Andhra Pradesh allocates 21 acres to TCS for 99 paise to boost Vizag tech hub

In a major push to make Visakhapatnam a thriving technology hub, the Andhra Pradesh government has allotted 21.16 acres of land to Tata Consultancy Services (TCS) for just 99 paise. The land, located at IT Hill Number 3 in Vizag, will house a new TCS IT campus, expected to bring a significant boost to the local economy.

The proposal was cleared by the state cabinet on Tuesday. Officials confirmed that the project is projected to attract an investment of around Rs 1,370 crore and generate nearly 12,000 new jobs. The decision marks a bold move by the Andhra Pradesh government to position itself as a top destination for IT companies and digital services.

"This allocation is not just about land. It is a signal to the world that Andhra Pradesh is serious about building a strong IT ecosystem," a senior government official stated. The groundwork for this development was laid in October 2024, when IT Minister Nara Lokesh met with senior Tata Group executives in Mumbai to pitch Andhra Pradesh as a fertile ground for their next major project.

Since those early talks, both sides engaged in continuous discussions, culminating in this highly symbolic land allotment. By offering the land at a near-free rate, the government aims to show the industry that Andhra Pradesh is open for business with full support for large-scale tech investments.

Speaking at the India Today Conclave 2025, Nara Lokesh emphasized the importance of this move, saying, "We are at the cusp of a new revolution. States that position themselves with quality manpower and an enabling ecosystem can move ahead swiftly. Andhra Pradesh is at the right point to take that leap."

The state’s ambitions do not stop here. Andhra Pradesh has already announced plans for a 500-acre Data City near Visakhapatnam, aiming to replicate Hyderabad’s Hitec City success story. With TCS now officially coming on board, the state appears set to fast-track its journey towards becoming a major digital economy player.

Interestingly, this land deal also echoes the earlier 99 paise land strategy used in Sanand, Gujarat, where Tata Motors was given land at a symbolic price. That move transformed Gujarat into a powerhouse for the automobile industry. Andhra Pradesh now seems ready to repeat that success in the IT sector.