The Tamil Nadu government is preparing to roll out its first-ever dedicated Warehousing Policy, aiming to unlock the state’s logistics potential and address infrastructure gaps, particularly in the Delta districts. The move comes close on the heels of the State Logistics Policy announced in 2023, as the government sharpens focus on creating a robust, future-ready supply chain ecosystem.
Sandeep Nanduri, Managing Director of Tamil Nadu Industrial Development Corporation (TIDCO), confirmed the development during a stakeholder consultation session organised by The Madras Chamber of Commerce and Industry in collaboration with TIDCO earlier this week. He emphasised that while Tamil Nadu has long recognised the importance of logistics, warehousing demands dedicated policy attention to keep pace with rapid industrial growth.
“This policy will chart a clear roadmap for identifying priority districts in phases, focusing on both existing capacities and future warehousing expansion opportunities. Special emphasis will be placed on the Delta region, which holds significant strategic value for logistics and agricultural commodity storage,” Nanduri said.
Four-Pillar Focus for Warehousing Growth
The upcoming policy will revolve around four core areas:
- Adoption of National Warehousing Standards aligned with Government of India recommendations.
- Institutional Mechanisms defining the role of the State in driving investments and policy support.
- Regulatory Streamlining to simplify approvals and operational clearances for warehousing businesses.
- Commodity-Based Clustering, promoting commodity-specific warehousing hubs and tailored infrastructure standards.
This initial consultation marked the first formal engagement with industry stakeholders, aimed at gathering inputs to fine-tune the policy before its official rollout.
Multimodal Logistics Parks on the Horizon
Providing updates on logistics infrastructure projects, Nanduri said the first phase of the Multimodal Logistics Park (MMLP) at Mappedu near Chennai is on track to become operational by 2027. Another MMLP is planned for Coimbatore, with land acquisition nearing completion. Additionally, a joint venture is being set up with VO Chidambaranar Port in Thoothukudi to develop another multimodal hub.
These developments are part of the larger Tamil Nadu Integrated Logistics Plan (2023) — a ₹63,000 crore strategy spanning a decade, excluding land costs. The plan identifies nearly 50 strategic interventions aimed at integrated logistics infrastructure development, multimodal connectivity, and policy reforms.
Logistics Capacity Challenges Remain
Arun Roy, Tamil Nadu Industries Secretary, acknowledged the state’s competitive edge in manufacturing, citing skilled talent and progressive policies. However, he underlined that logistics infrastructure needs urgent upgrades.
“Despite three major ports, several minor ports, and an extensive road network, issues like road congestion, delays in cargo movement from industrial clusters to ports, and inadequate cold chain infrastructure persist. Additionally, land availability for warehousing projects continues to be a significant hurdle,” Roy said.
Warehousing Demand on the Rise
A recent report by Colliers India highlighted Tamil Nadu’s growing warehousing demand, with engineering firms accounting for nearly 25% of Grade A industrial and warehousing leasing in Q1 2025. Chennai and Bengaluru led the surge, with leasing activity doubling on a year-on-year basis.
With proactive policy frameworks, upcoming logistics parks, and focused infrastructure investments, Tamil Nadu is positioning itself as a logistics powerhouse in South India, bridging gaps in warehousing, cold chain, and multimodal connectivity.
