This guide explains the list of industries in Tamil Nadu are broadly classified into four categories (White, Green, Orange, Red) based on industries pollution potential, Planning parameters for Building Permit introduced by the Tamil Nadu Government to simplify industrial development in rural and semi-urban areas. Industries in Tamil Nadu
The categorization of industries is regulated based on the guidelines issued by the Government through the Environment &Climate Change, Forests Department and the Tamil Nadu Pollution Control Board (TNPCB). These authorities periodically update the classification of industries to ensure proper environmental protection and effective pollution control. Therefore, the industry categories are subject to the latest orders and notifications issued by the Government and TNPCB from time to time.
In October 2025, the Tamil Nadu Government amended the Tamil Nadu Combined Development and Building Rules, 2019. One of the key changes was replacing the old term “cottage industries” with White Category Industries and reducing the minimum road width requirement from 7.0 metres to 6.0 metres for White and Green category industries in Peri-Urban Village Panchayat and Village Panchayat areas across the state.
This change is highly beneficial for MSMEs, startups, and small manufacturers planning to establish industries in rural and semi-urban regions and many village panchayats across Tamil Nadu.
Key Advantages for Industries in Tamil Nadu
• Reduced Minimum Road Width Requirement – The current rule allowing 6.0m minimum abutting road width for White and Green category industries in Village Panchayat areas helps entrepreneurs use more available land parcels and reduces land development costs.
• Revised Industry Classification – The present classification of White, Green, Orange, and Red category industries helps promoters clearly understand the pollution category of their industry and the approvals required from TNPCB.
• Defined Planning Parameters – The current rules clearly specify FSI limits, setbacks, building height, and parking requirements, helping architects and consultants design industrial buildings that comply with regulations.
• Simplified Approval Process – With clearly defined planning and industry categorization rules, authorities can review proposals more efficiently, helping entrepreneurs obtain approvals with fewer complications.
• Encouragement for Low-Pollution Industries – The current framework supports industries such as electronics assembly, solar equipment manufacturing, garments, handicrafts, and food processing, promoting environmentally responsible industrial growth.
• Support for Rural Industrial Development – By allowing industries to establish units in Village Panchayat areas with relaxed planning norms, the rules help expand industrial development beyond urban areas.
• Boost to Local Employment – Easier establishment of industries leads to more industrial units, creating job opportunities and economic activity in rural regions.
1. White Category Industries (Practically Non-Polluting)
These industries have very low environmental impact, usually involving dry processes, assembly work, and minimal wastewater generation.
Planning Parameters:
Minimum Approach Road width required in village areas – 6.0 metres and Road width required Other than village areas – 7.0 metres
Building Setbacks for up to 9.0m Approach Roads:
• Front setback – 1.5 m
• Side setback – 1.5 m
• Rear setback – Nil
• Maximum FSI – 2.0
• Maximum building height – 18.30 m
Examples of White Category Industries
• Solar module manufacturing and solar power plants
• Wind power plants and small hydel plants
• Electrical and electronic item assembly (dry process)
• Fly ash brick manufacturing
• Garment stitching units without wet processing
• Handloom weaving and carpet making
• Agarbathi manufacturing
• Organic manure and bio-fertilizer preparation
• Bicycle assembly and automobile body building (dry process)
• Small IT offices and electronics assembly units
• Honey processing and cold-pressed vegetable oil units
• Small bakeries and confectionery production
• Paper bags, cups, plates, and cardboard box manufacturing
• Wooden furniture and handicraft production
2. Green Category Industries (Low Pollution)
These industries create minimal environmental pollution and have manageable emissions and waste generation.
Planning Parameters
Minimum Approach Road width required in village areas – 6.0 metres and Road width required Other than village areas – 7.0 metres
Building Setbacks for up to 9.0m Approach Roads:
• Front setback – 1.5 m
• Side setback – 2.0 m
• Rear setback – 2.0 m
• Maximum FSI – 2.0
• Maximum building height – 18.30 m
Examples
• Small bakeries using gas or electric ovens
• Flour mills, dal mills, and spice grinding units
• Carpentry and wooden furniture manufacturing
• Ready-mix concrete and cement product units
• Cold storage and chilling plants
• Ayurvedic and homeopathic medicine preparation
• Aluminium utensil manufacturing
• Poultry farms and hatcheries
• Small cotton spinning and weaving units
• Saw mills and rubber goods production
3. Orange Category Industries (Moderate Pollution)
These industries generate moderate levels of pollution and require additional environmental approvals.
