{"id":106191,"date":"2026-06-01T17:32:53","date_gmt":"2026-06-01T12:02:53","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=106191"},"modified":"2026-06-01T17:47:45","modified_gmt":"2026-06-01T12:17:45","slug":"government-notifies-two-new-sezs-in-puducherry","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/government-notifies-two-new-sezs-in-puducherry\/","title":{"rendered":"Government Notifies Two New SEZs in Puducherry, Key Details"},"content":{"rendered":"<p><b>Why in the News?: <\/b><span style=\"font-weight: 400;\">The Government of India has notified two new Special Economic Zones (SEZs) in the Union Territory of Puducherry. The proposals were approved by the Board of Approval (BoA) for SEZs under the Department of Commerce during its 137th meeting held on 27 February 2026.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">One of the SEZs will be developed by the Oulgaret Municipality, making it the first SEZ in India to be developed by an Urban Local Body (ULB).<\/span><\/p>\n<h2><b>What are Special Economic Zones (SEZs)?<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/vajiramandravi.com\/current-affairs\/special-economic-zones-sezs\/\" target=\"_blank\"><b>Special Economic Zones (SEZs)<\/b><\/a><span style=\"font-weight: 400;\"> are geographically demarcated areas within a country that operate under a separate economic and regulatory framework designed to promote investment, manufacturing and exports.\u00a0<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">These zones offer businesses a more liberal policy environment through simplified procedures, better infrastructure and fiscal incentives.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">In India, SEZs are governed by the <\/span><b>Special Economic Zones Act, 2005<\/b><span style=\"font-weight: 400;\"> and the <\/span><b>SEZ Rules, 2006.\u00a0<\/b><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The <\/span><b>Board of Approval (BoA) under the Department of Commerce<\/b><span style=\"font-weight: 400;\"> is the apex body responsible for granting approvals for the establishment of SEZs.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The <\/span><b>primary objective of SEZs<\/b><span style=\"font-weight: 400;\"> is to create globally competitive industrial and service hubs that can attract investment, boost exports, generate employment and accelerate economic growth.<\/span><\/li>\n<\/ul>\n<h2><b>Types of SEZs in India<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Multi-Product SEZs<\/b><span style=\"font-weight: 400;\">: Large zones hosting multiple manufacturing and service sectors.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Sector-Specific SEZs<\/b><span style=\"font-weight: 400;\">: Dedicated to a particular sector such as textiles, pharmaceuticals or engineering.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>IT\/ITES SEZs<\/b><span style=\"font-weight: 400;\">: Focused on software development, IT-enabled services and digital industries.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Free Trade and Warehousing Zones (FTWZs): Facilitate trading, warehousing, logistics and re-export activities.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Specialised SEZs<\/b><span style=\"font-weight: 400;\">: Established for specific activities such as biotechnology, gems and jewellery, or electronics.<\/span><\/li>\n<\/ul>\n<h2><b>Details of the Newly Approved SEZs<\/b><\/h2>\n<table style=\"width: 98.3962%;\">\n<tbody>\n<tr>\n<td style=\"text-align: center; width: 3.70741%;\"><b>S. No.<\/b><\/td>\n<td style=\"text-align: center; width: 22.8457%;\"><b>Name of the Entity<\/b><\/td>\n<td style=\"text-align: center; width: 18.8377%;\"><b>Proposed Location of SEZ<\/b><\/td>\n<td style=\"text-align: center; width: 10.6212%;\"><b>Land Area (Hectares)<\/b><\/td>\n<td style=\"text-align: center; width: 12.6253%;\"><b>Proposed Investment (\u20b9 Crore)<\/b><\/td>\n<td style=\"text-align: center; width: 17.1343%;\"><b>Proposed Employment (Direct\/Indirect)<\/b><\/td>\n<td style=\"text-align: center; width: 11.2224%;\"><b>Sector of Operation<\/b><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 3.70741%; text-align: center;\">\n<p><b>1<\/b><\/p>\n<\/td>\n<td style=\"width: 22.8457%; text-align: center;\">\n<p><span style=\"font-weight: 400;\">M\/s. Oulgaret Municipality<\/span><\/p>\n<\/td>\n<td style=\"width: 18.8377%; text-align: center;\">\n<p><span style=\"font-weight: 400;\">Thattanchavady village, Oulgaret Taluk, Puducherry<\/span><\/p>\n<\/td>\n<td style=\"width: 10.6212%; text-align: center;\">\n<p><span style=\"font-weight: 400;\">8.6230<\/span><\/p>\n<\/td>\n<td style=\"width: 12.6253%; text-align: center;\">\n<p><span style=\"font-weight: 400;\">725<\/span><\/p>\n<\/td>\n<td style=\"width: 17.1343%; text-align: center;\">\n<p><span style=\"font-weight: 400;\">3,500<\/span><\/p>\n<\/td>\n<td style=\"width: 11.2224%; text-align: center;\">\n<p><span style=\"font-weight: 400;\">IT \/ ITES<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 3.70741%; text-align: center;\">\n<p><b>2<\/b><\/p>\n<\/td>\n<td style=\"width: 22.8457%; text-align: center;\">\n<p><span style=\"font-weight: 400;\">M\/s. Pondicherry Industrial Promotion Development and Investment Corporation (PIPDIC)<\/span><\/p>\n<\/td>\n<td style=\"width: 18.8377%; text-align: center;\">\n<p><span style=\"font-weight: 400;\">Karasur village, Villianur Taluk, Puducherry<\/span><\/p>\n<\/td>\n<td style=\"width: 10.6212%; text-align: center;\">\n<p><span style=\"font-weight: 400;\">86.2457<\/span><\/p>\n<\/td>\n<td style=\"width: 12.6253%; text-align: center;\">\n<p><span style=\"font-weight: 400;\">1,250<\/span><\/p>\n<\/td>\n<td style=\"width: 17.1343%; text-align: center;\">\n<p><span style=\"font-weight: 400;\">5,000<\/span><\/p>\n<\/td>\n<td style=\"width: 11.2224%; text-align: center;\">\n<p><span style=\"font-weight: 400;\">Multi-Sector<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><span style=\"font-weight: 400;\">Together, the two projects are <\/span><b>expected to attract investments of nearly \u20b91,975 crore and create around 8,500 jobs<\/b><span style=\"font-weight: 400;\">, providing a major boost to Puducherry\u2019s industrial and export ecosystem.