Highlights | Tamil Nadu Budget 2025: Airport in Ramanathapuram, 2,000-acre global city near Chennai among key announcements

CHENNAI: Tamil Nadu Finance Minister Thangam Thennarasu presented the 2025-26 Budgetat the Legislative Assembly building in the state Secretariat on Friday.

The Budget aims to uplift marginalised communities, support students, and create more opportunities for professionals.

A key highlight is the sustained investment in flagship initiatives, including free bus travel for women, the development of a 2,000-acre modern city, and a Rs 20,000 subsidy for 2,000 gig workers to buy electric scooters.

These efforts, along with strategic investments in industrial parks, skill development, and transport infrastructure, are set to boost Tamil Nadu’s economic growth and job creation.

Finance Minister Thangam Thennarasu is set to present the financial statement for the 2025-26 fiscal year shortly.

As the budget is being presented, AIADMK MLAs stage a protest, raising questions about the liquor scandal.

AIADMK stages a walkout ahead of the budget presentation after Speaker M Appavu denied permission for a debate over the alleged Tasmac scam.

"No matter the obstacles, we will steer Tamil Nadu without losing balance. The foundation for excellence in education, healthcare, and agriculture was laid 100 years ago. Tamil Nadu is the second-largest economy in India and is progressing towards multifaceted development," said Thangam Thennarasu.

AIADMK MLAs addressed the media after they walked out of the State Assembly over alleged TASMAC scam.

- Rs 2 crore allocated for digitising ancient documents.

- Rs 2 crore allocated for organising book fairs abroad.

- Spreading Thirukkural worldwide is our duty; it has been translated into over 25 Indian and global languages.

- Rs 10 crore allocated in the first phase for translating literary works.

- Thirukkural will be translated into all 193 languages of the UN.

- World Tamil Olympiad to be conducted annually.  

After AIADMK, BJP has also staged a walkout from the Tamil Nadu Assembly.

TN Budget allots Rs 3,500 crore for 1 lakh new houses under Kalaignar Kanavu Illam housing scheme.

Tamil Nadu Budget allots Rs 2,200 crore for CM's Rural Roads Development Scheme.

A flyover will be constructed from Velachery Main Road to Guindy at a cost of Rs 310 crore.

Sponge parks are beneficial in low-lying areas and have the ability to collect and store water during heavy rain. This prevents inundation in the locality, and also helps in recharging groundwater level and make urban spaces more absorbent.

A 2,000-acre integrated new city will be developed near Chennai, featuring metro, bus, and road infrastructure, said Minister Thangam Thennarasu.

- Steps taken to ensure equal water distribution across all parts of Chennai.

- Primary ring main pipeline project for uniform water supply.

- Rs 602 crore allocated for a combined drinking water project.

- Rs 2,423 crore allocated for the primary ring main pipeline project.

- Combined drinking water projects to be implemented in Pudukkottai, Mayiladuthurai, Tenkasi, Thoothukudi, Erode, and Thiruvallur.

Women using fare-free bus services has risen to 65 per cent from 40 per cent, says Minister Thangam Thenarasu in Budget speech.

In Pudukottai district, a Combined Water Supply Schemes (CWSS) will be implemented at a cost of Rs.1,820 crore, benefitting 4.07 lakh people in Pudukottai Corporation, Aranthangi Municipality and 526 rural habitations.

In Mayiladuthurai district, a CWSS will be implemented at a cost of Rs.2,200 crore, benefitting 11.22 lakh people in Mayiladuthurai and Sirkazhi Municipalities, Tharangampadi, Manalmedu and Kuthalam Town Panchayats and 1,042 rural habitations.

In Tenkasi district, a CWSS will be implemented at a cost of Rs.864 crore, benefitting 5.64 lakh people in Kadayanallur Municipality and 493 rural habitations.

In Thoothukudi district, a CWSS will be implemented at a cost of Rs.370 crore, benefitting 1.3 lakh people in 639 rural habitations.

In Tiruppur district, a CWSS will be implemented at a cost of Rs.890 crore benefitting 4.91 lakh people in 1,252 rural habitations

In Erode district, a CWSS will be implemented at a cost of Rs.374 crore, benefitting approximately 92,000 people in 214 rural habitations.

