Tamil Nadu to Establish Warehouse Promotion Cell to Strengthen Logistics and Storage Network

The Tamil Nadu government is set to strengthen its logistics and warehousing ecosystem by establishing a dedicated Warehouse Promotion Cell under the Tamil Nadu Industrial Development Corporation (TIDCO). The new cell will serve as a centralised help desk and investment facilitation centre, aimed at promoting seamless coordination, policy support, and faster clearances for warehousing projects across the state.

According to official data, warehousing facilities owned by the state and Union governments currently have capacities of 7.8 lakh tonnes and 8 lakh tonnes respectively, operating through more than 85 centres across Tamil Nadu. In addition, state-owned cold storages for marine and dairy products have a combined capacity of 12,000 tonnes across 17 locations. The government’s new warehousing policy seeks to expand this capacity significantly to meet rising industrial and agricultural demand.

The policy will also focus on decentralising warehousing infrastructure beyond major clusters such as Chennai (50 lakh sq ft), Coimbatore (15 lakh sq ft), and Hosur. New clusters are planned in Madurai, Trichy, and other tier-2 cities to support balanced regional development. According to officials, these hubs will be designed in line with the industrial profile of each region, ensuring efficient storage and distribution networks.

In southern coastal districts, cold storage clusters are planned in Tuticorin, Nagapattinam, and Ramanathapuram to strengthen the fisheries and perishable goods sector. Agro-based warehouses are also being proposed in Cauvery delta regions to support the storage of paddy, pulses, fruits, flowers, and other agricultural produce—a move long demanded by farmers to prevent post-harvest losses.

Private investments will be actively encouraged in specialized warehouses catering to healthcare, pharmaceuticals, clinical equipment, and electric vehicle manufacturing. To incentivise such investments, the government will offer a 25% subsidy on project costs, capped at ₹2 crore, especially for projects adopting green and sustainable initiatives.

The state has also launched the Tamil Nadu Circular Economy Investment Policy 2026, aiming to attract investments in sustainable manufacturing, waste recycling, and green jobs, reinforcing Tamil Nadu’s vision to become a global hub for circular and sustainable industries.