Cognizant Secures Centre’s Approval for 8.98-Hectare IT/ITES SEZ in Visakhapatnam

The Central Government has approved a new 8.98-hectare Information Technology and Information Technology Enabled Services (IT/ITES) Special Economic Zone (SEZ) proposed by Cognizant Technology Solutions India Pvt. Ltd. at Madhurawada in Visakhapatnam. The approval is expected to strengthen the city’s position as one of Andhra Pradesh’s emerging technology and business destinations.

The Department of Commerce under the Ministry of Commerce and Industry issued the notification on June 25 after granting the company a Letter of Approval on June 11, 2026. The notification enables Cognizant to develop, operate and maintain the IT/ITES SEZ under the provisions of the Special Economic Zones Act, 2005.

As part of the approval process, the Centre has also constituted an Approval Committee headed by the Development Commissioner of the SEZ. Representatives from the Department of Commerce, Directorate General of Foreign Trade, Customs, Income Tax Department, Ministry of Finance, the Andhra Pradesh Government and the developer will oversee the implementation and functioning of the project.

The notified SEZ has also been declared an Inland Container Depot under the Customs Act, 1962. This will facilitate customs-related operations within the zone and improve the ease of doing business for companies operating from the campus.

The approval marks an important development for Visakhapatnam’s growing technology ecosystem. Madhurawada has emerged as a preferred destination for IT investments due to its expanding infrastructure, availability of skilled professionals and improving connectivity. The new SEZ is expected to enhance the city’s commercial ecosystem and support future business expansion.

Interestingly, the approval comes just months after Cognizant withdrew its proposals for two IT/ITES SEZs in Telangana. The company has now shifted its focus to Visakhapatnam, signalling renewed confidence in Andhra Pradesh’s investment environment.

While Cognizant has not disclosed the project’s investment size, employment potential or implementation timeline, the approval is expected to attract additional technology investments to the region. Industry observers believe the development will strengthen Visakhapatnam’s long-term position as a leading IT destination on India’s east coast and support the state’s vision of expanding its digital economy and technology infrastructure.