writingonblog uncensored: Dixon Technologies to launch Tamil Nadu manufactur...

writingonblog uncensored: Dixon Technologies to launch Tamil Nadu manufactur...: CHENNAI: Dixon Technologies, one of India's largest contract electronics manufacturers, will establish a Centre of Excellence in Tamil...

Dixon Technologies to launch Tamil Nadu manufacturing research centre

CHENNAI:
Dixon Technologies, one of India's largest contract electronics manufacturers, will establish a Centre of Excellence in Tamil Nadu dedicated to Industry 5.0 research and workforce training, according to a top Guidance official.

This comes after Dixon's Vice-Chairman Prithvi Vachani and Josh Foulger, chairman of the company's IT hardware and new projects division, met Chief Minister C Joseph Vijay to discuss the proposal, the official added.

The centre will focus on smart manufacturing, localised product development and applied research conducted jointly with academic institutions, a top Guidance Department official told TNIE.

The official said over the next five years, the CoE aims to accelerate smart manufacturing and localised product development, undertake more than 20 joint applied research projects, target 50 patent filings, and develop over 150 industry-ready ME engineers.

To a query on whether this is part of the earlier announcement of Dixon made during April last year, the official said this is a new announcement and further details will emerge later.

Dixon Technologies last year announced to establish a new electronics manufacturing facility at the Oragadam Industrial Park in Tamil Nadu’s Kanchipuram district with an investment of Rs 1,000 crore ($ 120 million), which is expected to generate around 5,000 jobs. The investment underscores the state’s growing prominence as a hardware production hub and this will support the production of laptops and all-in-one PCs.

The initiative signals continuity in that push under the new administration, with Dixon framing the centre as a vehicle for deeper industry-academia collaboration rather than a standalone facility.

writingonblog uncensored: PM e-Bus Sewa snub weakens Tamil Nadu's metro case...

writingonblog uncensored: PM e-Bus Sewa snub weakens Tamil Nadu's metro case...:   Centre rejects revised proposals for Coimbatore, Madurai Metro projects C Shivakumar @ Chennai: The Union housing ministry has rebuffed T...

PM e-Bus Sewa snub weakens Tamil Nadu's metro case, Centre says

 

The Union housing ministry has again rejected Tamil Nadu's attempt to revive metro rail projects in Coimbatore and Madurai, dismissing the state's arguments on ridership, travel-time savings and population thresholds in a detailed rebuttal that leaves both projects in limbo.

The rejection is the second issued by the Ministry of Housing and Urban Affairs (MoHUA). While an earlier appraisal, before Tamil Nadu submitted its rebuttal in May, argued that both cities fell short of the two-million population benchmark under the Metro Rail Policy, 2017, the ministry's latest assessment responds point by point to Chennai Metro Rail Ltd's (CMRL) counter-arguments and introduces a fresh objection.

In a July 22 letter to the state's chief secretary, MoHUA said Tamil Nadu's decision not to participate in the Centre's PM e-Bus Sewa scheme has deprived Coimbatore and Madurai of the feeder bus networks needed to generate viable metro ridership. It disputed almost every technical justification advanced by CMRL, arguing that the detailed project reports overstate the case for elevated metro rail over less expensive bus-based alternatives.

At the heart of the dispute is whether Tamil Nadu's second- and third-largest cities generate sufficient demand and travel-time savings to justify metro systems, or whether upgraded bus rapid transit systems (BRTS) could deliver similar benefits at a fraction of the cost.

The ministry rejected CMRL's estimate that a metro would reduce a 7.5-km peak-hour journey by eight minutes, or 35%, compared with road transport. Once walking time to stations, waiting time and access at the destination are included, it said, "there will be hardly any savings in time by metro". It added that significant time and cost savings generally influence commuters only on trips exceeding 15 km, well above the average journey lengths cited by CMRL for both cities.

A senior government official said the ministry's position reflects lessons from smaller cities where metro systems have struggled to attract passengers. Journey times in such cities are already relatively short, the official said, and once commuters account for the time spent reaching elevated stations and exiting them at the destination, the overall time advantage over road transport largely disappears. That has contributed to weak ridership in cities such as Indore and explains the Centre's increasing reluctance to approve metro systems for smaller urban centres.

