Vizag’s IT Aspirations: 21 Acres for a Symbolic Price
In a bold initiative to transform Visakhapatnam (Vizag) into a major technology hub, the Andhra Pradesh Cabinet has approved the allotment of 21.16 acres of land to Tata Consultancy Services (TCS) at a symbolic price of just 99 paisa. The land is located in Rushikonda, one of the city’s rapidly emerging tech corridors. The allotment is expected to be formally ratified during the cabinet meeting held on April 15.
The move, spearheaded by IT Minister Nara Lokesh, reflects the state government’s aggressive push to attract top-tier IT investment by offering highly competitive incentives. The cabinet’s decision comes after several months of negotiations and engagement between the state and TCS, following Lokesh’s outreach to Tata Sons during a Mumbai visit in October 2024.
Highlights:
21.16 acres allotted to TCS in Vizag at 99 paisa.
Part of Andhra Pradesh’s long-term plan to develop Vizag as a leading technology destination.
Proposal initiated by IT Minister Nara Lokesh during Tata HQ visit in October 2024.
Inspired by Gujarat’s Sanand Strategy: Modi’s Playbook Revived
The decision has drawn parallels with Prime Minister Narendra Modi’s strategy as Gujarat CM, when he allotted land to Tata Motors in Sanand for a token price of 99 paisa. That move, which helped Gujarat establish a robust automotive manufacturing base, is now being emulated in Andhra Pradesh—with the goal of replicating similar results for the IT sector.
“This is our Sanand moment for technology,” a senior official in the Andhra Pradesh government stated. “By bringing TCS on board with this symbolic move, we aim to send a strong signal to the global tech community that Andhra Pradesh is open for business and willing to go the extra mile.”
The comparison to Sanand underlines the government’s aspiration to create a catalytic effect, drawing more IT majors into the region as early adopters establish a footprint.
Highlights:
Strategy echoes Modi’s Sanand land allotment for Tata Motors.
Officials describe the initiative as a signal to global tech firms.
TCS could serve as an anchor investor for Vizag’s tech ecosystem.
Strategic Implications and Industry Signaling
Although TCS has yet to formally announce the scale or scope of its operations in Vizag, the state government expects the company’s presence to be a game-changer. The IT major already has large campuses in cities like Hyderabad, Bengaluru, Pune, and Chennai. A move into Vizag would mark its first major expansion into coastal Andhra and could catalyze an IT corridor in Rushikonda and Madhurawada.
The decision to allot land at a token cost is also expected to influence other technology companies, startups, and ecosystem partners, who may now view Vizag as a more attractive destination given its affordability, growing infrastructure, and proactive policy support.
The state has already invested heavily in upgrading digital infrastructure, laying optic fiber networks, and establishing plug-and-play IT parks. The addition of a TCS center could enhance Andhra Pradesh’s credibility in the national IT landscape.
Highlights:
TCS expansion could anchor a larger IT corridor in Vizag.
State infrastructure investments are being aligned to support tech sector growth.
Symbolic land pricing may set precedent for other companies to follow.
