The Tamil Nadu state government, in its budget for 2025, has allocated Rs 6,858 crore for the Vada Chennai Valarchi Thittam (North Chennai Development Plan), introduced in 2023 to promote equitable growth. Additionally, the state has announced plans to develop a new city spanning 2,000 acres near Chennai to alleviate urban congestion. The proposed city will have seamless connectivity with Chennai, and its first phase will be launched soon by the Tamil Nadu Industrial Development Corporation Limited (TIDCO), Finance Minister Thangam Thennarasu announced, on Friday, March 14.
The Minister said that various development initiatives are underway under the Vada Chennai Valarchi Thittam, including the construction of a bus stand, new housing facilities, improved drinking water supply, and enhancements to educational and medical infrastructure. Skill development training programs will also be implemented, the Minister added.
Further, Rs 1,500 crore has been allocated for the Adyar River Restoration and Beautification Project and Rs 88 crore has been set aside for developing seven climate-resilient Sponge Parks across the Chennai Metropolitan area. A sponge park absorbs and filters water to reduce flooding and improve groundwater
The State also allocated Rs 310 crore for constructing a new flyover flyover spanning 3 km between Velachery Bypass Road and Gurunanak College Junction. Another flyover will be built at Korukkupet at an estimated cost of Rs 70 crore. Additionally, the Tamil Nadu State Highways Authority (TNSHA) will construct a four-lane elevated road covering a 14.2 km stretch between Thiruvanmiyur and Uthandi at a cost of Rs 2,100 crore. These projects aim to ease traffic congestion, the Minister said. In addition to these, two multi-modal transport terminals have also been announced for Guindy and Washermanpet, at a cost of Rs 50 crores each.
Also read: Tamil Nadu Budget 2025: Metro expansion, high-speed rail on the horizon
To strengthen Chennai’s water supply, Rs 350 crore has been earmarked for a new reservoir with an annual capacity of 2.25 TMC. The city’s sixth reservoir will provide 170 MLD of potable water per year and will be developed in the Kovalam sub-basin across 4,375 acres of government land, situated between Old Mamallapuram Road and East Coast Road. Additionally, the Rs 2,423 crore Ring Main Pipeline Project will be implemented to connect all water distribution stations, allowing for the redistribution of excess water to areas experiencing shortages.
Further, Rs 24 crore has been allocated to develop three beaches along Chennai’s coast line — Tiruvanmiyur, Palavakkam, Uthandi — and three beaches in Thoothukudi, Villupuram and Cuddalore district. These beaches are being prepared to receive Blue Flag certification in the current financial year.
Apart from the proposed controversial Waste-To-Energy (WTE) plant in Chennai’s Kodungaiyur, a new WTE plant has been announced for Tambaram corporation under the 2025-26 budget.