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Business in Puducherry
A Guide to Investment
A strong Case for Investment Investment Opportunities Supporting You
Project Incentives Special Features For Further Information
  A Strong Case for Investment
Puducherry is well established on the tourist circuit. It has many things going for it -:

 Eco-friendly and pollution free

 Proactive administration

 Attractive government incentives

 Reliable connectivity - state of the art communications networks

 French past and heritage - a very good marketing platform

 Aurobindo ashram and Auroville - unique spiritual centers that draw thousands of visitors every year from around the world.

 Delightful beaches, backwaters and engaging landscapes unique to the area.

 Stable socio-political environment

 High socio-economic indicators

 Skilled manpower available easily

 Reliable power and good roads

 Visible and growing demand for novel entertainment options and avenues

 Projected requirement of 9,840 hotel rooms by the year 2011

 Growing yearly tourist inflows*
  *Domestic - 5,00,139:Overseas-2,05,559 ( 2003 statistics)
  Investment Opportunities
The following are the key areas earmarked for promotion by the government of Puducherry. All these have the potential to offer good returns on your investment.

 Heritage and star hotels

 Food courts and restaurants

 Amusements parks

 Arts and crafts village



 Beach resorts

 Yacht and boatmarinas

 Health centers and spas

 Convention centres

 Entertainment multiplexes
  Supporting you
The Puducherry Industrial Promotion Development and Investmnet Corporation Ltd. (PIPDIC) is also promoting investments in the field of tourism.
Projects cleared for Development

 Tourist Complex at Chunnambar

 Picnic spot at Oussudu Lake

 Revitalization of Bharathi Park

 Development of new Beach in Puducherry

 Art and Crafts Village at Murungapakkam

 Multiplex an Beach road, Puducherry

 Temple town at Thirunallur

 Eco tourist Islands in Yanam

 Special tourism economic zone at Manapet

 Rural Tourism
  Project Incentives

An interest subsidy equal to a difference of 5% in the rate of interest charged by financial institutions for loans up to a period of 5 years, subject to a maximum of Rupees 5 lakhs per year.

  An investment subsidy of 20% of the total investment subject to a maximum of Rupees 20 lakhs per project. This will be given after 2 years of commencement of commercial operations and would be given either directly to the financial institution as part payment of the principal component of the loan or to the applicant as part of capital investment.

  Registration fees on land and building purchase will be refunded in full 2 years after the commencement of commercial activity. It will be executed only once for any particular property. Town planning charges levied by the Town Planning Authority for approval of building plans will be reimbursed on receipt of a fitness certificate for occupation from the authority.

Heritage Buildings

The Government of Puducherry seeks to encourage the use of listed heritage properties for use as hotels pubs boutiques and other uses with a view to providing economic value for heritage and to preserve the architectural/ historical heritage of Puducherry, while providing at the same time an authentic experience of Puducherry's cultural spiritual and artistic accretions for its tourist visitors.

There are special incentives available for new projects - those seeking to develop heritage hotels, restaurants, boutiques etc.

Applications for these will be screened on a case-to- case basis and seen if they meet certain prescribed architectural and conservation guidelines.

INTACH (Puducherry) and the Puducherry Town Planning Department will coordinate this with the Tourism Department.

  Special Features

Foreign Direct Investment (FDI)

Hotels & Tourism

100% FDI is permissible in the sector on the automatic route.

The term hotels include restaurants, beach resorts and other tourist complexes providing accommodation and/or catering and food facilities to tourists. Tourism related industry includes travel agencies, tour operating agencies, units providing facilities for cultural, adventure and wild life experience to tourists, surface, air and water transport facilities to tourists, leisure, entertainment, amusement, sports and health units for tourists and convention/ seminar units and organisations.

automatic approval is granted for foreign technology agreements if:

  up to 3% of the capital cost of the project is proposed to be paid for technical and consultancy services including fees for architects, design, supervision, etc

  up to 3% of net turnover is payable for franchising and marketing /publicity support fee

  up to 10% of gross operating profit is payable for management fee, including incentive fee.

  For Furthur Informartion   Source

Directorate Of Tourism,
40,Goubert Avenue,
Puducherry 605 001,India.
Phone: 91-413- 2227275/76
Fax: 91-413-2333590