Amaravati: Andhra Pradesh Minister for Education, IT and Electronics Nara Lokesh has said that the state government is working with a clear vision to place Visakhapatnam firmly on the global IT map. Speaking in the Assembly during the discussion on the IT and Electronics department budget demands, Lokesh stated that the government has set an ambitious target of creating five lakh jobs in the IT sector alone in the next five years with Visakhapatnam as the central hub.
Lokesh said Chief Minister N. Chandrababu Naidu has assigned him the responsibility of transforming Visakhapatnam into a major technology destination, and the government is collectively working to achieve that goal. He pointed out that cities like Hyderabad and Bengaluru took nearly 30 years to reach their current level of IT development, but Andhra Pradesh is determined to achieve similar growth within a decade through focused policies and aggressive investment promotion.
According to the minister, since the new government came to power, it has signed 52 Memorandums of Understanding worth nearly ₹1.5 lakh crore in the IT and electronics sectors. These agreements are expected to generate around 2.3 lakh job opportunities. He also said the state is actively attracting investments in emerging technologies such as quantum computing and advanced electronics manufacturing.
Lokesh emphasized that the government has introduced a series of progressive policies to support the IT and electronics ecosystem. These include the Electronic Manufacturing Policy, Data Center Policy, Semiconductor and Fab Policy, IT and Global Capability Center Policy, Electronics Component Manufacturing Policy, Land Incentives for Tech Companies (LIFT) Policy, Neighborhood Workspaces Policy and India’s first dedicated Quantum Computing Policy. These policies aim to attract global companies and create high-value employment opportunities for the youth of Andhra Pradesh.
Addressing criticism from opposition members regarding land allocation for technology companies, Lokesh defended the government’s LIFT policy, under which land can be allotted to major technology investors at a symbolic rate to attract large-scale investments. He said the policy was inspired by a similar approach used by Prime Minister Narendra Modi during his tenure as Chief Minister of Gujarat, when Tata Motors shifted its Nano manufacturing plant to Gujarat, creating a strong industrial ecosystem and several ancillary industries.
Lokesh clarified that the state government is not offering land to unknown companies, as alleged by critics. Instead, global technology giants such as Google, Cognizant, Tata Consultancy Services (TCS), and semiconductor packaging company ASIP are investing in the state. He pointed out that Cognizant has already started work in Visakhapatnam after discussions with its CEO Ravi Kumar, and the company has announced plans to create around 25,000 jobs in the region. The project alone is expected to generate an economic impact of $1.8 billion to $2.2 billion in the Visakhapatnam economic region.
The minister also revealed that Google is planning to establish a mega data center in Visakhapatnam following discussions with the company’s infrastructure leadership. With support from the central government and policy incentives, the project has attracted an investment of nearly $15 billion, making it one of the largest foreign direct investments in India’s history. The data center is expected to generate an annual economic impact of nearly $3 billion.
Lokesh further said Tata Sons Chairman N. Chandrasekaran was invited by Chief Minister Chandrababu Naidu soon after the government took office, and discussions were held to establish a TCS development center in Visakhapatnam. Land has already been allotted and a temporary facility has been set up, with the permanent center expected to open soon.
He also highlighted that South India’s largest semiconductor industry project—an OSAT and ATMP packaging facility by ASIP—is being set up in Visakhapatnam. The project is supported by the India Semiconductor Mission under the Production Linked Incentive scheme. Lokesh said the state government competed with neighboring states to secure the project and allotted land under the same incentive policy because of the large employment potential.
The minister accused the previous government of damaging the state’s reputation among investors. He said that between 2019 and 2024 not a single IT company received incentives, and several renewable energy and technology projects faced uncertainty due to policy instability. As a result, many investors had concerns about future policy continuity when the new government approached them for investments.
Lokesh said the current administration has been working to rebuild investor confidence. He noted that while states like Telangana have Hyderabad, Tamil Nadu has Chennai, and Karnataka has Bengaluru, Andhra Pradesh has the leadership and vision of Chandrababu Naidu to guide its development strategy.
He also highlighted the government’s initiatives to promote entrepreneurship and innovation. Under the “One Family One Entrepreneur” vision, the state has launched the Ratan Tata Innovation Hub, which has already attracted 13,000 students and supported 772 startup ideas. Programs like RISE-UP for MSMEs and special incentives for women entrepreneurs are also being implemented. In addition, the government is encouraging investments from the Telugu diaspora through the Sunrise Connect initiative for Non-Resident Indians.
Lokesh concluded by calling for cooperation from all political parties and stakeholders to accelerate the state’s economic growth. He said Andhra Pradesh faced setbacks due to the 2014 state bifurcation and further challenges during the previous administration, but the current government is determined to bring large investments and create massive employment opportunities for the youth of the state through a strong IT and technology ecosystem centered in Visakhapatnam.