MoHUA was equally unconvinced by CMRL's ridership projections. It noted that the state had projected higher patronage for Coimbatore's comparatively short corridor than for Chennai's much larger metro network while acknowledging that the city's bus system remains underdeveloped. A metro without adequate feeder buses and last-mile connectivity "cannot fetch ridership", the ministry said.

The ministry repeatedly linked this weakness to Tamil Nadu's decision not to join the PM e-Bus Sewa scheme, arguing that the programme could have strengthened bus fleets in Coimbatore and Madurai and provided the feeder services essential for metro operations.

On population, MoHUA rejected the state's reliance on 2022 planning estimates of 2.97 million for Coimbatore and 2.915 million for Madurai to satisfy the Metro Rail Policy's eligibility criteria. The ministry said the 2011 Census remains the appropriate benchmark, under which Coimbatore Municipal Corporation has a population of only 1.584 million. Much of the wider local planning area population, it argued, is unlikely to use a metro network largely confined to the corporation limits.

The ministry also highlighted implementation risks. It noted that the state had acknowledged right of way of less than 20 metres along sections of the proposed Coimbatore corridors, implying substantial demolition during construction. It also pointed to Chennai Metro as a cautionary example: Phase I, sanctioned in 2009, took a decade to complete, while Phase II, launched in 2020, has achieved only 54.62% physical progress.

MoHUA stressed that it had no objection in principle to either at-grade or elevated BRTS and reiterated that population alone is not the sole criterion for metro approval. However, after examining the proposals in their entirety, it said both DPRs had been returned.

Tamil Nadu renewed its push for the projects earlier this year after then chief minister M.K. Stalin wrote to Prime Minister Narendra Modi seeking reconsideration of the Centre's earlier rejection. The issue also figured during Chief Minister C. Joseph Vijay's review of metro rail projects on July 22.

Shreya Gadepalli, an urban mobility expert, said evidence from Indian cities suggests metro rail has not adequately addressed mobility needs in many tier-two cities.

"A small metro network may look impressive, but it is expensive to build and does not provide the extensive connectivity most urban residents require," she said. "A high-quality bus system with a large fleet of air-conditioned buses costs a fraction of a metro while serving every part of the city. Combined with dedicated bus lanes through congested stretches, it can deliver fast and reliable services comparable to metro rail."

She said Coimbatore should aspire to a "triple-five" bus network, enabling residents to walk to a bus stop within five minutes, wait no more than five minutes for a bus and complete their journey with minimal delay.

Factfile:
1. MoHUA says metro's 8-minute edge over road claimed by CMRL vanishes once station access/egress and waiting time are counted in
2. Ministry cites underdeveloped city bus networks in Coimbatore and Madurai as a barrier to metro ridership — echoing Indore's experience, per official sources
3. Tamil Nadu's non-participation in the Centre's PM e-Bus Sewa scheme flagged repeatedly as a missed chance to fix last-mile connectivity
4. MoHUA rejects 2022 projections (Coimbatore: 29.7 lakh; Madurai: 29.15 lakh), says 2011 Census remains the valid base — puts Coimbatore's core city population at just 15.84 lakh
5.  Chennai Metro cited as cautionary benchmark — Phase I took 10 years (2009-19); Phase II, launched 2020, only 54.62% complete
6. Both DPRs "returned after examining the proposal in entirety"; MoHUA open to BRTS instead, signalling no new metro sanctions for smaller cities

writingonblog uncensored: Supreme Court summons Tamil Nadu bureaucrat as Che...

writingonblog uncensored: Supreme Court summons Tamil Nadu bureaucrat as Che...: C Shivakumar @ Chennai: The Supreme Court has ordered a senior Tamil Nadu bureaucrat to appear before it next month to explain why proceed...

Supreme Court summons Tamil Nadu bureaucrat as Chennai's illegal construction case widens into nationwide review

C Shivakumar @ Chennai:
The Supreme Court has ordered a senior Tamil Nadu bureaucrat to appear before it next month to explain why proceedings should not be initiated against her over an affidavit the bench said appeared designed to protect, rather than investigate, an illegally constructed building, as it expanded the case into a nationwide review of planning law enforcement.

