Maraimalai Nagar New Town was conceived by CMDA as part of its 1st Master Plan for Chennai Metropolitan Area. This new town is located 45 Km. from the city and was envisaged as a full fledged Satellite Town and also as a countervailing force to control future emigration into the City. About 3,000 Ac. of lands including Patta lands, Government Poramboke lands were notified for development. About 1150Ac. of Patta lands have been acquired and 693 Ac.Reserved forest lands have been taken up for development.
The New Town Development Plan initially envisaged for the development of 10 residential neighborhoods with varying density for different income groups with an industrial areas. Subsequently the development plan was modified to provide for more industrial Area to attract industries and to provide economic base. The Government of Tamil Nadu signed a Memorandum of Understanding (MOU) in 1996 with Mahindra Ford India Ltd (MFIL) to provide lands for establishing an AutomobileIndustry. A total extent of about 270 acres of land (both Patta and Government Poramboke lands) was handed over to MFIL. The location of this industry has been the most important catalist in attracting the population to settle in MMNagar.
CMDA has developed both residential and industrial layouts in about 1200 acres. At present there are about 3500 Housing units, 80 industries, 100 Commercial Establishments including convenient shops, Restaurants etc., 4 Hospitals, 4 Temples, 6 Churches, 1 Mosque, 1 Library, 8 Schools and 4 Banks in MM Nagar New Town.