The Andhra Pradesh High Court took a firm stance on Wednesday, questioning the criticism over land allotments made to attract industrial investment in the state. During a hearing on a Public Interest Litigation (PIL) regarding land allocation to Tata Consultancy Services (TCS) in Visakhapatnam, the bench sharply asked:
“If incentives aren’t offered, how will industries and companies come to the state?”
A division bench comprising Chief Justice Dhiraj Singh Thakur and Justice Cheemalapati Ravi Kumar made significant observations, stating that Andhra Pradesh is in a growth phase and that several states across India offer land at concessional rates to draw industries. Referring to the success stories of Bengaluru and Hyderabad, the court noted that IT development there was made possible through such forward-looking incentives.
TCS Investment: ₹1,370 Cr Project, 12,000 Jobs
The court was informed that the government has allotted 21.16 acres of land in Visakhapatnam to TCS under a lease model, not as an outright sale. TCS is set to invest ₹1,370 crore to set up a large-scale IT campus, potentially creating 12,000 jobs. The court refused to issue any stay orders on the process, stating that the allotment is subject to final orders in the PIL, and directed the government to file a detailed counter.
The PIL: Allegation of Land Undervaluation
The PIL was filed by N. Nammigrace, President of the Society for Protection of Civil Property and Environmental Rights in Visakhapatnam. The petitioner alleged that the state government had issued a G.O. on April 21, allotting the land for just 99 paise per acre, even though the estimated market value is ₹529 crore.
Representing the petitioner, advocate Jad Shravan Kumar clarified that they were not opposing the TCS project itself, but were raising concerns over the terms of the land transfer. They argued that if the land is transferred through a sale deed instead of a lease, the state might lose control over it in the future, even if TCS fails to fulfil its investment or job creation promises.
State Responds: Lease, Not Sale
The state’s special counsel Pranathi clarified that the land is being offered on a lease basis, not sold. The government sought additional time to file a detailed counter, which the court accepted, adjourning the hearing for four weeks.
Court’s Key Observations
1) Incentives are essential to attract investment.
2) AP’s development is still at a formative stage.
3) Other states are already offering land and benefits to lure companies.
4) Providing land to reputable companies for job creation is not unjustified.
As Andhra Pradesh pushes to position itself as a hub for IT and industrial development, the High Court’s remarks underline a pragmatic approach to economic policy: incentivising investment isn’t a luxury, it’s a necessity.
