Uttar Pradesh cancels 25,000cr AI MOU over Puch AI concerns
The Uttar Pradesh government has called off a huge ₹25,000 crore AI project with Puch AI after finding the company didn't have the financial strength or connections needed for such a big commitment.
The MOU, signed just days ago, was reviewed by Invest UP, which flagged major concerns about Puch AI's ability to deliver.
Invest UP cites governance and transparency
Invest UP said canceling the deal was about keeping things transparent and following good governance. As they put it, "No rights or obligations remain."
The plan had included building futuristic AI parks and even an "AI city" near Lucknow, about 3% of the state's annual budget.
But this isn't Puch AI's first setback; an earlier MoU with Andhra Pradesh had not progressed materially; the state was seeking a working pilot and had made no financial commitment.
This serves as a reminder that big promises need real substance behind them.