. Two major pumped hydro storage projects have been proposed at Vellimalai and Aliyar, offering a combined capacity of 2,900 MW and valued at over Rs 117 billion. In parallel, a new 660 MW thermal power plant is on the anvil in North Chennai, estimated to cost Rs 70 billion, designed with pollution control technologies to align with emission norms. These efforts are in response to projections that Tamil Nadu’s energy demand will double by 2030, driven by rapid industrialisation and urbanisation.
The government’s infrastructure strategy also places strong emphasis on water resilience and urban sustainability. Plans for a 24×7 piped water supply, desalination plants, and power transmission upgrades are being expedited, alongside waste-to-energy systems that aim to address the twin challenges of solid waste and energy scarcity in urban areas. The smaller projects are expected to be completed within two years, whereas larger ones such as the airport and hydro storage systems may span five to six years, depending on environmental clearances and land acquisition progress.
By leveraging the PPP model, Tamil Nadu aims to reduce fiscal burden while tapping into private sector innovation and efficiency. The model is expected to accelerate timelines, attract foreign investment, and bring accountability to long-gestation public works. Yet, the true test will lie in inclusive execution—ensuring that development reaches marginalised communities, that displaced populations are rehabilitated equitably, and that the ecological footprint of this aggressive expansion is minimised. As Tamil Nadu moves forward with this ambitious infrastructure roadmap, it has the opportunity to redefine what a future-ready Indian state looks like—economically robust, environmentally conscious, and socially inclusive.
Tamil Nadu launches Rs 450 billion green infrastructure projects under PPP model
