UP Private Business Park Development Scheme, 2025: Key features, eligibility, and implementation

The scheme aims to develop plug-and-play business parks on government land through private investment to attract GCCs, technology firms and other knowledge-intensive service industries.

POLICY AT A GLANCE

Item	Position
Official title	Uttar Pradesh Private Business Park Development Scheme, 2025
Public launch	March 24, 2026
Administrative framework	Public-private partnership
Development model	Design, Build, Finance, Operate and Transfer
Land ownership	Retained by the state or the land-owning agency concerned
Minimum park size	10 acres
Concession period	45 years, with provision for extension
Principal developers	Eligible private developers, Real Estate Investment Trusts and consortia
Principal users	Information technology, information technology-enabled services, Global Capability Centres, business process outsourcing, research and development and other knowledge-based enterprises
Main financial model	Upfront land premium and revenue sharing rather than conventional fixed lease rent
Current implementation status	Scheme launched; Artificial Intelligence City, Information Technology City and Global Capability Centre business parks identified as potential project categories

 

What is the Uttar Pradesh Private Business Park Development Scheme?

The Uttar Pradesh government unveiled the Uttar Pradesh Private Business Park Development Scheme, 2025, on March 24, 2026, along with Nivesh Mitra 3.0 and the Plug-and-Play Industrial Sheds Policy. 

 

The scheme establishes a framework for developing integrated, ready-to-operate business parks on government-owned land through private investment. Unlike a conventional industrial estate designed mainly for factories, warehousing and horizontal manufacturing facilities, these parks are intended principally for technology companies, Global Capability Centres (GCCs), business process outsourcing units, research facilities and other knowledge-intensive service businesses.

 

Under the scheme’s Design, Build, Finance, Operate and Transfer model, the selected private developer finances, constructs, operates and maintains the park during the concession period. The public authority retains ownership of the land, while the developed assets are to revert to it when the concession ends.

 

Why was the scheme introduced?

The Uttar Pradesh Private Business Park Development Scheme, 2025, seeks to address the shortage of large, integrated and ready-to-use office ecosystems for technology and knowledge-based industries. The official framework states that fragmented office infrastructure, development delays and high establishment costs can weaken the state’s ability to attract multinational companies and high-value service-sector investments.

 

The government’s approach is to make public land available through a structured concession while requiring the private partner to provide buildings, digital connectivity, utilities and common services. This is intended to reduce the period between a company’s investment decision and the start of its operations.

 

The scheme also seeks to diversify the state’s economy beyond manufacturing by attracting information technology services, research operations, GCCs and other activities that can generate skilled employment and service exports. These remain intended outcomes rather than verified achievements of the scheme.

 

What are the main objectives?

The scheme’s principal objectives are to:

• Develop ready-to-operate and plug-and-play business infrastructure;
• Attract large domestic and multinational companies;
• Encourage the establishment of Global Capability Centres and technology operations;
• Mobilise private capital for the development of government-owned land;
• Reduce the time and initial infrastructure burden involved in setting up business operations;
• Generate recurring revenue for the concerned public authority;
• Support research, innovation, training and knowledge-based employment;
• Promote business and service-sector clusters in suitable urban locations.

The policy framework associates these objectives with improved investment readiness, employment, service exports and talent retention. The official documents reviewed do not set out a consolidated statewide investment, employment or park-development target with a completion deadline.

 

Key provisions of the scheme

Public land and private development

Land for projects is to remain under the ownership of the state or the land-owning authority concerned while private players will be selected to design, finance, construct, market, operate and maintain business parks.

 

Developers will be responsible for obtaining the necessary statutory, environmental, building and safety approvals and for developing internal infrastructure while the land-owning agency will provide encumbrance-free land and facilitate external infrastructure and approvals.

 

Minimum land requirement

A business park must ordinarily cover at least 10 acres. The policy explains that a smaller minimum has been prescribed than in many industrial-park frameworks because information technology and service-sector developments are predominantly vertical rather than spread horizontally across large land parcels.

 

Concession period

The standard concession period is 45 years. The detailed terms of any extension are to be governed by the applicable Request for Proposal and concession agreement.

 

During the concession, the developer can lease eligible business space and earn permitted revenue. At the end of the term, the project assets are to be transferred to the government or land-owning authority under the conditions specified in the concession agreement.

Land-use requirements

At least 50 per cent of the designated space is intended for the scheme’s core sectors, including information technology, information technology-enabled services and Global Capability Centres.

