In a major step towards accelerating economic activity in the Union Territory, the Ministry of Commerce and Industry has notified the establishment of two Special Economic Zones in Puducherry region.The Board of Approval for SEZs under the Ministry has given its nod for the setting up of a multi-sector economic zone at Karasur with an investment of ₹1,250 crore and an IT/ITES-related zone at Thattanchavady by investing ₹725 crore, an official release here said.While the SEZ at Karasur will be developed by the Pondicherry Industrial Promotion Development and Investment Corporation, the IT/ITES zone would be developed by an Urban Local Body, a first of its kind initiative in the country itself. The multi-sector SEZ would come up on an area of 86.2457 hectares and the IT/ITES zone would occupy 8.6230 hectares of land. The establishment of the SEZs could generate 8,500 jobs in Puducherry, the release said. “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. The approvals for the two zones constitute a major milestone for Puducherry’s industrial and export-led growth strategy. It will help in expanding scope for investment, manufacturing, and high-quality employment opportunities,” the release said. The projects underscore the growing momentum across the industrial ecosystem of the Tamil Nadu, Andaman and Puducherry (TAP) region, where diversified sectors and large-scale projects are increasingly contributing to employment generation and regional economic development.The 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, the Ministry said in its release. Published - May 30, 2026 08:13 pm IST