How Andhra’s Rs0.99 Land Lease Is Coding a New Future

When Nara Lokesh stood up and announced land leases at just Rs0.99 per acre to the world’s biggest IT firms, it sounded too audacious to be real. Yet here we are — Andhra Pradesh putting its vision where its voice is, and companies like TCS and Cognizant signing up without blinking.

At a time when real estate costs can stall innovation, this symbolic price tag does more than save rupees — it signals intent. Andhra isn't playing catch-up; it's rewriting the rules. Cities like Visakhapatnam, Amaravati, and Tirupati, once on the sidelines of India’s tech boom, are being positioned as prime hubs. The backdrop? A vast land bank and a government that seems willing to bet big on jobs, infrastructure, and inclusive growth.

The numbers are compelling. TCS has committed Rs1,370 crore to build a sprawling campus on 21.16 acres in Visakhapatnam, promising 12,000 jobs. Cognizant follows with Rs1,582.98 crore and 8,000 jobs on 21.31 acres. These aren’t just corporate expansions — they’re anchor investments that could reshape the employment landscape for thousands of families across Andhra Pradesh.

“The 99 paise model is about reimagining how states can catalyse high-value job creation,” Lokesh said, framing the initiative as a catalyst for transformation rather than a symbolic gesture.

Behind the scenes, the Andhra Pradesh Industrial Infrastructure Corporation (APIIC) is mobilizing its land reserves — over one lakh acres already in hand, with plans to identify two lakh more for MSME parks. The policy’s thumb rule of 500 jobs per acre ensures that every square foot of land translates into tangible economic impact. It’s a model that blends ambition with accountability.

But bold ideas rarely come without scrutiny. Critics have questioned the ultra-low pricing and the risk of misuse. Is it sustainable? Is it fair? Could it set a precedent that’s hard to manage? These are valid concerns. Yet officials argue that the real value lies not in the rent, but in the cascading effects — from job creation and infrastructure development to the rise of new urban ecosystems.

Andhra’s strategy is also about timing. With global IT firms downsizing and scouting cost-effective Tier-2 cities, the state’s offer comes as a welcome alternative. The government is actively courting the top 100 global tech firms, with several already exploring land options in designated IT zones. The twin announcements with TCS and Cognizant are being seen as anchors — proof that the model works, and that Andhra is serious about its tech ambitions.

What’s striking about this story isn’t just the numbers — it’s the quiet shift it could trigger in everyday lives. For young professionals in cities like Visakhapatnam and Tirupati, it’s the chance to build careers without uprooting themselves. No more chasing jobs in Bengaluru or Hyderabad. They can stay close to home, to their parents, to the places they grew up — and still be part of India’s tech future.

Local businesses are already sensing the change. Auto drivers talk about new routes near the proposed campuses. Cafés are scouting locations. Colleges are asking alumni in IT to help redesign their curriculum. It’s subtle, but it’s happening — the kind of movement that doesn’t make headlines, but reshapes a city from the inside out.

Real estate developers are back in Vizag, walking plots they hadn’t visited in years. Fiber cables are being laid. Roads are being widened. There’s a quiet urgency in the air — not just to build, but to be ready.

Lokesh’s strategy echoes Gujarat’s Sanand model, where Tata Motors got land at a symbolic price. But this isn’t about factories — it’s about code, careers, and community. Andhra’s bet is that if you lower the barrier just enough, people will walk through — and bring their dreams with them.
 
Whether this becomes a national blueprint or remains Andhra’s signature experiment, one thing is clear: bold moves backed by vision don’t just change policy — they change possibility. And somewhere in Visakhapatnam, a student walking past a construction site might just be glimpsing their future.