TANSTIA Urges SIPCOT to Allot Land for Sale to Small Enterprises

The Tamil Nadu government’s plan to allocate 20% of SIPCOT industrial park land for small and micro enterprises has run into criticism over implementation delays, as the land is yet to be handed over to SIDCO, the state’s small industries development agency.

Currently, SIPCOT, which leases large tracts of developed land to major companies, does not offer land for saleposing challenges for small businesses that rely on land ownership to secure bank loans. On the other hand, SIDCO estates offer plots on a sale basis, a model preferred by small-scale enterprises for their viability and access to finance.

The Tamil Nadu Small and Tiny Industries Association (TANSTIA) has demanded the state ensure proper allocation of the promised 20% land to SIDCO so that small units can directly purchase smaller plots ranging from 10 cents to 1 acre and establish manufacturing units that support large-scale industries.

“Multinational and large companies leasing 100 to 200 acres is a different game. But for small players, ownership of land becomes capital it enables bank financing and long-term sustainability,” said TANSTIA General Secretary Vasudevan. “If land is sold to small units, many will start businesses, and large companies can source components locally, reducing dependence on imports.”

Though the policy intent is clear, the delay in transferring land to SIDCO has raised concerns among industry stakeholders, who say Tamil Nadu risks missing an opportunity to build a more inclusive and self-reliant industrial ecosystem.

TANSTIA has urged the Industries Department to expedite the land handover process and prioritize sale-based models in industrial parks for micro and small enterprises.