Lucknow: Lucknow is set to take a significant leap in technology-led urban development as the Housing Development Board has approved the creation of the city’s first AI City in the Vrindavan Yojna area. The decision was taken during a high-level meeting chaired by Principal Secretary Housing P. Guru Prasad, marking a major milestone for Uttar Pradesh’s infrastructure and IT ecosystem.
The AI City will be developed in collaboration with the Uttar Pradesh Electronics Department and the Housing and Development Council under a Public-Private Partnership (PPP) model.
AI City to Be Developed in Vrindavan Yojna Sector 15
The proposed AI City cum Business Park will be developed in Sector 15 of Vrindavan Yojna in Lucknow. The Housing Development Council will provide 12 acres of land for the project, valued at approximately ₹368 crore.
The project aims to boost the information technology and artificial intelligence ecosystem in the region, positioning Lucknow as an emerging tech hub in North India.
A Memorandum of Understanding (MoU) with the Uttar Pradesh Electronics Department has also been approved by the board.
PPP Model and Revenue Sharing Structure
The AI City will be developed through a PPP model, where a private company will be selected through a Request for Proposal (RFP) process.
Key highlights of the project structure include:
- Revenue sharing between the selected developer and the Housing Council
- Housing Development Council to receive 40% share of total revenue
- Lease period of 45 years, extendable by another 45 years
- Project completion timeline: 3 years
This model is expected to ensure long-term revenue generation along with rapid infrastructure development.
AI City to Include Modern Business Park Infrastructure
Alongside the AI City, a modern Business Park will also be developed within the same project. The aim is to strengthen the state’s IT infrastructure and attract technology companies, startups, and innovation-driven enterprises.
The Uttar Pradesh Electronics Department will play a key role in executing the project in collaboration with the Housing Development Council.
₹4173.66 Crore Budget Approved for FY 2026–27
In the same board meeting, the Housing Development Council approved a massive budget of ₹4173.66 crore for the financial year 2026–27.
Major Budget Allocation Highlights:
- ₹1927 crore allocated for land acquisition for new schemes
- ₹1000 crore for Ayodhya development projects
- ₹400 crore for Varanasi
- ₹100 crore for Mathura
- ₹100 crore for Pratapgarh
- ₹125 crore allocated for Mau housing project under the Chief Minister Urban Expansion Scheme
The remaining funding for Mau will be arranged by the Housing Council itself.
Revenue Targets and Infrastructure Spending Plans
The Housing Development Council has set a revenue target of ₹2004 crore through property sales in the upcoming financial year.
Additionally, ₹702 crore will be spent on essential urban infrastructure development, including:
- Roads
- Sewer systems
- Water supply
- Drainage networks
These investments are expected to improve urban living standards across multiple districts in Uttar Pradesh.
Boost for Uttar Pradesh’s Urban and Tech Growth Vision
With the approval of the AI City and a record infrastructure budget, Uttar Pradesh is accelerating its vision of becoming a major hub for technology-driven urban development. The Lucknow AI City project is expected to attract investment, create employment opportunities, and strengthen the state’s digital economy over the coming years.
