T.N. Budget: AI-driven approval system, ₹15,000 crore housing plan unveiled
The Tamil Nadu government on Wednesday presented its 2026-27 Budget, announcing an AI-enabled planning approval system and a new rental housing scheme aimed at developing one lakh housing units in Chennai over the next seven years.
The revised Budget Estimates allocate ₹8,852 crore to the Housing and Urban Development Department, up from ₹7,547 crore in the Interim Budget presented earlier. The allocation also exceeds the ₹8,737.71 crore provided in the previous financial year 2025-26.
As part of urban planning reforms, the Chennai Metropolitan Development Authority (CMDA) is preparing the Third Master Plan (2027-2046) for the existing Chennai Metropolitan Area (CMA), which covers 1,189 sq. km. The Budget also provides for a Comprehensive Master Plan for the expanded CMA, spanning 5,904 sq. km., to serve as a roadmap for long-term growth. An allocation of ₹25 crore has been made for this exercise, which will be benchmarked against internationally recognised metropolitan planning frameworks.
To streamline building approvals, the government announced the introduction of an AI-enabled online system called SPEED (Single Platform for Efficient Expedited Development). This platform will integrate the CMDA, the Directorate of Town and Country Planning (DTCP), and rural and urban local bodies, aiming to provide timely and transparent planning permissions across the State. The Budget earmarks ₹40 crore for this initiative.
On housing infrastructure, the government said 24,131 under-construction multi-storeyed tenements will be completed this year, while work on another 14,194 tenements will commence during the year. A total of ₹1,253 crore has been allocated for this programme.
The Tamil Nadu Urban Habitat Development Board (TNUHDB) will launch the Metropolitan Youth and Family Housing Scheme (MY-HOME) as a pilot in the CMA. Under this scheme, one lakh housing units will be developed over seven years through a public-private partnership model, with an estimated investment of ₹15,000 crore. The government will provide ₹3,500 crore in Viability Gap Funding through the Tamil Nadu Shelter Fund to support the project.
The scheme will also introduce a Digital Rental Voucher system aimed at providing safe and affordable housing for low-income families and youth, contributing to the long-term transformation of the Chennai Metropolitan Area.
