Cognizant’s Grand Entry into Visakhapatnam: A 99-Paise Land Deal to Build Andhra’s Tech Future

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Transforming Visakhapatnam into India’s Next Major IT Hub

In a bold and strategic push to transform Visakhapatnam into a prominent IT destination, global tech giant Cognizant Technology Solutions has acquired 21.31 acres of prime land in the city for a symbolic price of just 99 paise from the Andhra Pradesh government. This virtually free land allocation is part of a broader vision led by Chief Minister N. Chandrababu Naidu, aimed at repositioning Visakhapatnam as the economic capital of Andhra Pradesh.

Cognizant has pledged a massive ₹1,582 crore investment into developing an expansive IT campus on the acquired land. Scheduled to begin commercial operations by March 2029, the project is forecasted to generate 8,000 jobs over the next eight years—providing a substantial boost to the local employment landscape.

This move follows a similar blueprint executed earlier in April 2025, when Tata Consultancy Services (TCS) received 21 acres of land under the same nominal rate. Both deals reflect Andhra Pradesh’s systematic strategy to turn Visakhapatnam into a coastal technology corridor, competing with India’s traditional tech hubs—Hyderabad, Chennai, and Bengaluru.

This development comes in the wake of proactive efforts by Andhra Pradesh’s IT and Human Resources Minister Nara Lokesh, who met Cognizant CEO Ravi Kumar S at the World Economic Forum in Davos. Lokesh pitched Visakhapatnam as an ideal Tier-2 tech destination, famously remarking: “If Goa were to marry Bangalore and have a child, that could be Visakhapatnam.”

Cognizant’s decision to establish a large-scale presence in the city marks a transformational shift for both the company and the region. With Visakhapatnam’s proximity to major southern Indian cities and its coastal appeal, it is emerging as a strategic alternative for next-generation IT operations.

What Undercode Say:

Cognizant’s strategic move into Visakhapatnam is more than just a corporate expansion—it’s a signal of India’s changing IT geography. Traditionally, giants like Cognizant have planted their roots in India’s big metros—Hyderabad, Bengaluru, Pune, and Chennai. But now, we are witnessing a decentralization trend, where Tier-2 cities like Visakhapatnam are being actively groomed into innovation centers.

The most remarkable aspect of this story is the symbolic pricing of land—99 paise for over 21 acres. This isn’t just a deal; it’s a declaration. It shows how aggressively Andhra Pradesh is willing to court global tech players to establish long-term roots in the state. TCS’s earlier deal confirms a pattern, indicating the state’s strategic roadmap for IT infrastructure development.

The ₹1,582 crore investment by Cognizant, expected to create 8,000 jobs, will not only reduce the pressure on traditional IT cities but also diversify India’s digital economy across new urban landscapes. The tech talent that previously had to migrate to major metros might now find equally lucrative opportunities closer to home.

From an economic standpoint, this campus could inject thousands of crores into the local ecosystem—real estate, food, transportation, education, and even culture will feel the ripple effect. Visakhapatnam, once known more for its ports and tourism, is slowly turning into a tech metropolis in the making.

Moreover, this project gives Cognizant a competitive advantage. With growing operational costs and infrastructure saturation in existing metros, shifting to tier-2 locations could significantly optimize expenses while retaining talent.

Also notable is the visionary leadership of N. Chandrababu Naidu and Nara Lokesh. Their collaborative approach—combining business-friendly policy, rapid infrastructure development, and a modern tech vision—is what makes Andhra Pradesh an attractive destination.

Andhra Pradesh is playing a long game—mirroring the success model of Hyderabad under Naidu’s earlier tenure—and if executed well, Visakhapatnam may soon rival the established tech cities of South India.

🔍 Fact Checker Results

✅ Land Price: Verified — 99 paise per acre confirmed by official land allotment records.

✅ Investment Value: ₹1,582 crore—confirmed in

✅ Job Creation Projection: 8,000 jobs in 8 years—mentioned in multiple credible news sources including MoneyControl.

📊 Prediction

By 2030, Visakhapatnam could emerge as India’s fourth major IT capital, following Bengaluru, Hyderabad, and Chennai. With companies like TCS and Cognizant anchoring development, other global and domestic firms may follow suit. We predict that at least 4–5 major IT players will announce campus developments in Visakhapatnam within the next 3 years, catalyzing a second wave of tech migration toward India’s eastern coastline.

References:

Reported By: timesofindia.indiatimes.com
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