Lucknow: Following a dispute over a Rs 25,000-crore memorandum of understanding (MoU) with Bengaluru-based startup Puch AI, the Uttar Pradesh authorities has determined to establish the corporate’s eligibility and evaluate its motion plan earlier than continuing additional.
The Make investments UP division has requested the corporate to submit an in depth challenge report (DPR) and motion plan inside the subsequent few days.
“We have now no intention of scrapping the MoU. We are going to first verify their {qualifications} after which determine easy methods to proceed with the challenge,” Make investments UP CEO Vijay Kiran Anand informed ThePrint.
He mentioned the corporate’s co-founders have additionally issued a clarification on X, which “ought to tackle a number of the issues raised earlier. We consider in full reliability and readability and can solely give an NOC after analysis.”
The Samajwadi Social gathering and its chief Akhilesh Yadav focused the Bharatiya Janata Social gathering-led authorities, questioning its memorandum of understanding with firms that had been arrange solely final 12 months.
“If (the corporate) was truly established in 2025, the web site was additionally established from 2025, (and) the MoU was signed in 2026, how can a startup or a newly fashioned AI firm make such an enormous funding in such a brief time period?” Yadav informed mediapersons in Lucknow on Tuesday. “It’s potential that Bharatiya Janata Social gathering officers are concerned someplace and are investing cash within the firm behind the scenes.”
Amid rising backlash on social media over the dimensions and phrases of the announcement, Chief Minister Yogi Adityanath clarified in a publish on Tuesday that the proposed Rs 25,000-crore MoU with Petit AI is non-binding and is merely a preliminary association.
“The MoU with Make investments UP is a preliminary step earlier than detailed due diligence and challenge analysis. The MoU with Puch AI likewise marks the start of the method of exploring prospects within the subject of AI. The MoU is just not binding on the state authorities,” the CM wrote.
AI would have been requested in regards to the “Ask” earlier than signing the MoU.
Keep away from these “5 p.c” bribes and different egocentric individuals round you who make the most of your ignorance. This has a really destructive impression on AI (synthetic photographs).
— Akhilesh Yadav (@yadavakhilesh) March 25, 2026
He mentioned additional progress, together with permits, approvals and licenses, would rely upon an intensive analysis of investor proposals. “Potential traders who don’t meet these standards will mechanically be terminated from the MoU. Uttar Pradesh stays dedicated to clear, accountable and forward-looking improvement.”
The Chief Minister on Monday introduced that the federal government has signed a Rs 25,000-crore MoU with Puch AI, outlining plans to remodel Uttar Pradesh into an AI-driven hub by an AI park, large-scale knowledge middle infrastructure, an ‘AI commons’ platform for residents and an AI-dedicated college.
Following Akhilesh Yadav’s remarks, a number of customers on social media questioned whether or not such a younger startup may make a distinction with Rs 100 crore. 25,000 billion dedication. Chief Minister Yogi Adityanath gave an evidence inside hours.
The brand new Uttar Pradesh is embracing the facility of synthetic intelligence.
The Rs 25,000-crore MoU with Puch AI will usher in AI parks, massive knowledge middle infrastructure, AI commons and AI universities within the state.
This initiative strengthens governance, fosters innovation, and…
— Yogi Adityanath (@myogiadityanath) March 23, 2026
The federal government has additionally recognized a 40-acre web site close to Lucknow airport to construct what’s being deliberate as India’s first AI metropolis, with Noida, Kanpur, Varanasi and Prayagraj additionally included within the broader plan.
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Unraveling Pucci AI
Based in 2025 by Siddharth Bhatia and Arjit Jain, Puch AI goals to make synthetic intelligence accessible to the lots. Its platform operates primarily by WhatsApp and voice calls, focuses on regional languages, and presents free companies reminiscent of chat help, picture and video era, and truth checking.
Let me make clear a number of issues, beginning with the MoU.
Are you receiving taxes from the individuals?
No, the MoU signed with the UP authorities is structured as a public-private partnership. It can price Uttar Pradesh taxpayers nothing. Quite the opposite, it brings funding in…— Siddharth Bhatia (@siddharthb_) March 24, 2026
After the controversy erupted, Puch AI co-founder Siddharth Bhatia mentioned the MoU was structured as a public-private partnership.
“It can price the Uttar Pradesh taxpayers nothing. Quite the opposite, it would convey funding to the state. The challenge shall be applied in phases with help from exterior funding companions,” he mentioned in a publish on X. “We aren’t receiving any funds, GPUs or every other type of help from the federal government.”
The one a part of the memorandum that entails the general public is that by AI Commons, they’ll entry AI free of charge by a well-recognized interface of their native language, he mentioned.
He additionally claimed that his firm was being focused due to a “bug.”
“It was a bug in Google’s AI that confused Puch AI with one other firm referred to as Puch AI. The income quantity of Rs 4.29 crore belongs to Puch AI and never Puch AI. Puch AI’s income is just not disclosed,” he mentioned.
“Folks ask, ‘What’s your valuation or annual income? Are you bootstrapped?’ We are going to share these particulars when the time is true. For now, as a personal firm, we’re not required to publicly disclose our valuation or income,” Bhatia mentioned.
Puch AI co-founder is a technologist turned entrepreneur He shifted his focus to constructing synthetic intelligence that could possibly be used at scale.
An alumnus of BITS Pilani, he holds a PhD in Pc Science from the Nationwide College of Singapore.
His analysis has been offered at main world conferences and he has obtained a number of awards, based on his LinkedIn profile. Throughout my PhD, I additionally interned at Google Analysis and Amazon Internet Companies.
(Edited by Ajeet Tiwari)
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