The state Cabinet on Friday approved the Uttar Pradesh AI Mission to promote AI-based innovation, research, skill development and startups, along with the Uttar Pradesh Sustainable Aviation Fuel Manufacturing Promotion Policy-2026 to establish the state as a major hub for sustainable aviation fuel production.
Chief minister Yogi Adityanath had announced the proposal during a recent visit. Briefing mediapersons, finance minister Suresh Khanna and principal secretary (IT and electronics) Alok Kumar III outlined the key decisions. An integrated UP AI Stack will be developed, comprising an AI-ready data ecosystem, an AI operating framework, departmental AI applications, a secure data exchange platform and GPU-based AI computing facilities. Research will also be encouraged through AI centres of excellence, research projects, innovation challenges and hackathons. Bhadohi renaming approved: The Cabinet approved renaming Bhadohi district as Sant Ravidas Nagar Bhadohi in honour of Sant Shiromani Guru Ravidas. The scheme will remain open for three months and cover dues under sales tax, central sales tax, trade tax and VAT.
Chief minister Yogi Adityanath chaired the Cabinet meeting, which approved 39 proposals related to development, industrial investment, agriculture, employment, technology and public welfare. The mission aims to develop or implement more than 100 AI use cases and scale up 25 to 30 of them. It also targets financial and non-financial support for at least 100 AI startups, developing the skills of AI-fluent youth and preparing forward deployed AI professionals. AI centres will be developed in all 75 districts to promote innovation, training, employment, startups and entrepreneurship and address local problems. Interest waiver on old tax dues: The Uttar Pradesh Interest Waiver Scheme-2026 was approved to waive interest and penalties on outstanding dues under various tax laws up to December 31, 2025.
Kumar said the mission would strengthen AI-based innovation, research, skill development, startups and entrepreneurship, high-capacity computing and digital public infrastructure.
The policy promotes SAF production using agricultural residues, municipal waste and non-edible oilseeds, with the aim of creating rural value chains and diversifying farmers’ income. Units will be classified as large, mega and ultra-mega based on investment. The state’s agricultural residues, including rice husk, wheat straw and sugarcane bagasse, can be used to produce SAF. Its sugarcane and ethanol industries also provide a base for second-generation biofuels and Alcohol-to-Jet SAF technologies. The regulations aim to improve land use and encourage private investment in manufacturing, tourism, IT, logistics, healthcare, education and real estate. It aims to prepare young people for jobs in India and abroad. A dedicated UP Startup E-Marketplace will list their products, services and solutions for procurement by government departments.
SAF policy to attract investment The Uttar Pradesh Sustainable Aviation Fuel Manufacturing Promotion Policy-2026 aims to attract private investment, reduce emissions in the aviation sector, strengthen energy security and create green employment opportunities. Large units will invest ₹ 200 crore to ₹ 500 crore, mega units ₹ 500 crore to ₹ 1,500 crore and ultra-mega units more than ₹ 1,500 crore. Incentives include stamp duty relief, exemption from land-use conversion charges and development fees, net SGST reimbursement, interest subsidy, full electricity duty exemption for up to 10 years, skill development subsidy and patent registration fee reimbursement. Other decisions Urban local bodies to get planning powers: The Cabinet approved amendments to the Uttar Pradesh Municipalities Act, 1916, to allow urban local bodies without development authorities to prepare master plans and approve building maps. Of the state’s 762 urban local bodies, 559 do not have a development authority. Building regulations for industrial areas: The Model Building Regulations, 2026, were approved to simplify building and plot map approvals in areas under industrial development authorities. Skill training and employment zones: The Sardar Vallabhbhai Patel Skill Training and Employment Zone Development Scheme was approved to establish an integrated training and employment system across nine zones covering all 75 districts. Startup procurement scheme: The Uttar Pradesh Startup Procurement Scheme-2026 was cleared to help eligible startups access government markets.
