The Government of Puducherry today introduced the Puducherry Business Reforms Bill, 2026, aimed at making the Union Territory a simpler, faster and more investment-friendly destination for businesses and entrepreneurs. The Bill seeks to shift business regulation from permission-based control to rule-based governance, with emphasis on transparency, predictability and time-bound decision-making.

A major focus of the Bill is on MSMEs and entrepreneurship. It proposes to extend the exemption from approvals for MSMEs to five years, with a further one-year extension, and introduce auto-generation of Acknowledgement Certificates if they are not issued within the prescribed time. Invest Puducherry will also be strengthened as a single point of contact for investors.

The Bill proposes greater flexibility in land use and development regulations, rationalisation of building and zoning requirements, and removal of duplicative and obsolete compliances. An auto-appeal mechanism is also proposed to enable applicants to appeal against rejection without a separate procedural process.

The Government said the reforms will reduce regulatory burden while protecting safeguards relating to public safety, fire and structural safety, environment, pollution control, labour safety, public health and land rights. The Bill seeks to advance the “Minimum Government, Maximum Facilitation” approach and strengthen Puducherry as a destination for investment, enterprise, innovation and employment.