The Tamil Nadu government on Tuesday released a warehousing policy to strengthen the logistics sector by promoting large-scale, equitable, and diverse warehousing in the State, especially in the delta and C category districts, as well as in Tier II and III cities.
The Tamil Nadu Warehousing Policy 2026, released by Chief Minister MK Stalin, is aligned with Tamil Nadu’s vision of a $1 trillion economy by 2030 and the objectives of the Tamil Nadu Logistics Policy.
Market Strength
Tamil Nadu, which has over 40,000 factory units, is ranked among the top states for warehousing transactions, comparable to logistics hubs like NCR and Maharashtra. The State’s contribution to the country’s overall logistics investment is around 19 per cent. Chennai, Coimbatore and Hosur are major clusters for warehouse development.
Through the policy, the government will develop storage solutions across the State, with a focus on commercial, urban, cold storage and agro-based warehouse developments. It also highlights the streamlining of regulatory and compliance requirements, which will benefit trade bodies, as well as warehouse developers and operators.
Growth Incentives
The policy highlights the various fiscal and non-fiscal incentives to promote warehousing in the State, which will further strengthen the logistics sector and industrial growth.
The policy’s primary focus is to improve the warehousing market in the existing clusters and to promote new warehousing establishments in Tier II and Tier III cities under Delta and category C districts. These measures aim to enhance warehousing solutions for industries and commercial sectors, expand the reach of warehouse infrastructure, and provide targeted support to the agriculture and perishables sectors.
The policy adopts a commodity-based approach, aligning with the State’s industrial and agricultural profile. In addition to asset creation, it addresses key aspects of Ease of Doing Business by simplifying regulatory requirements, thereby fostering an enabling environment for developers and operators to grow the sector’s presence across the State.
The interventions have been categorised into six themes: Integrated Greenfield Development; Brownfield Capacity Expansion; Public-Private Partnership Promotion; Sustainable and Smart Warehousing; Commodity-Specific Warehousing; and Ease of Doing Business for the Sector.
Development Theme
The government will provide various subsidies to address growing storage needs and streamline storage requirements by promoting the development of new warehousing assets in government-operated Industrial Parks and Estates.
The Government will also make efforts to promote integration of warehouse development with the proposed Multi-Modal Logistics Parks and Dry Ports in the State. The Government will promote cluster-based warehouse development along existing and upcoming industrial, defence, and connectivity corridors, the policy says.
Logistics Integration
The Government, in collaboration with the Ministry of Railways, will promote the development of rail linkages to warehousing clusters in the State to improve domestic movements from the Industrial and Agricultural belts of Tamil Nadu, says the policy.
On non-fiscal Incentives, the policy says that all existing and upcoming warehousing assets and storage units across the State will be granted Industry Status.
There will be no restrictions on plot/ground coverage; an increase in the maximum permissible height of warehouses from 18.3 m to 24 m, and the extension of State Single Window Clearance to the Warehouse Sector, says the policy.
Green Incentives
All eligible new warehouses can avail of a 25 per cent subsidy on the cost of undertaking green initiatives, subject to a limit of ₹2 crore. Adoption of green initiatives beyond the mandatory requirements of the Tamil Nadu Pollution Control Board will only be considered as eligible for this incentive package. This financial assistance will be provided as a back-end subsidy upon production of the relevant documents.
All eligible new warehouses, as specified in section 5.2, can avail of a 50 per cent subsidy on the cost incurred for the technical training of warehouse employees. Special Incentives for Warehouse Development in Category C and Delta Districts will be provided.
Tamil Nadu Industrial Development Corporation will be the nodal agency to implement the policy, which will be valid for five years.
Published on January 13, 2026
