Tamil Nadu Government Bets Big on Deep-Tech and AI with New State Initiatives

The Tamil Nadu government on Tuesday (August 25, 2026) announced new measures covering artificial intelligence and deep technology under the Department of Artificial Intelligence, Information Technology, and Digital Services, as per a Moneycontrol report. 

Minister Kumar R presented the announcements in the State Legislative Assembly. The measures include a new fund, infrastructure projects, public-private partnerships, and specialised AI tools for different sectors. 

The announcements are for supporting technology development, research, and startups working in areas identified by the state government. 

₹50 Crore Fund for Deep-Tech Projects 

A key announcement was the proposed Vetri Tamil Nadu Deep-Tech Innovation Fund, to be set up through the Tamil Nadu Technology Hub, or iTNT Hub. 

The fund will start with a corpus of ₹50 crore. It will support deep-tech startups, researchers, innovators, and PhD scholars working on technologies requiring research and specialised development. 

The government has identified artificial intelligence and machine learning, large language models, small language models, advanced materials, semiconductors, and robotics as areas covered under the fund. 

Support for Startups and Researchers 

According to the government, the fund will provide targeted support to people and organisations working in the identified fields. This includes startups as well as researchers, innovators, and PhD scholars. 

The state said the initiative draws on Tamil Nadu's existing research and academic base. Details of the funding structure beyond the initial ₹50 crore corpus were not included in the announcement. 

The proposed fund will operate through iTNT Hub, which has been named as the platform for establishing the initiative. 

25% Set Aside for SC/ST Founders 

The government has also proposed reserving 25% of the fund's allocation for founders from Scheduled Castes and Scheduled Tribes. 

This portion will be set aside separately within the proposed fund. The allocation is intended for SC/ST founders working in the deep-tech areas covered by the initiative. 

Alongside the fund, the government announced plans involving technology infrastructure, public-private partnerships and specialised AI tools across several sectors. 

Read More: India Plans Regulatory Changes for Semiconductor Equipment and Auto Component Manufacturers! 

Conclusion 

The announcements bring a ₹50 crore deep-tech fund, support for research and startups, and a 25% allocation for SC/ST founders under Tamil Nadu's latest technology measures. The programme covers AI, language models, semiconductors, advanced materials and robotics. 

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