In a landmark move aimed at transforming Visakhapatnam into a premier technology and innovation hub, the Andhra Pradesh government has sanctioned the allotment of 21.16 acres of prime land to Tata Consultancy Services (TCS) for a token lease amount of just 99 paise. This land, situated at the strategically significant IT Hill Number 3, is expected to house a state-of-the-art IT campus, signaling the government’s serious intent to position Vizag as a national and global destination for tech investments.
The Andhra Pradesh Cabinet approved the proposal earlier this week, emphasizing that the upcoming TCS campus is projected to bring in ₹1,370 crore in investment and create around 12,000 new job opportunities, both directly and indirectly. The government believes this development will have a ripple effect across the local economy, spurring growth in infrastructure, housing, hospitality, and support services.
A press release from the state government read:
“Cabinet approved the allocation of 21.16 acres of land to TCS at Visakhapatnam IT Hill Number 3 for setting up an IT campus to generate 12,000 jobs. This is part of our larger commitment to building a vibrant technology ecosystem in Andhra Pradesh.”
This bold move is part of a broader vision championed by Nara Lokesh, Andhra Pradesh’s Minister for Human Resource Development and Information Technology. Lokesh has been actively engaging with top executives from India’s leading tech companies to pitch Andhra Pradesh as an innovation-ready state with world-class talent, supportive policies, and robust infrastructure.
The idea of bringing TCS to Visakhapatnam began taking shape in October 2024, when Lokesh visited Mumbai to meet with senior Tata Group leaders. Since then, a series of high-level discussions and negotiations were held to finalize the details of this partnership.
Speaking at the India Today Conclave 2025, Nara Lokesh emphasized the strategic significance of the move:
“We are at the cusp of a new technological revolution. States that invest in skilling, infrastructure, and digital readiness will leap ahead. Andhra Pradesh is well-positioned to become a key player in India’s digital transformation story.”
He further noted that Andhra Pradesh is actively competing with states like Telangana, Karnataka, Maharashtra, and Tamil Nadu to become a preferred destination for major tech firms. The decision to offer land at a symbolic price is being viewed as a proactive step to show industry leaders that Andhra Pradesh is serious about enabling business and technology growth.
The TCS deal also dovetails with the state’s ambitious plans to develop a 500-acre “Data City” near Visakhapatnam—an expansive digital hub that aims to attract data centers, cloud services firms, cybersecurity companies, and AI innovators. The goal is to mirror and rival Hyderabad’s success with Hitec City, a benchmark for IT infrastructure in India.
The government has drawn comparisons to the historic decision by Gujarat to offer land to Tata Motors in Sanand for 99 paise, which helped establish the state as a powerhouse in the automobile sector. Andhra Pradesh now appears to be following a similar playbook for the IT and digital economy, hoping to spark a tech-driven industrial revolution in the region.
In addition to the TCS project, the government is focusing on:
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Upgrading local engineering and IT colleges to improve the employability of graduates.
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Creating skilling centers and coding academies to prepare the workforce for digital jobs.
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Offering policy incentives and faster clearances for IT parks and tech startups.
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Building out urban infrastructure, including roads, public transport, and power supply.
This announcement is being hailed as a milestone moment for Andhra Pradesh’s tech ambitions. Industry experts say the presence of a global giant like TCS could pave the way for many more players to invest in the region, leading to a tech cluster effect that boosts the overall economy.
