Why Cognizant paid less than a rupee for 21.31 acres of land in Andhra Pradesh’s Visakhapatnam |
Global IT services giant Cognizant Technology Solutions will establish a major IT campus in Visakhapatnam after securing 21.31 acres of land from the Andhra Pradesh government for just 99 paise. The company plans to invest Rs 1,582 crore in the project, which is expected to generate 8,000 jobs over the next eight years.The land allocation at Kapulauppada under the Visakhapatnam Metropolitan Region Development Authority (VMRDA) reflects the state’s aggressive push to transform the coastal city into a technology hub. According to sources cited by MoneyControl, Cognizant has set March 2029 as the target date for commencing commercial operations from the facility.
Andhra’s strategic move to build IT ecosystem in the state
The development aligns with Chief Minister N Chandrababu Naidu’s vision of positioning Visakhapatnam as Andhra Pradesh’s economic capital. The nominal land price underscores the state government’s commitment to attracting major technology investments to the region.Earlier this year, Andhra Pradesh’s IT and Human Resources Minister Nara Lokesh met with Cognizant CEO Ravi Kumar S at the World Economic Forum in Davos, urging the company to expand into tier-2 cities like Visakhapatnam. Lokesh has previously described his vision for the city, stating that “if Goa were to marry Bangalore and have a child, that could be Visakhapatnam.”
Following TCS blueprint for tech hub bevelopment
This land deal follows a similar arrangement made in April 2025, when the state government allotted 21 acres to Tata Consultancy Services (TCS) for the same nominal amount of 99 paise. The pattern demonstrates Andhra Pradesh’s systematic approach to building a technology corridor in Visakhapatnam.The Teaneck, New Jersey-based Cognizant’s investment represents a significant boost to the region’s employment landscape. With Visakhapatnam located approximately 600 kilometers from Hyderabad and 800 kilometers from Chennai, two of India’s major software hubs alongside Bengaluru, the city is positioned to become a strategic alternative for IT operations.The campus development is expected to contribute substantially to the local economy while providing skilled employment opportunities in the region.
