New Approvals Set to Accelerate Investment, Manufacturing and Jobs in Puducherry

The Government has notified two new Special Economic Zones (SEZs) in the Union Territory of Puducherry. The proposals were approved by the Board of Approval for SEZs under the Department of Commerce during its 137th meeting held on 27.02.2026.

The projects mark a decisive step in the Government’s continued push towards strengthening the country’s industrial base, expanding exports, and deepening self-reliance in strategic sectors. These approvals constitute a major milestone for Puducherry’s industrial and export-led growth strategy and are expected to expand opportunities for investment, manufacturing, and high-quality employment.

Out of these two SEZs, one IT/ITES SEZ will be developed by M/s Oulgaret Municipality at Thattanchavady village in Oulgaret Taluk. This will be the first SEZ in India to be developed by an Urban Local Body, namely a Municipality. The other, a Multi-Sector SEZ, will be developed by M/s Pondicherry Industrial Promotion Development and Investment Corporation (PIPDIC) at Karasur village in Villianur Taluk.

The brief details of these 2 SEZs are as under:

S. No.	Name of the Entity	Proposed Location of SEZ	Land Area (Hectares)	Proposed Investment (₹ Crore)	Proposed Employment (Direct/Indirect)	Sector of operation
1	M/s. Oulgaret Municipality	Thattanchavady village, Oulgaret Taluk, Puducherry	8.6230	725	3500	IT/ ITES
2	M/s. Pondicherry Industrial Promotion Development and Investment Corporation	Karasur village, Villianur Taluk, Puducherry	86.2457	1250	5000	Multi Sector

The projects underscore the growing momentum across the industrial ecosystem of the Tamil Nadu, Andaman & Puducherry (TAP) Region, where diversified sectors and large-scale projects are increasingly contributing to employment generation and regional economic development.

These SEZ notifications reflect a broader strategy aimed at strengthening India’s industrial, technology, manufacturing, and services ecosystem through diversified SEZ-led growth, thereby enhancing resilience and scale to boost the economy, attract investment, and generate employment.

Special Economic Zones in Puducherry expand industrial growth, investment, exports and employment through IT/ITES and multi-sector projects. Two new Special Economic Zones were notified in Puducherry after approval by the Board of Approval for SEZs under the Department of Commerce. One is an IT/ITES SEZ to be developed by M/s Oulgaret Municipality at Thattanchavady village in Oulgaret Taluk, described as the first SEZ in India to be developed by an urban local body. The other is a multi-sector SEZ to be developed by M/s Pondicherry Industrial Promotion Development and Investment Corporation at Karasur village in Villianur Taluk.