Tamil Nadu to set up AI and innovation city ‘Arivagam’ under Revised Budget 2026-27

The TVK government in Tamil Nadu has announced plans to establish 'Arivagam', an AI and innovation city, in the Revised Budget 2026-27. The Budget also proposes a new industrial policy, mobile geriatric healthcare units and welfare measures for transgender persons

Chennai: The Chief Minister C. Joseph Vijay-led TVK government in Tamil Nadu will establish a dedicated Artificial Intelligence (AI) and innovation city, named ‘Arivagam’, as part of a major push to position the State as a hub for AI, deep-tech industries and technology-driven investment.

Announcing the initiative while presenting the Revised Budget for 2026-27 in the Assembly on Wednesday, Finance Minister N. Marie Wilson said Arivagam would bring together advanced research, education, skill development, innovation and industrial infrastructure in an integrated ecosystem.

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The proposed city will house an AI university, an international skill development centre, a semiconductor hardware testing laboratory and multi-domain innovation incubators.

Modern residential and supporting infrastructure will also be developed as part of the project.

The government has allocated ₹5 crore to conduct a feasibility study for Arivagam, which is expected to support the development of emerging technologies while attracting investments and creating high-skilled employment opportunities.

Wilson also announced that the government would unveil a new Tamil Nadu Industrial Policy aimed at fostering innovation and technology-led growth.

The policy will focus on supporting emerging industrial sectors, promoting sustainable development and strengthening the State’s export capabilities.

The Budget also outlined new social welfare and healthcare initiatives. For senior citizens, the government will introduce 1,000 Mobile Geriatric Treatment Centres in phases across Tamil Nadu.

Each unit will have a dedicated team comprising a doctor, nurse and physiotherapist. The mobile teams will visit village panchayats to conduct free health check-ups and provide medicines to elderly people suffering from chronic ailments. The government has earmarked ₹33 crore for the programme.

In another welfare initiative, the government announced the establishment of ‘Aran’ shelter homes in five districts for transgender persons facing social and family-related difficulties.

The shelters will provide safe accommodation, food, counselling and rehabilitation support, with the government seeking to create a stronger institutional support system for vulnerable members of the transgender community.

Short-stay homes will also be established in 15 districts for transgender people travelling to other cities for education, employment, medical treatment, examinations and training programmes.

The announcements form part of the TVK government’s maiden Budget initiatives aimed at combining technology-led industrial development with expanded healthcare and social protection programmes across the State.