The Tamil Nadu government on Wednesday announced plans to establish a dedicated Artificial Intelligence (AI) and innovation city, named 'Arivagam', as part of its Revised Budget for 2026-27. Presenting the Budget in the Assembly, Finance Minister N. Marie Wilson said the project aims to position the state as a leading hub for artificial intelligence, deep-tech industries and technology-driven investments while fostering innovation and creating high-skilled employment opportunities.
According to the minister, Arivagam will function as an integrated ecosystem combining advanced research, higher education, skill development and industrial infrastructure. The proposed AI city will house an AI university, an international skill development centre, a semiconductor hardware testing laboratory and multi-domain innovation incubators. Modern residential facilities and supporting civic infrastructure will also be developed as part of the ambitious project.
The government has allocated ₹5 crore to undertake a feasibility study for Arivagam. The study will assess the project's technical, financial and infrastructural requirements before implementation. The proposed AI city is expected to accelerate the development of emerging technologies, attract domestic and global investments and strengthen Tamil Nadu's position as a preferred destination for innovation-led industries.
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Alongside the AI initiative, the government announced that it will introduce a new Tamil Nadu Industrial Policy focused on technology-led growth, innovation and sustainable industrial development. The policy will seek to promote emerging sectors, improve the state's export competitiveness and encourage investments in advanced manufacturing and high-technology industries.
The Revised Budget also introduced several welfare measures. The government will establish 1,000 Mobile Geriatric Treatment Centres in phases across Tamil Nadu, with an allocation of ₹33 crore. Each unit will include a doctor, nurse and physiotherapist to provide free health check-ups and medicines to elderly citizens in village panchayats. In addition, 'Aran' shelter homes will be set up in five districts for transgender persons facing social or family-related challenges, while short-stay homes will be established in 15 districts to support transgender individuals travelling for education, employment, healthcare, examinations and training. The initiatives form part of the TVK government's broader strategy to combine technology-driven economic growth with expanded healthcare and social welfare programmes across the state.
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