TN to Acquire Over 2,260 Acres for Nanguneri SIPCOT Park; Revival of SEZ Sought

The Tamil Nadu government has initiated the acquisition of 2,260.13 acres for setting up a new SIPCOT industrial park in Nanguneri, following Chief Minister M.K. Stalin’s February announcement. A government notification confirms the acquisition of 915.03 hectares, comprising 826.86 hectares of private patta land and 88.17 hectares of government poramboke land.

The ₹871.86 crore acquisition will be carried out through negotiated purchases for patta lands and direct ownership transfer for poramboke land. On an accelerated note, a Special District Revenue Officer, Special Tahsildar, and 117 other support staff have been engaged. The selected site, located near the Nanguneri Toll Plaza, enjoys the benefit of being strategically located along the four-lane Kanniyakumari-Tirunelveli national highway, which is perfect for industrial logistics.

Reports suggest that one of India’s large manufacturers is seeking to set up a footwear unit in this location to manufacture shoes, sneakers, and sportswear, showing possible viable industrial traction for the park. The project is part of the larger vision to ease pressure on the oversaturated Gangaikondan SIPCOT and to expand industrial hubs in the south, including the proposed park at Moolaikkaraipatti. However, the move has reignited calls to revive the Nanguneri Multiproduct Special Economic Zone (SEZ), launched by former Chief Minister M. Karunanidhi in 2001 but now largely inactive.

Gunasingh Chelladurai of Bell Group of Companies said, “Stalin should consider reviving the SEZ along with the new SIPCOT complex. Despite current legal hurdles, it’s not impossible. A revived SEZ, combined with the new SIPCOT, can transform southern Tamil Nadu, given its strategic location near Thoothukudi and Vizhinjam Ports.”

While industrialists have welcomed the new SIPCOT estate, they believe a dual-track development, new growth alongside SEZ revival, could unlock the region’s full potential.