Lucknow: The Uttar Pradesh Cabinet, chaired by Chief Minister Yogi Adityanath, has approved 39 proposals covering artificial intelligence, skill development, industrial investment, sustainable aviation fuel, startup procurement and tax relief.
The decisions include establishing the Uttar Pradesh Artificial Intelligence Mission (UP-AIM), launching a skill training and employment scheme with an estimated outlay of ₹1,725 crore over three years, and introducing incentives to promote sustainable aviation fuel manufacturing.
The Cabinet also approved new building regulations for industrial development authority areas, a three-month interest waiver scheme for eligible tax dues, and the renaming of Bhadohi district as Sant Ravidas Nagar Bhadohi.
UP Artificial Intelligence Mission to Develop 100+ Use Cases
The Cabinet approved the establishment and operation of the Uttar Pradesh Artificial Intelligence Mission to promote AI research, innovation, skill development and the responsible use of artificial intelligence in governance and citizen services.
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Principal Secretary for IT and Electronics Alok Kumar said the mission would support startups, entrepreneurship, high-capacity computing and AI-based digital public infrastructure.
Key targets under the mission include:
- AI applications: Develop or implement more than 100 AI use cases, with 25–30 applications to be scaled up.
- Startup support: Provide financial and non-financial assistance to at least 100 AI startups.
- Skills development: Train five lakh young people in AI-related skills and prepare 50,000 forward-deployed AI professionals.
- District-level development: Establish AI centres across all 75 districts to support training, innovation, employment and entrepreneurship.
- Digital infrastructure: Develop an integrated UP AI Stack with an AI-ready data ecosystem, departmental applications, secure data exchange and GPU-based computing facilities.
The mission will operate as an independent society under the IT and Electronics Department. The government also plans to establish an AI Trust and Assurance Framework to promote the safe and responsible use of the technology.
₹1,725 Crore Skill Development Scheme to Cover 75 Districts
The Cabinet approved the Sardar Vallabhbhai Patel Skill Training and Employment Zone Development Scheme to establish an integrated skill training and employment ecosystem across Uttar Pradesh.
The initiative aims to develop the state as a sourcing hub for skilled manpower and connect trained candidates with employment opportunities in India and abroad.
Under the scheme, all 75 districts will be covered through nine zones operating on a hub-and-spoke model. The estimated expenditure is ₹1,725 crore over three years.
Five Centres Planned in the First Phase
The government has identified five locations for the initial phase:
- Lucknow
- Kanpur
- Gorakhpur
- Gautam Buddha Nagar
- Jhansi
Training will be aligned with local industrial requirements and employment opportunities. The programme will cater to young people from different educational backgrounds.
It will include basic skill training for candidates with humanities and commerce backgrounds, technical upskilling for ITI, polytechnic and engineering graduates, and language training suited to employment opportunities in other states and countries.
The scheme also provides for hostel facilities, employment offices and placement cells. The government may provide viability gap funding to private developers and training providers where required.
Sustainable Aviation Fuel Policy Approved
The Cabinet approved the Uttar Pradesh Sustainable Aviation Fuel Manufacturing Promotion Policy-2026 to encourage investment in alternative aviation fuels, support energy security and create green employment opportunities.
The policy aims to promote the use of locally available feedstock, including agricultural residues, municipal waste and non-edible oilseeds, for sustainable aviation fuel production.
Uttar Pradesh’s agricultural residues include rice husk, wheat straw and sugarcane bagasse, which the government has identified as potential raw materials for fuel production.
Eligible manufacturing units will be able to access incentives under the policy, including:
- Exemption or reimbursement of stamp duty.
- Exemption from land-use conversion charges and development fees.
- Reimbursement of net State GST.
- Interest subsidies.
- Full exemption from electricity duty for up to 10 years.
- Skill development subsidies and reimbursement of patent registration fees.
The Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA) will serve as the nodal agency for approving and disbursing financial incentives.
The policy will remain in force for five years from implementation or until a new policy comes into effect, whichever occurs earlier.
Startup Procurement Scheme to Create Government Market Access
The Cabinet also cleared the Uttar Pradesh Startup Procurement Scheme-2026 to help eligible startups find buyers for their products, services and technology solutions.
A dedicated UP Startup E-Marketplace will be established to list innovative offerings developed by startups registered under the state’s startup policy.
The platform is intended to help government departments and other eligible agencies procure products and services from startups using their approved budgetary provisions.
The Uttar Pradesh Startup Mission will be responsible for establishing, operating and maintaining the marketplace.
Building Approval Rules and Tax Relief Approved
Alongside the technology and employment initiatives, the Cabinet approved measures concerning building permissions and outstanding tax liabilities.
Model Building Regulations, 2026
The new regulations will simplify building-map and plot-approval procedures in areas under industrial development authorities.
According to the government, the changes are intended to improve land utilisation and facilitate investment in sectors including manufacturing, tourism, information technology, logistics, healthcare, education and real estate.
Uttar Pradesh Interest Waiver Scheme-2026
The Cabinet approved a three-month scheme to waive eligible interest and penalties on outstanding dues under specified tax laws up to December 31, 2025.
The scheme covers liabilities under several state and central tax laws, including:
- Uttar Pradesh Sales Tax Act, 1948.
- Central Sales Tax Act, 1956.
- Uttar Pradesh Entertainment and Betting Tax Act, 1979.
- Uttar Pradesh Trade Tax Act, 1995.
- Uttar Pradesh Entry Tax Act, 2007.
- Uttar Pradesh Value Added Tax Act, 2008.
Certain cases covered by the applicable entertainment-tax and cable television network rules will also fall within its scope.
Finance Minister Suresh Kumar Khanna said the scheme was intended to provide relief to taxpayers with outstanding liabilities under the specified laws.
Bhadohi to Be Renamed Sant Ravidas Nagar Bhadohi
The Cabinet approved the proposal to rename Bhadohi district as Sant Ravidas Nagar Bhadohi. Chief Minister Yogi Adityanath had announced the proposed renaming during recent visits to Varanasi and Bhadohi.
The decision was among the 39 proposals approved at the Cabinet meeting, which covered development, industrial investment, agriculture, employment, technology and public welfare.
The measures span several areas of state administration, from AI adoption and employment-oriented training to industrial investment, tax relief and changes to development regulations.
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