In Tiruvallur district, a CWSS will be implemented at a cost of Rs.150 crore, benefitting approximately 76,000 people in 138 rural habitations.

In the Budget Estimates, a sum of Rs 26,678 crore has been allocated for the Municipal Administration and Water Supply Department.

The Government is implementing the ‘Vada Chennai Valarchi Thittam’ to promote balanced growth in Chennai.

As part of this initiative, various development projects including the construction of a bus stand, provision of housing facilities, enhancement of drinking water, educational, and medical infrastructure, improvement of lakes, ponds, and beaches, establishment of a fish market, gym, parks, sports facilities, construction

of electric crematoria, upgradation of electricity substations and transformers, setting up of polytechnic 22 colleges and provision of skill development training are

being undertaken at an estimated cost of Rs.6,858 crore.

The Egmore Museum houses over two thousand bronze statues, meticulously crafted from Aimpon (an alloy of five metals) by the great master artisans of the past.

To showcase these sculptural masterpieces that are renowned for their serene expressions, elegant postures, and intricate mudras, a gallery with traditional architectural design will be constructed within the museum complex at an estimated cost of Rs.40 crore, ensuring an immersive experience that will captivate the international visitors.

An ‘Indus Valley Cultural Gallery’ will be established at the Egmore Museum in Chennai to commemorate the centenary of the Indus Valley Civilization discovery.

Moreover, with a view to showcasing the uniqueness of antiquity and continuity of Tamil heritage to tourists visiting Tamil Nadu from other states and around the world, Tamil Cultural Museums will be created in Mamallapuram and Thiruvannamalai.

Under the ‘Mudhalvarin Grama Salaigal Membattu Thittam’ (MGSMT) scheme, which was introduced with the aim of creating quality road facilities to reach even the remotest hamlets of Tamil Nadu, a length of 6,100 kilometers of rural roads will be improved at a cost of Rs.2,200 crore in 2025-26.

Further, for the continuous maintenance of village panchayat and panchayat union roads, funds from the State Finance Commission Grants will be allocated and a sum of Rs.120 crore will be released in the year 2025-26.

-TN Budget allots Rs 3,600 crore as subsidy for fare-free 'Vidiyal' bus travel scheme for women.

-Woman beneficiary under fare-free bus travel scheme saves, on an average, Rs 888 per month, says Minister Thangam Thenarasu.

-Under fare-free 'Vidiyal' bus travel scheme, on daily average basis, 50 lakh women utilise services: TN Budget.

-Women using fare-free bus services has risen to 65 per cent from 40 per cent, says Minister Thangam Thenarasu in Budget speech.

In the year 2025-26, roads measuring a length of 6,483 km in all Corporations, Municipalities and Town Panchayats in Tamil Nadu will be upgraded at an estimated cost of Rs.3,750 crore by converging various funds.

Under this scheme, in particular, roads to an extent of 570 km will be taken up at a cost of Rs.486 crore in Greater Chennai Corporation, Rs.200 crore in Coimbatore Corporation and Rs.130 crore in Madurai Corporation.

The project has been taken up at an estimated cost of Rs.1,500 crore in collaboration with private partners.

The first phase of this project, scheduled for completion within 30 months, will prioritize the works between Saidapet and Thiru.Vi.Ka. Bridge, with these tasks expected to be completed within 15 months.

Additionally, seven climate-resilient Sponge Parks will be set up across Greater Chennai Corporation areas at an estimated cost of Rs.88 crore.

Greater Chennai Corporation receives drinking water from five water treatment plants and three seawater desalination plants. Each plant is designed to supply specific areas of the city through separate main pipelines.

Thus, when required, surplus water from one area cannot be diverted to another area where there is a shortage.

To address this issue, a new project, ‘Ring Main Pipeline Project’, will be 19 implemented for connecting all the water distribution stations to ensure equitable distribution of water supply to all the water distribution stations in Chennai city.

This project will be implemented over the next three years at an estimated cost of Rs.2,423 crore to ensure balanced water supply.

