99 Paise per Acre: Andhra Pradesh’s Billion-Dollar Tech Bet

Andhra Pradesh is making headlines with its groundbreaking LIFT 4.0 Policy, offering land to IT and ITeS companies at just 99 paise per acre—a move that’s redefining the investment landscape in India. Spearheaded by Chief Minister N. Chandrababu Naidu and IT Minister Nara Lokesh, this initiative is more than symbolic pricing; it’s a strategic push to position Andhra Pradesh as a premier destination for technology and innovation. By drastically lowering land acquisition costs, the state is enabling companies to invest more in infrastructure, talent development, and cutting-edge facilities, rather than being burdened by real estate expenses typical of Tier-1 cities like Bengaluru and Hyderabad.

The response from industry leaders has been swift and enthusiastic. Tech giants such as TCS and Cognizant have already committed to large-scale investments in Visakhapatnam, with TCS acquiring 21.16 acres and pledging ₹1,370 crore to create 12,000 jobs, while Cognizant is investing ₹1,582.98 crore for 8,000 jobs on 21.31 acres. These developments are not only boosting employment but also catalyzing growth in ancillary sectors like real estate, hospitality, and logistics. The policy’s eligibility criteria—targeting Fortune-listed firms and companies with a market cap above $1 billion—ensure that only serious, long-term players benefit, maintaining a balance between incentive and accountability.

Inspired by Gujarat’s symbolic Re 1 land offer to Tata Motors, Andhra Pradesh’s 99 paise strategy sends a powerful message to global investors: the state is open for business and ready to lead India’s next wave of tech-driven growth. With Visakhapatnam emerging as a new HITEC City and infrastructure rapidly evolving, this bold policy is not just attracting investment—it’s reshaping the future of Andhra Pradesh’s economy.

Andhra Pradesh isn’t just offering land—it’s laying the foundation for a future-ready digital ecosystem. With strategic investments in fiber connectivity, smart infrastructure, and skill development, the state is aligning its physical assets with digital ambitions. The Visakhapatnam–Kakinada–Rajahmundry corridor is being positioned as a high-potential tech belt, supported by robust logistics, proximity to ports, and a growing talent pool from regional engineering colleges and universities.

The government’s proactive stance on ease of doing business—from single-window clearances to tailored incentives for Global Capability Centres (GCCs)—is making Andhra Pradesh a magnet for companies seeking speed, scale, and sustainability. The policy also encourages green buildings, renewable energy integration, and inclusive hiring, reflecting a commitment to responsible growth.

One of the most compelling aspects of the 99 paise policy is its potential to retain and attract talent. With affordable land and expanding infrastructure, companies can set up campuses that rival those in Bengaluru or Pune—without the congestion or inflated costs. This opens doors for local graduates, returning professionals, and digital nomads to thrive in a region that blends opportunity with quality of life.

The ripple effect is already visible: coworking spaces, startup incubators, and tech parks are mushrooming across Visakhapatnam and Vijayawada, creating a vibrant ecosystem where innovation meets affordability.

Andhra Pradesh’s bold move could well become a template for other states seeking to decentralize tech growth and reduce urban pressure. By leveraging land as a strategic asset rather than a speculative commodity, the state is proving that visionary policy can unlock exponential value. The 99 paise initiative is not just about land—it’s about leadership, foresight, and a commitment to inclusive development.

As global investors take note and domestic players recalibrate their expansion strategies, Andhra Pradesh is quietly scripting a new chapter in India’s economic story—one where every acre counts, and every paise plants the seed of progress.

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