After allocating 21 acres of land worth hundreds of crores to Tata Consultancy Services in Visakhapatnam at a nominal price of 99 paise, the Andhra Pradesh government has now made a similar allotment to another major IT company. This time, the beneficiary is Infosys. The Andhra Pradesh IT Department has issued orders to allot 20 acres of land at Endada in Visakhapatnam district to Infosys at just 99 paise. According to the government order (GO), the company is expected to create employment opportunities for around 7,000 people with an investment of approximately ₹750 crore on this land. As per the Andhra Pradesh Land Incentive for Tech Hubs (LIFT) policy, a company is required to generate 500 jobs per acre. However, for the 20 acres allotted, Infosys has committed to creating only 7,000 jobs, which falls short of the policy benchmark.
Considering the need for Tier-1 companies in Visakhapatnam, the government has requested Infosys to establish a campus with a seating capacity of 10,000. However, despite the company not giving any firm assurance on this, the government did not make it a mandatory condition for executing the sale deed. This has led to the perception that the government has relaxed its own policy norms and agreed to the company’s terms. The latest government order reflects that most conditions have been framed in line with the company’s requests. Infosys is required to complete the first phase of the project by January 2029. Based on progress, the company may be granted an additional one-year extension. The entire project, including both phases, must be completed within six years, with a provision for an additional two-year extension if needed.
The GO also directs Andhra Pradesh Industrial Infrastructure Corporation (APIIC) to provide all necessary infrastructure, including roads, for the project. Administrative approval has been granted for infrastructure development in the Endada Hill Layout at an estimated cost of ₹79 crore. Additionally, Infosys will be eligible for all incentives under the Andhra Pradesh IT and GCC policy. It is worth noting that, in the name of IT development, the Andhra Pradesh government has previously allotted prime land in Visakhapatnam at throwaway prices not only to major IT firms but also to real estate entities. According to real estate sources in Visakhapatnam, the land allotted to Infosys in Endada is valued at no less than ₹1,000 crore.