Uttar Pradesh Private Business Park Development Scheme, 2025

Need and Importance

The Uttar Pradesh Private Business Park Development Scheme addresses the growing requirement for world‑class, ready‑to‑operate and plug‑and‑play business infrastructure, particularly for IT/ITeS, Global Capability Centres (GCCs), R&D units and knowledge‑based industries. While Uttar Pradesh has strong fundamentals in terms of human capital, connectivity and market size, the absence of modern business parks has constrained its ability to attract multinational corporations and high‑value service sector investments. Project delays, higher setup costs and fragmented office infrastructure reduce the State’s competitiveness vis‑à‑vis leading investment destinations. The Scheme seeks to bridge this gap by enabling private‑led development of integrated business parks on government land, thereby positioning Uttar Pradesh as a preferred destination for global service industries, technology firms and innovation‑driven enterprises.

Key Provisions of the Scheme

• The Scheme is proposed to be implemented through a Design‑Build‑Finance‑Operate‑Transfer (DBFOT) model, with land ownership retained by the State or concerned land‑owning agencies.
• Private developers, REITs or eligible consortia with proven experience will design, finance, develop, operate and maintain business parks for a long‑term concession period of 45 years, extendable further, after which assets revert to the Government.
• A revenue‑sharing model, supplemented by an upfront land premium (indicative 5%) and revenue share from rental (indicative 7%), has been adopted instead of fixed lease rentals to align incentives, ensure market responsiveness and promote high occupancy.
• The Scheme prescribes Minimum Development Obligations (MDOs) linked to phased FAR completion within defined timelines, anchor tenant requirements, integrated land‑use planning
• Strong focus on IT and knowledge sectors, and robust governance safeguards including independent oversight, performance security, audit mechanisms and clear risk‑allocation provisions.

Expected Outcomes and Economic Impact

• The Scheme is expected to significantly enhance investment readiness and speed of project operationalisation, enabling faster establishment of offices, GCCs and R&D facilities.
• Key impacts include large‑scale employment generation in construction, facility management and tenant industries, increased inflow of domestic and foreign investment, and diversification of Uttar Pradesh’s economy towards high‑value services and technology sectors.
• By fostering industrial and service‑sector clustering, the Scheme will strengthen urban economic ecosystems, improve productivity and innovation, and generate recurring, performance‑linked revenues for the State without fiscal burden.
• Over the medium to long term, the Scheme will contribute to higher GSDP growth, export of services, talent retention and sustainable urban development.

Potential Projects

• AI City
• IT City
• GCC Business Parks, etc.