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Centre approves INR 1,250 crore IT park in Puducherry to establish technology SEZ at Thattanchavady

#Infrastructure News#Infrastructure#India#Tamil Nadu
Last Updated : 14th Mar, 2026
Synopsis

The Union government has approved the development of a dedicated information technology (IT) park in Puducherry with an estimated investment of INR 1,250 crore. The project will be developed as a Special Economic Zone (SEZ) on approximately 21.3 acres of government-owned land at Thattanchavady within the municipal limits of Puducherry. The initiative forms part of efforts to expand the region's technology and services ecosystem while generating employment opportunities. Officials indicated that the proposed IT SEZ is expected to create nearly 30,000 jobs over the coming decade and strengthen the Union Territory's position as a technology and services destination. The park will include plug-and-play office infrastructure along with supporting commercial and social facilities. Authorities said the project is intended to retain skilled graduates in the region while attracting domestic and global technology firms to establish operations in Puducherry.

The Union government has approved a proposal to establish a dedicated information technology park in Puducherry with an estimated investment of INR 1,250 crore, enabling the development of a Special Economic Zone (SEZ) aimed at expanding the Union Territory's technology infrastructure and employment base.


The project will be developed on approximately 21.3 acres of government-owned land located at Thattanchavady within Puducherry's municipal limits. The proposed SEZ is intended to house information technology and technology-enabled services companies, providing ready office infrastructure and associated support facilities within a planned technology campus.

Officials associated with the proposal indicated that the IT park will follow a mixed infrastructure model combining office spaces with essential support services required for large technology campuses. A significant portion of the site is expected to accommodate plug-and-play office facilities designed to enable companies to begin operations with minimal setup time. The remaining area will include supporting amenities such as residential accommodation for employees, commercial establishments, financial services and other institutional facilities required to support the workforce.

The development forms part of a broader effort by the Puducherry administration to diversify the region's economic base beyond tourism and traditional services. Authorities have stated that the project is intended to attract technology companies and encourage skilled professionals to remain in the region rather than relocating to larger technology hubs such as Chennai or Bengaluru for employment opportunities.

According to project estimates, the IT park is expected to generate approximately 30,000 direct and indirect employment opportunities over the next decade once the campus becomes operational. The project is also projected to contribute significantly to service exports from the region as technology companies establish operations within the SEZ.

Industry observers noted that the availability of dedicated technology infrastructure could help position Puducherry as an emerging technology destination within southern India. The SEZ framework will enable companies operating within the park to benefit from policy incentives designed to promote export-oriented technology and service businesses.

The IT park proposal is part of a wider set of industrial development initiatives being considered for the Union Territory. Alongside the technology SEZ, authorities have also examined plans for a larger multi-modal SEZ in the Sedarapet-Karasur corridor aimed at supporting manufacturing and logistics activities. The combination of technology-led development and industrial expansion is expected to strengthen Puducherry's economic base and attract investment across multiple sectors.

With the Centre's approval now in place, the Puducherry administration is expected to proceed with the next stages of project planning, including detailed infrastructure development, investor outreach and the establishment of operational frameworks for the proposed SEZ. Officials indicated that the project would be implemented in phases as the government works to attract anchor tenants and technology companies to the planned campus.

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