**Executive Summary**
The Government of India has notified two new Special Economic Zones (SEZs) in Puducherry following approval by the Board of Approval on February 27, 2026. These projects are designed to accelerate investment, manufacturing, and job creation, marking a significant milestone in the Union Territory’s export-led growth strategy. The notifications involve an IT/ITES SEZ and a Multi-Sector SEZ, collectively targeting nearly ₹2,000 crore in investment.
**Key Points / Main Content**
* **IT/ITES SEZ Development:**
* **Developer:** M/s Oulgaret Municipality.
* **Innovation:** This is the first SEZ in India to be developed by an Urban Local Body.
* **Location:** Thattanchavady village, Oulgaret Taluk, Puducherry.
* **Specifications:** 8.6230 hectares of land, proposed investment of ₹725 crore, and projected employment of 3,500 (direct/indirect).
* **Multi-Sector SEZ Development:**
* **Developer:** M/s Pondicherry Industrial Promotion Development and Investment Corporation (PIPDIC).
* **Location:** Karasur village, Villianur Taluk, Puducherry.
* **Specifications:** 86.2457 hectares of land, proposed investment of ₹1,250 crore, and projected employment of 5,000 (direct/indirect).
* **Strategic Objectives:**
* **Regional Growth:** Part of a broader strategy to boost the industrial ecosystem of the Tamil Nadu, Andaman & Puducherry (TAP) region.
* **Economic Impact:** Aims to strengthen India’s technology and manufacturing sectors while deepening self-reliance in strategic areas.
* **Macroeconomic Goals:** Designed to enhance economic resilience, attract international investment, and expand high-quality employment opportunities.
**Impact Analysis**
**M/s Oulgaret Municipality**
**Impact:**
Assumes a pioneering role as the first Urban Local Body in India to develop an SEZ, specifically focused on the IT/ITES sector.
**Action Required:**
Execute the development of the 8.6230-hectare site at Thattanchavady village and manage the projected ₹725 crore investment.
**M/s Pondicherry Industrial Promotion Development and Investment Corporation (PIPDIC)**
**Impact:**
Tasked with developing a large-scale Multi-Sector SEZ, significantly expanding its footprint in regional industrial promotion.
**Action Required:**
Oversee the implementation and infrastructure development of the 86.2457-hectare project at Karasur village.
**Local Workforce and Job Seekers**
**Impact:**
Beneficiaries of approximately 8,500 new direct and indirect employment opportunities across IT and various industrial sectors.
**Action Required:**
Prepare for high-quality employment roles emerging from the expansion of the technology and manufacturing sectors in Puducherry.
**Potential Investors and Manufacturing Entities**
**Impact:**
Gain access to new, notified industrial and technology zones with diversified SEZ-led growth opportunities in the TAP region.
**Action Required:**
Assess the new SEZ locations for potential business establishment, manufacturing facilities, or service-based investments.
Key Entities Referenced
Special Economic Zones (SEZs): The primary policy framework under which the notification is issued to boost investment, manufacturing, and exports.
Board of Approval for SEZs: The regulatory body under the Department of Commerce responsible for granting approvals for the establishment of new economic zones.
Puducherry (Thattanchavady and Karasur villages): The Union Territory and specific locations identified for the development of new IT/ITES and Multi-Sector SEZs.
Oulgaret Municipality: The developer of the IT/ITES SEZ at Thattanchavady, noted as the first Urban Local Body in India to develop an SEZ.
Pondicherry Industrial Promotion Development and Investment Corporation (PIPDIC): The industrial development agency responsible for establishing the Multi-Sector SEZ at Karasur village.
Ministry of Commerce & Industry
Government Notifies Two New SEZs in
Puducherry Following Approval by Board of
Approval
New Approvals Set to Accelerate Investment, Manufacturing
and Jobs in Puducherry
Posted On: 29 MAY 2026 5:35PM by PIB Delhi
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 Proposed Land Area Proposed Proposed Sector of
Entity Location of SEZ (Hectares) Investment Employment operation
(₹ Crore) (Direct/Indirect)
1 M/s. Oulgaret Thattanchavady 8.6230 725 3500 IT/ ITES
Municipality village, Oulgaret
Taluk,
Puducherry2 M/s. Karasur village, 86.2457 1250 5000 Multi
Pondicherry Villianur Taluk, Sector
Industrial Puducherry
Promotion
Development
and
Investment
Corporation
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.
***
Abhishek Dayal/ Garima Singh/ Ishita Biswas
(Release ID: 2266684) Visitor Counter : 1074
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