Cognizant Gets Land For Just 99 Paise In Visakhapatnam, To Set Up Rs 1,582-Crore IT Campus: Report
Last Updated:
IT company Cognizant is reportedly set to invest Rs 1,582 crore in a new IT campus in Vazag, which is expected to generate 8,000 jobs over the next eight years.
In a move to woo tech investment, the Andhra Pradesh government is allotting land to IT giant Cognizant Technology Solutions for just 99 paisa to set up a major campus in Visakhapatnam, according to a report by Moneycontrol citing sources. It said the company is set to invest Rs 1,582 crore to establish the new IT campus in the city.
The nominal land rate, just under one rupee, underscores the state's aggressive push to transform Visakhapatnam into a full-fledged IT and innovation hub.
Cognizant is set to invest Rs 1,582 crore in the project, which is expected to generate 8,000 jobs over the next eight years, according to the report.
'Cognizant has sought 21.31 acres of land at Kapulauppada under the Visakhapatnam Metropolitan Region Development Authority (VMRDA), and the state government would allot the land for a nominal rate of just 99 paisa," one of the sources told Moneycontrol.
Cognizant has set March 2029 as the target date for commencing commercial operations from the facility, as per the report.
The development aligns with Chief Minister N Chandrababu Naidu's vision of positioning Visakhapatnam as the economic capital of Andhra Pradesh. Naidu has repeatedly emphasised the city's potential to emerge as a digital powerhouse.
Earlier this year, Andhra's IT and Human Resources Minister Nara Lokesh had hinted at Cognizant's likely entry into the state. At the World Economic Forum in Davos, Lokesh met with Cognizant CEO Ravi Kumar S, urging the company to consider expanding into tier-2 cities like Visakhapatnam.
In April, the Andhra Pradesh government also allotted 21 acres of land to India's largest IT services company Tata Consultancy Services (TCS) for 99 paise.
In April, the state's minister of technology Nara Lokesh told CNBC-TV18 that he aims to make Vishakapatnam a new hub for IT investments. 'I keep joking and telling people that if Goa were to marry Bangalore and have a child, that could be Visakhapatnam. We have it all, and we believe that this could be the trigger for larger investments coming to Visakhapatnam," he said during the interview.
First Published:
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Economic Times
19 minutes ago
- Economic Times
Frontloading rate cuts is a clear "signal" to boost growth: MPC
India's monetary policymakers used a benign inflation outlook to frontload rate cuts and send a 'clear signal' to productive sectors to boost growth, showed the Minutes of the June 6 meeting that slashed benchmark rates by an outsized half a percentage point. A bigger reduction would also quicken transmission, argued those in favour. 'Given the sharp reduction in inflation over the past few months and the projected reduction in annual average inflation…, it is expected that the front-loaded rate action along with certainty on the liquidity front would send a clear signal to the economic agents, thereby supporting consumption and investment through lower cost of borrowing,' central bank governor Sanjay Malhotra was cited as saying in the Minutes of the Monetary Policy Committee (MPC) published Friday. On June 6, the Reserve Bank of India (RBI) lowered the benchmark repo rate by an unexpected 50 basis points to 5.5% and changed the policy stance to 'neutral' from 'accommodative', going by the majority vote of the basis point is a hundredth of a percentage point. "Overall, while a case can be made for two consecutive rate cuts of 25 bps each in this as well as the next policy cycle, there is also merit in front-loading these cuts. Therefore, I vote for a policy rate cut by 50 bps in this meeting" said Poonam Gupta, deputy governor in her first MPC vote, " This should help in fostering policy certainty and faster transmission than a staggered rate cut, and in more effectively countering the challenges emanating from the global economy". Rajiv Ranjan, an internal member on the rate-setting panel, was of the opinion that since monetary policy worked with a lag, under the current circumstances, a 50-bps cut was preferable to two 25-bps cuts for faster transmission.'Similar to the frontloaded rate hikes during the tightening cycle, frontloading rate cuts could help in hastening transmission by providing decisive signals and confidence to the stakeholders' Ranjan inflation outlook is 3.7% for FY26, lower than the 4% mandated target. The GDP is forecast at 6.5% for the year. In May, the headline consumer price gauge was 2.82%. 'Liquidity Outweighs Rates'Saugata Bhattacharya, who had split ranks with panel members on the quantum of the reduction, voted for a 25-bps rate cut, arguing that boosting durable liquidity would be more impactful on transmission than a steeper reduction in policy rates. 'The RBI's liquidity infusion and other measures have played a key role in this process, partly via lower money market and short-term interest rates, reducing the overall banks' cost of funds,' Bhattacharya, an external member, was cited as saying. 