Modi would present Sant Kabir Awards and National Awards for handloom weavers on the occasion.
Multiple layers of security have been put up for the high- profile visit, with top police officials directly supervising the security arrangements.
Police have sanitised the venue --Centenary Auditorium of Madras University-- and have since this morning taken the premises under their control with traffic restrictions around the venue.
Though it is expected that Tamil Nadu Chief Minister J Jayalalithaa and Modi may meet, sources in both AIADMK and BJP neither confirmed nor denied the possibility of the meeting. Government sources did not comment either.
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It was then a brief stopover for Modi when he had a 15-minute meeting with Jayalalithaa at the airport.
The Prime Minister would also launch 'India Handloom' brand during his visit here.
"An exhibition showcasing master creations of the awardees is also being inaugurated on the occasion in the adjacent senate building of Madras University," says an official release.
On the occasion of the first National Handloom Day, the Prime Minister is scheduled to confer Sant Kabir awards and National awards for the years 2012, 2013 and 2014 to distinguished handloom personalities.