Land for TCS, CTS for 99 paise a move to bring mega investors to AP

In a firm decision to send the right signals to the investors planning to set up mega projects in Andhra Pradesh, the State Government has for second time allotted 22 acres of valuable land in emerging tech hub of Visakhapatnam to Cognizant IT Solutions, after sanctioning 21.16 acres to TCS. The IT community in Visakhapatnam including members of Confederation of Indian Industry and AP Chambers of Commerce hailed the decision, saying this will have a cascading effect bringing several small and medium players and service sectors to grow in Visakhapatnam, the largest industrial city in the State. Five months after meeting with Cognizant CEO Ravi Kumar at the World Economic Forum meeting at Davos, the company has been convinced to invest Rs.1582 crore in three phases to employ 8,000.

As anchor players, they have been given land at 99 paise drawing inspiration from Gujarat Government, which had allotted land with receipt of a symbolic amount from Tata Motors to set up a car manufacturing plant when Narendra Modi was the Chief Minister. Google and Infosys are in talks with the State for setting up respectively an AI-based data centre and a permanent IT campus in the city. Adani Data Park project, which has been allotted site, envisages an investment of Rs.20,000 crore.

"The decision on Cognizant will be a game-changer in making IT as a major tech hub reinforcing Andhra Pradesh's position as a premier destination for tech and innovation," Sreedhar Kosaraju, Director, AP Digital Technology Industry (APDTI) Network, told Bizz Buzz on Friday. After the approval of Cognizant project along with 18 others with investment proposals for Rs.28,546 by the State Investment Promotion Board chaired by Chief Minister N. Chandrababu Naidu at Amaravati on Thursday, sources in the IT Department said the decision to allot 22 acres in the city for 99 paise will be placed before the Cabinet on June 24 for formal ratification.

A CMO official said "land being allotted for 99 paise to create 8,000 jobs is another major achievement for Nara Lokesh." Earlier, Cognizant had sought land at Kapuluppada under the Visakhapatnam Metropolitan Region Development Authority (VMRDA). "The company has set a target of March, 2029 for the commencement of commercial operations. With the entire project being 100% self-funded, Cognizant’s expansion into Visakhapatnam reinforces its long-term commitment to Andhra Pradesh," the official stated.