People also offered special prayers in places of worship while the city's skyline was lit by fireworks as chimes of the clock and church bells announced the dawn of the new year, bringing down the curtains on 2012.
Chennaites heralded the new year with a large number of youngsters turning up at the famous Marina Beach, Elliots Beach and other public places after partying till late night.
After a chorus countdown during the last minutes of the outgoing year, the revellers broke into celebrations sending out high-pitched "Wish You A Happy New Year" greetings.
Special prayers were held in temples, churches and mosques in the city where thousands of police personnel kept a strict vigil. Police had laid down stringent norms for star hotels and other places for safe conduct of new year parties.
The virtual world too was filled with new year wishes, as netizens exchanged wishes across social networking sites.
The coastal town of Kanyakumari, the southern most tip of the Indian peninsula, was buzzing with tourists eager to catch a glimpse of the first sunrise of 2013.
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Sunrise and sunset, seen from Kanyakumari seashore offers a spectacular sight as the sun is viewed from a thin strip of land protruding into the waters at the confluence of three seas - the Bay of Bengal, Arabian Sea and the Indian Ocean.
At Idinthakarai, the epicentre of protests against Kudankulam Nuclear Power Plant, several activists from across the country expressed their solidarity with the protesters on the eve of new year and vowed to continue their struggle.
Leaders, including Governor K Rosaiah, Chief Minister Jayalalithaa and DMK President M Karunanidhi extended their greetings to the people of the state. (More)