The Andhra Pradesh cabinet on Tuesday approved the allotment of land measuring 21.16 acres in Visakhapatnam to information technology services firm Tata Consultancy Services for a token lease price of 99 paise, The Indian Express reported.

The company will, in turn, invest Rs 1,370 crore to set up a development centre that is expected to create around 12,000 jobs, Minister for Information Technology and Electronics Nara Lokesh Naidu said.

The land is located at IT Hill number 3 in Visakhapatnam’s Rushikonda area.

Lokesh had visited Tata’s headquarters in Mumbai in October, and had urged Tata Group Chairman N Chandrasekaran to invest in the state

“Through continuous follow-ups and discussions between the state government and TCS, Lokesh ultimately secured the land allotment,” an unidentified official was quoted as saying by Deccan Herald.

Lokesh said that the allocation would help turn Visakhapatnam into an information technology hub.

The land allotment reflects a model previously implemented by Prime Minister Narendra Modi, during his tenure as Gujarat chief minister, when land in Sanand near Ahmedabad was leased to Tata Motors for 99 paise.

In January, Chief Minister N Chandrababu Naidu had also urged Google Cloud CEO Thomas Kurian to establish a manufacturing unit in the state to develop chips used in servers.

Google Cloud, the world’s third-largest cloud service provider, recently signed a memorandum of understanding with the Andhra Pradesh government to develop a “data city” in Visakhapatnam. It already has cloud regions in Delhi and Mumbai.