'The RBI data suggests that Rs 9.5 lakh crores of durable liquidity was injected into the banking system since January. In this context, I believe the RBI's assurance of continuing large durable liquidity support is likely to have a more dominant effect on further transmission compared to a deep cut in the repo rate.' The RBI's cumulative 100 bps cuts since February come amidst private investment, especially in manufacturing, and urban consumption, remaining subdued. Additionally, the uncertain external environment has complicated the economic growth outlook for 2025-26, especially due to political tensions and trade war which has impacted job creation. 'A heavier-than-expected cut in policy rate (along with the possible fiscal policy support) would send a clear message that India is serious about supporting economic growth momentum and would spare no effort in terms of policy interventions' said external member Nagesh Kumar, director and chief executive, Institute for Studies in Industrial Development. 'A double dose of rate cut is likely to bring down lending rates significantly, helping to spur the investment and consumption of durable goods.' Decision DilemmaExpectations of further rate cuts have likely delayed the materialisation of demand and investment decisions.'In such an environment, given the market expectation of a 50-bps rate cut in this cycle, a staggered rate cut can further delay the materialisation of demand and investment decisions,' said external member Ram Singh, Director, Delhi School of Economics. 'By contrast, a front-loaded 50-bps cut in the policy rate is likely to help achieve the twin objectives of supporting demand and growth by reducing the cost of funds for borrowers'. One of the concerns raised was the interest rate differential between India policy rates and the US Fed rates, which could lead to capital flight and can put pressure on the rupee.'However, given the robust fundamentals of the Indian economy, including a comfortable current account situation, any pressure on INR is likely to be confined to the short run,' Ram Singh said.
Time of India
25 minutes ago
- Time of India
State GST dept detects Rs 45cr tax evasion by four contractor firms
Ahmedabad: The Gujarat State GST Department on June 9 carried out searches on four firms located in Dahod and Veraval towns and detected tax evasion to the tune of Rs 45 crore. The infrastructure contractor firms are engaged in executing works under various govt schemes, including centrally-sponsored schemes such as MNREGA, said officials. During the searches, several irregularities were detected, such as the misclassification of taxable services as exempt, under-reporting of turnover, and wrongfully availing input tax credit (ITC). These findings point to a systematic and deliberate attempt by these four taxpayers to suppress taxable income and manipulate tax liability with the objective of evading taxes and misusing govt funds, mentioned a release by the state GST department. Preliminary assessments indicated that the total liability of these four taxpayers, including tax, interest, and penalty, amounts to over Rs 45 crore, said GST officials. Appropriate legal action to secure and realise govt revenue is being pursued by the state GST department, they added.
NDTV
33 minutes ago
- NDTV
UAE Man Who Never Worked A Day Wins Rs 26 Lakh In Salary Dispute
An Abu Dhabi company has been ordered to pay AED 110,400 (approximately Rs 26 lakh) as "unpaid wages" to an employee who, despite receiving an offer letter, was never allowed to start working. The employee, whose name was not disclosed, filed a lawsuit against the company, claiming that his salary for the period from November 11, 2024, to April 7, 2025, was illegally withheld. According to a report in The Khaleej Times, the employee had signed a fixed-term contract with the company, which stipulated a basic salary of AED 7,200 and a total monthly compensation package of AED 24,000. Despite the signed contract, the employee was never given the opportunity to commence his employment. The court's decision underscores the importance of upholding employment agreements, even when work hasn't begun. The court stated that "it was clear from the wage report, the employment contract, and the supporting documents submitted through the case management system that the delay in starting work was due to the employer," according to local newspaper Emarat Al Youm. The Abu Dhabi Labour Court emphasised that under Federal Decree-Law No. (33) of 2021 regulating labour relations, employers are obligated to pay wages on time according to the systems approved by the Ministry of Human Resources and Emiratisation. Citing Article 912 of the Civil Transactions Law, the court ruled that wages are a worker's right and cannot be withheld without proof, such as a written waiver or legal acknowledgement. The employer had argued the employee wasn't entitled to his salary because he "did not report to duty and went on leave." But the court found no evidence of a formal investigation into any absence, determining that the delay in employment was the company's fault. The employee admitted taking eight days off, which were deducted from the total, resulting in a payment for four months and 18 days.
