Sarvam AI to Set Up Sovereign AI Park in Gujarat; MoU Inked with State Govt
March 18, 2026
Gandhinagar: Gujarat is set to strengthen its position as an emerging technology hub, with Sarvam AI set to establish a Sovereign AI Park in the state. The Memorandum of Understanding (MoU) regarding this was signed on Wednesday during the AI Startup Dialogue held at the Chief Minister’s residence.
During the event, the Chief Minister interacted with 24 high-potential startups from across the country and reviewed innovations across sectors including agriculture, healthcare, education, and industry.
Under the MoU, Sarvam AI will set up a state-of-the-art Sovereign AI Park equipped with high-end computing infrastructure, research and innovation centres, and skill-development facilities for youth. The park will also develop AI-based solutions for governance and technologies aimed at improving citizen services, all within a single integrated campus.
The initiative is expected to generate significant employment opportunities over the next five years and create a strong ecosystem for AI, startups, and advanced technologies in the state. To make the project successful, the state government will expedite the necessary permissions and clearances and ensure timely completion by providing assistance and support as per state policies and by coordinating with the relevant departments.
Govt Push for AI and Startups
Emphasising the government’s intent, the Chief Minister said,
“It is the government’s intention to give priority to talented startups to work with the state government.”
He further stated,
“The main objective of the government is to further increase the speed of government work through the use of AI, bring more transparency in work, and quickly deliver the benefits of government schemes to the last person with the help of technology.”
He also underscored that,
“‘Quality’ will be the first priority of the state government in technology-based development.”
AI Innovation Challenge and Financial Support
The state government also unveiled a structured financial support model under the AI Innovation Challenge to accelerate the adoption of AI solutions.
Startups will receive:
-
Up to ₹7.5 lakh for moderate Proof of Concept (PoC) projects
-
Up to ₹10 lakh for complex PoC projects
Selected projects will further receive:
-
Up to ₹50 lakh for moderate full-scale deployment
-
Up to ₹1 crore for complex implementations
Startups will also be supported for up to four years, with access to infrastructure such as the Gujarat State Data Centre and the AI Centre of Excellence.
As per the government statement, this model will enable startups to work directly with the government while ensuring faster implementation of high-impact AI solutions, improved efficiency, and enhanced transparency in public services.
The event also saw the inauguration of the AI Centre of Excellence and Gujarat’s payment modalities, along with MoUs signed with Sarvam AI and MIKO startups. DeshGujarat
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