Lucknow: The Yogi Adityanath-led Cabinet Monday approved the ‘Uttar Pradesh Private Business Park Development Scheme 2025’. The policy is aimed at boosting investment by offering ready-to-use infrastructure to global corporations, research institutions and IT companies.
The scheme proposes the development of integrated business parks by private players where companies can set up offices, research and development (R&D) centres and global capability centres (GCCs).
Officials from the Department of Infrastructure and Industrial Development said the government aims to reduce project delays and enable businesses to begin operations faster by ensuring that essential infrastructure is available in advance.
According to the cabinet document, a key feature of the scheme is the adoption of a “plug-and-play” model. Under this system, companies will be able to begin operations immediately since the infrastructure, including office spaces and industrial units, will be pre-built and ready for use.
Government officials believe that this approach will significantly reduce both the time and cost involved in setting up new businesses, making Uttar Pradesh a more attractive destination for investors.
“The introduction of the plug-and-play model addresses several challenges faced under the existing system. High land costs, expensive construction, long gestation periods and cash-flow constraints have often delayed projects and discouraged investment,” a senior government official told ThePrint.
Adding, “By shifting the responsibility of infrastructure creation to private developers and offering ready-built facilities, the new framework seeks to ease these pressures on businesses.”
Officials said said the parks will be developed under a public-private partnership (PPP) model, following the Design, Build, Finance, Operate and Transfer (DBFOT) framework.
Each project will be awarded on a concession basis for 45 years, with provisions for further extension. Developers will be required to build these parks on a minimum land parcel of 10 acres. Construction will be carried out in phases linked to utilisation benchmarks to ensure optimal use of space.
The policy mandates that at least 50 percent of the developed area be reserved for IT and knowledge-based industries. The rest will be used in a limited capacity for retail and support services, including food courts, training centres and other employee-oriented facilities.
The scheme is based on a shared-risk approach, where both the government and private sector play defined roles. While the state facilitates land and policy support, developers take on execution and operational responsibilities.
This model is designed to promote efficiency while ensuring long-term sustainability and inclusive growth, said the official quoted above.
Officials also said that private developers will be responsible for designing, financing, building, operating and maintaining these business parks. However, land ownership will remain with the state’s Industrial Development Authorities (IDAs). This structure is intended to balance public control over land with private sector efficiency in project execution.
The government sees the scheme as particularly beneficial for state MSMEs and startups.
By providing access to modern, ready-to-use infrastructure, the policy is expected to lower entry barriers for smaller businesses, reduce upfront capital requirements and allow quicker commencement of operations. This, in turn, is likely to help integrate MSMEs into larger industrial ecosystems.
Among its key objectives, the scheme aims to attract global capability centres, which serve as offshore hubs for multinational companies.
These centres typically handle functions such as research, technology development and business operations. Their presence is expected to enhance the state’s position in the global services and technology landscape.
The government has also highlighted the scheme’s potential to generate employment.
In addition to the business park scheme, the cabinet has approved plans to develop an Integrated Manufacturing and Logistics Centre in Sambhal, which will include a multimodal logistics park to improve connectivity and supply chain efficiency. Further, in Greater Noida’s Budhaki area, located at the intersection of the eastern and western industrial corridors, 174.12 acres of land will be allocated through an auction process.
The tender document for this project has been cleared, and the site will be developed as a logistics hub. The decision was taken during the cabinet meeting Monday.
(Edited by Sugita Katyal)