Tamil Nadu Budget 2025-26: Coimbatore, Tirupur gets major infrastructure and industrial boost
The budget signals a strong push towards infrastructure development, industrial growth, and improved public services in these key districts, reinforcing the state's commitment to balanced urban and rural development;

Tamil Nadu Budget for 2025-26 was presented by State Finance Minister Thangam Thennarasu
CHENNAI: The Tamil Nadu government has unveiled an ambitious budget for the 2025-26 fiscal year, with significant allocations for Coimbatore and Tirupur. The budget signals a strong push towards infrastructure development, industrial growth, and improved public services in these key districts, reinforcing the state's commitment to balanced urban and rural development.
1. Coimbatore to emerge as an Industrial and Educational powerhouse
Coimbatore has received a substantial share of the budget, with a series of projects aimed at strengthening its position as a leading industrial and educational center.
Infrastructure and Urban Development
* Rs 200 crore has been allocated for upgrading roads within Coimbatore Corporation as part of a larger Rs 3,750 crore state-wide urban road improvement initiative.
* Riverside development works, including sewage treatment plants, footpaths, street lights, modern toilets, children’s parks and other modern facilities will be carried out at an estimated cost of Rs 400 crore, shared with Tiruchy, Madurai, Erode, and Tirunelveli.
* Coimbatore Corporation to raise Rs 120 crore through Municipal Bonds to support urban infrastructure projects
Education and Labour Welfare
* A modern hostel for girl students will be set up in Coimbatore at a cost of Rs 275 crore (shared with Chennai and Madurai), accommodating 1,000 students, with priority for marginalised communities.
* A new Industrial Training Institute (ITI) at Perur in Coimbatore district will provide training to around 1,370 students annually at an estimated cost of Rs 148 crore.
* A Basic Sciences and Mathematics Research Centre will be established in collaboration with the Indian Institute of Science (IISc) and Tata Institute of Fundamental Research (TIFR) at a cost of Rs 100 crore.
Industrial and Technological Growth
* semiconductor manufacturing parks will be developed in Sulur and Palladam, each spanning 100 acres, in collaboration with firms from the United States, Singapore, Malaysia, and Taiwan.
* A Centre of Excellence for advanced pump motor manufacturing and a Centre of Excellence for foundry will be established to support Coimbatore’s industrial sector.
Transport and Connectivity
* A metro rail project covering Avinashi Road and Sathyamangalam Road, with an estimated cost of Rs 10,740 crore, have been submitted for equity contribution from the Union Government.
* 75 electric buses will be deployed in Coimbatore with financial assistance from the World Bank and the German Development Bank (KfW).
* A 12.5 km long Coimbatore Western Bypass will be constructed at a cost of Rs 348 crore to ease traffic congestion.
Heritage and Conservation
* The Tamil Nadu Agricultural University - Research Institute in Coimbatore will be renovated at an estimated cost of Rs 150 crore along with other heritage structures to preserve the ancient builings.
2. Tirupur to Benefit from Industrial and Infrastructure Expansion
Tirupur, a key hub for the textile industry, will also see substantial budgetary support to enhance infrastructure and boost industrial capabilities.
Infrastructure and Urban Development
* A new Combined Water Supply Scheme (CWSS) will be implemented at a cost of Rs 890 crore, benefiting 4.91 lakh people across 1,252 rural habitations.
* Tirupur to raise Rs 100 crore through Municipal Bonds to support urban infrastructure projects.
Education and Labor Welfare
* A new Industrial Training Institute (ITI) will be set up at Kangeyam in Tirupur district, providing training in four trades and benefiting 1,308 students annually, at a cost of Rs 152 crore.
Regional Connectivity and Transport
* A feasibility study for a Regional Rapid Transit System (RRTS) connecting Coimbatore, Tirupur, Erode, and Salem (185 km) will be conducted to enhance regional connectivity and reduce travel time.