AP Inc Terms Land To TCS at 99 Paise Game Changer

The decision to give the land to TCS as an anchor investor will be a game changer to position Vizag as a prominent IT hub of India. Visakhapatnam has all the ingredients to become a rendezvous for investments by major IT players - Potuluri Bhaskar Rao, President, APCCIF, tells Bizz Buzz

Visakhapatnam: The allotment of 21.16 acres here at the posh Rushikonda Hills to IT major Tata Consultancy Services (TCS) for 99 paise replicating the way Prime Minister Narenra Modi had allotted a large parcel of land to Tata Motors at Sanand when he was the Chief Minister of Gujarat to set up the Nano car project, has brought loud cheers among the investors in Andhra Pradesh.

Though it may sound like gifting away a valuable land at most sought after Rushikonda Hills with a distant view of the Bay of Bengal for peanuts, investors say giving such land to anchor investors will be a game-changer to position Vizag as a prominent IT hub of India. Google and others are expected to get land like this. Infosys, which made a humble start at Rushikonda in a rented building, is also in negotiation for getting land to set up a permanent campus.

Though there is talk of making Rushikonda, where an IT Special Economic Zone exists, the Cyberabad of Andhra Pradesh, the turnover from IT and ITeS has remained unchanged for the past several years. It is hovering over Rs2,500 crore with 90 per cent revenue coming from BPM industry. TCS has inked an MoU with the State government to establish a 12,000-seater facility in the city. For developing data city at Kapuluppada, plots are being given to those making concrete commitment at concessional prices as the data park by Adani Group has remained a non-starter.

After the State Cabinet approval, IT, Electronics and Education Minister Nara Lokesh, who directly held talks with the Tata Group to bring them to Vizag, said in a posting on X: “First step taken! @TCS has been allocated 21.16 acres of land in #Vizag to build a development center at an investment of Rs1,370 crore, creating over 12,000 jobs.”

Asked to comment on the development, Potuluri Bhaskar Rao, State president of AP Chambers of Commerce and Industry Federation (APCCIF), told Bizz Buzz that “the decision to give the land to TCS as an anchor investor will be a game-changer to position Vizag as a prominent IT hub of India. Visakhapatnam has all the ingredients to become a rendezvous for investments by major IT players.”

He said when the State Government gave a huge parcel of land and doled out several concessions to Kia Motors to set up the car manufacturing unit in Anantapur district, many were surprised. “Today, they are the largest contributor of GST and a major unit in providing direct and indirect employment to many in a backward region,” he said adding, it has also led to development of several ancillary and downstream units.

Rao said as per a recent study, one IT job in Hyderabad has led to creation of livelihood to four persons in service and other sectors. At that rate, just imagine how TCS will be a game-changer for developing Vizag as an IT and fintech hub. He said it will also provide a huge opportunity to housing, educational institutes and facilitate creation of social infrastructure. AI evangelist and Director of AP Digital Technology Industry (APDTI) Network Sreedhar Kosaraju said Vizag has been waiting for a long time for a big-ticket project by a prominent IT player.

“Giving land at 99 paise will certainly increase revenue turnover manifold and opportunities in many ways to the locals as well as to boost the MSME players,” he said adding, there are plans to allot land at nominal amount with a slew of incentives as part of the proactive policy being pursued by Chief Minister Naidu and IT Minister Lokesh to change the industrial landscape of Vizag and its neighbourhood.