AI City Lucknow 2026: Vrindavan Yojana Sector 15 — 12 Acres, ₹368 Crore PPP Project Approved by UP Housing Board
🔴 Latest Update — UP Housing Board Approves AI City (April 29, 2026)
- The UP Housing & Development Board (Awas Vikas Parishad), in its meeting chaired by Principal Secretary Housing Sh. P. Guru Prasad on Wednesday 29 April 2026, formally approved Lucknow's first AI City cum Business Park in Vrindavan Yojana Sector 15. — Amar Ujala, 30 April 2026
- Project will be jointly developed by UP Department of Electronics & IT and UPAVP on PPP model — UPAVP Secretary Sh. Neeraj Shukla confirmed.
- 12 acres of land valued at approximately ₹368 crore will be contributed by UPAVP on a 45-year lease (extendable by another 45 years).
- Developer to be selected via Request for Proposal (RFP); UPAVP will receive 40% revenue share from the project.
- Project to be completed within 3 years of award.
- UPAVP also approved ₹4,173.66 crore annual budget for FY 2026-27 — including ₹1,927 crore earmarked for new land purchases.
For years, Lucknow's real estate story has been about expressways, plots and townships. But on 29 April 2026, the city took a decisive step into a different kind of future — one built on artificial intelligence. The Uttar Pradesh Housing & Development Board officially gave the green signal to develop Lucknow's first AI City cum Business Park in Sector 15 of Vrindavan Yojana — the southern corridor that already houses some of the city's most premium residential addresses.
This blog brings together every officially verified detail about the project — the Awas Vikas Parishad resolution, the financial structure, the earlier Nadarganj AI City (40 acres) led by UPLC, the IT & ITeS Policy 2022 incentives, and what this means for Lucknow real estate. Every data point here is sourced from Amar Ujala, Invest UP, UPLC and UP government filings — not speculative real estate listings.
📋 Table of Contents
What is AI City Lucknow?
The AI City is the Uttar Pradesh government's flagship project to position Lucknow as India's first dedicated artificial intelligence hub. It is not a township in the conventional sense — it is a planned ecosystem combining AI companies, startups, data centres, Centres of Excellence (CoE), incubators, Grade-A office space, residential complexes (luxury + affordable on a walk-to-work model) and AI-enabled internal transport.
According to the Invest UP official portal, the AI City is envisioned to "nurture and promote the AI ecosystem within the state and develop the city as a new technology hub" — leveraging Lucknow's position as one of the Tier-2 emerging technology hubs of India per the Deloitte-NASSCOM Report on Tier 2-Tier 3 cities, 2023.
"Uttar Pradesh plans to build the country's first AI city in Lucknow to house and promote the AI ecosystem. The AI City is envisioned to nurture and promote the AI ecosystem within the state and to develop the city as a new technology hub."
Importantly, two distinct AI City sites have been notified by different UP government agencies — and they are not the same project. Online sources often conflate them, so it's worth getting the facts straight:
Nadarganj AI City — 40 Acres
Driven by UP Electronics Corporation Ltd (UPLC). 40 acres in Nadarganj Industrial Area, ~3 km from Lucknow International Airport. EoI floated for real estate developers. Notified under IT & ITeS Policy 2022.
Vrindavan Sector 15 — 12 Acres
Approved 29 April 2026 by UP Housing Board. 12 acres in Vrindavan Yojana Sector 15, value ~₹368 crore. AI City + Business Park on PPP. Joint project of Electronics Department + UPAVP.
The April 2026 Vrindavan Decision — What Was Approved
The Wednesday 29 April 2026 board meeting of the UP Housing & Development Board was chaired by Principal Secretary Housing Sh. P. Guru Prasad. According to UPAVP Secretary Sh. Neeraj Shukla, who briefed the press, the AI City cum Business Park resolution was one of the headline approvals — alongside a record ₹4,173.66 crore annual budget.
"Uttar Pradesh Electronics Department, in partnership with Awas Vikas Parishad, will develop the city's first AI City along with a Business Park. The Housing Development Board approved this on Wednesday."
