The proposed Artificial Intelligence Center of Excellence (AI-CoE) in Bhubaneswar has received preliminary approval from the Ministry of Electronics and Information Technology (MeitY). This paves the way for establishing a specialized hub for implementing innovations in applied artificial intelligence, incubating startups, and deploying AI solutions within the state of Odisha.
Sources reported that the implementation of this center will be undertaken by the Software Technology Parks of India (STPI), an autonomous body under MeitY. STPI officially confirmed its status as an industrial partner for the AI-CoE of Blue Cloud Softech Solutions from Hyderabad and instructed them to begin the process of finalizing a Memorandum of Understanding (MoU).
Under the proposed MoU, Blue Cloud will contribute a financial investment of 40 million rupees to the center's development, in addition to providing industrial guidance, mentorship, and strategic support to the startups that will be incubated at this facility.
Center Application and Focus
The AI-CoE is envisioned as a global platform for innovation in applied AI. Its objectives extend beyond research and development, encompassing startup incubation, capacity building, and the deployment of responsible and scalable AI solutions. Initial areas of application include healthcare, governance, disaster management, education, and industrial use cases.
The state's geographical and developmental strengths, such as oceanography, coastal fishing, tidal and oceanic energy, as well as the development of women and children, will be included in the center's priority areas. This could give the Bhubaneswar center a unique role in India's emerging AI ecosystem, merging common AI capabilities with applications related to the coastal economy and Odisha's development needs.
STPI has allocated approximately 10,000 square feet of ready space along with necessary infrastructure exclusively for the creation and operation of the center. This facility is being developed as part of the IndiaAI mission—a national program aimed at building sovereign AI computing infrastructure and a broad AI innovation ecosystem.
According to Blue Cloud, this partnership will enable the transfer of the company's existing platforms and technological capabilities into the startup ecosystem. On Tuesday, the company announced that it would make its platforms, engineering talent, and network of corporate and government clients available to startups incubated at the Bhubaneswar center.
Tejesh Kumar Kodali, Group Chairman of Blue Cloud Softech Solutions, noted that these platforms can help startups transition from concept development to large-scale implementation in governmental and corporate environments. He emphasized: 'Odisha is precisely where applied AI should be built. There are real problems to solve in healthcare, disaster management, coastal fishing, and ocean economy, and the state government and STPI want to see deployed solutions, not just researched ones.'
Kodali added that the company's commitment to the center goes beyond financial contribution: 'We will bring our platforms, our engineers, and our mentorship to every startup that passes through Bhubaneswar.'
Blue Cloud's existing portfolio includes BluHealth—a camera-based non-invasive vital signs screening platform for healthcare, Blura SAGA and SOCEYE for public safety and governance applications, and Access Genie—its stack of sovereign AI and 5G digital infrastructure.
Vinod Babu Bollikonda, Managing Director and Group CEO of Blue Cloud, stated that the center is a natural extension of the company's work within the IndiaAI mission and its engagement with governments in India and Africa. He concluded: 'We will quickly proceed to sign the final MoU with STPI so that the Center can commence operations, and we hope that Bhubaneswar will become a benchmark for how industry, government, and startups can jointly build responsible AI.'

