Where will Tamil Nadu’s ambitious 2,000-acre Global City project near Chennai come up?

Where will Tamil Nadu’s ambitious 2,000-acre ‘Global City’ project near Chennai come up? This is the million-dollar question raised by common man and real estate developers after State Finance Minister Thangam Thennarasu announced it in the State Budget 2025-26 last week.

Tamil Nadu government, in a move to decongest Chennai, wants to create a new city in the lines of Navi Mumbai or Whitefield. But the challenge will be to find such a large, contiguous land parcel. The government will have to acquire lots of land for the project, sources said.

Interestingly, the Karnataka government is also considering a new city north of Bengaluru and Hyderabad is getting a Future city to its south to decongest the metros.

Industry sources said the potential regions could be beyond Mamallapuram on the East Coast Road, and in Chengalpattu and Sriperumbudur. The potential areas could be Irungattukottai, Pullalur, Soorai, Thodukadu, Melpadi and Sogandi.

Government sources said it was too early to comment on the exact location site and that officials were working on identifying where large land parcels are available in various regions.

The new city will feature IT parks, fintech trade zones, research and development centres, high-tech companies, banking and insurance firms, shopping complexes, trade centres, and conference halls, along with educational and healthcare facilities provided by both public and private sector institutions.

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The Global City will include multi-storeyed residential buildings catering to upper-income, middle-class, and lower-income groups, as well as extensive road networks, IT and green energy systems, co-working spaces, and recreational infrastructure such as urban squares and parks. To ensure seamless connectivity with Chennai, proper road networks, express bus services, and metro rail extensions will be developed.

The works for the first phase of the ‘Global City’ project, offering world-class facilities, will be commenced by TIDCO soon, the Budget announcement said.

Global City near Chennai aligns well with the state’s growth trajectory in IT, fintech, and high-tech industries. If executed well, it could transform the region into a global business hub, attracting top companies and investors. However, the key challenges lie in land acquisition, infrastructure development, and long-term economic viability, said Ranjeeth Rathod, Managing Director, Super Chennai, a company set up by Credai recently to reposition Chennai Brand as a global and loveable city to work, live and play.

Opportunities

If placed along key corridors (like Chennai-Bengaluru Highway or OMR), it could complement existing tech hubs and enhance connectivity. With the right incentives, it could attract MNCs, start-ups, and R&D centres. It could set a new standard for smart cities, integrating sustainability, transit-oriented development, and green energy, he said.

Challenges

Finding 2000 contiguous acres near Chennai is tough. Most large tracts are either privately held or fragmented. Large-scale developments need water, power, and transport infrastructure. The state must ensure these are in place before businesses move in.

Past projects like Mahindra World City have been successful but took time to mature. Ensuring steady demand will be crucial, he said.

Chennai-Bangalore Highway (near Sriperumbudur or Kancheepuram) – proximity to industrial hubs and Chennai airport makes sense. East Coast Road (ECR) Corridor – Connectivity is good, but land availability and coastal regulations could be constraints. South Chennai (Chengalpattu – Oragadam region), which is already seeing large industrial growth, could be a strong candidate.

It’s a bold vision, but execution will determine success. If TN can replicate the success of Bangalore’s Whitefield or Hyderabad’s Financial District, this could be a game-changer. However, ensuring phased development, real demand, and world-class infrastructure will be key. It’s a great idea on paper, but the devil is in the details, said Rathod.