Key Approvals at the 29 April 2026 Board Meeting
Project Site & Land Contribution
UPAVP will allocate 12 acres of land in Sector 15 of Vrindavan Yojana for the AI City cum Business Park. The land's indicative valuation is approximately ₹368 crore. This is UPAVP's equity contribution to the PPP venture — it is not being sold to the developer.
Developer Selection — Request for Proposal (RFP)
The developer will be selected through a competitive Request for Proposal (RFP) process. The RFP will be floated jointly by the UP Department of Electronics & IT and UPAVP. Pre-qualification criteria are expected to mirror UPLC's earlier Nadarganj EoI — meaning experienced IT Park / IT City developers will be eligible.
Revenue Sharing — 40% to UPAVP
Once operational, UPAVP will receive a 40% share of the income/revenue generated from the project. This includes lease rentals, service charges and any other recurring revenue streams. The 60% balance will accrue to the selected developer to recover development cost and operating expenses.
Lease Tenure — 45 + 45 Years
The 12 acres will be leased to the developer for 45 years, with a provision to extend by another 45 years (effectively up to 90 years total). At the end of the tenure, the land — along with assets — reverts to UPAVP.
Completion Deadline — 3 Years
The project must be operational within 3 years from the date of contract award. This is one of the more aggressive timelines for an LDA / UPAVP project of this scale and signals strong political will.
Joint Development Authority
The UP Electronics Department will lead the AI ecosystem strategy (anchor tenants, CoEs, startup incubation), while UPAVP will manage land, infrastructure and approvals. This dual-agency model is unprecedented for AI/IT projects in UP.
Financial Structure of AI City Vrindavan
The Vrindavan AI City is being structured as a classic land-asset PPP — the public agency contributes the land at indicative valuation, the private developer contributes the capital and operational expertise, and revenue is shared on a pre-agreed split.
| Parameter | Value / Structure | Source |
|---|---|---|
| Land Area | 12 acres | Amar Ujala / UPAVP, 30 April 2026 |
| Indicative Land Value | ~₹368 crore | UPAVP Secretary briefing |
| Project Model | Public-Private Partnership (PPP) | UPAVP Board Resolution |
| Developer Selection | Request for Proposal (RFP) | UPAVP Board Resolution |
| Revenue Share — UPAVP | 40% of project revenue | UPAVP Board Resolution |
| Revenue Share — Developer | 60% of project revenue | UPAVP Board Resolution (implied) |
| Lease Period | 45 years (extendable by another 45) | UPAVP Board Resolution |
| Completion Deadline | 3 years from award | UPAVP Board Resolution |
| Implementing Agencies | UP Electronics Dept. + UPAVP | Amar Ujala, 30 April 2026 |
📌 Why the 40% Revenue Share Matters
- It is among the highest revenue shares ever negotiated by UPAVP for a PPP — signals confidence in long-term project demand.
- UPAVP retains land ownership for the entire 90-year horizon — no freehold sale means no future land disputes.
- Recurring revenue allows UPAVP to fund other social housing schemes — including the ₹1,927 crore land-purchase budget for FY 2026-27.
- For private developers, the 60% share + IT Policy incentives + AI tenant demand creates a strong commercial case.
The Earlier 40-Acre Nadarganj AI City
Lucknow's AI City story didn't begin in April 2026. The first formal step was taken in December 2023 when the UP Electronics Corporation Ltd (UPLC) — the nodal agency under the Department of IT & Electronics — issued an Expression of Interest (EoI) for the design, development and operation of an AI City on a much larger 40-acre parcel in Nadarganj Industrial Area, approximately 3 km from Lucknow International Airport.
"Lucknow has the presence of over 800 thriving tech-related businesses and over 200 technology startups, including BPM. The city also has centres of excellence in areas such as AI and Med Tech."
Verified Highlights — Nadarganj AI City (UPLC, 2023)
40 Acres at Nadarganj
Owned by the Department of IT & Electronics. Free of encumbrances. Located in Nadarganj Industrial Area, ~3 km from CCS International Airport.
