The Tamil Nadu government unveiled its Warehousing Policy 2026 on Tuesday. This new policy sets a clear goal. It aims to significantly expand the state's warehousing infrastructure. The focus will shift beyond major urban centers.
Reaching Smaller Cities and Towns
A key objective is to develop warehouses in smaller cities and towns. The policy gives special attention to the delta districts. These areas face a critical shortage of space for storing paddy during the harvest season. Farmers have long demanded better storage facilities for their agricultural products.
Focus on Coastal and Regional Needs
The strategy includes a strong push for warehouses in coastal regions. This move is designed to boost marine industries. State Industries Secretary V. Arun Roy explained the approach. "We are focusing on commodity- and region-specific warehouses to support the industrial sector," he said. Instead of building general storage, the policy tailors warehouses to local economic activities.
Attracting Private Investment
The policy will remain in effect for five years. It seeks to draw private capital into the warehousing sector. This will happen through public-private partnerships (PPP) and joint venture models. The government also wants third-party logistics (3PL) companies to develop facilities within government industrial parks and estates.
"Warehouses play a crucial role in strengthening industries," Secretary Roy emphasized. The Tamil Nadu Industrial Development Corporation (TIDCO) will lead the policy's implementation. TIDCO will create a dedicated Warehouse Promotion Cell. This cell will act as a centralized help desk and investment facilitation center.
Current Capacity and Future Goals
Currently, state and central government warehousing agencies operate more than 85 facilities across Tamil Nadu. Their combined capacity stands at approximately 15.8 lakh tonnes. Additionally, state-owned cold storages for marine and dairy products have a 12,000-tonne capacity spread over 17 locations. The new policy aims to increase this total capacity gradually over time.
Developing New Clusters
The expansion will look beyond existing large clusters in Chennai, Coimbatore, and Hosur. "The policy aims to create warehouses beyond these major hubs," Roy stated. The focus will turn to tier-2 cities like Madurai and Trichy. "Warehousing clusters will be developed in line with the industrial profile of each region," he added.
Specific plans include cold storage clusters in Tuticorin, Nagapattinam, and Ramanathapuram. These will support the fisheries sector and perishable goods. Agro-based warehousing clusters are planned for the delta region. They will store paddy, foodgrains, pulses, fruits, and flowers.
Specialized Warehouses and Incentives
The policy encourages private investment in specialized warehouses too. These would cater to the healthcare sector, storing pharmaceuticals and medical equipment. They would also serve the engineering sector, providing storage for finished goods like electric vehicles and machinery.
To make these projects attractive, the government will offer fiscal support. A key incentive is a subsidy covering 25% of the project cost for green initiatives. This subsidy is capped at Rs 2 crore.
Parallel Circular Economy Policy
Alongside the warehousing policy, the state government released the Tamil Nadu Circular Economy Investment Policy 2026. This policy positions Tamil Nadu as a global hub for circular economy solutions. It seeks to promote sustainable manufacturing and resource-efficient consumption.
The government aims to steer the economy toward a more regenerative model. The goal is to set a sustainability benchmark, attract investments in circular industries, and create green jobs. The policy will support manufacturing units that use discarded products or industrial waste as primary inputs.