Minimum Road Width Required – 7.0 metres
Setbacks for up to 9.0m Approach Roads:
• Front setback – 1.5 m
• Side setback – 2.0 m
• Rear setback – 2.0 m
• Maximum FSI – 2.0
• Maximum building height – 18.30 m
Examples
• Automobile servicing and painting workshops
• Food and vegetable processing units
• Printing and digital printing presses
• Dairy and ice-cream manufacturing units
• Brick manufacturing units
• Parboiled rice mills
• Paint blending and mixing units
4. Red Category Industries (Highly Polluting)
These industries involve significant environmental impact and require strict regulatory clearances. They are usually allowed only in designated industrial zones.
Setback space of 6.0m is required all around the Building.
• Maximum FSI – 2.0
• Maximum building height – 18.30 m
Examples
• Chemical manufacturing plants
• Cement factories
• Petroleum refineries
• Thermal power plants
• Large textile dyeing units
• Steel and iron manufacturing
• Pharmaceutical bulk drug production
Planning Parameters for Industrial Buildings
| S.No | Description | Category of Industries | |||
| White Industries | Green Industries | Orange Industries | Red Industries | ||
| A | Minimum Approach Road Width | ||||
| Corporation/Municipality/ Town Panchayat Areas | 7m | 7m | 7m | 7m | |
| Peri-Urban Village Panchayat/Village Panchayat areas | 6m | 6m | 7m | 7m | |
| B | Maximum Building Height | 18.30m | 18.30m | 18.30m | 18.30m |
| C | Normally Permissible FSI | 2.0 | 2.0 | 2.0 | 2.0 |
| D | Minimum Setbacks from Site Boundary | ||||
| i) Front Setback | 1.5m | Abutting Road Width | Front Setback (Green &Orange Industries) | 6.0m | |
| Up to 9m | 1.5m | ||||
| 9m to 18m | 3.0m | ||||
| 18m to 30.5m | 4.5m | ||||
| Above 30.5m | 6.0m | ||||
| ii) Side Setback | 1.5m | 2.0m | 6.0m | ||
| iii) Rear Setback | Nil | 2.0m | 6.0m | ||
| E | OSR | 10% of the proposed land area should be kept as Open Space Reservation (OSR). This OSR need not be gifted to the Government. | |||
| F | Parking Requirement | Necessary lorry, car, and two-wheeler parking with the required driveway has to be provided within the site. | |||
| G | No restriction on Plot coverage | ||||
| H | Structures permissible in the minimum prescribed Front setback, Side setback and Rear setback are incidental structures such as Open Transformer, Compound wall, gate pillars, servant rooms, watchman booths, cycle stands and toilets with heights not exceeding 4 metre are permissible in these minimum prescribed setback spaces: Provided that such structures do not occupy more than one-third of the length of any one side of the site. | ||||
Key Regulatory Approvals Required to Start an Industry in Tamil Nadu
After selecting the industry category and verifying planning parameters, entrepreneurs must obtain certain statutory approvals before starting industrial operations.
The major Statutory clearances include:
- Industry/Factory Building Permit from DTCP / CMDA / Local Body
- Industry Building -Consent to Establish (CTE) from the Tamil Nadu Pollution Control Board
- Consent to Operate (CTO) from Tamil Nadu Pollution Control Board
- Factory Registration and License under the Factories Act from the Directorate of Industrial Safety and Health (DISH)
- Fire Licence
1. DTCP/CMDA/Local body Industry Approval:
Local Bodies can approve industrial buildings only up to 2000 sq.ft. For projects located within the Chennai Metropolitan Development Authority (CMA), developers must obtain planning permission from CMDA before starting construction. For industrial buildings located outside CMDA areas and exceeding the Local Body approval limit, planning permission will be processed by the Directorate of Town and Country Planning (DTCP).
Key Documents Required:
- Application forms for site and building approval (Form-A, Form-B, Form-C)
- Copy of registered land ownership documents (Sale Deed / Lease Deed / Power of Attorney)
- Revenue records such as Patta/TSLR, FMB/TSLR sketch, A-Register
- Encumbrance Certificate (recent EC) to confirm clear title
- Site plan, key plan, topo plan, and detailed building plan prepared by a registered professional
- Legal opinion on land ownership from an authorized advocate
- Road width certificate from the local body if required
- Structural stability certificate from a qualified structural engineer
- NOCs from relevant departments such as Fire Services, Airports Authority, Railways, or Environmental authorities if required
The process involves online application submission, scrutiny of planning parameters, verification of land records, and approval based on the Tamil Nadu Combined Development and Building Rules (TNCDBR).
