7 July, 2025-In a landmark move aimed at accelerating technological growth, the Andhra Pradesh government has announced a unique ‘99 paise deal’ offering land at a nominal rate to the world’s top 100 IT companies for establishing operations in Visakhapatnam (Vizag). The initiative is part of a broader strategy to transform Vizag into a major IT and innovation hub.
According to officials, the government will lease land at just 99 paise per acre to global technology firms such as Google, Microsoft, Amazon, Infosys, and TCS. The land, located within the proposed Vizag Tech Valley corridor, will be allocated for the development of IT campuses, R&D centers, and data parks. The lease is set for an initial term of 33 years, with a provision for renewal.
A senior official from the state’s Department of Industries and Commerce stated that the policy is designed to remove barriers for companies looking to expand in India. “This symbolic yet strategic offer underscores our commitment to creating an investor-friendly climate in Andhra Pradesh. Vizag has the potential to emerge as the next major digital and innovation hub,” the official said.
The government’s plan aligns with its larger vision of decentralizing India’s IT growth, which has traditionally been centered in metro cities like Bengaluru, Hyderabad, and Pune. By incentivizing companies to set up in Tier-II cities, the administration aims to reduce urban congestion while promoting regional economic development.
Industry experts have welcomed the announcement, noting that rising operational costs in metro cities have pushed firms to explore alternative destinations. Vizag, with its growing infrastructure, educational institutions, and skilled talent pool, has increasingly gained attention from IT and ITeS companies.
The government estimates that the policy could generate over 1.5 lakh direct jobs and a similar number of indirect employment opportunities if at least half of the targeted 100 firms take advantage of the scheme. Officials also expect a significant boost in local startups, fintech ventures, and digital service providers due to the presence of global players.
Apart from land subsidies, the state is also planning to offer additional incentives, including faster approvals, power subsidies, and dedicated tech infrastructure to ensure a smooth setup process for incoming firms.
As part of the initiative, a dedicated task force will be established to coordinate between the government and participating companies. The task force will monitor land allotments, infrastructure development, and overall project progress to ensure timely execution.
The ‘99 paise deal’ has been described as one of the most ambitious and investor-friendly policies in India’s IT sector to date. With this move, Andhra Pradesh aims to position Vizag as a competitive, future-ready city capable of hosting next-generation tech infrastructure and global innovation.
