Just months after allotting acres of land to Tata Consultancy Services (TCS) to set up a new campus in Andhra Pradesh for just 99 paise, the Chandrababu Naidu-led government has struck a similar deal with Cognizant Technology Solutions.
In a release on Friday, the state government announced that Cognizant will be allotted land in Visakhapatnam at a token lease of just 99 paise. In return, the Teaneck, New Jersey-headquartered company has committed to investing ₹1,582 crore over the next eight years to develop an IT campus expected to generate 8,000 jobs in the coastal city.
According to reports, the upcoming campus will be strategically located around 600 kilometres from Hyderabad and 800 kilometres from Chennai—two of India’s leading software hubs, alongside Bengaluru. Cognizant aims to commence commercial operations in Visakhapatnam by March 2029.
Earlier in April, the Andhra Pradesh Cabinet approved the allocation of 21.16 acres of land to TCS in Visakhapatnam, also at a token lease of 99 paise. TCS plans to invest ₹1,370 crore to establish an IT campus on the site, known as IT Hill Number 3, which is projected to create 12,000 jobs.
That same month, Andhra Pradesh’s Technology Minister Nara Lokesh told CNBC TV18 that he envisions transforming Visakhapatnam into a major hub for IT investments.
“I often joke that if Goa and Bengaluru had a child, it would be Visakhapatnam. We have everything—natural beauty, infrastructure, and talent. This, we believe, could be the spark that attracts even greater investments to the city,” Lokesh said.
For Cognizant, the move aligns with its broader strategy to optimise real estate costs. In May 2023, CEO Ravi Kumar S announced that the company would relinquish 11 million square feet of office space globally—primarily in India’s major metros—while shifting focus toward tier-2 cities in the country.
Last month, the Teaneck, New Jersey-based firm raised its full-year revenue forecast after reporting better-than-expected first-quarter results, driven by rising demand for AI-powered IT services.
