Sipcot Revives Defunct Industrial Land to Power Tamil Nadu’s Growth

In a strategic move to boost industrial development without large-scale land acquisition, Sipcot is repurposing defunct brownfield units across Tamil Nadu to house new industries. From spinning mills to sugar factories, unused government-owned land parcels are being transformed into active industrial hubs.

One of the notable sites under revival is a 68-acre defunct spinning mill in Dharapuram, Tirupur district. Sipcot is scouting for industries ranging from non-leather footwear and battery makers to solar panel manufacturers to take over the site. “We are focusing on non-operational state-run mills that can be revitalized to host emerging industrial sectors,” said a senior Sipcot official.

Similar efforts are underway in Gummidipoondi, where Sipcot has repurposed a non-starter cooperative sugar mill into a facility for forged wheel manufacturing for the Indian Railways. Another significant transformation is in Katpadi, Vellore, where 20 acres of land formerly held by Tamil Nadu Industrial Explosives (TEL) has been allotted to Aspire Footwear for a new greenfield plant.

While this model isn’t entirely new, officials say it represents a shift in approach optimising existing underutilised land rather than solely focusing on acquiring large tracts of fresh land, typically between 1,000 and 2,000 acres. “The goal is to revive idle assets and align them with Tamil Nadu’s industrial needs,” the official added.

Over the last five years, Sipcot has expanded its footprint from 20 to 34 districts, establishing or planning parks even in previously uncovered regions. Only four districts, Chennai, The Nilgiris, Mayiladuthurai, and Kanniyakumari, currently lack Sipcot industrial parks.

With 50 existing industrial parks covering 50,000 acres, only 2,000 acres remain vacant. The corporation plans to add another 10,000 acres within two years to meet increasing demand.

Sipcot is also investing in sector-specific infrastructure such as labs, cold storage, and a common effluent park at the upcoming PM MITRA Park in Virudhunagar.