25% One-Time Capex
Up to ₹20 crore for IT Park developers. Up to ₹100 crore for IT City scale developers — under UPEMP / IT Policy 2022.
100% Exemption
Full stamp duty waiver under the IT & ITeS Policy 2022 — applicable on land registration for the developer.
Walk-to-Work Model
Grade-A offices, data centres, tech labs, luxury + affordable housing, recreation areas, dedicated space for top engineering & management institutes.
The Nadarganj project remains active and is intended to host the AI Centre of Excellence (CoE) at IIIT Lucknow, AI startups, foundational model labs and the broader academic-industry collaboration ecosystem. The Vrindavan project announced in April 2026 is therefore a complementary site — not a replacement — focused more on commercial AI/IT operations and a Business Park.
UP IT & ITeS Policy 2022 Incentives — Why Investors Are Watching
The fiscal backbone of the entire AI City programme — both Vrindavan and Nadarganj — is the UP IT & ITeS Policy 2022. This policy is administered through the Online Incentives Management System (OIMS) integrated with the Nivesh Sarathi portal. The headline incentives, as per the official Invest UP sector documents:
| Incentive | Quantum | Cap |
|---|---|---|
| Capital Subsidy (IT Units) | 10% of Fixed Capital Investment (FCI) | Up to ₹50 crore |
| Operating Subsidy | 10% of eligible operating cost / annum | Up to ₹20 crore p.a. (5 years) |
| Interest Subsidy | 7% per annum | Up to ₹1 crore p.a. |
| Land Subsidy | 25% reimbursement on land cost | Up to ₹50 crore |
| Stamp Duty | 100% exemption | Full waiver |
| R&D Reimbursement | 50% of eligible R&D expenditure | Up to ₹5 crore |
| EPF Grant — Women / SC / ST / Divyangjan | 100% reimbursement of EPF | Up to ₹1 crore p.a. |
| Skill Development | 50% of course fee in emerging tech | Up to ₹50,000 per candidate |
"The Department of IT and Electronics has earmarked a prime land to develop an AI City in Lucknow. The AI city will comprise leading AI companies, startups, AI-focused Centre of Excellence and incubator."
AI City Lucknow — Verified Timeline
UPLC issues Expression of Interest (EoI) for design, development & operation of 40-acre AI City at Nadarganj. CM Yogi Adityanath publicly announces the project. — Source: The Statesman, Daily Pioneer.
Lucknow named among India's Tier-2 Emerging Technology Hubs in the Deloitte-NASSCOM 2023 report. AI Centre of Excellence at IIIT Lucknow operational.
UPLC continues developer engagement on Nadarganj parcel. UP Government showcases AI City as flagship at multiple investor summits. — Source: invest.up.gov.in/ai-city.
UP Housing & Development Board approves 12-acre AI City cum Business Park in Vrindavan Yojana Sector 15 — ₹368 crore land contribution, 40% revenue share, 45+45 year lease, 3-year completion. — Source: Amar Ujala.
RFP to be floated jointly by UP Electronics Department & UPAVP. Developer selection process. Master plan finalisation. UPAVP earmarks ₹4,173.66 crore overall budget.
Vrindavan AI City + Business Park fully operational — within the 3-year completion window from contract award.
Why Vrindavan Yojana Sector 15?
Vrindavan Yojana is no random pick. It is one of UPAVP's most successful integrated townships, located on the Raebareli Road–Amar Shaheed Path corridor in South Lucknow — a zone that already hosts SGPGI, Medanta, Ekana Stadium and the upcoming Lucknow Metro Line-2 SGPGI extension.
📍 Location Advantages of Vrindavan Sector 15
- Direct access to Amar Shaheed Path — 8-lane arterial connecting to Gomti Nagar, Sultanpur Road and the airport.
- 15-20 min to CCS International Airport — critical for AI/IT executives and clients.
- Adjoining premium residential clusters in Sectors 11, 12, 14, 16 — walk-to-work catchment ready from day one.
- Proximity to existing healthcare ecosystem — SGPGI, Medanta — supports AI-MedTech CoE collaboration.