In a sharply worded order, a bench of Justices Ahsanuddin Amanullah and R. Mahadevan directed Kakarla Usha, then Secretary in Tamil Nadu's Housing and Urban Development Department, to file a written explanation and remain personally present at the next hearing on August 4, 2026. The judges described her affidavit as "shocking", saying it reflected a "blatant disregard for the rule of law" and amounted to a "bold attempt to shield" Loganathan, whose special leave petition against the State of Tamil Nadu had already been dismissed by the court on February 16.

The bench also directed every state and union territory to file fresh affidavits, personally sworn by senior officials, detailing action taken against illegal construction and unauthorised land-use changes. It warned that officials who fail to comply with its directions or remain absent from future hearings could face contempt proceedings.

The proceedings stem from a petition filed by Loganathan challenging action taken against an unauthorised building in Chennai. While dismissing the petition in February, the Supreme Court noted that the petitioner had constructed a ground-plus-one building without any sanctioned plan, observing that such a structure could not have come up without the "collusion and connivance" of municipal officials. It directed the Tamil Nadu government to investigate the lapse and asked the Commissioner of the Greater Chennai Corporation to explain, through a personally sworn affidavit, how the violation had gone unchecked.

The Commissioner's response said the property was under the jurisdiction of the erstwhile Madhavaram Municipality when the construction took place rather than the Greater Chennai Corporation, an explanation the bench said it would keep "in abeyance".

The court was even more critical of a March 22, 2024 order issued by the Additional Secretary (Technical) in the Housing and Urban Development Department directing that no coercive action be taken against the violators despite a Madras High Court direction that the matter be dealt with strictly in accordance with law. Saying it was "unable to comprehend" how such an order could have been passed in the face of an admitted violation, the bench directed the state to identify the officer responsible and explain the decision.

Concluding that the Chennai case reflected a wider pattern of weak enforcement, the Supreme Court in March expanded the proceedings into a nationwide examination of illegal construction and misuse of residential properties for commercial purposes. It impleaded municipal corporations in every state and union territory capital, along with the Tamil Nadu government through its Chief Secretary, and appointed senior advocate Ajit Kumar Sinha as amicus curiae. Civic bodies were directed to audit their jurisdictions and submit reports identifying unauthorised commercial use of residential properties.

When the matter returned in May, Sinha told the court that only three states had filed affidavits and none had adequately detailed follow-up enforcement action. Referring to Delhi's Lajpat Nagar and Sarojini Nagar, he said buildings approved for two storeys had been expanded far beyond sanctioned plans, posing serious structural risks.

Rejecting arguments that mixed-use provisions under Delhi's Master Plan justified such deviations, the bench ruled that changing the approved use of a building after obtaining sanction amounted to "nothing short of a fraud on the system". It added that the failure of civic authorities to act could indicate "tacit collusion and connivance" with violators. The court also impleaded Union Ministry of Housing and Urban Affairs secretary.

The judges reserved their strongest criticism for Usha's subsequent affidavit, saying it appeared "more in defence of the petitioner than reflective of the objective and responsible position expected from a senior public officer". They noted that despite the dismissal of the petition and the lifting of all interim protection in February, the unauthorised structure remained standing more than three months later, a circumstance that "prima facie suggests connivance". The court directed Tamil Nadu's counsel to immediately communicate its order requiring Usha's personal appearance and written explanation at the next hearing.
The state housing department could not be reached on what kind of action being initiated by the state against  following the Supreme Court's observation on illegal construction and misuse of residential properties for commercial purposes.

writingonblog uncensored: Taiwan's Investment Map Expands Beyond Chennai

writingonblog uncensored: Taiwan's Investment Map Expands Beyond Chennai:   C Shivakumar @ CHENNAI: Taiwanese investors are looking beyond Chennai and Sriperumbudur's established industrial belt, with souther...

Taiwan's Investment Map Expands Beyond Chennai

 

C Shivakumar @ CHENNAI:
Taiwanese investors are looking beyond Chennai and Sriperumbudur's established industrial belt, with southern Tamil Nadu emerging as a potential destination for the state's next phase of manufacturing expansion.

