PUDUCHERRY: Lieutenant Governor K Kailashnathan on Monday outlined a long-term strategy to develop Puducherry as an industrially advanced and employment-generating territory, announcing major infrastructure and welfare measures at the opening of the first budget session of the 16th Assembly.
Major infrastructure commitments
Among the headline proposals was a ₹4,800 crore project for expansion of the Puducherry airport. The plan envisages extending the runway from 1,500 metres to 2,300 metres and constructing a new passenger terminal capable of handling larger aircraft, the Lieutenant Governor said.
He also flagged several large-scale projects intended to boost investment and resilience across the Union Territory. These include proposals for an IT Special Economic Zone and a multipurpose Special Economic Zone in the Uzhavarkharai–Thattanchavadi area, and allocations for drinking water, coastal protection and road improvements.
| Project | Announced allocation |
|---|---|
| Airport expansion (runway extension and new terminal) | ₹4,800 crore |
| IT Special Economic Zone (Uzhavarkharai–Thattanchavadi) | ₹725 crore (proposed) |
| Multipurpose Special Economic Zone | ₹2,500 crore (proposed) |
| Drinking water improvements | ₹4,750 crore |
| Coastal protection | ₹1,433 crore |
| High-level road and NH-32 expansion | ₹1,500 crore |
Welfare and constituency funding
The Lieutenant Governor proposed raising the constituency development fund available to MLAs from ₹2 crore to ₹3 crore. He also outlined expansions in social-welfare coverage: additions to the Ayushman Bharat beneficiaries and increases in pension support.
- Ayushman Bharat: 42,000 people below the poverty line are currently covered; an additional 38,200 people above the poverty line have been enrolled.
- Old-age pension: 15,000 new beneficiaries added.
- Women’s pension: increased from ₹1,000 to ₹2,500.
- Karaikal beach: allocation of ₹20 crore for development.
Economic growth and employment
The Lieutenant Governor cited a recovery in Puducherry’s economy, stating growth rose from -2.21% in 2020-21 to an estimated 8.12% in 2025-26. He reported that 4,160 government posts have been filled in the last five years on the basis of merit and transparency and said about 1,000 more posts are expected to be filled through written examinations.
The proposed SEZs are projected to be employment generators over the coming decade; the IT SEZ is valued at ₹725 crore and the multipurpose SEZ at ₹2,500 crore, with officials projecting the creation of thousands of jobs if the projects proceed as planned.
What is confirmed and what is proposed
Officials accompanying the Lieutenant Governor presented both confirmed allocations and proposals. The airport project and the sums cited for drinking water, coastal protection and road works were presented as planned allocations, while the SEZs were described as proposed projects to be developed in Uzhavarkharai–Thattanchavadi. The increase in the MLA constituency fund and changes to pension and Ayushman Bharat enrolment figures were announced as immediate administrative measures.
Assembly members will consider the details as the budget session proceeds and scrutinise financing, timelines and implementation mechanisms for the range of projects the Lieutenant Governor put on the table.
Development of large infrastructure—particularly the airport runway extension and new terminal—would require requisite clearances, land acquisition where applicable, and coordination with civil aviation authorities. The timeline for project execution was not specified in the address.
The speech marks a clear focus on industrialisation and infrastructure as levers for employment and fiscal recovery, paired with targeted welfare increases intended to broaden social protection in the Union Territory.
