Puducherry Government Approves Public-Private Partnership Policy for Infrastructure Projects

The Puducherry government has officially notified the 'Puducherry Public-Private Partnership Policy for Infrastructure Development, 2026', establishing a framework for private sector involvement in construction, infrastructure development, and maintenance of public assets. This is the first such policy for the Union Territory.

According to a government notification, the Public-Private Partnership (PPP) arrangement allows the government to collaborate with the private sector to design, finance, develop, operate, and maintain public infrastructure assets, public buildings, and service-oriented construction projects through structured contractual frameworks. The partnership aims to mobilise private capital, improve project delivery timelines, and enhance service quality and lifecycle efficiency.

Officials stated that the policy is necessary due to upcoming major infrastructure projects, including two Special Economic Zones sanctioned by the Central government. The government is also exploring options to revive defunct public-sector enterprises, such as textile mills, to create jobs and boost economic growth.

For efficient implementation, a PPP cell will be established under the Puducherry Industrial Promotion Development and Investment Corporation Limited (PIPDIC). This cell will be supervised by the Managing Director of PIPDIC and will include professionals in infrastructure finance, engineering, project management, legal structuring, and procurement. The cell is expected to be operational by mid-September, with a Request for Proposal to be issued by July 31.

The cell will conduct feasibility studies, prepare project concepts, handle tender processes, pre-bid meetings, bid evaluations, and evaluation reports. However, approvals for bid documents, evaluation reports, and contract awards will be handled by a PPP Board, also constituted under PIPDIC. The board, chaired by the Chief Secretary and including Secretaries, will oversee policy direction, approve project concepts and feasibility studies, and review implementation.

A notable feature of the policy is that any private firm or individual can submit a concept note for a project within an Industrial Estate to the cell. If found suitable, the cell can initiate the process and seek board approval. There will be no restriction on project size, according to officials.