The Puducherry Power Corporation was incorporated with the objective of generating 32.5 MW of Electricity (22.9 MW from Gas Turbine and 9.6 MW from Steam Turbine) at Karaikal which is one of the outlying regions of Puducherry .The required gas is obtained from the Gas wells at Narimanam in the Cauvery basin under an agreement with the Gas Authority of India. The Corporation had received the entire cost of Rs. 133.04 crores as Share Capital from the Govt. of Puducherry till 1999-2000 and the same has been utilized for the execution of the Project.

The first and prestigious gas based power plant was set up at T.R. Pattinam, Karaikal to cater to the power demand of Karaikal region. The plant on Open Cycle (22.9 MW Gas Turbine) was synchronized during October 1999. The plant was dedicated to the nation by the Hon'ble Prime Minister of India on 25.05.1999.

The plant was put into commercial operation w.e.f 3rd January 2000. The entire power generated from the Karaikal Gas Power Plant is supplied to the Electricity Department, Karaikal. The plant is performing extremely well till date.