Gujarat Unveils AI Startup Funding, Announces Sovereign AI Park in Gandhinagar

The measures were outlined during a startup dialogue organised by the state's Science and Technology Department at the Chief Minister's residence, where around 24 high-potential startups from across India presented their innovations and products.

The participating firms represented sectors including agriculture, healthcare, education, governance and industry, with five startups focused on agriculture applications, three on healthcare, six on education and about 10 on government and industrial sectors.

Addressing the gathering, Patel said the state government would prioritise collaboration with capable and innovative startups.

"The government is committed to giving priority to talented startups to encourage innovation and new enterprises," he said.

He added that the use of AI would be expanded to increase the speed of government functioning, enhance transparency and ensure that the benefits of public schemes reach citizens more quickly.

Referring to Gujarat's technological progress, he said the foundation laid during Prime Minister Narendra Modi's tenure as chief minister had enabled the state to adopt new technologies rapidly while maintaining financial discipline.

"Gujarat was advancing towards sustainable development through emerging sectors such as AI, semiconductors and green growth," he noted.

The state government also announced a structured financial support model under its AI Innovation Challenge to assist startups from the proof-of-concept (PoC) stage to full-scale deployment.

Under the scheme, startups will receive direct financial assistance for PoC development based on the complexity of their use cases.

Funding of up to Rs 7.5 lakh will be provided for moderate projects and up to Rs 10 lakh for complex projects, disbursed in stages, with 25 per cent released upon selection and the remaining 75 per cent after successful completion of the PoC.

Startups that complete the PoC stage successfully will be eligible for further support for full-scale deployment.

The government has provisioned assistance of up to Rs 50 lakh for moderate projects and up to Rs 1 crore for complex projects, covering implementation, customisation, feature enhancement and handholding support.

The scheme also provides support for up to four years, including access to infrastructure at the Gujarat State Data Centre and the AI Centre of Excellence.

CM Patel said, "Increasing the pace of government work through AI, bringing greater transparency and ensuring that the benefits of schemes reach the last person quickly are the main objectives of the government."

He further emphasised that quality would remain the primary focus in technology-driven development and that aligning efforts across stakeholders would be essential to realise the state's vision.

During the event, the government signed an MoU with Sarvam AI and startup MIKO. Under the agreement, Sarvam AI will establish a Sovereign AI Park in Gujarat.

The facility is planned as an integrated campus with high-end computing infrastructure, research and innovation centres, skill development programmes for youth, AI-based solutions for governance and technologies aimed at improving citizen services.

Officials said the project is expected to generate significant employment opportunities over the next 5 years and contribute to building a robust ecosystem for AI and emerging technologies in the state.

The government will facilitate the project by expediting approvals and clearances, extending policy support and coordinating with relevant departments to ensure timely implementation.

Patel also said the state was ready to support startups that contribute to improving administrative efficiency and public welfare, adding that a "unified direction and collective effort would be necessary to achieve the intended outcomes".

The dialogue also focused on emerging opportunities in AI, drones, healthcare, agriculture, cybersecurity, sustainability and enterprise technologies, with the government indicating that such engagements would help enhance efficiency, transparency and service delivery across departments.

- IANS