This is the second successive year that he has unfurled the flag at the celebrations as the acting Lt Governor, A K Singh, is in Port Blair to celebrate the day in Andaman and Nicobar islands, of which he is the Lt Governor.
Puducherry has been without a regular Lt Governor since July 2014.
After inspecting a guard of honour by Puducherry Police, the Chief Minister took the salute at a march past by contingents of police, Home Guards, Ex-Service, students of government and private schools.
A number of police officials were presented Lt Governor's commendation certificates for extraordinary service.
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A memento was presented to Herman Ep De Blic Madeleine, a Belgian, who is rendering humanitarian services through her organisation 'Volontariat' here since last 54 years.
Commendation certificate and memento was also handed to special police officer and social worker Pudumai Balakrishnan and to the renowned Bharathanatyam exponent J Nandhini.
A number of schools were given the Chief Minister's and Education Minister's rolling trophies in recognition of their best performance in public exams in 2014-15.
Cultural programme by school children added to the glitter of the celebration.
Delegates of National Youth Project from various states also presented their respective states' cultures.
Earlier Chief Secretary Manoj Parida announced that IGP Praveer Ranjan and Inspector Rajasankar Vellat (Secretary to IG of Police) had been selected for President's Police medals for meritorious services.
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Later Rangasamy hosted an 'at home reception' on the lawns of Rajnivas.
Speaker V.Sabapathy, Ministers, legislators, former Chief Ministers M D R Ramachandran and S. Ramasamy, officials of various departments, political party leaders and freedom fighters were among those who attended.