Bill to set up Tamil Nadu Investment Promotion Commission, fast-track clearances introduced in Assembly

Minister for Industries S. Keerthana on Wednesday (September 2, 2026) introduced a Bill in the Assembly to amend the Tamil Nadu Business Facilitation Act, 2018, to strengthen the institutional framework for promoting ease of doing business in Tamil Nadu and constitute the Tamil Nadu Investment Promotion Commission to facilitate, coordinate, and monitor high-value and strategic investments.

The Bill seeks to introduce Section 16-A to the parent Act, empowering the State government to constitute the Tamil Nadu Investment Promotion Commission with the Chief Secretary as its Chairperson and the Secretary, Industries, Investment Promotion and Commerce as its Member-Convener.

Apart from them, as per the Amendment Bill, the State government can appoint not more than 20 persons as members of the Commission. The Member-Convener is empowered to invite experts in the fields of investment promotion, industry, trade, or any other relevant field as special invitees, not exceeding five at a time, to attend meetings of the Commission. They will have no right to vote.

Faster clearances

The Bill also proposes to reduce the time limit for obtaining clearances under 22 State Acts and other subordinate legislations to 21 days, excluding public and local holidays, to promote investments.

The Commission would review the pipeline and progress of large, strategic, and high-impact investments involving proposed capital investments of ₹200 crore or more, investments expected to generate employment for 5,000 persons or more, investments linked to Free Trade Agreements, investments by persons of Tamil origin outside India, and other investments specified by the government.

Commission’s role

The Commission would function as a dedicated high-level body to advise, oversee, and review all investment promotion and facilitation activities, the grounding of projects, employment generation, and promotion of exports in the State. It would review the progress of investments up to the stage of grounding and commencement of operation and to issue directions to the competent authorities, departments concerned, or nodal agencies for timely grant of clearances, incentives, and other prerequisite approvals. The directions of the Commission would be binding.

It would also review the allocation and utilisation of industrial land allotted for projects that have not commenced commercial operations by SIPCOT, TIDCO, SIDCO, ELCOT, and TAHDCO, and recommend measures for optimal utilisation of the land. The Commission would also monitor and review investments and projects undertaken by TIDCO, TIDEL and TICEL.