The Centre has notified two new Special Economic Zones (SEZs) in the Union Territory of Puducherry, including what is set to become India’s first SEZ developed by a municipality, marking a significant step in the region’s industrial and export-led growth strategy.
The approvals were granted by the Board of Approval for SEZs under the Department of Commerce during its 137th meeting held earlier this year.
One of the newly approved projects is an IT/ITES-focused SEZ that will be developed by Oulgaret Municipality at Thattanchavady village in Oulgaret Taluk. Officials stated that this will be the first Special Economic Zone in India to be developed by an Urban Local Body, creating a new model for municipality-led industrial and economic development.
The IT/ITES SEZ will be developed across 8.62 hectares with a proposed investment of around ₹725 crore and is expected to generate nearly 3,500 direct and indirect employment opportunities.
The second project is a multi-sector SEZ that will be developed by the Pondicherry Industrial Promotion Development and Investment Corporation (PIPDIC) at Karasur village in Villianur Taluk.
Spread across 86.24 hectares, the multi-sector zone is expected to attract investments of around ₹1,250 crore and generate nearly 5,000 direct and indirect jobs. The project is aimed at supporting manufacturing, services, export-oriented industries, and industrial diversification within the Union Territory.
Officials noted that the two projects together are expected to bring investments of nearly ₹1,975 crore while creating around 8,500 employment opportunities across multiple sectors.
The development is expected to strengthen Puducherry’s position as an emerging industrial, technology, and export hub while supporting broader efforts to expand manufacturing capacity, attract private investment, and generate high-quality employment.
Industry experts believe the municipality-led SEZ model could open new opportunities for urban local bodies to participate more actively in economic development and industrial infrastructure creation.
The projects are also expected to boost the industrial ecosystem of the Tamil Nadu–Andaman & Puducherry (TAP) region, which has been witnessing increasing investments across manufacturing, technology, logistics, and services sectors.
Officials stated that the newly notified SEZs align with the government’s broader strategy of strengthening industrial competitiveness, expanding exports, attracting investments, and supporting self-reliance through sector-focused economic infrastructure development.
The approval comes at a time when India is focusing on revitalising Special Economic Zones as key drivers of manufacturing growth, technology development, exports, and employment generation under its long-term industrial expansion roadmap.