The Uttar Pradesh Private Business Park Development Scheme, 2025 has received significant state support, with the Michigan Economic Development Corporation awarding $17.5 million to a similar business park project from its Strategic Site Readiness Program. As reported by Lowell's First Look, this grant will fund infrastructure needed to provide wastewater services to a 237-acre parcel near the I-96 interchange, addressing long-standing challenges in extending city sewer services to the site. The Covenant Business Park project was one of 18 projects selected from more than 70 applications, with the facility expected to create 3,000 new jobs with an average wage of $24 per hour. The project requires additional funding of $17.5 million to complete the $35 million total project cost, with a 425 agreement planned to allow the City of Lowell to collect tax revenue from businesses in the park.
The Uttar Pradesh Private Business Park Development Scheme, 2025 was officially launched on March 24, 2026, as announced by the Chief Minister during the Nivesh Mitra 3.0 initiative. According to the official scheme document uploaded on April 15, 2026, the framework operates under a public-private partnership model with a Design, Build, Finance, Operate and Transfer approach. The scheme requires minimum 10 acres of land and provides a 45-year concession period with provisions for extension, targeting Global Capability Centres, technology firms, and knowledge-intensive service industries. The scheme establishes a framework for developing integrated, ready-to-operate business parks on government-owned land through private investment, with land ownership retained by the state or the land-owning agency concerned.
The scheme is open to established private developers, publicly listed companies, Real Estate Investment Trusts, and consortia with specific qualifications. As reported in the official scheme document, eligible developers must demonstrate minimum net worth of ₹1,000 crore, average annual turnover of at least ₹500 crore during the preceding three financial years, and at least seven years of relevant operating experience. The financial model requires an upfront land premium of at least 5% of prevailing land value and revenue sharing of at least 7% of gross rental revenue, with 100% stamp duty exemption for developers subject to applicable conditions. The scheme requires commitments from at least two qualifying large or multinational companies covering a minimum of 20% of the park's leasable area, with these commitments secured either at the bidding stage or within two years of the appointed date.
The implementation follows a structured process where government authorities identify appropriate land parcels and conduct technical, financial, and market feasibility studies. According to the scheme document, authorities issue Request for Proposal and draft concession agreements, with eligible developers submitting technical and financial bids using a prescribed evaluation formula. The concession agreement execution triggers developer approvals, financial closure, and construction commencement, with development milestones monitored by authorities and independent engineers. Projects are expected to be developed in phased construction obligations linked to the permissible floor area ratio (FAR), with partial completion within two years and full completion within three years of the prescribed commencement date. The scheme provides for partial completion within two years and full completion within three years of the prescribed commencement date, subject to detailed conditions in the Request for Proposal and concession agreement.
The scheme aims to develop ready-to-operate and plug-and-play business infrastructure to attract large domestic and multinational companies. As reported in the official documentation, key objectives include mobilizing private capital for government-owned land development, reducing time and initial infrastructure burden for business operations, and generating recurring revenue for public authorities. The scheme supports research and development centres, training facilities, business process outsourcing operations, and ancillary services while promoting business and service-sector clusters in suitable urban locations. At least 50% of the designated space is intended for the scheme's core sectors, including information technology, information technology-enabled services and Global Capability Centres, with non-core commercial amenities generally limited to 10%. The scheme complements Uttar Pradesh's efforts to attract GCCs, information technology businesses, research operations and foreign investment by creating integrated office clusters.
