Metro India News | AMARAVATI

In a rush to position itself as India’s next major technology hub, the Andhra Pradesh government has gone to the extent of leasing out prime land parcels on lease for just Rs 0.00 per acre.

Taking a cue from the Prime Minister Narendra Modi’s decision when he was the Chief Minister of Gujarat when Mr Modi allotted land to Tata Motors at just Rs 1 per acre for the development of the Sanand plant. Lokesh believes this strategy can work to attract leading global technology firms.  It worked for Tata, why not now for TCS and Cognizant in AP?” he asserted.

In April 2025, the government allotted 21.16 acres land in Vishakapatnam to Tata Consultancy Services (TCS) at a nominal rate, with the company committing Rs 1,370 crore in investments and promising to create 12,000 jobs. Soon after, Cognizant was allocated nearly the same amount of land—21.31 acres—also at Rs.0.99 per acre, with plans to invest Rs.1,582.98 crore and generate 8,000 jobs by 2029.

Lokesh has now extended this unprecedented offer to the world’s top 100 IT firms, framing the Rs.0.99 initiative as more than a subsidy—it's a signal of Andhra Pradesh’s strategic intent to compete with tech hubs like Bengaluru and Hyderabad. “This is about catalyzing the entire ecosystem,” he said. “We’re creating an Andhra Pradesh that’s ready to embrace the future of technology.”

However, the bold move has ignited debate. Critics question the fiscal prudence of leasing such valuable land at a fraction of its market value. The opportunity cost for the state treasury could be significant, especially given the rising real estate prices in Visakhapatnam. Some worry this could set a precedent for undervaluation or lack transparency.