Govt notifies 2 new SEZs in Puducherry to boost industrial growth and exports
New Delhi, May 29
The Government has notified two new Special Economic Zones in the Union Territory of Puducherry after approval by the Board of Approval for SEZs under the Department of Commerce during its 137th meeting held on 27 February 2026.
The move is aimed at strengthening India's industrial base, expanding exports, and supporting investment, manufacturing, and employment generation in the region. According to the Ministry of Commerce & Industry, "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."
Out of the two SEZs, one IT/ITES SEZ will be developed by M/s Oulgaret Municipality at Thattanchavady village in Oulgaret Taluk, making it the first SEZ in India to be developed by a municipal body. The second is a Multi-Sector SEZ, which will be developed by M/s Pondicherry Industrial Promotion Development and Investment Corporation (PIPDIC) at Karasur village in Villianur Taluk.
The government said the approvals are expected to strengthen Puducherry's industrial and export-led growth strategy and create new opportunities for investment and employment. It added that these SEZs "are expected to expand opportunities for investment, manufacturing, and high-quality employment."
The development is also seen as part of a broader strategy to boost the Tamil Nadu, Andaman & Puducherry (TAP) region's industrial ecosystem, where diversified sectors are contributing to regional economic growth.
The ministry further noted that "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."
— ANI
Reader Comments
I'm cautiously optimistic. SEZs have had mixed success in India—some became ghost towns, others transformed regions. The IT/ITES SEZ by Oulgaret Municipality is interesting; local governance can be more responsive. Just hope they don't forget about environmental clearance and proper rehabilitation plans for Karasur village. Yeh sab zaroori hai.
Great move! 🇮🇳 We need more such zones to compete with global manufacturing hubs. But I hope the government also focuses on skill development for local youth—SEZs are useless if our own people don't get the jobs. Puducherry has good infrastructure, so this could really work. Fingers crossed!
I remember the old SEZ policy issues—land acquisition problems, tax evasion concerns. Hope this time they've learned lessons. PIPDIC is a good choice for the multi-sector one, they know the local landscape. Let's see if they can really attract investment beyond IT. Manufacturing needs a lot of handholding in India.
As a Puducherry resident, I welcome this! The Union Territory needs economic diversification beyond tourism. But the 2026 timeline feels slow—by the time these are operational, we'll be in 2028-29. Also, what about infrastructure like power and water? Thattanchavady area already faces water issues. Hope the plan is comprehensive.
Boosting exports and self-reliance—sounds good on paper. But we need to ensure these SEZs don't become tax shelters. The municipal body model is innovative though; could decentralize development. Let's watch
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