Chandigarh is poised to establish its own Artificial Intelligence Centre of Excellence (AI-CoE), a development that could transform the city into a hub for AI-driven governance, innovation, and startup-led technological solutions. The proposed centre will assist government departments in deploying artificial intelligence to enhance public services and decision-making processes. It will also foster a dedicated ecosystem for research, entrepreneurship, and skill development in emerging technologies.
Government Initiative and Funding
“The Chandigarh administration has initiated the process of establishing the AI-CoE under the ministry of electronics and information technology’s (MeitY) India AI Startup Financing Pillar scheme,” said a UT official. The centre is envisioned as a bridge between government, academia, and industry, aiming to develop practical AI-based solutions for urban and administrative challenges.
Focus on Governance and Innovation
According to the proposal, the administration will first identify key domains within Chandigarh’s governance ecosystem and document specific problem statements that can be addressed through AI-enabled interventions. “The centre of excellence will focus on developing practical solutions for administrative and civic challenges, with an emphasis on real-world implementation. It is planned to come up in the Chandigarh IT park,” the official added. The Information Technology department will serve as the nodal agency for the project and will oversee the selection of an implementing agency through a screening and approval committee. Proposals will be invited from institutions and organizations with the required technical expertise and implementation capabilities. The proposal will undergo a two-stage approval process, first at the Chandigarh administration level and subsequently by MeitY for final sanction and funding support.
PEC Likely to Play Key Role
Punjab Engineering College (PEC) is expected to play a central role in the initiative by undertaking testing, piloting, and development of AI-based solutions in collaboration with industry partners and funding agencies. Officials believe the partnership will help bridge the gap between academic research and practical governance applications while creating opportunities for innovation and technology transfer.
Part of National IndiaAI Mission
The proposed centre is part of MeitY’s IndiaAI Startup Financing Pillar, which aims to unlock the potential of artificial intelligence across sectors such as healthcare, manufacturing, agriculture, logistics, and governance. Under the scheme, Chandigarh has been classified as a low-population region and is required to establish at least one AI centre of excellence. Five such centres have been approved across the country, including two in Kerala that received administrative approval in May this year.
Startup Hub and Advanced Research Facility
- Apart from supporting governance applications, the AI-CoE will function as a dedicated innovation hub for startups, researchers, and entrepreneurs.
- The facility will provide co-working spaces, incubation support, mentorship programmes, and investor-connect opportunities.
- The centre will focus on emerging technologies including Artificial Intelligence, blockchain, cyber security, quantum computing, and the Internet of Things (IoT).
- Plans also include advanced AI laboratories equipped with high-performance computing infrastructure, specialised software tools, and sandbox environments for research and product development.
Shared Funding Model
The funding will be through a collaborative framework under which MeitY is expected to contribute around 40% of the project cost, while the Chandigarh administration will provide a matching 40% share. The remaining 20% will be mobilised through industry and academic partners.



