AP clears revised land pact with TCS to fast-track Vizag IT campus

The Andhra Pradesh government has revised the land allotment agreement with Tata Consultancy Services (TCS) to accelerate the development of its proposed campus in Visakhapatnam. The changes aim to remove delays and simplify key conditions.

The Department of IT, Electronics, and Communications approved the modifications after TCS requested changes to the original sale terms. The company will also start interim operations from Millennium Towers at Rushikonda, developed by APIIC.

The state earlier allotted 21.16 acres at IT Hill No. 3 in the Madhurawada IT Special Economic Zone. The project involves an investment of ₹1,370 crore and is expected to create about 12,000 jobs.

Officials said the State Investment Promotion Board (SIPB) cleared the revised agreement after a review by APIIC and discussions in the State Investment Promotion Committee (SIPC) on March 28. SIPB gave its final approval on April 7.

The government removed the clause that delayed execution of the sale deed until future claims were cleared. It also changed the dispute rule. If land disputes or litigation block possession, APIIC will offer an alternative site of equal size and value.

TCS will not receive compensation for investments already made in such cases. The agreement now also includes a Force Majeure clause.

The government has allowed TCS to sublease office space to subsidiaries or affiliates with prior APIIC approval. The company must keep its business activity and ownership structure unchanged.

Other changes include a 30-day cure period before cancellation for default. The agreement also revises refund and structural clauses. Both sides will now first try to resolve disputes through mutual discussion.