An eight-member Taiwan delegation that toured Tirunelveli SIPCOT and VOC Port in Thoothukudi earlier this June concluded that the region's logistics capacity has made it a potential site for the state's next wave of manufacturing clusters, particularly in green energy, electronics and electric vehicles, said Stephen S. C. Hsu, Director General of the Taipei Economic and Cultural Center (TECC) in Chennai in an interview with The New Indian Express. Hsu, who has recently marked his first year in Chennai, described the recent visit mainly as “a fact-finding trip”.

The trip to the south reflects a wider recalibration of how Taiwanese enterprises view Tamil Nadu — less as a manufacturing destination and more as a strategic partner for high-tech investment. While footwear, textiles, machinery and electronics assembly remain established strengths in the north, investor appetite has shifted toward advanced manufacturing, semiconductor supply-chain components, EVs and green-energy infrastructure, Hsu said.

The southward pivot comes as bilateral trade accelerates. Taiwan-India trade volume reached 10.6 billion USD in 2024 and rose to a record 12.5 billion USD in 2025; from January this year till now, bilateral trade volumes have grown 30 per cent year-on-year, Hsu said. Over the next three to five years, TECC in Chennai expects fresh capital inflows as mid-tier technology suppliers relocate, generating high-skilled roles for local engineering graduates.

Tamil Nadu's pitch to investors rests on what Hsu termed a "holy trinity" of ports, industrial parks and workforce: direct maritime connectivity through Chennai Port and VOC Port cuts supply-chain transit times and cost, while SIPCOT's purpose-built infrastructure and a skilled labour pool round out the offer. Combined with a mature industrial ecosystem and supportive state policy, these give Tamil Nadu an edge over competing states, Hsu said. He highlighted his vision for the next decade- “Design from Taiwan, Make in Tamil Nadu”.

Keen to woo Taiwanese investments to Tamil Nadu, the director general looks forward to the meeting with Chief Minister C Joseph Vijay along with Taiwan Chamber of Commerce soon. Highlighting the role played by Taiwan, he said there are more than 300 Taiwanese companies in India, and 75% are located in South India, especially in Tamil Nadu and Karnataka, with the accumulated investment amount of 5.7 billion USD, and generating 214,000 jobs in India over the years, he said.

Challenges remain largely cultural rather than structural, centred on differences in working culture and operational practices between Taiwanese firms and local partners, according to Hsu.

A tripartite memorandum of understanding between the Chennai Institute of Technology, Taiwan's National Formosa University and industry group AGEM aims to build advanced semiconductor research capacity, with the goal of training local engineering students into global design engineers — a cohort Hsu called "ambassadors of innovation" in the Taiwan-India relationship.

To deepen the semiconductor and electronics ecosystem, the state should offer targeted incentives addressing what deep-tech investors need most: reliable water and power supply, a complete component supply chain, and high-skilled engineering talent, Hsu said.

TECC in Chennai is pushing for single-window regulatory clearances tailored to foreign SMEs, ready-built factory sheds within industrial parks, and tax waivers for the first 24 months of operation — measures it says would draw smaller Taiwanese suppliers into the state.

Hsu framed the relationship in geopolitical terms, describing Taiwan's New Southbound Policy as complementary to India's Act East Policy, and calling the current period of global supply-chain restructuring "a golden time" for Taiwanese firms considering a shift to India.

"Tamil Nadu is no longer just a potential destination; it is a proven launchpad for success," Hsu said, adding that the TECC in Chennai remains committed to working closely with the state government to guide Taiwanese companies "every step of the way."

writingonblog uncensored: Fishers say Chennai reservoir plan ignored Bay of ...

writingonblog uncensored: Fishers say Chennai reservoir plan ignored Bay of ...: CHENNAI: Fishing communities in the Kovalam sub-basin have accused Tamil Nadu's Water Resources Department (WRD) and IIT-Madras of overl...

Fishers say Chennai reservoir plan ignored Bay of Bengal storm-surge risk

CHENNAI:
Fishing communities in the Kovalam sub-basin have accused Tamil Nadu's Water Resources Department (WRD) and IIT-Madras of overlooking Bay of Bengal storm-surge dynamics in planning the Mamallan reservoir, a freshwater project proposed on the Uppankazhi salt marsh to supply Chennai.

