The Tamil Nadu Budget announced on Friday has a host of announcements for Coimbatore and Tiruppur districts.

Among the main plans for the districts are semiconductor plants at in Palladam and Sulur, centre of excellence for pump industry, 75 electric buses for Coimbatore, archaeological excavation at Vellalore, generation of 1800 MW power at Aliyar, hostel for women students, and development of lake bunds in Coimbatore city.

The Budget also has an allocation of ₹348 crore for development of the second phase of western bypass project.

For Tiruppur district, a budgetary allocation of ₹890 crore has been made to implement combined drinking water projects covering 1,252 rural habitations with a population of 4.91 lakhs. Also, a new Government ITI has been sanctioned for Kangayam.

Rajesh Doraiswamy, chairman of CII Coimbatore, said in a press release that with Tamil Nadu setting an ambitious target to achieve a $1 trillion economy, Coimbatore should aim to contribute 50% of the State’s GDP. “The Budget has rightly recognised the city’s potential and introduced crucial initiatives to boost its industrial and economic growth.”

One of the most significant announcements is the Semiconductor Mission 2030, with an investment of ₹500 crore. This includes the establishment of semiconductor parks in Coimbatore (Sulur and Palladam of 100 acres each), a move that aligns with CII Coimbatore’s recommendations to position the city as a key semiconductor hub. With Coimbatore’s strong foundation in foundries, automobile, electronics, and power electronics, and educational institutions the city possesses an immense talent pool. This initiative will integrate these strengths, making Coimbatore an irresistible destination for semiconductor manufacturing.

The semiconductor parks will foster a robust startup and industry ecosystem, drive new product development, and enhance industrial competitiveness, he said.

The allocations for Coimbatore Pump Industry Centre of Excellence and Coimbatore Foundry Industry Centre of Excellence will boost research and development, he said.

S. K. Sundararaman, chairman of the Southern India Mills’ Association (SIMA), said the Budget allocation of ₹30 crore to modernise powerlooms into shuttleless looms will enable the weaving sector produce better quality products. The announcement made for garment and made-up segments to establish common facility centre for fabric cutting using fully automatic computerised fabric cutting machines with an allocation of ₹50 crore for next five years will be a support to the predominantly MSME garments and made-ups segments across the State particularly the clusters such as Tiruppur, Karur, Virudhunagar, and Chennai.

The allocation of ₹15 crore for technical textiles sector will not only encourage the existing textile manufacturers to diversify into technical textiles, but also would encourage new investments in this key sector.

The Tiruppur Exporters Association president K.M. Subramanian said the allocation of ₹1,980 crore for textiles and handlooms and expansion of hostels for women workers apart from allocation for free sari and dhoti scheme will all benefit the sector in the State.

A. Sakthivel, vice chairman of the AEPC, welcomed the announcements related to Coimbatore – Tiruppur rapid metro rail project and ITI at Kangayam.