2.Consent to Establish (CTE) – TNPCB
Consent to Establish is the first environmental approval required before constructing an industrial facility or installing machinery. The application is submitted through the Tamil Nadu Single Window Portal, after which the TNPCB reviews the project and conducts a site inspection.
Important Documents for CTE
• Project description and covering letter
• Land ownership or lease documents
• Company registration documents
• Layout plan showing machinery and treatment systems
• Topographical sketch of nearby surroundings within 1 km radius
• Manufacturing process and flow chart
• Water balance and wastewater details
• Land use classification certificate from DTCP/CMDA
• Chartered Accountant certificate showing project investment
Depending on the industry type, additional documents like Effluent Treatment Plant design, Air Pollution Control proposal, Environmental Clearance, or Hazardous Chemical safety reports may also be required.
3.Consent to Operate (CTO) – TNPCB
After construction and installation of pollution control systems, industries must obtain Consent to Operate before starting production. The process includes application submission, fee payment, inspection by TNPCB officers, and approval by the consent committee.
Key Documents for CTO
• Compliance report for conditions mentioned in the Consent to Establish
• Chartered Accountant certificate confirming final project cost
• Photographs of installed pollution control systems
• Environmental compliance report
• Agreements with hazardous waste treatment facilities if applicable
4.Factory Registration and License – DISH
Industries employing workers and operating manufacturing machinery must register under the Factories Act, 1948. In Tamil Nadu, this registration is handled by the Directorate of Industrial Safety and Health (DISH). The process involves application submission, document verification, factory inspection, and issuance of the factory license.
Documents Required
• Identity proof of factory manager
• Address proof of manager
• Land ownership or lease documents
• List of directors or partners
• Memorandum and Articles of Association or partnership deed
• Machinery list with horsepower details
The factory license fee depends on the installed machinery horsepower and the maximum number of workers employed.
5.Fire Licence – Tamil Nadu Fire and Rescue Services
For buildings where public safety is critical—such as industries, commercial complexes, warehouses, and public buildings—a Fire Licence / No Objection Certificate must be obtained from the Tamil Nadu Fire and Rescue Services Department. Authorities evaluate fire safety design, emergency access, and firefighting systems before issuing approval.
Key Documents for Fire Licence/ Noc
- Application for Fire Safety Certificate
- Detailed building plan showing fire safety arrangements
- Layout indicating fire access roads and emergency exits
- Fire protection system details (hydrants, sprinklers, fire extinguishers, alarms)
- Structural stability certificate from a qualified engineer
- Electrical safety certificate if applicable
- Photographs or reports confirming installation of fire safety equipment
Simplified approach to Start an Industry in Tamil Nadu – Step-by-Step
- Identify and choose the industrial Lands in District Masterplan List for Urban Areas or Get Agricultural NOC for Rural area Lands.
- Confirm your Industry category with Tamil Nadu Pollution Control Board (TNPCB).
- Verify Approach Road width and zoning regulations with DTCP / CMDA / Local Panchayat.
- Apply for planning permission for the industrial building at DTCP/CMDA/LOCAL BODY.
- Obtain Consent to Establish from TNPCB.
- Statutory approval and Power Connection from Electrical Inspectorate/TANGEDCO
- Water Connection from TWAD Board
- Construct the factory as per the sanction.
- Apply and Get Consent to Operate from TNPCB.
- License from Labour Department
- Obtain Factory License from DISH.
- Get Fire License
Key Benefits for Entrepreneurs
• Lower land cost for rural industries
• Faster approvals for low-pollution industries
• Encouragement for renewable energy and MSMEs
• Growth in solar, textile, food processing, and handicraft sectors
• Increased employment opportunities in rural areas
Conclusion
The recent amendments to Tamil Nadu’s building rules have made it significantly easier to establish small and medium industries in rural and semi-urban areas. With reduced road width requirements for low-pollution industries and clearly defined planning parameters, entrepreneurs now have better opportunities to start manufacturing and service units across Tamil Nadu.
Industries such as solar manufacturing, garment stitching, electronics assembly, food processing, and handicraft production can now be set up more easily, supporting sustainable industrial growth and rural employment.
