The Tamil Nadu government on Wednesday announced an AI-enabled planning approval system, integrating multiple agencies, and a new rental housing scheme to develop one lakh housing units in Chennai over the next seven years, as part of the 2026-27 Budget.

In the revised Budget Estimates, ₹8,852 crore has been allocated for the Housing and Urban Development Department, which is an increase from the Interim Budget 2026-27 by the DMK-led Tamil Nadu government, which allocated ₹7,547 crore. A total of ₹8,737.71 crore was allocated for the department in FY 2025-26.

The Chennai Metropolitan Development Authority (CMDA) was preparing the Third Master Plan (2027-2046) for the existing Chennai Metropolitan Area (CMA) covering 1,189 sq. km., the Budget mentioned. A Comprehensive Master Plan would be prepared for the expanded CMA covering 5,904 sq. km. to serve as a roadmap for its long-term growth and transformation, benchmarked against internationally acclaimed metropolitan planning frameworks. An allocation of ₹25 crore has been made for the scheme.

To streamline planning approvals, the State government announced the introduction of an AI-enabled online planning approval system, Single Platform for Efficient Expedited Development (SPEED), integrating the CMDA, the Directorate of Town and Country Planning (DTCP), and rural and urban local bodies to provide timely and transparent planning permissions across Tamil Nadu. The Budget allocated ₹40 crore for the initiative.

The Budget also stated that 24,131 under-construction multi-storeyed tenements would be completed this year, while work on another 14,194 tenements would commence during the year. A total of ₹1,253 crore was allocated for the programme.

The TNUHDB will also launch the Metropolitan Youth and Family Housing Scheme (MY-HOME) as a pilot initiative in the CMA. Under the scheme, one lakh housing units will be developed over the next seven years through public-private partnership model, attracting an estimated investment of ₹15,000 crore, supported by ₹3,500 crore in Viability Gap Funding through the Tamil Nadu Shelter Fund.

The Budget stated that the scheme would introduce a Digital Rental Voucher system to provide safe and affordable housing for low-income families and youth, while contributing to the long-term transformation of the Chennai Metropolitan Area.