Andhra Pradesh’s Minister of Industries and Technology, Electronics, and Communications, Nara Lokesh, reiterated in a recent interview that his government’s main strategy to attract investment from the top global and Indian IT companies by offering land for lease at the rate of 99 paise still stands strong.
Two tech giants – TCS and Cognizant – have already closed deals for land at this rate in the state.
Drawing inspiration from his father, Chandrababu Naidu, who brought ISB to Hyderabad, and Prime Minister Narendra Modi, who brought Tata Motors to Gujarat, Lokesh said this new ‘hustle’ is necessary for the state.
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“You need bold decisions if you want to really break,” said the minister, adding that agreements with steel-maker ArcelorMittal are in the pipeline apart from plans to complete the core of Amravati in three years.
Andhra Pradesh’s government is targeting development with guns blazing, positioning its cities like Visakhapatnam, Amaravati, and Tirupati as prime hubs. Their plan also seems to be paying off, with TCS having committed ₹1,370 crore to build a sprawling campus on 21.16 acres in Visakhapatnam that promises 12,000 jobs. Cognizant has followed suit with a ₹1,582.98-crore investment and 8,000 jobs on its 21.31 acre-site.
“The 99 paise model is about reimagining how states can catalyse high-value job creation,” Lokesh said, adding that the initiative should be termed as a catalyst for transformation rather than a symbolic gesture.
The Andhra Pradesh Industrial Infrastructure Corporation (APIIC) has begun mobilising its land reserves – over one lakh acres already in hand – with plans to identify two lakh more for MSME parks for the top 100 global tech firms that are in talks with the government.
The state government’s strategy is a win-win for the IT firms that have been looking to downsize and venture into Tier-2 cities.
While the plan’s success is yet to be tested, it seems like the bold move has found favour with business houses, locals, as well as those in the government.
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