CM Stalin releases Tamil Nadu Circular Economy Policy and Warehousing Policy

Chief Minister M.K. Stalin on Tuesday (January 13, 2026) released the Tamil Nadu Circular Economy Investment Policy, 2026, and the Tamil Nadu Warehousing Policy, 2026, at the Secretariat in Chennai. Both the policies provide eligible units with incentives.

The Circular Economy Policy provides for a special package of incentives for recycling facilities and technology enablers/platform entities, besides the incentives offered under the Micro, Small and Medium Enterprises Policy, 2021, and Facilitating MSMEs of Tamil Nadu (FaMe TN) Sponsorship Policy. Companies fulfilling certain criteria, after July 1, 2024, would be eligible for the special package of incentives.

Eligible entities would be given a capital subsidy of 10% of Eligible Fixed Assets (EFA) disbursed over five years in equal annual instalments from the date of commencement of operations and upon fulfilment of the minimum eligible investment of ₹20 crore and the minimum employment of 25 net new jobs, whichever is later, subject to a ceiling of ₹3 crore.

Eligible units will receive an employment incentive as the reimbursement of the employer’s EPF contribution for net new jobs created during the policy period. This incentive will be provided for one year, capped at ₹10,000 per employee per month for employees domiciled in Tamil Nadu, with a maximum limit of 50 employees per organisation. The policy also provides for skilling incentives and payroll subsidy.

The Warehousing Policy provides for incentives to stakeholders in the ecosystem, including market participants, operators, and developers. These incentives will be applicable for a period of five years from the date of promulgation of the policy, and an extension will be considered based on the effectiveness of the policy and emerging requirements.

A warehouse unit must be located in Tamil Nadu and the warehouse developer or operator claiming incentives must have an office registered within the State to get the incentives. “The incentives for greenfield warehouse development will be extended to only those units that are established or commence commercial operations during the policy period.”

The incentives for brownfield expansion will be applicable to warehouse units that have undertaken expansion during the policy period. As for green incentives, all eligible new warehouses could avail themselves of a subsidy of 25% of the cost of the green initiatives, subject to a limit of ₹2 crore. The policy also provides for training subsidy and special incentives for warehouse development in the Category C and Delta districts.

Deputy Chief Minister Udhayanidhi Stalin, Minister T.R.B. Rajaa, Chief Secretary N. Muruganandam, and senior officials were also present at the event.