Government-commissioned coastal inundation maps, prepared for an assumed 1.63-metre tidal surge under severe sea conditions, show that most of the proposed reservoir site would be submerged under 3.5 to 4.5 metres of seawater during a storm event — a scenario fishers say neither agency has assessed.

"We don't need a report to tell us what the sea does here," said R. Narayanan, a fisher from Kovalam. "Every spring tide, every monsoon, we watch this land become part of the sea. The bunds they are planning are not going to stop that."

The IIT-Madras technical evaluation, submitted to justify the project's exemption from the Coastal Regulation Zone Notification, accounts only for freshwater inflows from the western catchment, treating the sea as an outlet for surplus water rather than a source of risk. It recommends direct outlets from the reservoir to the ocean — infrastructure that fishers warn could function as inlets for seawater during a surge.

Speaking to reporters, Dr Vishvaja Sambath of the Chennai Climate Action Group argued that the omission undermines the project's regulatory basis. "If the sea overtops the bunds, and it most likely will, then there is no freshwater reservoir left — only a great salt lake," she said. "If they have not studied the sea and tidal dynamics, then the CRZ clearance they have obtained is baseless and invalid."

K.V. Sudhakar, president of the Madras Naturalists Society, called on the state government to abandon the project, citing the marsh's ecological value. He said the site supports more than 135 dry-season species, including migratory birds, subcontinent endemics, IUCN Red List species, and those listed under Schedule I of the Wildlife Protection Act.

Campaigners further warned that enclosing the marsh would remove 4,375 acres of natural flood-holding capacity from the sub-basin, increasing seawater flood exposure for Thaiyur, Kelambakkam, Thiruvidanthai, Padur, Pattipulam, Saluvankuppam and Mamallapuram — all densely populated settlements along the coast.

The claims were raised at a press briefing organised by Save Nemmeli Marshlands.

Delta Electronics Plans Greenfield Data Centre

 

CHENNAI:
Taiwanese electronics manufacturer Delta Electronics has proposed a new testing and validation centre at its Krishnagiri campus in Tamil Nadu, as part of a broader push to expand its footprint in the state's energy and advanced manufacturing sectors.

Benjamin Lin, President of Delta Electronics India, and Niranjan Nayak, the unit's Managing Director, met Tamil Nadu Chief Minister C. Joseph Vijay on Friday to outline the plan and thank the state government for its support of the company's existing operations.

Delta already runs a large manufacturing facility in Krishnagiri, where an expansion is under consideration alongside the proposed greenfield project. The new facility, to be named ARIVAM — an acronym for AI Data Centre, Renewables, Integrated Micro Grid Solutions, Validated Engineering and Management Centre — would focus on the design, engineering, manufacturing and lifecycle management of sustainable AI data centres, renewable energy systems and integrated microgrids.

The company has asked to work with the state government across three areas: energy infrastructure and storage, AI data centre infrastructure, and smart manufacturing and industrial automation. The Chief Minister assured Delta of continued backing under the new administration.

The proposal builds on Delta's existing Krishnagiri campus, which the company positions as a reference site for Industry 4.0 manufacturing practices and a demonstration centre for advanced automation, a release stated.

Tamil Nadu forms panel, gives one-week deadline to probe disputed registration of Palani temple's land

Chennai:
Tamil Nadu's Commercial Taxes, Registration and Religious Endowments Department has formed a three-member inquiry committee and ordered it to submit its findings within a week, after a Palani Sub-Registrar registered 1.35 acres belonging to the Arulmigu Dhandayuthapani Swamigal Madam despite a statutory bar on doing so.

The panel — the Additional Inspector General of Registration (Stamps & Registration), the Assistant Inspector General of Registration (Vigilance) and the District Registrar (Administration) of Namakkal — must establish how the registration went through. 

Its brief requires inspecting all records at the Sub-Registrar's and District Registrar's offices, reviewing video footage of the registration process itself, identifying any officials responsible, and recommending safeguards against a repeat — all within a week, an unusually tight timeline for a government probe.

