Tamil Nadu CM Vijay Announces ₹3 Hike in Milk Prices, ₹33K Crore Infra Push

Tamil Nadu Chief Minister C. Joseph Vijay announced on Monday that the state will raise the Aavin milk procurement price from ₹41 to ₹44 per litre, a move aimed at easing the financial burden on dairy farmers and boosting the rural economy. The decision follows a previous hike on 19 August that lifted the rate from ₹38 to ₹41. In addition to the dairy policy, Vijay unveiled a ₹33,066‑crore multi‑sector infrastructure plan that will upgrade the power grid, launch a semiconductor park, create a FinTech hub and establish a logistics centre.

The new milk price will cost the government an estimated ₹60 crore per month, or ₹720 crore annually, as Vijay said the state will need to cover rising cattle‑feed and maintenance costs. The announcement was made at a press conference in Chennai, where the CM emphasized that the hike would provide “crucial relief for dairy farmers across the state.”

Vijay’s infrastructure push includes a ₹33,066‑crore Tamil Nadu Transmission Improvement Scheme designed to install 196 new substations and lay 15,000 km of power lines. The scheme also covers a 1,600‑MW Super‑Critical Thermal Power Station to be built in Tuticorin under a public‑private partnership model, with a projected investment of ₹20,800 crore. Chennai’s distribution network will receive upgrades worth ₹1,762 crore to improve flood resilience and meet high load demands.

In the technology sector, the CM announced a semiconductor and electronics manufacturing park in Maduramangalam, Kanchipuram district, with an investment of ₹175 crore. Coimbatore will receive a ₹400‑crore FinTech hub to accelerate digital financial services, while a multi‑modal logistics hub in the Tiruchirappalli region will strengthen industrial supply chains.

The policy changes come as Tamil Nadu seeks to diversify its economy and support key sectors such as dairy, power, and technology. The Aavin milk price hike is expected to benefit thousands of small‑scale farmers, while the infrastructure investments aim to position the state as a hub for renewable energy, electronics manufacturing, and digital finance.

The CM’s announcements were met with applause from dairy farmer representatives and industry stakeholders, who welcomed the government’s commitment to addressing rising production costs. Critics, however, warned that the additional financial outlay could strain the state’s budget, especially as the economy recovers from the pandemic.

Vijay’s government has pledged to monitor the impact of the milk price increase and adjust procurement rates if necessary. He also reiterated plans to further enhance the state’s power grid, expand the semiconductor park, and attract investment in the FinTech and logistics sectors.

The announcements reflect the CM’s broader strategy to strengthen Tamil Nadu’s economic resilience and provide tangible benefits to rural communities while positioning the state as a leader in technology and infrastructure development.

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