Home›News›August 31, 2026
TODAY · ASSEMBLY · DAY 113

⚡ Vijay Announces ₹57,000-Crore Infrastructure Package — Power Grid, Thermal Plant & Semiconductor Park

⏱ 4 min read

₹33,066 Cr transmission scheme (196 substations, 15,000 km lines) · ₹20,800 Cr Thoothukudi thermal plant (1,600 MW) · ₹175 Cr semiconductor park in Kancheepuram · ₹400 Cr Coimbatore FinTech Hub.

📅 August 31, 2026 · Day 113 in Office · Chennai

Chief Minister C. Joseph Vijay made a suo motu statement in the Tamil Nadu Legislative Assembly on Monday announcing a package of infrastructure, power and technology investments totalling over ₹56,000 crore — the largest single-day announcement of his government's first term, covering power transmission, thermal generation, semiconductors, urban distribution and logistics.

₹33,066CrTN Transmission Scheme
₹20,800CrThoothukudi Thermal Plant
196New Substations Planned

Power Transmission — ₹33,066 Crore

The centrepiece of the announcement is the Tamil Nadu Transmission Improvement Scheme at ₹33,066 crore — the largest single infrastructure allocation of the TVK government. The scheme will establish 196 new substations and lay approximately 15,000 km of new power transmission lines across Tamil Nadu, strengthening the grid linking generation points to major consumption centres including Chennai. Vijay said no efforts had been made in the last five years to strengthen the state's transmission backbone, and that this scheme would correct that gap.

Thoothukudi Supercritical Thermal Power Plant — ₹20,800 Crore

A new 1,600 MW supercritical thermal power plant will be established in Thoothukudi under a Public-Private Partnership (PPP) model at a cost of ₹20,800 crore. The plant will replace the existing Thoothukudi Thermal Power Station's five aging 210 MW units — which have been in operation since 1979 and are due for replacement under environmental regulations — while significantly increasing capacity. Vijay said thermal power remained essential to ensure uninterrupted electricity supply during periods of peak demand.

The five existing units at Thoothukudi — each 210 MW, total 1,050 MW, operational since 1979 — will be replaced by a 1,600 MW supercritical plant. The upgrade adds 550 MW of new capacity while meeting modern environmental standards.

Chennai Urban Power Distribution — ₹1,762 Crore

To tackle power cuts in Chennai and address challenges from urban flooding and rising electricity demand, the government will invest ₹1,762 crore in upgrades to Chennai's distribution network. A further ₹1,550 crore electricity corridor project will also be taken up.

Semiconductor and Electronics Manufacturing Park — ₹175 Crore

A Semiconductor and Electronics Manufacturing Park will be established at Maduramangalam in Kancheepuram district at a cost of ₹175 crore, with a target of attracting up to ₹2,000 crore in investments and creating around 5,000 direct and indirect jobs. Tamil Nadu has been positioning itself as a destination for electronics and semiconductor manufacturing, and the park at Maduramangalam — close to Chennai's major industrial belt — is intended to anchor that ecosystem.

Coimbatore FinTech Hub — ₹400 Crore

A ₹400-crore FinTech Hub will be set up in Coimbatore to accelerate digital financial services — continuing the government's strategy of building specialised tech ecosystems in the state's second city alongside the semiconductor cluster near Chennai.

Trichy Multimodal Logistics Hub

A multimodal logistics hub in the Trichy region was also announced, aimed at strengthening industrial supply chains in central Tamil Nadu — linking manufacturing to rail, road and air freight connections.

The Full Package

ProjectLocationOutlay
TN Transmission Improvement Scheme (196 substations, 15,000 km lines)Statewide₹33,066 Cr
Supercritical Thermal Power Plant (1,600 MW, PPP)Thoothukudi₹20,800 Cr
Urban power distribution upgradesChennai₹1,762 Cr
New electricity corridorChennai₹1,550 Cr
Semiconductor and Electronics Manufacturing ParkMaduramangalam, Kancheepuram₹175 Cr
FinTech HubCoimbatore₹400 Cr
Multimodal Logistics HubTrichy regionTBA
Total (confirmed figures)₹57,753+ Cr

Infrastructure Power Semiconductor Assembly August 31, 2026

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