The Government has notified two new Special Economic Zones in the Union Territory of Puducherry following approval by the Board of Approval for SEZs under the Department of Commerce at its one hundred and thirty-seventh meeting on 27 February 2026. The approvals are presented as part of a drive to strengthen the country’s industrial base, expand exports and deepen self-reliance in strategic sectors. Authorities described the decisions as milestones for Puducherry’s industrial and export-led growth strategy and as measures expected to expand opportunities for investment, manufacturing and high-quality employment.

One of the SEZs will be an information technology and information technology-enabled services zone to 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 site covers 80.623 hectares, and the proposed investment is Rs 7,250 million (mn) with proposed employment of 3,500 persons. The project is described as supporting the technology and services ecosystem in the region.

The other SEZ will be a multi-sector zone to be developed by M/s Pondicherry Industrial Promotion Development and Investment Corporation at Karasur village in Villianur Taluk. The site covers 86.457 hectares, and the proposed investment is Rs 12,500 million (mn) with proposed employment of 5,000 persons. Officials indicated the projects are aligned with efforts to attract investment and generate regional employment across the Tamil Nadu, Andaman and Puducherry region. The approvals are expected to reinforce manufacturing and services capacities.

The notifications form part of a broader strategy to promote diversified SEZ-led growth, enhance resilience and scale, and boost the economy through targeted industrial, technology, manufacturing and services initiatives. Observers noted that larger-scale projects in the TAP region are increasingly contributing to employment generation and regional economic development. The Department of Commerce said the approvals emerged from a formal review process and will be monitored as implementation progresses.