Infosys to set up campus in Vizag, Andhra govt allots land at 99 Paise per acre

Hyderabad: IT services major Infosys is set to establish an IT campus in Visakhapatnam, Andhra Pradesh, after the state government allotted 20 acres of land in Yendada to the company at a nominal rate of 99 paise per acre.

The move follows similar concessional land allotments to TCS and Cognizant for their respective IT campuses in the city. Infosys is expected to invest around Rs 750 crore in the project, which is envisaged as a 10,000-seat facility projected to generate approximately 7,000 jobs.

The push to attract marquee IT firms to Visakhapatnam is rooted in the state's post-bifurcation economic reality. Following the division of the erstwhile Andhra Pradesh, the residual state lost Hyderabad its historic nucleus for information technology, industry, and commerce.

In its bid to restore economic balance, the state government has been actively developing Visakhapatnam as an alternative high-growth economic zone, with subsidised land allotments serving as a key instrument to accelerate that transformation.

Visakhapatnam has steadily grown into a prominent IT hub, aided by its strategic location, strong connectivity, and well-developed infrastructure. The development of IT parks and special economic zones has already drawn several major companies to the region, and with continued government support and an expanding talent pool, the city is widely seen as a leading technology centre in the making.

The Andhra Pradesh government has put in place a robust policy architecture to underpin this growth.

The AP IT & GCC Policy 4.0 aims to strengthen co-working and neighbourhood infrastructure, boost employment, and attract global IT firms and Global Capability Centres (GCCs), including Fortune 500 companies, with tailored incentive packages on offer for firms committing to more than 2,000 jobs.

Complementing this, the Land Incentive for Tech (LIFT) Hubs Policy 2024–29 enables the allotment of land at subsidised rates to qualifying global IT firms and GCCs.

Infosys submitted a formal proposal to establish an IT/ITeS campus in Visakhapatnam with a cumulative investment of Rs 750 crore. The Andhra Pradesh Industrial Infrastructure Corporation (APIIC) identified 20 acres in Yendada village as a suitable site, and the company formally requested allotment at a subsidised rate.

The proposal was evaluated by the Andhra Pradesh Economic Development Board (APEDB), which recommended it to the Consultative Committee on Information Technology and Electronics Industry (CCITEI).

The CCITEI took up the matter at its 16th meeting in March and forwarded it to the State Investment Promotion Committee (SIPC). The SIPC, at its 23rd meeting, approved the proposal for placement before the State Investment Promotion Board (SIPB), which subsequently gave its approval.

A Government Order issued on Monday set out the terms of the allotment. While the AP LIFT Policy ordinarily requires a commitment of 500 jobs per acre, Infosys has committed 7,000 jobs against an allotment of 20 acres well above the stipulated threshold.

The government has requested, without making it a binding condition for execution of the sale deed, that Infosys develop a 10,000-seat capacity campus. Phase 1 of the project is to be completed by January 2029, with a one-year extension available depending on progress.

The overall project, spanning Phase 1 and Phase 2, is to be implemented over six years, with provision for a further two-year extension based on project progress. The government has also committed to facilitating the necessary approvals for rock cutting and rock blasting at the site.