Andhra Allots 21.16 Acres to TCS for 99 Paisa, Calls It ‘Sanand Moment’

In a strategic bid to attract IT investments, the Andhra Pradesh government has approved the allocation of 21.16 acres of land in Visakhapatnam to Tata Consultancy Services (TCS) at a nominal cost of 99 paisa. The proposal received formal approval during a cabinet meeting held on April 15.

According to a report by The Hindu Business Line, citing government sources, the IT services giant has committed to investing Rs 1,370 crore to set up a campus in the state, which is expected to generate as many as 12,000 jobs.

This initiative is part of the state’s broader strategy to establish Visakhapatnam as a major technology hub. The groundwork was laid by IT Minister Nara Lokesh, who reportedly pitched the proposal to TCS executives during a visit to Tata headquarters in Mumbai in October 2024, encouraging the company to consider Andhra Pradesh for its next major development center.

As reported by Moneycontrol, the move is intended to signal Andhra Pradesh’s readiness to compete for high-value technology investments.

The decision mirrors a well-known strategy from Gujarat, where then-Chief Minister Narendra Modi offered land to Tata Motors in Sanand at a similarly symbolic price—a move widely credited with kickstarting the state’s automotive industry.

“This is our Sanand moment for the IT sector. We want Vizag to be on every tech company’s map,” a senior Andhra Pradesh government official told Moneycontrol.

TCS Yet to Announce Official Decision

Tata Consultancy Services (TCS) has not yet officially confirmed the establishment of its development centre in Visakhapatnam. However, according to The Indian Express, the company is expected to begin operations within the next 90 days, initially operating from a rented facility.

The permanent campus is expected to take two to three years to complete.

Last year, as part of the first phase of the TCS project, the state’s Industries and Commerce Department issued orders to sub-lease the Dallas Technology Centre LLP (DTC) building at Hill No. 2 in Rushikonda to TCS. This initial phase was projected to create employment opportunities for around 2,000 IT professionals. A team from TCS, accompanied by government officials, visited the site in November and expressed interest in starting operations from the facility, The Hindu had reported.

The Andhra Pradesh government has set an ambitious target of creating 500,000 jobs in the IT sector over the next five years. At the World Economic Forum in Davos, Chief Minister N. Chandrababu Naidu declared, “Visakhapatnam will witness an IT revolution.”