After Ratan Tata’s TCS, this company gets land in Andhra Pradesh for less than a rupee; to invest Rs 15820000000 in…, company is…

New Delhi: In a major move that promises to generate thousands of jobs, technology giant Cognizant is likely to set up a world-class IT/ITES campus in Andhra Pradesh’s Visakhapatnam. The company will invest around Rs 1,582.98 crore. According to a Times of India report, the project is expected to generate over 8,000 jobs.

To recall, a few months back, the Chandra Babu Naidu-led Andhra Pradesh government announced that it would allocate land at just 99 paisa to Cognizant IT Solutions for this project. A similar deal has also been made with Tata Consultancy Services (TCS) where the government has decided to sell 21 acres of land for 99 paise each.

The bold move indicates that the state is aiming to establish itself as a tech hub in India.

Cognizant’s Big Plan: Here are some of the key details:

  • Cognizant has proposed a huge investment in Visakhapatnam
  • The company has asked for 21.31 acres of land at Kapuluppada under the Visakhapatnam Metropolitan Region Development Authority (VMRDA).
  • With this move, Cognizant aligns its strategy to optimise real estate costs.
  • In May 2023, Chief Executive Ravi Kumar S said the firm would relinquish 11 million square feet of office space globally, especially in India’s largest cities, while investing in tier-2 cities.
  • Cognizant is targeting 2025 annual revenue between $20.5 billion and $21.0 billion, compared to the previous outlook of the midpoint of $20.30 billion to $20.80 billion.
  • Cognizant plans to begin commercial operations by March 2029
  • The entire project being 100 percent self-funded, indicating the MNC’s long-term commitment to Andhra Pradesh.

The announcement comes just months after India’s tech leader, Tata Consultancy Services, disclosed plans for a 13.70 billion rupee campus in the same city, which is expected to generate about 12,000 jobs. Globally, IT companies, including those in India, are taking cost-cutting measures such as monetising real estate assets and slowing down salary increments amid demand uncertainty.

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