Tamil Nadu government will buy 500 new electric buses and 2,213 diesel powered buses next fiscal with KfW assistance, said Finance Minister Palanivel Thiaga Rajan on Friday.

Presenting the state budget for 2022-23 in the Assembly, he said: "Under the 'Climate-Friendly Modernisation of Buses in Major Cities of Tamil Nadu' Project being implemented with KfW assistance, 2,213 BS-VI new diesel buses and 500 new electric buses will be procured."

He said owing to the free bus service for women in the state, the share of women passengers has increased from 40 per cent to 61 per cent.

"The scheme has had a huge impact on the socio-economic status of women. In the budget, Rs 1,520 crore will be provided as subsidies towards free bus travel for women, Rs 928 crore as subsidy for student concession in bus fare and Rs 1,300 crore as diesel subsidy, Rajan said.