Gujarat signs MoU with Sarvam AI to establish Sovereign AI Park, gives boost to innovation & job creation

Gandhinagar: Gujarat is poised to reinforce its standing as a growing technology hub, as Sarvam AI plans to set up a Sovereign AI Park in the state. The Memorandum of Understanding (MoU) for the project was signed on March 18 during the AI Startup Dialogue held at the Chief Minister’s residence.

During the event, the Chief Minister engaged with 24 high-potential startups from across the country, reviewing innovations spanning sectors such as agriculture, healthcare, education, and industry.

As part of the MoU, Sarvam AI will establish a cutting-edge Sovereign AI Park featuring advanced computing infrastructure, dedicated research and innovation centres, and skill development facilities for youth. The integrated campus will also focus on developing AI-driven governance solutions and technologies aimed at enhancing citizen services.

The initiative is expected to generate substantial employment over the next five years while fostering a robust ecosystem for AI, startups, and advanced technologies in the state. To ensure timely execution, the state government has committed to fast-tracking approvals and clearances, along with providing necessary support and coordination across departments in line with existing policies.

Govt Push for AI and Startups

Highlighting the government’s vision, the Chief Minister stated that priority will be given to talented startups to collaborate with the state. He emphasised that the use of AI will help accelerate government processes, improve transparency, and ensure faster delivery of welfare benefits to citizens. He also reiterated that quality will remain the top priority in technology-driven development.

AI Innovation Challenge and Financial Support

The government also introduced a structured financial assistance model under the AI Innovation Challenge to boost AI adoption:

* Up to Rs 7.5 lakh for moderate Proof of Concept (PoC) projects
* Up to Rs 10 lakh for complex PoC projects

For selected projects:

* Up to Rs 50 lakh for moderate full-scale deployment
* Up to Rs 1 crore for complex implementations

Startups will receive support for up to four years, including access to key infrastructure such as the Gujarat State Data Centre and the AI Centre of Excellence. According to the government, this model will enable startups to work closely with the administration, ensuring faster rollout of impactful AI solutions, improved efficiency, and greater transparency in public services. The event also marked the inauguration of the AI Centre of Excellence and Gujarat’s payment modalities, along with the signing of MoUs with Sarvam AI and MIKO startups.