99 Paise Deal: Andhra Pradesh To Offer 21 Acres Land To TCS At Less Than Re 1; A Tata Motors-Sanand Moment?

To make Andhra Pradesh a large-scale tech hub, the state government is taking all the measures. Creating a Tata Motors-Sanand moment, the Andhra government has reportedly allotted 21.16 acres of land to Tata Group's flagship Tata Consultancy Services (TCS) for less than Re 1. To be precise, they have allotted the land at just 99 paise. TCS is a dominant player in the Indian tech industry, in terms of market cap, they are the largest currently.

What is a Tata Motors-Sanand Moment?

This moment goes back to the time when India's current Prime Minister Narendra Modi was the chief minister of Gujarat. During his reign in Gujarat, Modi allotted land to Tata Group's auto giant, Tata Motors for just 99 paise. The land was situated in Sanand. The game-changing factor was it increased employment and attracted business in the state, for which, Modi was very appreciated by the people.

The decision was a success as well. As per Tata Motors' last update in March last year, Tata Motors touched a significant milestone in its manufacturing history by rolling out the 1 millionth car from its state-of-the-art facility in Sanand, Gujarat.

The Sanand plant was established in 2010 and spread across 1100 acres—741 acres (TML) and 359 acres (Vendor Park)—with over 6000 direct and indirect employees, and has been instrumental in Tata Motors' growth and success. Being one of the youngest plants of Tata Motors, the Sanand facility boasts of having up-to-the-minute technology across all its processes. The highly mechanised plant has incorporated a lean process management system, it said.

TCS-Vishakhapatnam Land:

As per the Money Control report, the Andhra government allotted 21.16 acres of land in Visakhapatnam to TCS for a symbolic price of just 99 paise. The decision was likely made on April 15. It was the state's IT Minister Nara Lokesh who had pitched the idea to TCS in October last year when he visited its headquarters in Mumbai. Lokesh had urged TCS to consider opening a facility in Andhra Pradesh.

Reportedly, there were multiple discussions held between TCS and the government over the past months, which finally received a green signal.

A government official told Money Control, "This is our Sanand moment for the IT sector," adding, "We want Vizag to be on every tech company's map."

The move comes at a time when the government aims to create over 5 lakh jobs in their IT sector. It needs to be noted that TCS is among the largest employer and campus hirer in the country. As of March 2025, TCS' employees count stood at 607,979, making it the largest among its peers.