Adityanath reviews data centre cluster, Project Ganga and wheat processing policy

New Delhi/Lucknow: The Chief Minister of Uttar Pradesh Yogi Adityanath on Wednesday conducted a high-level review of three key initiatives linked to the state's future economy, the Uttar Pradesh Data Centre Cluster (UPDCC), Project Ganga and a proposed reform in mandi tax and cess to encourage in-house wheat processing.

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During the review meeting, the Chief Minister said the UP Data Centre Cluster would provide the foundational infrastructure for the state's artificial intelligence mission and stressed that the project should not remain confined to the NCR region alone.

Adityanath said the initiative could be launched from the Bundelkhand Industrial Development Authority area where large tracts of land are available.

He also directed officials to engage with major technology firms, including the Tata Group, for developing Lucknow as an "AI City".

Officials informed the meeting that the UP Data Centre Cluster was part of a long-term strategy aimed at transforming state into the largest AI compute power centre in India and the Global South.

The proposed cluster seeks to position the state as a global hub for artificial intelligence, data centres, cloud infrastructure and high-tech digital manufacturing. Officials described the project as a blueprint for the state's economic structure for the next 50 years.

According to the presentation made before the chief minister, the project aims to contribute towards a USD 5 trillion economy by 2040, create over 1.5 lakh direct jobs and establish a 5-gigawatt AI compute corridor in the state.

The meeting was informed that by 2040, sectors such as artificial intelligence, cloud computing, cybersecurity, semiconductors, electric vehicles, robotics and space technology would drive the global economy, with their combined market size estimated between USD 29 trillion and USD 48 trillion.

Officials said UP enjoys several structural advantages, including its geographical location, large land availability, young population, rapidly expanding infrastructure and strong governance framework.

They highlighted that the state's inland location protects it from coastal risks and cyclones, while expressways, airports, logistics systems and power infrastructure are being rapidly expanded.

The availability of technical talent from institutions such as the Indian Institute of Technology Kanpur and Motilal Nehru National Institute of Technology Allahabad was also underlined.

Officials further stated that UP was emerging as "Asia's most secure, scalable and connected inland AI territory", noting that nearly all major fibre networks in the country pass through the state and are connected to India's undersea cable landing points.

The meeting was informed that the state offers network latency of less than five milliseconds internally and connectivity of 5'“12 milliseconds to digital hubs such as Mumbai and Chennai, making it an attractive AI infrastructure destination for global technology firms.

Reviewing "Project Ganga", Government Assisted Network for Growth and Advancement,” the chief minister directed that youths selected as digital entrepreneurs should be provided quality training.

He said companies involved in survey and field operations should also be able to utilise these trained youths. Adityanath stressed rapid expansion of the optical fibre network and transparency in implementation of the project, while directing officials to ensure adequate incentives for digital entrepreneurs from the beginning.

Officials informed the meeting that Project Ganga aims to deliver high-speed broadband connectivity across rural UP and promote telemedicine, digital education, skill development, e-governance, digital employment and rural entrepreneurship. Under the project, over 10,000 youths are proposed to be developed as Digital Service Providers (DSPs), generating an estimated 50,000 direct and more than one lakh indirect employment opportunities.

The project aims to connect over 20 lakh households with fibre-based high-speed internet services. DSPs is expected to connect 200 to 300 households within their area.

Officials said women entrepreneurship has been given special priority under the scheme, with a target of around 50 per cent participation by women entrepreneurs.

The meeting was informed that while mobile internet allows limited services, large-scale digital transformation would require high-speed broadband infrastructure for AI-based agriculture, drone monitoring, smart villages, virtual laboratories, telemedicine and cloud computing services.

Under the scheme, DSPs will provide broadband services, IPTV, OTT access, CCTV solutions, public Wi-Fi, cybersecurity and enterprise connectivity in rural areas. Each DSP will be eligible for an interest-free loan of up to Rs 5 lakh.

Officials said the project is proposed to begin as a proof-of-concept initiative in 21 priority districts before being expanded across the state.

The Chief Minister also reviewed measures to encourage in-house wheat processing in the state and emphasised the need for reforms in the mandi tax and mandi fee system and directed officials to modernise mandis and maintain cleanliness and better management.

Adityanath instructed authorities to ensure sanitation, painting, lighting during festivals and removal of encroachments in mandi premises.

Referring to the possible impact of the El Nino on crop production, the chief minister said the state must strengthen food security preparedness and maintain adequate foodgrain reserves.

Officials informed the meeting that UP remains the country's largest wheat-producing state, with wheat production estimated at 372 lakh metric tonnes in 2025-26 and total availability projected at 407 lakh metric tonnes.

Around 2.88 crore farmers in the state are associated with wheat production. However, officials said limited processing capacity leads to large-scale movement of raw wheat to other states, resulting in loss of value addition, GST revenue and employment opportunities.

The meeting was informed that the state has 559 roller flour mills with a combined milling capacity of 218.4 lakh metric tonnes, though actual utilisation remains around 126.45 lakh metric tonnes. More than 40,000 flour mills are also operating across the state.

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Officials said expansion of in-state wheat processing could significantly boost employment, electricity consumption, GST collection and food processing industries.

A committee reviewing the issue suggested an exemption from the mandi fee and development cess on wheat purchased by UP-registered mills for processing within the state, while clarifying that such exemptions should not apply to trading activities.

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