Tamil Nadu 2025 Budget: Major Infrastructure, Industrial, and Urban Development Announced

Tamil Nadu’s ₹6,858 Cr Budget Plan to Transform Chennai & Boost Infrastructure Growth!

Saranya Manoj
5 Min Read
Highlights
  • Tamil Nadu Industrial Development Corporation (TIDCO) will develop a new satellite city with seamless connectivity to Chennai to decongest urban areas.

Key Projects to Transform Chennai and Beyond

The Tamil Nadu State Government, in its 2025 Budget, has announced major allocations for infrastructure, industrial growth, urban expansion, and climate resilience. Some of the biggest highlights include:

₹6,858 crore for Vada Chennai Valarchi Thittam (North Chennai Development Plan)
A new 2,000-acre city near Chennai to ease urban congestion
₹1,500 crore for Adyar River Restoration & Beautification
₹310 crore for a new flyover in Velachery
₹2,100 crore for a 14.2 km elevated road from Thiruvanmiyur to Uthandi
₹350 crore for Chennai’s 6th Reservoir in Kovalam sub-basin
Climate-resilient Sponge Parks across Chennai
Blue Flag certification for six beaches
Registration fee reduction for women property owners


Urban Expansion & Infrastructure Development

🚧 New City Near Chennai (2,000 acres): Tamil Nadu Industrial Development Corporation (TIDCO) will develop a new satellite city with seamless connectivity to Chennai to decongest urban areas. The first phase will be launched soon.

🛣️ Key Road & Flyover Projects:
✔ ₹310 crore flyover between Velachery Bypass Road & Guru Nanak College Junction
✔ ₹70 crore flyover at Korukkupet
✔ ₹2,100 crore for a 14.2 km elevated road from Thiruvanmiyur to Uthandi
Multi-modal transport terminals announced in Guindy & Washermanpet (₹50 crore each)

🚰 Water Infrastructure:
₹350 crore allocated for Chennai’s 6th reservoir in the Kovalam sub-basin, providing 170 MLD potable water per year
₹2,423 crore Ring Main Pipeline Project to ensure even water distribution

🌊 Coastal & Riverfront Development:
₹1,500 crore for Adyar River Restoration & Beautification
✔ ₹24 crore for Blue Flag certification of six beaches in Chennai, Thoothukudi, Villupuram & Cuddalore

🏗️ Rural Housing Expansion:
1 lakh additional houses under ‘Kalaingar Kanavu Illam’ scheme (₹3,500 crore)

🏭 Industrial Parks & Development Hubs:
Hosur Knowledge Corridor
Footwear Parks in Melur (Madurai) & Cuddalore
Industrial Park for Engineering & Fabrication in Trichy
Coimbatore to get two Centers of Excellence for advanced pump & motor manufacturing


Strengthening Chennai’s Public Transport & Connectivity

🚇 Chennai Metro Rail Expansion:
✔ DPRs (Detailed Project Reports) to be submitted for:

  • Airport to Kilambakkam
  • Koyambedu to Pattabiram via Avadi
  • Poonamallee to Sunkuvarchathram via Sriperumbudur
    ✔ Studies to be conducted for:
  • Tambaram to Velachery via Guindy
  • Lighthouse to High Court
    Regional Rapid Transit System (RRTS) exploration

🚍 Public Transport Modernization:
1,125 electric buses to be deployed in Chennai, Coimbatore & Madurai
700 diesel buses to be converted to CNG


Industrial Growth & Emerging Sectors

🛰 MSMEs & Startups:
New Industrial Estates in 9 Locations by SIDCO
‘Space Tech Fund’ to encourage space-tech startups

🛳️ Semiconductor & Maritime Policies:
Tamil Nadu Semiconductor Mission 2030 (₹500 crore)
Semiconductor Fabless Lab in Chennai (₹100 crore)
✔ Semiconductor manufacturing parks in Sulur (Coimbatore) & Palladam (Tiruppur)
Tamil Nadu Maritime Transport Manufacturing Policy 2025

🏢 Tech & IT Hubs:
Tidel Park in Hosur
Mini-Tidel Park in Virudhunagar

New Airport in Rameswaram to boost regional connectivity


Climate & Environmental Initiatives

🌍 ₹88 crore for 7 Climate-Resilient Sponge Parks
✔ These parks absorb rainwater to prevent flooding & improve groundwater levels

🐦 Dhanushkodi to be declared a Greater Flamingo Sanctuary

🌊 Marine Resource Foundation to be established for coastal & marine ecosystem conservation

🏭 Waste-to-Energy (WTE) Plants:
New WTE plant in Tambaram
Chennai’s controversial Kodungaiyur WTE project continues


Tourism & Disaster Management

🏞️ New Tourism Act & Eco-Parks:
Tamil Nadu Tourism Promotion & Facilitation Act to streamline the tourism sector
Eco-Park in Udagamandalam’s Race Course

🆘 Disaster Preparedness:
Tamil Nadu State Institute of Disaster Management (TNSIDM) to be set up in Chennai
Heat Wave Action Plans for 11 cities


Support for Women Homeowners

🏡 Registration fee for immovable properties (houses, plots, agricultural land) valued up to ₹10 lakh will be reduced by 1% if registered in a woman’s name.

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