<\/span><\/p>\n<h2><b>Significance of the New SEZs<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>First Municipality-Led SEZ in India<\/b><span style=\"font-weight: 400;\">: Oulgaret Municipality becomes the <\/span><b><i>first Urban Local Body in India to develop an SEZ.<\/i><\/b><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Strengthening Export-Led Growth<\/b><span style=\"font-weight: 400;\">: Enhances Puducherry\u2019s export capacity and supports India\u2019s global trade expansion goals.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Boosting Investment and Employment<\/b><span style=\"font-weight: 400;\">: Expected investment of about \u20b91,975 crore and creation of nearly 8,500 jobs.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Supporting the Services and Technology Sector<\/b><span style=\"font-weight: 400;\">: IT\/ITES SEZ will attract software, digital services and technology-based enterprises.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Promoting Industrial Diversification<\/b><span style=\"font-weight: 400;\">: Multi-Sector SEZ will support diverse manufacturing and service industries, reducing sectoral dependence.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Advancing the Vision of Aatmanirbhar Bharat<\/b><span style=\"font-weight: 400;\">: Strengthens domestic production, innovation and export competitiveness.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Strengthening Regional Development<\/b><span style=\"font-weight: 400;\">: Boosts industrial growth in the Tamil Nadu-Andaman and Puducherry (TAP) Region and promotes balanced development.<\/span><\/li>\n<\/ul>\n<h2><b>Evolution of SEZ Policy in India<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">India\u2019s SEZ policy has undergone a significant transformation \u2014 from narrow export-promotion enclaves to comprehensive industrial and trade zones aimed at global competitiveness.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">India\u2019s SEZ policy evolved from the <\/span><b>Export Processing Zone (EPZ) model.<\/b><span style=\"font-weight: 400;\">\u00a0<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">The <\/span><b>country\u2019s first EPZ was established at Kandla in 1965<\/b><span style=\"font-weight: 400;\">, making it the first such zone in Asia.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">These zones were primarily focused on promoting export-oriented manufacturing with limited policy flexibility.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The <\/span><b>enactment of the SEZ Act, 2005 <\/b><span style=\"font-weight: 400;\">provided a comprehensive legal framework to promote globally competitive industrial enclaves. Over time, SEZs emerged as important drivers of exports, employment and investment.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">In 2018, the <\/span><b>Baba Kalyani Committee <\/b><span style=\"font-weight: 400;\">reviewed the performance of SEZs and recommended their transformation into Employment and Economic Enclaves (3Es).\u00a0<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">The focus was shifted towards job creation, integration with the domestic economy and improving overall industrial productivity rather than purely export-led incentives.<\/span><\/li>\n<\/ul>\n<\/li>\n<li><span style=\"font-weight: 400;\">The <\/span><b>SEZ (Amendment) Act, 2023 <\/b><span style=\"font-weight: 400;\">further modernised the framework by allowing greater flexibility for domestic sales within the Domestic Tariff Area (DTA) and introducing a trust-based compliance system \u2014 reducing the regulatory burden on SEZ units and making the model more attractive for diverse investors.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">The policy evolution has reached a new milestone with the approval of the Oulgaret Municipality SEZ in Puducherry, the first SEZ in India to be developed by an Urban Local Body, marking a <\/span><b>shift from the traditional model led by private developers or state industrial corporations towards a more decentralised, ULB-driven approach to industrial development.<\/b><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Government approves two new SEZs in Puducherry, expected to attract \u20b91,975 crore investment and create 8,500 jobs, boosting exports and growth.<\/p>\n","protected":false},"author":11,"featured_media":106235,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[786],"tags":[7888],"class_list":{"0":"post-106191","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-general-studies","8":"tag-government-notifies-two-new-sezs-in-puducherry","9":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/106191","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=106191"}],"version-history":[{"count":2,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/106191\/revisions"}],"predecessor-version":[{"id":106197,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/106191\/revisions\/106197"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/106235"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=106191"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=106191"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=106191"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}