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The Tamil Nadu Interim Budget 2026 has not outlined a revival plan for the long-awaited Nanguneri Multi-product Special Economic Zone, leaving stakeholders disappointed. The SEZ's land is largely mortgaged, hindering infrastructure development.

While the budget promotes the establishment of mini IT parks in Tirunelveli and Kanniyakumari, it also highlights the creation of a Centre of Excellence at Government Engineering College in Palayamkottai. Furthermore, a sewage treatment plant is proposed in Tirunelveli, and a pumped storage hydroelectric project is planned in the Vellimalai area of Kanniyakumari district to generate 1,000 MW of power.