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As Indian states compete to harness artificial intelligence (AI), Uttar Pradesh, the largest state, is taking a pioneering step by announcing plans to construct the nation’s first AI city in Lucknow. The city aims to house and foster the AI ecosystem.
Uttar Pradesh is the sixth-largest state in the IT ecosystem and boasts one of India’s highest numbers of startups. Lucknow is home to centres of excellence (COE) specialising in areas such as AI and MedTech. The AI COE, in particular, supports over 15 AI and machine learning startups, fostering a culture of innovation and entrepreneurship.
The AI city, leveraging cutting-edge technologies, research centres, and educational institutions, aspires to serve as a focal point for the cultivation of ideas and the development of the future workforce. This is outlined in the Expression of Interest (EoI) issued by UP Electronic Corporation Ltd.
The UP Electronic Corporation Ltd, as the nodal agency for the project, is inviting a real estate developer to undertake the development and operation of the AI city. The chosen developer will construct office infrastructure using plug-and-play facilities, including a tower featuring Grade A office spaces tailored for incubators, startups, and corporate entities.
The government is set to allocate approximately 40 acres in the Nadarganj Industrial Area for the project. This designated land is free of all restraints and supports land acquisition, regulations, zoning, and other significant clearances.
According to the EoI document, the developer will receive financial support, including a one-time Capex support of 25%, up to IN 200 million for an IT Park and 1 billion for an IT City. Additionally, the developer will benefit from a 100% stamp duty exemption, as per the IT and ITeS Policy 2022.
As stated in the EoI, the AI City project will be a blend of luxury and affordable housing complexes, incorporating a walk-to-work model. The plan includes a designated area for premier engineering and management institutes, fostering industry-academic collaboration. Furthermore, the AI City will feature AI-enabled internal modes of transport for enhanced connectivity.
To achieve a $1 trillion economy in the next five years, the Uttar Pradesh government has identified Information Technology (IT) and Information Technology-enabled Services (ITeS) as core sectors crucial for driving economic growth in this direction.
As per a report, the global AI market size reached US$ 137 billion in 2022 and is projected to experience a compound annual growth rate of 37.3% from 2023 to 2030. Recently, the Union Minister of State for Electronics and Information Technology (MeitY) underscored the transformative potential of AI in propelling India’s digital economy and fostering growth across sectors such as healthcare, agriculture, and governance.
As OpenGov Asia reported, he said that AI has increased opportunities and substantial contributions to India’s overall development. To bolster the AI ecosystem, a robust framework has been established to cater to AI compute capacity. The government is committed to allocating financial resources for the development of foundational models, large language models (LLMs), and various AI use cases. Similar to the semiconductor model, startup funding will also be provided by the government.
He noted that there is a steadfast commitment to establishing an academic, industry, and startup research ecosystem, which the government refers to as the Innovation and Research Centre. Moreover, it is urging academic institutions to prioritise nurturing talent tailored for absorption by the evolving AI ecosystem in the years ahead.
