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From factories to future tech: How Tata–Yogi alignment signals Uttar Pradesh’s next growth phase

Tata Power outlined plans for a new 1,900 MW thermal power unit at its Bara plant in Prayagraj. The project, which will include multiple generation units, is expected to significantly enhance UP’s electricity. generation capacity.

December 18, 2025 / 10:55 IST
A high-level meeting between Tata Sons Chairman N Chandrasekaran and Uttar Pradesh Chief Minister Yogi Adityanath was held this week.

A high-level meeting between Tata Sons Chairman N Chandrasekaran and Uttar Pradesh Chief Minister Yogi Adityanath on Monday evening has laid out an expansive investment and development roadmap that signals the state’s push into its next phase of industrial and technology driven growth.

The interaction, held in Lucknow, marked a deepening of the strategic partnership between the Uttar Pradesh government and the Tata Group, with discussions covering electric mobility, power generation, renewable energy, information technology, defence manufacturing, electronics, tourism, heritage conservation and skill development. Officials described the engagement as execution focused, with an emphasis on large scale investments, job creation and positioning Uttar Pradesh as a preferred destination for high value projects.

Chandrasekaran briefed the Chief Minister on the Tata Group’s ongoing and proposed investments in the state, with particular stress on expanding Tata Motors’ electric vehicle ecosystem. Plans include scaling up EV manufacturing capacity, introduction of new vehicle models and expansion of electric bus manufacturing in line with the state government’s clean mobility and public transport goals.

Power generation emerged as a major pillar of the proposed expansion. Tata Power outlined plans for a new 1,900 MW thermal power unit at its Bara plant in Prayagraj. The project, which will include multiple generation units, is expected to significantly enhance Uttar Pradesh’s electricity generation capacity and create substantial employment during both construction and operational phases. Alongside thermal power, the group is accelerating its renewable energy presence. Two 50 MW solar power projects are currently underway in Prayagraj and Banda, while rooftop solar installations are being promoted across urban and semi urban areas to support clean energy adoption and reduce carbon emissions.

Industrial and infrastructure development in Noida also figured prominently in the discussions. The Tata Group is constructing new commercial and IT buildings aimed at attracting fresh investments and strengthening the region’s standing as a business and technology hub. A phased rollout of IT infrastructure has been planned, with the first phase targeted for completion by December 2026.

Technology and digital services formed a core component of the meeting. The Tata Group proposed setting up a world class Tata AI Global Capability Center in Uttar Pradesh, with Lucknow being positioned as a strategic hub for AI enabled services. There was also agreement on expanding Tata Consultancy Services operations in Lucknow, Noida and Varanasi. The workforce at TCS facilities in Lucknow and Noida is proposed to be increased from around 16,000 to nearly 30,000 employees, a move expected to significantly boost the state’s digital talent pool.

Recognising Uttar Pradesh’s growing role in electronics manufacturing, the Tata Group expressed intent to expand investments in mobile phone manufacturing, electronic components and other high technology products. Discussions also referred to the group’s memorandum of understanding with Intel and the need to further strengthen the electronics manufacturing ecosystem in the state.

The Uttar Pradesh Defence Industrial Corridor was identified as another priority area. The Tata Group proposed expanding defence manufacturing activities, including production of drones, missiles and defence vehicles, across multiple nodes of the corridor. Jhansi, under the Bundelkhand Industrial Development Authority, was highlighted as a key location for defence related projects aligned with the state’s strategic and security objectives.

Tourism and hospitality emerged as one of the most visible areas of investment. Chandrasekaran presented a detailed plan to expand the Tata Group’s hotel footprint in Uttar Pradesh under brands such as Taj, SeleQtions and Vivanta. Construction of 30 hotels is already underway across the state, while proposals for another 30 hotels are under consideration. With these additions, the number of luxury hotel rooms in Uttar Pradesh is expected to rise from around 2,000 to nearly 5,000.

The hotels are planned across major religious, cultural and historical destinations including Prayagraj, Ayodhya, Varanasi, Vrindavan, Agra, Lucknow, Kanpur, Gorakhpur and Bijnor. A signature hotel is being developed in Noida, while a luxury Taj hotel is under construction in Prayagraj. The expansion is aimed at catering to the sharp rise in domestic and international tourist arrivals driven by improved connectivity and large scale religious tourism.

The meeting also reviewed progress on education and skill development initiatives. A Centre of Excellence being developed in collaboration with IIT Kanpur in Gorakhpur, with an investment of ₹48 crore, was discussed in detail. The centre will focus on artificial intelligence, cybersecurity, drones, 3D printing and space technologies, with a strong emphasis on skilling youth from eastern Uttar Pradesh.

Officials said the meeting reflected a shared vision of governance driven by timely execution, where industrial growth, technology adoption, tourism development and employment generation move in tandem. With the Tata Group expanding its footprint across multiple sectors, Uttar Pradesh is seeking to position itself as a central player in India’s next cycle of economic growth.

 

Biswajeet Banerjee
first published: Dec 17, 2025 05:18 pm

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