UP, Tata Sons discuss ‘AI City’ plan, TCS expansion and manufacturing investments

Yogi Adityanath and Tata Sons chairman N. Chandrasekaran discussed collaboration on AI, IT, and manufacturing projects in Uttar Pradesh, including plans for an AI City and expanding TCS's workforce, aiming to enhance technology employment and skills in the state.

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Published16 Dec 2025, 01:29 PM IST
Uttar Pradesh Chief Minister Yogi Adityanath and Tata Sons chairman N. Chandrasekaran during their meeting in Lucknow on Monday, according to a state government release.
Uttar Pradesh Chief Minister Yogi Adityanath and Tata Sons chairman N. Chandrasekaran during their meeting in Lucknow on Monday, according to a state government release.

Uttar Pradesh Chief Minister Yogi Adityanath met Tata Sons chairman N. Chandrasekaran on Monday to review Tata group projects in the state and discuss a set of proposals spanning artificial intelligence (AI), IT services and manufacturing, according to a state government statement.

The statement said the two sides discussed long-term collaboration across sectors including AI, IT, electronics, defence manufacturing, energy and renewable energy, electric mobility, tourism, skill development and the digital economy. Officials did not disclose any timelines, investment outlays or approvals, and the government described the discussions as covering both ongoing work and prospective plans.

One of the proposals discussed was an “AI City” in Lucknow. The state government said the project is intended to support AI-led innovation and a startup ecosystem, and could generate employment linked to technology services and emerging digital tools. The statement did not specify whether the proposal is at a concept stage or under evaluation, nor did it provide details on land requirements, implementation model or incentives.

The government also said the meeting reviewed progress on a Centre of Excellence being developed in Gorakhpur at an estimated cost of 48 crore. According to the statement, the facility is expected to focus on technical training and capacity-building, with an emphasis on improving access to advanced skills for youth in eastern Uttar Pradesh.

In addition, the statement referred to a memorandum of understanding involving IIT Kanpur, under which training and capability-building initiatives are proposed in areas such as AI, cybersecurity, data science, 3D printing, drones and space technology. The government said the initiative is aligned with efforts to build an industry-ready workforce and improve employability in technology-linked domains.

The Tata group and the state government also discussed the possibility of setting up a Global Capability Centre (GCC) in Uttar Pradesh, the statement said. GCCs—typically set up by large companies to provide shared services and technology support—have become a key lever for states seeking to expand high-skill services employment.

Separately, the statement said TCS plans for expansion in Lucknow, Noida and Varanasi were discussed, including a proposal to increase the workforce at the Lucknow and Noida units from about 16,000 to around 30,000. The government positioned the proposed expansion as an addition to the state’s IT talent base, though it did not provide a timeframe or hiring schedule.

On manufacturing, the government said Tata group representatives expressed interest in scaling investments in electronics production, including mobile devices and electronic components. The statement also mentioned a Tata group memorandum of understanding with Intel in the context of strengthening the electronics manufacturing ecosystem in the state. Discussions also covered electric mobility, including prospects linked to electric buses and other EV models, the statement said.

Defence manufacturing was another area discussed, with reference to the Uttar Pradesh Defence Industrial Corridor. The government statement said potential investment proposals included drones, missiles and defence vehicles, with Jhansi among the nodes referenced during the meeting.

Adityanath said the state aims to provide stable policies, transparent processes and an enabling business environment for investors, according to the statement. The government also linked the discussions to its stated goal of expanding the state’s economy and employment base.

Uttar Pradesh has been positioning itself for industrial and services-led investment through sector policies and corridor-based infrastructure over recent years, including initiatives to attract electronics manufacturing and defence-linked units.

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Business NewsFocusUP, Tata Sons discuss ‘AI City’ plan, TCS expansion and manufacturing investments
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