 

Supporting uses may include:

• Research and development centres;
• Training and skill-development facilities;
• Business process outsourcing operations;
• Ancillary and support services;
• Food courts;
• Retail facilities;
• Recreational and employee amenities.

The Invest UP material states that non-core commercial amenities are generally to be limited to 10 per cent. Final land-use conditions remain subject to the sanctioned master plan and project-specific concession documents.

 

Minimum development obligations

The developer must meet phased construction obligations linked to the permissible floor area ratio (FAR), the legally permissible built-up floor area in relation to the size of the plot.

 

The official framework links development milestones to the size and phasing of the project. It provides for partial completion within two years and full completion within three years of the prescribed commencement date, subject to the detailed conditions in the Request for Proposal and concession agreement.

 

Projects of up to 10 acres are generally expected to be developed in one phase. Projects between 10 and 15 acres may be divided into up to two phases, while larger projects may be developed in additional phases after feasibility assessment and approval.

 

Anchor-tenant requirement

The developer must obtain letters of intent (LoI) or comparable commitments from at least two Fortune Global 500 companies, Fortune India 500 companies or multinational corporations. Together, these commitments must cover at least 20 per cent of the park’s leasable area.

 

The commitment must be secured either at the bidding stage or within two years of the appointed date, upon achievement of the first construction milestone. The provision is intended to demonstrate demand and reduce the risk of developing a park without prospective occupants.

 

Who is eligible?

Eligible project developers may include:

• Established private real estate or infrastructure developers;
• Publicly listed companies;
• Real Estate Investment Trusts;
• Eligible consortia of qualified entities.

 

The official Invest UP explanation identifies the following indicative eligibility conditions:

• Minimum net worth of Rs 1,000 crore;
• Average annual turnover of at least Rs 500 crore during the preceding three financial years;
• At least seven years of relevant operating experience;
• Demonstrated capability in commercial real estate development, project management, leasing and facility management.

For a consortium, the lead member is expected to hold at least 51 per cent equity and meet the prescribed core requirements. Final eligibility must be verified from the Request for Proposal issued for the individual project as the land-owning authority may prescribe additional conditions.

 

Potential tenants include information technology companies, information technology-enabled service providers, GCCs, business process outsourcing units, research and development organisations, training institutions and approved ancillary service providers.

 

What financial incentives and commercial provisions are available?

The scheme does not provide the developer with a conventional capital subsidy, annuity or guaranteed government payment. Instead, it gives the selected developer the contractual right to construct and commercially operate the park on public land for the concession period.

 

The principal commercial provisions are: 

Provision	Indicative requirement
Upfront land premium	At least 5 per cent of the prevailing land value
Revenue share	At least 7 per cent of gross rental revenue
Bid evaluation	Combined assessment of upfront premium and revenue share
Concession period	45 years
Stamp duty	Official Invest UP material describes a 100 per cent exemption for the developer, subject to the applicable conditions and bank guarantee
Performance protection	Performance security, audit and independent engineering oversight

The policy document states that the minimum upfront premium and revenue-share benchmarks were based on financial modelling. The actual rates will be determined by the concerned authority and specified in the Request for Proposal and concession agreement.

 

Companies taking space in a park may separately qualify under sectoral policies such as the Uttar Pradesh Global Capability Centres Policy, the Information Technology and Information Technology-enabled Services Policy or another applicable investment policy. Such benefits are not automatically granted merely because a company occupies space in a business park. The tenant must independently satisfy the eligibility and approval conditions of the relevant policy.

 

How can a developer or tenant access the scheme?

The scheme will be implemented through project-specific bidding rather than a general subsidy application.

 

The broad process for a developer is expected to be:

• A government authority identifies an appropriate land parcel.
• The authority conducts technical, financial and market feasibility studies.
• A Request for Proposal and draft concession agreement are issued.
• Eligible developers or consortia submit technical and financial bids.
• The preferred bidder is selected using the prescribed evaluation formula.
• The concession agreement is executed.
• The developer obtains approvals, achieves financial closure and begins construction.
• Development milestones are monitored by the authority and an independent engineer.
• Completed business space is leased to eligible tenants.

A company seeking office space will ordinarily apply to the selected developer or park operator once the project is ready for leasing. The official documents reviewed do not provide a common statewide tenant-application form, rental schedule or allotment portal.

 

Implementation and progress so far

The scheme was publicly launched on March 24, 2026. Official material identifies Artificial Intelligence City, Information Technology City and Global Capability Centre business parks as potential project categories.

