Cognizant gets land in Andhra Pradesh for less than a rupee; here’s how

The Chandrababu Naidu government in Andhra Pradesh has struck a deal with information technology company Cognizant. In the deal, the company will receive acres of land in the city for a meagre 99 paise.

This deal comes a couple of months after the Andhra Pradesh government struck a similar deal with India's biggest software maker, Tata Consultancy Services (TCS).

Cognizant vows to invest in Visakhapatnam

Cognizant, which is headquartered in Teaneck, New Jersey, has promised an investment of ₹1,582 crore over the next eight years in setting up an IT campus with 8,000 jobs in the coastal city of Visakhapatnam.

CNBC reported that the IT campus will be strategically located, about 600 kilometres from Hyderabad and 800 kilometres from Chennai, two of India's biggest software hubs, other than Bengaluru.

Cognizant is expected to start commercial operations in Visakhapatnam by March 2029.

Government’s vision behind the land sale

In April this year, after announcing the 21-acre land sale to TCS, the state's minister for technology, Nara Lokesh, told CNBC that he aims to make Visakhapatnam a new hub for IT investments.

“I keep joking and telling people that if Goa were to marry Bangalore and have a child, that could be Visakhapatnam. We have it all, and we believe that this could be the trigger for larger investments coming to Visakhapatnam,” Lokesh said.

Similar deal, different companies

The Andhra Pradesh Cabinet approved the allocation of 21.16 acres of land to TCS in Visakhapatnam in April for a token lease price of 99 paise.

The tech major plans to invest ₹1,370 crore in the proposed land, IT Hill Number 3, to set up an IT campus that is expected to generate 12,000 jobs.

Additionally, the Cabinet also gave a nod to Mahamaya Industries Limited's proposal to expand its steel plant in Vizianagaram. It allocated 6.35 acres at Nadimpalem of Pattipadumandal in Guntur district to ESIC (Employees' State Insurance Corporation). This land will be either given for free or at a nominal price to establish a 100-bed hospital and residential quarters for employees.