Perungudi Dumpyard to Close by 2026 as Chennai Plans ₹800-Crore Waste Plant

The Chennai City Corporation plans to close the 225-acre Perungudi dumpyard by the end of 2026, shifting south Chennai's waste processing to a new ₹800-crore waste-to-energy plant in Keerapakkam. The project, proposed in March with tender bids opened last week, aims to provide long-awaited relief to residents and commuters along the foul-smelling 200-Feet Radial Road and Old Mahabalipuram Road (OMR).
Under the new plan, waste generated across south Chennai will be transported at night in around 100 closed trucks via OMR and Grand Southern Trunk (GST) Road, eventually reaching the new 75-acre site in Keerapakkam, near Vengadamangalam.
The proposed facility will process up to 2,500 tonnes of non-biodegradable waste daily through a waste-to-energy (WTE) plant, which is expected to generate 45MW of clean electricity. A private contractor will invest in the project alongside a ₹350-crore contribution from the Tamil Nadu state government. The contractor will earn revenue by selling the generated electricity.
In addition to the WTE plant, the Keerapakkam facility will feature two bio-CNG plants to process up to 400 tonnes of wet waste daily. The gas produced from the harder fraction of wet waste will be sold to private players. The site will also include windrow composting facilities to process up to 800 tonnes of organic waste over a five-acre area.
Greater Chennai Corporation (GCC) Commissioner G S Sameeran stated that approximately 5 lakh tonnes of wet waste remains to be processed in Perungudi. He noted that the dumpyard is expected to be fully cleared by the end of next year.
The state government originally planned a waste-to-incineration plant at Perungudi but abandoned the proposal following public outcry. Sameeran confirmed that the new Keerapakkam site is conducive to the project, though environmental clearance is still required before finalising the bidder.
Once the Perungudi site is fully restored, the civic body plans to hand over the land to the environment department. Reclaimed portions of the dumpyard have already begun showing vegetation growth. Plans to develop an eco-park at the site were previously shelved due to opposition from local residents.