99 Paise for 21 acres: TCS finds its ‘Sanand moment’ in Vizag

In a bold pitch to India’s technology industry, the Andhra Pradesh cabinet has approved the allotment of 21.16 acres of land to Tata Consultancy Services (TCS) in Visakhapatnam—for a token price of just 99 paise.

The symbolic move, first reported by Moneycontrol, marks a major push by the state to establish Visakhapatnam, also known as Vizag, as a key centre for technology and innovation. It’s not just about land—it’s about signalling intent.

A pitch that took root in Mumbai

This land deal didn’t happen overnight. It began back in October 2024, when Andhra Pradesh’s IT Minister Nara Lokesh visited Tata Group’s headquarters in Mumbai. There, he urged the IT giant to consider Andhra for its next large-scale development centre.


Over the following months, top officials from the state and TCS held a series of detailed discussions. These culminated in a cabinet-level approval this week, with formal clearance expected in the next cabinet meeting on 15 April.

Speaking to Moneycontrol, a government official said, “This is our Sanand moment for the IT sector,” drawing a deliberate comparison to the now-famous 99 paise land allocation to Tata Motors in Gujarat’s Sanand by then Chief Minister Narendra Modi—a move widely seen as transformative for Gujarat’s auto industry.

TCS plans to start work in 90 days

TCS is not waiting for the bricks and mortar to be ready. According to The Indian Express, the company is expected to begin operations in Visakhapatnam within 90 days, working temporarily out of a rented space.

The permanent campus, once completed, is set to employ 10,000 people. Construction is expected to take two to three years.

Though the company has not yet issued a formal statement detailing the full scale of its plans, state officials are optimistic about what the presence of TCS could mean for local jobs and the economy.

Government sees bigger vision behind the deal

IT Minister Nara Lokesh, who is leading the charge to develop the state's tech ecosystem, said the TCS presence marks "the beginning of turning the port city into an IT and technology hub."

The ambition doesn’t stop there. The state government has set an aggressive target—creating 500,000 jobs in the IT sector over the next five years.

Andhra Pradesh Chief Minister N. Chandrababu Naidu, who recently attended the World Economic Forum in Davos, echoed the sentiment. “Visakhapatnam will witness an IT revolution,” he declared.

While the TCS land deal has caught headlines, officials are already looking ahead. The government is reportedly in discussions with several other technology firms interested in expanding operations in Andhra.

One official told Moneycontrol, “We want Vizag to be on every tech company’s map.”

The deal, then, is as much a message as it is a milestone. It’s Andhra Pradesh placing a bet—not just on TCS, but on its own future as a serious contender in India's tech landscape.