The land, in Palani's third ward, was conveyed by an individual with no title to the property but who claimed authority under a will. A Sub-Registrar in Palani first refused to register the deed on April 1, citing a pending civil dispute — a refusal the Madurai bench of the Madras High Court quashed nine days later, ruling that a civil suit alone cannot justify denying registration unless a court has separately restrained the registering authority.

Acting on that order, the executant resubmitted the document on July 3. It was held pending initially, then registered three days later, on July 6, by a different Sub-Registrar on incharge duty that day — even as a writ appeal against the original High Court order remained undecided, and despite a letter four days earlier from the Joint Commissioner of Hindu Religious and Charitable Endowments (HR&CE) flagging the land as temple property.

Officials say that is where the statutory breach occurred. Section 22-A(1)(ii) of the Registration Act, 1908 requires registering officers to refuse any instrument transferring property belonging to an institution governed by the Tamil Nadu Hindu Religious and Charitable Endowments Act, 1959, unless the transfer carries prior sanction from a competent authority. The Inspector General of Registration told the government that HR&CE had already confirmed the land's status before the deed was registered.
The GO was issued by J Kumaragurubaran, Secretary to Government, on Thursday.

writingonblog uncensored: TN resolves stamp duty ambiguity for restructured ...

writingonblog uncensored: TN resolves stamp duty ambiguity for restructured ...: CHENNAI: The Inspector General of Registration, Tamil Nadu, has resolved a lingering ambiguity over whether a decade-old stamp duty exemptio...

TN resolves stamp duty ambiguity for restructured power utilities

CHENNAI:
The Inspector General of Registration, Tamil Nadu, has resolved a lingering ambiguity over whether a decade-old stamp duty exemption applies to the successor entities of the state's power distribution utility, following its 2024 restructuring. 

A circular issued on Wednesday confirms that Tamil Nadu Power Distribution Corporation Limited (TNPDCL) and Tamil Nadu Power Generation Corporation Limited (TNPGCL) will retain the exemption, invoking Section 8G of the Indian Stamp Act, 1899, which waives stamp duty on property transfers by government entities in cases of strategic sales, disinvestment, demergers or liquidation.

The exemption traces back to a 2012 government order that waived stamp duty and registration fees on gift deeds through which private developers, typically applicants for group housing or commercial complex approvals, transfer land to the utility for building electricity substations. That order applied specifically to Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO), the entity's name before restructuring.

The ambiguity arose after TANGEDCO's corporate split, notified in the Tamil Nadu government gazette in August 2024, under which the utility was trifurcated into wholly owned subsidiaries of Tamil Nadu Electricity Board Ltd. TNPDCL took over the renamed distribution, billing and customer support functions, while TNPGCL was carved out to handle fossil-fuel and gas-based power generation. With TANGEDCO's original legal identity dissolved, registering officers had no explicit guidance on whether gift deeds in favour of the new entities still qualified for the tax concession.

The circular settles the question. It notes that TNPDCL and TNPGCL were formally declared "government companies" under the Companies Act, 2013, via a gazette notification in March 2024 — a status that underpins their continued eligibility for the exemption under Section 8G.

The office of the Inspector General has directed all district registrars and sub-registrars across the state to apply the updated guidance when processing gift deed registrations in favour of the two companies.

writingonblog uncensored: Tamil Nadu's elderly population to nearly double b...

writingonblog uncensored: Tamil Nadu's elderly population to nearly double b...: Expert suggests  strengthening revenues, improve expenditure efficiency C Shivakumar @ CHENNAI: Tamil Nadu's rapid demographic transiti...

Tamil Nadu's elderly population to nearly double by 2031, raising fiscal concerns

Expert suggests strengthening revenues, improve expenditure efficiency

C Shivakumar @ CHENNAI:
Tamil Nadu's rapid demographic transition is emerging as one of the state's biggest long-term fiscal challenges, with the share of elderly citizens projected to nearly double over the next decade even as public finances remain under pressure, according to a government white paper released by the state.

The population aged 60 and above is expected to rise from 10.6 per cent in 2011 to 18.2 per cent by 2031 — a 71.7 percent increase, the steepest among comparable large states. Kerala, long regarded as India's demographic frontrunner, is projected to record a slower increase of 64.6 per cent, while the national average stands at 56 per cent.