 

However, the official sources reviewed do not provide a consolidated list of land parcels tendered, private developers selected, concession agreements signed, parks under construction or operational tenant units. There are also no verified scheme-level figures for investment realised, employment generated or leasable area completed.

 

The references to Artificial Intelligence City, Information Technology City and Global Capability Centre parks should therefore be treated as potential projects or project categories rather than completed developments under the scheme.

 

How does the scheme support Uttar Pradesh’s wider economic strategy?

The scheme complements Uttar Pradesh’s efforts to attract GCCs, information technology businesses, research operations and foreign investment. By creating integrated office clusters, it may allow companies to use ready infrastructure rather than separately arranging land, construction, utilities and facility management.

 

Its revenue-sharing structure is also intended to generate continuing income for the land-owning authority rather than relying solely on a one-time land payment. The public-private partnership approach transfers construction, financing, leasing and operating risk substantially to the developer while retaining public ownership of the land.

 

Key challenges and limitations

Demand risk: The developer must attract sufficient tenants to recover its investment and meet revenue-sharing commitments. The anchor-tenant requirement reduces this risk but may also narrow the pool of eligible projects and developers.

 

High developer thresholds: Net-worth, turnover and experience conditions may limit participation to large developers, Real Estate Investment Trusts and well-capitalised consortia.

 

Location dependence: Business parks require access to skilled workers, transport, reliable electricity and high-capacity digital connectivity. Public land availability alone does not guarantee commercial viability.

 

Project-specific terms: Important matters such as rent, escalation, tenant eligibility, maintenance charges, extension terms and development penalties will depend on individual Requests for Proposal and concession agreements.

 

Limited implementation information: The official material describes the model and expected economic effects, but verified project-level progress data were not publicly available in the sources reviewed.

 

What developers and businesses should keep in mind

Developers should examine the project-specific land title, permissible FAR, development milestones, anchor-tenant obligations, revenue-sharing formula and transfer conditions before bidding.

 

Potential tenants should verify:

• Whether the park has received all approvals;
• The permitted use of their proposed premises;
• Rental and escalation clauses;
• Common-area and maintenance charges;
• Digital and power infrastructure;
• Fit-out responsibilities;
• Exit and renewal conditions;
• Independent eligibility under any sectoral incentive policy.

Eligibility and benefits remain subject to the notified scheme, subsequent amendments, applicable government orders and approval by the competent authority.

 

FAQs

What is the main purpose of the scheme?

It seeks to develop ready-to-use business parks for information technology, GCCs, research and other knowledge-based enterprises through private investment on public land.

What is the minimum land requirement?

A qualifying business park must ordinarily cover at least 10 acres.

 

Who can develop a park?

Eligible private developers, listed companies, Reits and qualified consortia may participate, subject to the project-specific Request for Proposal.

Does the developer own the land?

No. Ownership remains with the state or the concerned land-owning authority.

 

What is the concession period?

The standard concession period is 45 years, subject to the conditions governing any extension.

 

Is an anchor tenant compulsory?

The scheme requires commitments from at least two qualifying large or multinational companies covering a minimum of 20 per cent of the leasable area.

 

Can tenants automatically claim incentives under other state policies?

No. A tenant must separately meet the eligibility and approval requirements of the relevant sectoral policy. 

Conclusion

The Uttar Pradesh Private Business Park Development Scheme creates a public-private partnership framework for building integrated business infrastructure for technology and knowledge-based industries. Its key features include a 10-acre minimum project size, a 45-year concession, revenue sharing, phased development obligations and an anchor-tenant requirement.

 

The scheme provides a defined commercial framework for private developers but does not itself establish that parks have been completed or occupied. Its practical effect will depend on the quality and location of land offered, the terms of individual tenders, the ability of developers to secure large tenants and the timely delivery of external infrastructure. Concession awards, construction milestones, tenant commitments and operational employment will be the principal indicators to monitor.

 

Sources

• Uttar Pradesh Private Business Park Development Scheme, 2025, Government of Uttar Pradesh; official English scheme document uploaded on April 15, 2026.
• Uttar Pradesh Private Business Park Development Scheme, 2025, Invest UP, Government of Uttar Pradesh; last updated on June 3, 2026.
• Chief Minister launches Nivesh Mitra 3.0 and unveils two infrastructure schemes, Invest UP, Government of Uttar Pradesh; March 24, 2026.