Chief Minister M K Stalin unveiled the Tamil Nadu Circular Economy Investment Policy 2026.
The policy will support industry readiness for the green transition and low-carbon manufacturing by aligning with key initiatives such as the European Union (EU) Carbon Border Adjustment Mechanism (CBAM), the European Union Deforestation Regulation (EUDR), the Ecodesign for Sustainable Products Regulation, the Ecomark scheme, and digital traceability tools like the Digital Product Passport.
Here are the key features of the policy
*It covers sectors including Textiles, Automobiles, electronics and plastics
* The state will support textile manufacturing units that invest in advanced recycling technology and convert consumer textile waste into yarn or fabric that can be converted into direct consumer goods
*By end of 2030, 1.56 crore vehicles in the State expected to enter the scrapping market and Tamil Nadu has come out with a Vehicle Scrapping Policy
*State shall support enterprises that operate across the entire value chain of lithium-ion batteries, from collection and diagnostics of used batteries to their safe dismantling
*Lithium-ion batteries can be repurposed for second-life applications such as energy storage for home, emergency power systems, EV charging stations, and as replacements for diesel generators, among other uses
*State shall support entities involved in sustainable tyre recycling methods
*About 31,000 metric tonnes of electronic-waste are generated annually within Tamil Nadu
*Policy covers entities engaged in the recycling and upcycling of electronic waste— including post-consumer electronics, manufacturing scrap from electronic production units, and end-of-life or defective solar photovoltaic (PV) modules
*Tamil Nadu produces 4.3 lakh metric tonnes of plastic waste each year and can attract investments in innovative recycling technologies such as AI-powered sorting, biological recycling, and chemical recycling
*Special Package of Incentives for recycling facilities. Eligible entities will be provided a capital subsidy of 10 per cent of eligible fixed assets disbursed over 5 years
*It will be subject to minimum eligible investment of Rs 20 crore and minimum employment of 25 net new jobs whichever is later, subject to a ceiling of Rs 3 crore.
*It also provides employment incentives capped at Rs 10,000 per employee, with a maximum limit of 50 employees per organization
*Skilling Incentive Subsidy of Rs 10,000 per person can be availed for trainings offered by the companies on sustainability related courses curated and/or empanelled by Tamil Nadu Skill Development Corporation
*Technology enablers/Platform entities will get payroll subsidy
The policy is valid for five years.
Read the policy here: https://investingintamilnadu.com/DIGIGOV/StaticAttachment?AttachmentFileName=/pdf/poli_noti/circular_policy.pdf