- UPAVP-approved land — clear title, no farmland acquisition risk, no village dispute exposure.
- Already part of an established township — sewage, power, water infrastructure available; no greenfield delays.
Unlike land-acquisition heavy projects like Varun Vihar (still acquiring from 12 villages) or Anant Nagar (Mohan Road), Vrindavan Sector 15 is UPAVP-owned developed land. This is a major reason the board could approve a 3-year completion target — there is no waiting for farmer compensation or revenue records to clear.
Real Estate Impact — What This Means for Buyers & Investors
An AI City + Business Park of this scale, in an established residential corridor, is expected to drive measurable demand on three fronts:
Walk-to-Work Catchment
Vrindavan Sectors 11-20 already trade at ₹6,350-8,200/sq ft for premium 2-3 BHK apartments. AI City employment will support rental yields and capital appreciation in this corridor.
Grade-A Office Anchor
Lucknow's Grade-A office stock is limited. The AI City will become a tenant magnet — supporting demand for ancillary commercial space, retail, F&B and serviced apartments.
UPAVP Resale Plots
UPAVP plots in Vrindavan Sectors 8 & 9 are already at ₹8,200/sq ft (highest resale category). AI City announcement is expected to compress vacancy and lift resale rates further.
Premium 3 BHK Demand
Premium 3 BHKs in Vrindavan currently rent at ₹18,000-25,000/month with 90%+ occupancy. AI/IT executive demand will likely push the upper band higher.
Verified Facts vs Online Myths
A lot of unverified content has flooded the internet about the AI City — including incorrect acreage numbers, wrong locations and inflated investment figures. Here is a clean fact-check based only on official sources:
⚠️ Common Myths Circulating Online
- Myth: "AI City is 1,710 acres in Vrindavan." → Fact: 1,710 acres is the IT City colony in Vrindavan (a residential-themed scheme), not the AI City. The AI City is 12 acres in Sector 15 + 40 acres at Nadarganj.
- Myth: "AI City will be ready by 2026." → Fact: Vrindavan AI City is targeted for completion within 3 years of RFP award — the RFP itself is yet to be floated. Realistic operational date is 2028-29.
- Myth: "Plots are being sold inside AI City." → Fact: AI City is on UPAVP-leased land. No plots are being sold to retail buyers. Anyone offering "AI City plots" is misleading you.
- Myth: "Vrindavan AI City replaces the Nadarganj AI City." → Fact: Both are active projects under different agencies. Nadarganj (UPLC, 40 acres) and Vrindavan (UPAVP + Electronics Dept., 12 acres) are complementary.
- Myth: "AI City project value is ₹X,000 crore." → Fact: The only verified figure is the ₹368 crore land contribution by UPAVP. Total project investment will be set by the developer's RFP bid — not yet announced.
Frequently Asked Questions
✅ Bottom Line — What's Verified, What's Not
- VERIFIED: 12 acres approved in Vrindavan Sector 15 on 29 April 2026 — ₹368 cr land value, 40% revenue share, 45+45 yr lease, 3-yr completion. Source: Amar Ujala / UPAVP Board Resolution.
- VERIFIED: 40 acres at Nadarganj under UPLC — EoI issued December 2023, IT & ITeS Policy 2022 incentives apply. Source: invest.up.gov.in, The Statesman.
- NOT YET FINALISED: Developer name, total project investment, exact built-up area, anchor tenants, AI CoE partner list — all to be decided post RFP.
- BE CAUTIOUS OF: Anyone selling "AI City plots", quoting completion dates earlier than 2028, or making investment-return promises tied to AI City. None of these are verifiable.
Disclaimer: All data in this article is sourced from official UP government communications (Amar Ujala newspaper dated 29-30 April 2026, Invest UP portal at invest.up.gov.in, UPLC EoI documents, UP IT & ITeS Policy 2022, The Statesman, Daily Pioneer, IndiaAI.gov.in). Project parameters can change post-RFP. This is informational content, not investment advice. Always verify with UPAVP / UP Electronics Department directly before making any property decision based on this information.
Leave a Comment