Uttar Pradesh, currently the second-largest contributor to India’s economy, is poised to elevate Lucknow to the status of one of the country’s foremost IT hubs. In pursuit of this goal, the UP government has approved the establishment of Lucknow as India’s first-ever AI City.
The UP Electronics Corporation Ltd., serving as the nodal agency for the project, has released an Expression of Interest (EoI) to solicit proposals for the development of the AI City, aimed at fostering and promoting the AI ecosystem. The EoI outlines that the government has designated 40 acres in the Nadarganj Industrial Area of Amausi for the project.
How is Lucknow suitable for the establishment of AI City?
According to the official plans outlined by UP Electronics Corporation Ltd. in 2022, the Lucknow-Kanpur corridor is set to be developed as an ideal destination for IT and ITeS, capitalizing on the technical and manpower excellence offered by institutions such as IIT Kanpur, IIM Lucknow and IIIT Allahabad.
With this initiative, the nodal authority has initiated preliminary steps for establishing an AI City in Lucknow. The city’s suitability is attributed to the presence of several Centers of Excellence, particularly in AI and MedTech with deep AI integration. Additionally, Lucknow hosts over fifteen AI/Machine Learning start-ups, backed by the AI Center of Excellence located at IIIT Lucknow, fostering a culture of creativity and entrepreneurship.
Special incentives and financial support from govt. for the developers
Apart from the government initiatives driving the development of the AI city, a real estate developer has expressed interest in contributing to the project. The developer envisions constructing a tower featuring Grade A office space tailored for corporates, start-ups, and incubators.
The Expression of Interest (EoI) document actively encourages private sector participation in the development of AI city and IT park projects in Lucknow. To incentivize involvement, developers stand to benefit from financial support, including a one-time capital expenditure support of 25%, capped at Rs 20 crore for IT Park and Rs 100 crore for IT city. Moreover, participants can avail themselves of a 100% stamp duty exemption in accordance with the IT and ITeS Policy of 2022.
AI city to be a massive contributor in the state’s economy
Upon its establishment, the AI city in Lucknow is poised to catalyze not just the city’s growth but also the entire state’s. With the integration of AI technology, the state stands to harness significant potential.
Projections indicate that by 2030, Uttar Pradesh is anticipated to make a substantial contribution of $15.7 trillion to the global economy. The advent of the new AI city is expected to play a pivotal role in driving economic growth and fostering innovation, thereby contributing significantly to the envisioned economic milestone.