The figures point to what economists describe as a "scissors effect". As the working-age population begins to shrink, growth in tax revenues slows. The two trends move in opposite directions, steadily widening the gap between revenue growth and expenditure commitments.

The white paper states that Tamil Nadu's challenge is, in many ways, the consequence of its own developmental success. Fertility rates fell faster than in most Indian states, life expectancy rose sharply, and the state enjoyed decades of economic gains from a large working-age population. Tamil Nadu's median age has now reached 34.25 years, nearly a decade higher than that of Uttar Pradesh.

The state's working-age population peaked at around 66.4 per cent in 2021 and is projected to decline to 63.6 per cent by 2036. Over the same period, the old-age dependency ratio — the number of elderly people for every 100 working-age adults — is expected to rise from 20.6 to 32.7, one of the sharpest increases among Indian states.

"Ageing is a cause for concern," said K Shanmugham, economist and former director of the Madras School of Economics. This would result in the state spending a lot of money on welfare measures for elderly and the funds need to be increased. He also highlighted the lack of updated data since the 2011 census.

"For decades, Tamil Nadu benefited from a demographic dividend, with a large and expanding workforce supporting economic growth, tax revenues and consumption," said former bureaucrat Chandra Kant Kamble. "As populations age, fiscal priorities inevitably shift. Pension obligations rise, healthcare spending increases, and governments must invest more in chronic disease management, geriatric care and long-term social support. At the same time, the growth of the working-age population slows, limiting the expansion of the tax base."

The white paper cites international experience, including that of Japan and Canada, to illustrate how healthcare and social security costs accelerate as populations age. What makes Tamil Nadu vulnerable is the speed of this demographic transition against a backdrop of already strained public finances.

While the white paper does not prescribe specific remedies, Kamble said the fiscal impact of ageing will emerge gradually, giving Tamil Nadu a limited opportunity to act before demographic pressures intensify. The state's economic dynamism, industrial strength and relatively robust revenue mobilisation provide a foundation for undertaking structural reforms from a position of strength.

He stressed that the challenge is not welfare spending itself, but ensuring that expanding commitments remain sustainable. As the elderly population grows, the government will need to strengthen revenues, improve expenditure efficiency and periodically assess the effectiveness of welfare programmes. Such measures, he said, can help bridge the gap between rising age-related spending and mounting debt obligations.

EOM

India's fast breeder reactor moves closer to feeding power into the grid

 

CHENNAI:
India's ambitious fast breeder nuclear programme has moved closer to producing electricity, with Atomic Energy Commission chairman and Department of Atomic Energy secretary Ajit Kumar Mohanty reviewing the final technical work needed before the 500 MW Prototype Fast Breeder Reactor (PFBR) at Kalpakkam is synchronised with the power grid.

The visit by Mohanty comes eleven weeks after the reactor achieved first criticality — the controlled start of a self-sustaining nuclear chain reaction — marking its transition from a decades-long construction project to the commissioning phase.

At the centre of the current effort is the overhaul of the plant's 500 MW turbine generator, a critical step before electricity generated by the reactor can be fed into the national grid. The work is being carried out by Bharat Heavy Electricals Ltd (BHEL), the original equipment manufacturer, whose engineering team briefed Mohanty during the review.

The turbine generator converts thermal energy produced by the reactor into electricity. In the PFBR, superheated steam generated by sodium-heated once-through steam generators drives a tandem-compound turbine comprising separate high-, intermediate- and low-pressure cylinders. Once commissioned, the reactor will generate 500 MW of electricity.

The ongoing low-power physics experiments, a series of tests conducted after first criticality to validate reactor behaviour before power is gradually increased was also reviewed.

The PFBR represents the part of India's second-stage nuclear programme, which seeks to use fast breeder technology to produce more fissile material than the reactor consumes. The approach is intended to multiply the country's limited uranium resources while laying the foundation for the eventual use of India's abundant thorium reserves under the three-stage nuclear strategy conceived by physicist Homi Bhabha.

Unlike conventional reactors, fast breeder reactors are designed not only to generate electricity but also to create additional nuclear fuel. The reactor's commissioning is being overseen by Bharatiya Nabhikiya Vidyut Nigam Ltd (BHAVINI), the state-owned company established to build and operate India's fast breeder reactors.

