TCS Secures 21-Acre Land in Vizag for Just 99 Paise as Andhra Pradesh Pushes for IT Growth

In a strategic move to accelerate its IT sector development, the Andhra Pradesh government has allocated 21.16 acres of prime land in Visakhapatnam to Tata Consultancy Services (TCS) at a nominal rate of just 99 paise per acre. This decision, which was formally approved during a cabinet meeting on Tuesday, marks a significant step in the state's efforts to boost IT investments and job creation in the region.

The land, located in one of the state’s fastest-developing cities, will be used for a major TCS development center. The center is expected to attract an investment of ₹1,370 crore and create around 12,000 jobs in the area. The approval of the deal follows months of intense negotiations between the Andhra Pradesh government and TCS, which were spearheaded by the state’s Minister for IT and Electronics, Nara Lokesh.

This move is part of Andhra Pradesh's broader strategy to position itself as a major IT hub in India, competing with other established centers such as Bengaluru, Hyderabad, and Chennai. The decision to grant TCS land at such a low cost is being seen as a powerful incentive to attract big-ticket investments in the state’s growing IT ecosystem.

Minister Nara Lokesh has been instrumental in pushing this deal forward. His efforts include visiting the headquarters of Tata Sons in October last year, where he presented a detailed case for why TCS should expand its footprint in Andhra Pradesh. The negotiations were long, but the state government remained committed to bringing TCS on board, emphasizing the advantages of locating in Visakhapatnam. This site offers excellent infrastructure, proximity to key transportation links, and the potential for a skilled workforce.

The deal echoes a similar strategy that was employed by Gujarat under the leadership of Prime Minister Narendra Modi when he was the Chief Minister of the state. In that case, Tata Motors was offered land at a symbolic rate to set up a manufacturing plant in Sanand, which contributed significantly to Gujarat’s rise as a manufacturing powerhouse. Now, Andhra Pradesh seems to be following this successful playbook, aiming to replicate Gujarat’s success by attracting leading companies in the IT sector.

The TCS development center is expected to be a game-changer for Visakhapatnam and the surrounding region. Not only will it create thousands of direct jobs, but it will also foster growth in ancillary industries such as real estate, hospitality, and retail, further driving the local economy. The facility is expected to focus on research and development, technology innovation, and client servicing, which will also contribute to skill development in the region.

According to officials, this move is designed to send a clear message to the tech industry: Andhra Pradesh is open for business and ready to offer competitive terms to attract top-tier investments. The state government has also made it clear that it is committed to improving its infrastructure, regulatory environment, and workforce capabilities to create a conducive ecosystem for large-scale IT and tech operations.

The land allotment is also part of a larger plan by the Andhra Pradesh government to create a robust IT corridor in the state. The state's Chief Minister, Y.S. Jagan Mohan Reddy, has previously emphasized the importance of technology in driving economic growth and job creation. The government has already announced several initiatives aimed at developing the necessary infrastructure, including high-speed internet connectivity, smart city projects, and talent development programs in collaboration with educational institutions.

For TCS, this development center in Visakhapatnam will serve as a crucial hub for expanding its operations in southern India. With the demand for digital services and IT solutions continuing to rise, TCS’s decision to invest heavily in Andhra Pradesh reflects its confidence in the region’s potential as a key growth area.

The symbolic pricing of ₹1 per acre for the land also highlights the Andhra Pradesh government's willingness to go the extra mile to attract major investments. While critics might question the economics of such deals, the broader strategy appears to be focused on generating long-term growth, not just immediate revenue. The focus is on creating a sustainable ecosystem for technology and innovation that will continue to thrive for years to come.

Image source- rediff.com