New Delhi : The Central Government has released ₹233 crore, representing 23.5% of the total ₹990 crore approved for establishing three Artificial Intelligence (AI) Centres of Excellence (CoEs) between FY2023–24 and FY2027–28, according to a written reply presented in the Rajya Sabha.
The funding is part of the government’s vision of “Make AI in India and Make AI Work for India,” announced in the Union Budget 2023–24, with the objective of strengthening India’s AI research, innovation, and sector-specific applications.
Three AI Centres Focus on Key Sectors
The three Centres of Excellence have been established to develop AI-based solutions for critical sectors of the economy.
The institutions leading the centres are:
- Indian Institute of Technology (IIT) Ropar – Agriculture
- Indian Institute of Technology (IIT) Kanpur – Healthcare
- Indian Institute of Science (IISc), Bengaluru – Sustainable Cities
Each centre is working with academic institutions, government agencies, and industry partners to develop practical AI technologies addressing national priorities.
Funding Released So Far
According to the Ministry of Education, the government has released ₹233 crore against the sanctioned ₹990 crore allocation.
Fund Allocation Details
- ₹27 crore released during FY2023–24 and FY2024–25 for pilot projects and competitive selection of consortium institutions.
- ₹74.39 crore released to IIT Kanpur for the Healthcare AI Centre.
- ₹69.07 crore released to IISc Bengaluru for the Sustainable Cities AI Centre.
- ₹62.64 crore released to IIT Ropar for the Agriculture AI Centre.
These releases were made during FY2025–26 and FY2026–27 as the projects entered the implementation phase.
However, the Ministry did not specify when the remaining approved funds would be released.
Separate ₹500 Crore AI Centre for Education
Apart from the three Centres announced in the 2023 Budget, the government also established a separate Artificial Intelligence Centre of Excellence for Education at IIT Madras.
The Education AI Centre, announced in the Union Budget 2025–26, has a total approved outlay of ₹500 crore.
So far, the Centre has received ₹43 crore from the government.
The institute is developing AI technologies aimed at improving education, multilingual learning, and digital content creation.
AI Technologies Under Development
The Ministry of Education highlighted several AI applications currently being developed by the Centres of Excellence.
Education AI Centre (IIT Madras)
Researchers are building AI models for:
- Automatic Speech Recognition (ASR)
- Optical Character Recognition (OCR)
- Machine Translation
- Text-to-Speech Systems
- Support for Indian languages
These technologies are expected to improve digital education and multilingual accessibility across India.
Agriculture AI Centre (IIT Ropar)
The Agriculture CoE is developing AI-powered tools for:
- Crop identification
- Pest detection
- Plant disease diagnosis
These solutions aim to support farmers through precision agriculture and early disease detection.
Healthcare AI Centre (IIT Kanpur)
The Healthcare CoE is working on AI applications that can strengthen medical diagnostics, healthcare delivery, and disease management through advanced machine learning technologies.
Sustainable Cities AI Centre (IISc Bengaluru)
The Sustainable Cities CoE is focusing on urban challenges through AI, including:
- Air pollution attribution models
- Urban flood prediction systems
These technologies are intended to assist city planners and government agencies in improving urban resilience and environmental management.
Monitoring of Fund Utilisation
The Ministry of Education stated that the progress of the AI Centres is being monitored through a multi-layer governance mechanism.
Oversight includes:
- An Apex Committee comprising industry leaders and senior government officials.
- An Independent Project Monitoring and Review Committee to assess project deliverables.
- Regular reviews by the Central Project Management Unit.
These bodies evaluate both:
- Technological progress against approved milestones.
- Financial utilisation of allocated funds.
However, the Ministry did not provide a centre-wise annual utilisation report or a timeline for disbursing the remaining approved allocation.
Part of India’s Broader AI Mission
The AI Centres of Excellence form an important component of India’s larger strategy to become a global leader in Artificial Intelligence.
In 2024, the Government approved the ₹10,370 crore IndiaAI Mission, which aims to:
- Expand access to high-performance computing infrastructure.
- Support AI startups.
- Develop indigenous foundational AI models.
- Create large-scale AI datasets.
- Strengthen AI research and innovation across sectors.
The Ministry of Education is also promoting AI education through schools and higher educational institutions.
The Central Board of Secondary Education (CBSE) has introduced Artificial Intelligence as:
- A skill subject for Classes VIII to X.
- An elective subject for senior secondary students.
Schools are also being encouraged to establish AI laboratories and provide practical learning opportunities in emerging technologies.
Outlook
While the release of ₹233 crore demonstrates continued government support for AI research, it represents less than one-fourth of the total approved funding for the three Centres of Excellence. As India seeks to strengthen its position in the global AI landscape through the IndiaAI Mission and sector-specific innovation, timely funding and effective implementation will be critical to accelerating research, developing indigenous AI technologies, and supporting the country’s digital transformation agenda.
