Uttar Pradesh Cabinet Approves 1,725 E‑Buses, Boosts Semiconductor Incentives, Greenlights Three New Jails

LUCKNOW — The Uttar Pradesh cabinet on June 4 approved a multi‑pronged development plan that includes the purchase of 1,725 electric buses, new incentives for semiconductor manufacturers and the construction of three state‑run jails, officials said.

The cabinet, chaired by Chief Minister Yogi Adityanath, signed off on a ₹1,200‑crore electric‑bus programme that will see the vehicles deployed in Lucknow, Kanpur, Varanasi and Agra over the next 18 months. The move aligns with the state’s 2024‑2029 Green Mobility Roadmap, which targets a 30 % reduction in public‑transport emissions by 2030.

Electric‑bus rollout

Under the scheme, the state will procure 1,725 battery‑electric buses from two Indian manufacturers, with an average capacity of 80 passengers and a range of 250 km per charge. The buses will be powered by lithium‑ion packs sourced from a new battery plant approved in 2025 in Gorakhpur. The cabinet statement read, “The procurement of 1,725 electric buses will accelerate our transition to clean mobility and create over 5,000 direct and indirect jobs.”

Funding will come from the state’s Clean Transport Fund, which was created under the Uttar Pradesh Clean Energy Act, 2023, and will be supplemented by a 20 % central government grant under the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME‑II) scheme.

Semiconductor policy overhaul

In parallel, the cabinet approved amendments to the Uttar Pradesh Semiconductor Policy 2026, introducing a tiered subsidy of up to 30 % for projects that invest at least ₹3,000 crore. The incentives cover capital expenditure, land acquisition and research‑development costs. “The new policy offers up to 30 % subsidy for semiconductor units investing over ₹3,000 crore,” the cabinet note said.

The policy also streamlines land allocation through the Uttar Pradesh Industrial Land Allocation Rules, 2025, and guarantees a single‑window clearance within 45 days. Industry analysts estimate the incentives could attract ₹12,000 crore of private investment and generate 12,000 skilled jobs within five years.

New correctional facilities

Addressing chronic prison overcrowding, the cabinet cleared construction of three new jails—one each in Meerut, Allahabad and Bareilly. The projects, budgeted at ₹2,400 crore in total, will comply with the Prison (Amendment) Act, 2024, which mandates modern sanitation, digital inmate management and vocational training centers.

“Construction of three new correctional facilities will address the rising inmate population and bring our prison infrastructure in line with national standards,” the statement added.

Historical context and economic impact

Uttar Pradesh’s push for electric public transport began in 2022 with a pilot of 200 e‑buses in Lucknow. By 2025 the fleet grew to 800, but the state still lagged behind the national average of 12 % electric‑bus penetration. The 1,725‑bus order is expected to lift the state’s share to 18 % by 2028, cutting diesel consumption by an estimated 1.5 million litres annually and saving ₹1.8 billion in fuel costs.

Semiconductor manufacturing has been a national priority since the 2021 Production‑Linked Incentive (PLI) scheme. Uttar Pradesh, traditionally an agrarian economy, launched its first semiconductor park in 2024 in Noida. The new incentives aim to double the park’s capacity, positioning the state as a hub for chip design and assembly in North India.

Prison capacity in Uttar Pradesh stood at 71,000 beds in 2025, while the inmate population had risen to 84,000, creating a 19 % occupancy excess. The three new jails will add 9,000 beds, reducing the excess to under 5 %.

Statutory and procedural details

The e‑bus procurement follows the Uttar Pradesh State Transport Act, 2020, which mandates competitive bidding and a minimum 70 % Indian content in vehicle components. The semiconductor incentives are codified under the Uttar Pradesh Semiconductor Promotion Rules, 2026, which were amended on May 28, 2026. The jail projects are authorized by the Uttar Pradesh Prison Act, 2019, as amended in 2024 to allow public‑private partnership models for infrastructure development.

All three initiatives will be monitored by separate oversight committees reporting to the Chief Minister’s Office on a quarterly basis. The committees will track budget utilisation, project milestones and compliance with environmental and labour regulations.

Industry bodies, including the Confederation of Indian Industry’s Uttar Pradesh chapter, welcomed the announcements, calling them “a decisive step toward diversifying the state’s economic base and modernising public services.” Human‑rights groups, however, urged the government to ensure that the new jails meet international standards for inmate welfare.