With the prototype entering its final commissioning stages, the government is already preparing to move beyond demonstration mode. Pre-project activities have begun for a twin-unit commercial fast breeder station adjacent to the existing Kalpakkam complex, while site identification and preliminary assessments are under way for a wider rollout of fast reactors across the country, according to a statement from Department of Atomic Energy.

Japanese Fastener Maker YKK Expands India Presence with $150m Chennai Facility

CHENNAI:
Japanese fastening products maker YKK Corporation is deepening its manufacturing footprint in India with plans to invest $150 million in a new production facility at Origins by Mahindra, Chennai, underscoring the growing appeal of Tamil Nadu as a hub for export-oriented industrial investments.

YKK India, the Indian subsidiary of the Japanese group, will establish its third manufacturing plant in the country on nearly 150,000 sq m within the integrated industrial cluster developed by Mahindra Industrial Park Chennai Ltd (MIPCL), a joint venture between Mahindra World City Developers Ltd and Sumitomo Corporation. The facility is expected to be completed by February 2028.

The investment adds to a growing roster of international manufacturers at Origins by Mahindra, Chennai, including Mitsubishi Electric, Yanmar and Omron, as global companies increasingly diversify supply chains and expand production capacities closer to key consumer markets.

YKK India manufactures fastening products for the apparel, textile and industrial sectors, serving both domestic and overseas customers. The new plant will incorporate the company's advanced manufacturing technologies and is expected to support rising demand from India while strengthening export capabilities, according to a statement by Origins by Mahindra, Chennai, an integrated industrial development of Mahindra Lifespace Developers Ltd.

writingonblog uncensored: Tamil Nadu faces Rs11,600 crore funding gap even b...

writingonblog uncensored: Tamil Nadu faces Rs11,600 crore funding gap even b...: C Shivakumar @ CHENNAI: Tamil Nadu faces a Rs11,600 crore funding gap even before accounting for a single new government promise. A white pa...

Tamil Nadu faces Rs11,600 crore funding gap even before accounting for a single new government promise

C Shivakumar @ CHENNAI:
Tamil Nadu faces a Rs11,600 crore funding gap even before accounting for a single new government promise. A white paper on the state's fiscal management lays out the arithmetic bluntly: the deficit cannot be fully funded even if every available borrowing window comes through.

The findings cast a long shadow over the ruling party's poll manifesto, raising hard questions about when — or whether — promised schemes can be rolled out

According to the White Paper released by Finance Minister Marie Wilson along with Finance Secretary M A Siddique, the State Government is committed to deliver on its promises, despite these challenges, as early as possible as the financial position permits.

The state's net borrowing ceiling for 2026-27 stands at Rs.1,14,981 crore — fixed by Centre at 3% of projected GSDP of Rs.38.3 lakh crore. On top of that, the Centre has offered Rs.7,000 crore under its capital investment assistance scheme and potentially Rs.11,000 crore tied to pension reform parity — contingent on Centre agreeing to treat Tamil Nadu's pension scheme on par with its own.

A further Rs.19,163 crore — the 0.5% of GSDP window for power sector reforms — hangs in limbo. The 16th Finance Commission's report is silent on whether this facility continues beyond 2025-26.

Even assuming all contingent approvals materialise, maximum borrowings reach Rs.1,52,144 crore. The estimated fiscal deficit exceeds that by Rs.11,600 crore.
That gap assumes 12% growth in the state's own tax revenues — itself an optimistic projection. An 8% growth scenario widens the hole by a further Rs.7,700 crore.

The harder truth: these numbers cover only existing committed expenditure — largely obligations created by the previous government. New schemes the ruling party has promised voters don't figure in the calculation at all.

The white paper's prescription is unsentimental: plug leakages in revenue collection, reduce procurement costs, and tighten expenditure. Capital spending could be cut by Rs.5,000 crore, though the document flags this as undesirable.

The state, under Article 293(3) of the Constitution, cannot borrow without Central government permission — a structural constraint that leaves Tamil Nadu with limited room to manoeuvre unilaterally.