In a groundbreaking move that’s reshaping India’s IT landscape, Andhra Pradesh‘s cabinet has approved the allocation of 21.16 acres of prime land in Visakhapatnam to Tata Consultancy Services (TCS) for just 99 paise. This historic decision, spearheaded by IT Minister Nara Lokesh, marks a new chapter in the state’s ambitious plan to become India’s next IT powerhouse.
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Andhra Pradesh Game-Changing Deal Details
The cabinet decision, officially approved on April 15, 2025, represents more than just a land transaction—it’s a strategic investment in Andhra Pradesh’s digital future. The initiative is inspired by PM Modi’s Gujarat model, where symbolic pricing attracts massive investments and job creation.
Key Investment Highlights
| Company | Land Allocated | Lease Price | Investment Commitment | Jobs Created |
|---|---|---|---|---|
| TCS | 21.16 acres | 99 paise | ₹1,370 crore | 12,000 jobs |
| Cognizant | TBA | 99 paise | ₹1,582 crore | 8,000 jobs |
| Total | 21.16+ acres | ₹1.98 | ₹2,952 crore | 20,000+ jobs |
The Visionary Behind the Initiative
Nara Lokesh, Andhra Pradesh’s IT Minister, has been the driving force behind this revolutionary policy. He pitched the idea to TCS in October last year, demonstrating the government’s proactive approach to attracting global IT investments. This strategy reflects a deep understanding of how competitive incentives can transform regional economies.
Why This Matters for India’s IT Sector
The 99 paise land lease model isn’t just about cheap land—it’s about creating an ecosystem where global companies can establish world-class facilities while contributing significantly to local employment and economic growth. For more insights into India’s evolving IT landscape, this policy could set a new benchmark for state-level industrial promotion.
The Visakhapatnam Advantage
The TCS facility will be a significant boost for Andhra Pradesh and Visakhapatnam, where the government has planned to establish a ‘Data City’. This strategic location offers several advantages:
- Coastal connectivity for international business
- Government support through progressive policies
- Infrastructure development focused on IT needs
- Skilled workforce availability in the region
Beyond TCS: A Growing Movement
Following TCS, Cognizant has also been allotted land in Visakhapatnam at a token lease of just 99 paise, with the company committing to invest ₹1,582 crore over the next eight years. This demonstrates the policy’s effectiveness in attracting multiple global players.
The ripple effect of this policy extends beyond individual companies. It signals to the global IT community that Andhra Pradesh is serious about creating a business-friendly environment that prioritizes long-term partnerships over short-term revenue.
Economic Impact and Job Creation
The economic implications of this policy are substantial. With TCS alone promising to create 12,000 jobs and invest ₹1,370 crore, the state is positioning itself as a major player in India’s IT sector. For comprehensive coverage of technology sector developments, this policy represents a masterclass in strategic economic planning.
The Multiplier Effect
When global IT companies establish operations, they don’t just create direct employment—they stimulate entire ecosystems including:
- Local vendor partnerships
- Service industry growth
- Real estate development
- Educational institution partnerships
Challenges and Opportunities Ahead
While the 99 paise land lease policy is revolutionary, its success depends on execution. The state government must ensure robust infrastructure, skilled workforce development, and continued policy support to maximize these investments’ potential.
The official TCS website shows the company’s commitment to expanding its Indian operations, and this Andhra Pradesh initiative aligns perfectly with their growth strategy.
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FAQs
Q: Why is Andhra Pradesh offering land at 99 paise to IT companies?
A: The 99 paise symbolic pricing is a strategic policy to attract major IT investments and job creation. While the lease price is minimal, companies commit to substantial investments (TCS: ₹1,370 crore, Cognizant: ₹1,582 crore) and significant job creation (20,000+ jobs combined), delivering far greater economic returns to the state.
Q: How many jobs will be created through this TCS land allocation?
A: TCS has committed to creating 12,000 jobs through their Visakhapatnam facility. Combined with Cognizant’s 8,000 job commitment, the 99 paise land lease policy is expected to generate over 20,000 IT jobs in Andhra Pradesh, making it a significant employment generator for the region
