Tamil Nadu to soon release a policy on warehousing

By Admin

30 Apr, 2025

Tamil Nadu is gearing up to introduce a new warehousing policy, marking a significant step in the State’s mission to streamline and enhance its logistics infrastructure. Recognising the growing importance and immense potential of the warehousing sector, the government aims to provide it with focused attention through a separate policy framework. This move follows the release of the Tamil Nadu Logistics Policy in 2023.

Why a Separate Warehousing Policy?

According to Sandeep Nanduri, Managing Director of the Tamil Nadu Industrial Development Corporation (TIDCO), the government understands the warehousing sector's critical role in supporting trade, commerce, and manufacturing. Addressing a session on the State Logistics Policy jointly organised by The Madras Chamber of Commerce and Industry and TIDCO, he said this is the first stakeholder meeting for the upcoming warehousing policy.

Key Focus Areas of the Policy

The upcoming policy will revolve around four strategic pillars:

1. Warehousing Standards: The policy will align warehousing standards with those recommended by the Government of India, ensuring uniformity, safety, and quality.
   
   

2. Institutional Mechanisms: It will clearly define the State government's role in promoting the sector and facilitating investment, including incentives and policy support.
   
   

3. Regulatory Simplification: The policy aims to streamline regulatory requirements and expedite approvals to foster a business-friendly environment.
   
   

4. Geographic and Commodity Focus: The policy will adopt a phased approach to identify potential districts for development, with a strong emphasis on the Delta districts. A commodity-based development model will also be introduced to create clusters tailored to specific goods and their storage requirements.
   
   

Infrastructure Projects on the Horizon

To further bolster the logistics backbone, Tamil Nadu is developing Multimodal Logistics Parks (MMLPs). The first MMLP, located in Mappedu near Chennai, is expected to be operational by 2027. A second MMLP is being planned in Coimbatore, where land acquisition is nearly complete. Additionally, a joint venture is being formed with VO Chidambaranar Port in Thoothukudi to advance another major logistics project.

Market Momentum and Industrial Demand

A recent report by Colliers India highlighted that engineering firms accounted for nearly one-fourth of the Grade A industrial and warehousing leasing demand in Q1 2025, with 2.2 million sq ft leased. Chennai and Bengaluru have led this demand, reflecting strong regional growth.

Long-Term Logistics Vision

The Tamil Nadu Integrated Logistics Plan, unveiled in 2023 as a 10-year roadmap, includes an ambitious investment outlay of ₹63,000 crore (excluding land costs). The plan identifies nearly 50 interventions to build an integrated logistics ecosystem across the State, supporting infrastructure, technology, and supply chain efficiencies.

Addressing Infrastructure Gaps

Arun Roy, TN Industries Secretary, emphasized that while Tamil Nadu has a robust manufacturing base and logistics assets—including three major ports, minor ports, and an extensive road network—the infrastructure still faces several challenges. These include road congestion, long transit times to ports, bottlenecks at ports and airports, and inadequate cold chain facilities. Land availability for warehousing is another pressing issue.

Roy stressed the need for urgent action to address these gaps and unlock the full potential of Tamil Nadu’s industrial ecosystem.

Conclusion

With its upcoming warehousing policy, Tamil Nadu aims to create a more efficient, investment-friendly, and strategically planned logistics infrastructure. By aligning standards, reducing bottlenecks, and adopting a commodity-specific approach, the State is set to become a logistics powerhouse in the southern region.