Andhra Pradesh Allots 21.16 Acres to TCS for 99 Paise to Boost IT Investments

In a notable development aimed at positioning Visakhapatnam as a major technology hub, the Andhra Pradesh Cabinet has approved the allotment of 21.16 acres of land to Tata Consultancy Services (TCS) at a nominal lease of 99 paise. The land will be utilised by TCS to establish a state-of-the-art development centre, with a proposed investment of ₹1,370 crore.

The move is seen as a strategic push by the state to attract large-scale IT investments and generate employment opportunities. According to the official press release, the new facility is expected to create around 12,000 jobs in the region.

High-Level Engagement and Follow-Up

The announcement follows a series of meetings and negotiations between the Andhra Pradesh government and Tata Group executives. In October 2024, the state’s Minister for IT and Electronics, Nara Lokesh, visited Tata House and presented a compelling case for setting up a large-scale IT development centre in the state.

A government spokesperson confirmed that continuous follow-ups and discussions eventually led to the land allotment. The government described the move as a bold and deliberate signal to the broader industry that Andhra Pradesh is committed to becoming a serious player in India’s digital economy.

Role of Leadership and Industry Collaboration

The involvement of Chief Minister N Chandrababu Naidu has also been central to this development. In August 2024, he met with N Chandrasekaran, Chairman of Tata Sons, in Amaravati to discuss the possibility of TCS setting up operations in the state. Following the meeting, Naidu posted about the initiative on social media, indicating strong political will behind the effort.

Subsequently, the state established a Task Force for Economic Development, co-chaired by Chandrasekaran, underscoring the government’s collaborative approach to economic planning and industrial development.

A Nod to Historical Precedents

This decision draws parallels with an earlier initiative by Prime Minister Narendra Modi, who, during his tenure as Chief Minister of Gujarat, had allotted land in Sanand to Tata Motors for the Nano project at a similarly symbolic price of 99 paise. That move, too, was intended to send a powerful message to investors about the state’s pro-business stance.

Broader Vision for Tech and Infrastructure Growth

The land allotment to TCS aligns with the state’s broader vision of transforming Visakhapatnam into a thriving IT destination. As part of this vision, Chief Minister Naidu had promised during his election campaign to create three lakh jobs in Visakhapatnam over a five-year period.

In addition to the TCS development centre, the state government has outlined plans to establish a 500-acre ‘Data City’ near Visakhapatnam. Moreover, a memorandum of understanding (MoU) has been signed with global tech giant Google to set up an Artificial Intelligence (AI) Data Centre in the region.

Conclusion

The allotment of land to TCS for 99 paise is not merely a financial concession but a calculated initiative by the Andhra Pradesh government to send a clear message to the IT industry. Through strategic engagement, long-term planning, and active facilitation, the state is working to position Visakhapatnam as a new frontier for technology and innovation in India.

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