Women, who are eligible but have not yet received Rs 1,000 per month assistance, will soon get opportunity to apply: TN Fin Minister.

TN Budget announces 10 more 'Thozhi' working women's hostels at cost of Rs 77 crore; already 13 hostels are functioning.

Work expedited to setup new airport at Parandur near Chennai, says TN Minister Thangam Thenarasu in Budget speech.

To reduce air pollution and improve the environment, 950 electric buses will be introduced in Chennai, 75 in Coimbatore, and 100 in Madurai. A total of 1,125 electric buses will be launched this year with financial assistance from the World Bank and the German Development Bank for public use.

TN announces plan to set up a new airport in Ramanathapuram, Rameswaram, given the rising tourist inflow in the region

Detailed Project Reports (DPR) will be prepared for the extension of the Chennai Metro Rail corridor from Tambaram to Guindy via Velachery (21 km) and from Lighthouse to the High Court (6 km), as announced in the budget.

-Rs 21,906 crore allocated for the Health and Family Welfare Department.

-A new bird sanctuary will be established in Dhanushkodi.

-Rs 74 crore allocated as subsidy for 19,000 artisans under the 'Kalaignar Kaivinai Thittam.'

The Government will launch and implement the programme over the next five years with an estimated allocation of Rs.500 crore.

A ‘Semiconductor Fabless Lab’ will be established in Chennai at an estimated cost of Rs.100 crore in collaboration with leading industry and academic institutions. World-class semiconductor design companies and domestic start-ups will be encouraged to establish their design centres in Tamil Nadu.

Government plans to position Hosur, which has been witnessing industrial development, as a new hub for GCCs (Global Capability Centres) and research and development.

With this vision, a ‘Hosur Knowledge Corridor’ with world-class 51 infrastructure facilities will be set up along Hosur city, akin to the transformation of Old Mamallapuram Road (OMR) in Chennai into an IT corridor.

This corridor will be equipped with all necessary facilities to support the establishment of GCCs and R&D centres of leading global IT firms.

The ‘Kalaignar Kaivinai Thittam’ was launched by the State Government to provide financial assistance, skill training, and other essential support for artisans involved in 25 traditional crafts, including wood and sculpture carving, jewellry making, glasswork, beadwork, and musical instrument making.

In 2025-26, a sum of Rs.74 crore has been allocated as subsidy to support approximately 19,000 artisans.

To encourage such Space-tech Startups, a ‘Space Tech Fund’ with an allocation of Rs.10 crore will be set up.

Additionally, Foundation & Prototype development lab for satellite testing, space-grade qualification test facilities, incubation and skill development facilities will be setup in Chennai.

The scheme will provide vouchers for availing data centre services worth up to Rs.5 lakh each to startups registered with iTNT and StartUp TN will be implemented by ELCOT through the ‘Tamil Nadu StartUp Data Server Services Scheme’ at an allocation of Rs.10 crore.

Chennai Metro Rail Phase-II is the largest ongoing metro rail project in the country, being implemented at a cost of Rs.63,246 crore and a total length of 119 km across three corridors.

The project is progressing rapidly, and in these routes, the elevated corridor between Poonamallee and Porur is set to be opened for public use in December this year.

Detailed project reports for the metro rail projects on the Avinashi Road and Sathyamangalam Road routes in Coimbatore, estimated at Rs.10,740 crore, and for the Thirumangalam–Othakadai corridor in Madurai, estimated at Rs.11,368 crore, have been submitted for equity contribution from the Union Government.

Construction work in both the cities will commence as soon as the approval is granted.

Additionally, for extending the Chennai Airport metro line to Kalaignar Centenary Bus Terminus in Kilambakkam, covering 15.46 km at a cost of Rs.9,335 crore; extending the Koyambedu line to Pattabiram via Avadi, spanning 21.76 km at a cost of Rs.9,744 crore; and for extending 27.9 km of metro line from Poonamallee to sunkuvarchatram via Sriperumpudur at a cost of Rs.8,779 crore, the Detailed Project Reports were received and the same will be submitted to the Union Government for their equity contribution.

*End of Live updates*

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