On April 15, 2025, the Andhra Pradesh Cabinet approved a landmark decision that could transform the state’s IT landscape. TCS, one of India’s top tech companies, was allotted 21.16 acres of land in Visakhapatnam (Vizag) for a symbolic price of just ₹1.
This move, while seemingly straightforward, signals a significant shift in the region’s tech strategy and positions Vizag as a key player in the country’s rapidly evolving IT sector.
The proposal was cleared in a cabinet meeting, making it a vital part of Andhra Pradesh’s plan to establish Vizag as a competitive IT hub, rivaling the likes of Hyderabad and Bengaluru. The deal, which mirrors past strategic land allocations like Tata Motors’ Sanand plant in Gujarat, comes with high hopes for the city’s future.
The Backstory
The roots of this decision trace back to October 2024, when IT Minister Nara Lokesh initiated talks with TCS in Mumbai. During the discussions, Lokesh urged the company to set up a large-scale development center in Andhra Pradesh.
This wasn’t just a business pitch—it was a calculated move to attract major tech investments to the state.
The 99 paisa land deal is reminiscent of Gujarat’s approach under then-CM Narendra Modi, where land was offered to Tata Motors for a similarly low price to build the Sanand plant. That decision helped Gujarat become a major player in India’s automotive sector. According to a government official, this new TCS land deal could be Andhra’s own “Sanand moment,” but for the IT sector.
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Why Vizag?
So, why Vizag? The city has long been seen as a prime location for IT development, thanks to its growing infrastructure, access to skilled talent, and strategic positioning along India’s eastern coast.
With land at a premium in cities like Hyderabad and Bengaluru, Vizag provides an attractive alternative. TCS’s presence would not only bolster the local economy but also attract other tech giants to the region.
This move is also part of Andhra Pradesh’s broader strategy to de-centralize the IT sector, which is traditionally concentrated in just a few cities. By offering competitive incentives like low-cost land and infrastructural support, the state hopes to create a thriving IT ecosystem in Vizag that can attract both domestic and international tech investments.
What’s Next for TCS in Vizag?
While the land allotment is a significant first step, details about the operational scale of the TCS development center in Vizag are still under wraps. The company has not yet disclosed specifics about the project’s size, investment, or timeline. However, the symbolic ₹1 price tag for the land is a clear signal of Andhra Pradesh’s commitment to making this a top-tier IT destination.
TCS’s potential investment in the region could serve as a catalyst for further IT development in Vizag. The company’s presence is likely to spur job creation, infrastructure development, and the growth of ancillary industries, much like how the Sanand plant did for Gujarat’s automotive sector.
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A Long-Term Vision
The land deal is not just about the short-term benefits. By securing TCS’s involvement in Vizag, the state government is betting on long-term growth. It envisions a future where Vizag competes head-to-head with other established IT hubs, fostering innovation and becoming a critical part of India’s tech ecosystem.
This decision is more than just a land allotment; it’s part of a broader vision to turn Andhra Pradesh into a magnet for tech companies and entrepreneurs. By offering incentives like cheap land and better infrastructure, the state is laying the groundwork for a sustainable, high-growth IT sector.
Andhra Pradesh’s TCS land allotment is a bold step towards realizing its dream of turning Vizag into an IT hub. While the exact details of the project are yet to be revealed, the move already positions the city as a competitive alternative to India’s top IT centers. With the potential to attract major investments and generate significant employment, this land deal marks the beginning of a new era for both the state and its tech sector.
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