A Symbolic Deal with Strategic Vision
In a bold move to transform Visakhapatnam into a major technology and innovation hub, the Andhra Pradesh government has allotted 21.16 acres of prime land to Tata Consultancy Services (TCS) for a token price of just 99 paisa. The allocation, approved by the state cabinet on Tuesday, marks a significant step in the state’s efforts to attract large-scale IT investments and create a future-ready digital economy.
Located at IT Hill Number 3 in Visakhapatnam, the land will be used by TCS to build a sprawling IT campus with an investment of ₹1,370 crore, promising the creation of approximately 12,000 jobs. The deal has attracted national attention not just for its symbolic pricing but for what it signals about Andhra’s ambitions in the tech sector.
The Backdrop: Building a Digital Andhra
The foundation for this landmark decision was laid in October 2024, when Andhra Pradesh IT Minister Nara Lokesh met senior officials of the Tata Group during a visit to Mumbai. During this interaction, the state invited TCS to explore opportunities in Andhra, pitching Visakhapatnam as a future tech capital.
Since then, government representatives and TCS executives have held multiple rounds of discussions, culminating in Tuesday’s cabinet approval. The move is in line with Andhra’s broader strategy of positioning itself as a preferred destination for IT and digital services, alongside traditional metros like Bengaluru, Hyderabad, and Pune.
The Strategy: Incentivizing Long-Term Investment
By offering land at a nominal price, the state is following a model of strategic incentivization—previously seen in Gujarat’s 99-paisa land allotment to Tata Motors in Sanand, which catalyzed the state’s automotive growth. Andhra now seeks a similar outcome in the digital domain.
The government’s intention is clear: signal openness to big-ticket investment, reduce entry barriers for top-tier firms, and unlock employment for thousands of skilled professionals, especially the youth. The TCS campus is expected to bring not only direct jobs but also a host of ancillary benefits—from increased demand in real estate and transport to growth in local startups and services.
Looking Ahead: A Tech-Driven Transformation
This move could be a turning point for Andhra Pradesh’s tech aspirations. With TCS setting the stage, the state hopes to attract more IT majors, especially as cities across India vie for a share in the digital economy.
For TCS, the Visakhapatnam project enhances its footprint in the southern region, allowing it to tap into a fresh talent pool and contribute to regional development. For Andhra Pradesh, this is not just about land or jobs—it’s about rebranding itself as a tech-forward, business-friendly destination with the infrastructure and intent to support global enterprises.
As the project kicks off, the real test will lie in execution and timely delivery. But one thing is certain—Andhra’s 99-paisa bet is more than symbolic; it’s a calculated investment in the state’s digital future.
(With inputs from agencies)
