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Puducherry government backs startups, seeks central help to build AI centre and upgrade data centre

At the India Mobile Congress in New Delhi, Puducherry minister P. Rajavelu said over 60 startups have been incubated at the Atal Incubation Centre in Puducherry Technological University and outlined plans to establish an AI Centre of Excellence and support IT investments.

Puducherry government backs startups, seeks central help to build AI centre and upgrade data centre
©Illustration AI Anjali Nair / we-news.com

Government emphasises incubator success, plans AI Centre of Excellence

Puducherry’s Minister for Adi Dravidar Welfare and IT, P. Rajavelu, on Saturday said the Atal Incubation Centre (AIC) at Puducherry Technological University has incubated more than 60 startups, and outlined the Union Territory administration’s plans to bolster the local technology ecosystem. He made the remarks while speaking at the India Mobile Congress in New Delhi, according to an official release.

The minister said the Puducherry government is preparing youth for the digital economy and is in the process of establishing an AI Centre of Excellence in partnership with industry and academic institutions. He added the administration would actively support companies investing in software, artificial intelligence, semiconductor design, electronics, chip design, cloud services and cybersecurity.

  • Incubation success: More than 60 startups have emerged from the AIC hosted at Puducherry Technological University, Mr. Rajavelu said.
  • Internship drive: The government facilitated 150 internships for students across 27 IT companies under a Digital Internship Programme.
  • Infrastructure and incentives: The administration offered land and infrastructure support to firms that choose to invest in the UT’s technology sector.
“We will work closely with the Centre to create a strong technology ecosystem in the Union Territory. The government will extend support to companies investing in the software sector, AI, semi-conductor design, electronics, chip design, cloud services and cybersecurity. We are ready to provide land and take care of the infrastructure requirements of the firms,” Mr. Rajavelu said, according to the release.

Requests to the Centre and local impact

Mr. Rajavelu sought Central assistance to upgrade Puducherry’s State Data Centre and to create a robust cybersecurity framework for the territory, the release said. He also noted that several students who had undergone the Digital Internship Programme have subsequently secured placements.

The minister’s statements signal a twofold strategy: nurture early-stage ventures through incubation and internships, and attract larger investments by offering infrastructure support and by seeking central funding for core digital assets. If realised, these measures could expand local employment opportunities in technology and allied services, and increase demand for office and co-working space in and around Puducherry.

Programme snapshot

Initiative Detail
Atal Incubation Centre More than 60 startups incubated at Puducherry Technological University
Digital Internship Programme 150 internships facilitated across 27 IT companies
AI Centre of Excellence Planned with industry and academic partners (proposal stage)
State Data Centre Central assistance requested for upgrade; cybersecurity framework to be strengthened

The minister also called on Vice-President C. P. Radhakrishnan during his visit to New Delhi, the release added. No financial timelines or budgetary figures for the proposed AI centre or the data-centre upgrade were disclosed in the release.

Local stakeholders and potential investors will likely watch for further details from the Puducherry administration and any central commitments. For students and local startups, the continuation of internship placements and incubation support could provide near-term benefits in skills development and market access, while larger infrastructure upgrades would aim to strengthen long-term digital resilience and capacity in the Union Territory.

Anjali Nair
Anjali AI AI Business Desk Editor online

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