Close on the heels of Infosys [Get Quote] and Wipro [Get Quote] disclosing their plans for Hyderabad, TCS [Get Quote] and Microsoft have evinced keen interest to expand their operations substantially in the city.

While the state government has formally allotted 100 acres of land to Wipro by cancelling an IT park proposal in the post-bid stage at Vattinagulapally a week ago, the location for Infosys has been finalised at the newly-proposed 1,500-acre software SEZ near the new international airport.

According to official sources, TCS officials have sought at least 100 acres for expansion plans of the company in Hyderabad.

"TCS will be allotted 100 acres in the proposed SEZ as the company has responded positively to the proposed location," a senior government official told Business Standard.

According to the official,  Microsoft's local representatives are in touch with the state IT department. Microsoft's top brass would visit the site before the Andhra Pradesh Industrial Infrastructure Corporation, which owns the land, goes ahead with the arrangements. Microsoft is also expected to get 100 acres in the software SEZ.

At present, both Microsoft and TCS  have their campuses at Hitec City and employ about 1,000 and 3,600 IT professionals respectively.

Meanwhile, the government is making arrangements to allot about 300 acres in the SEZ site to Infosys as sought by its chairman and chief mentor N R Narayana Murthy during his recent visit to Hyderabad. 

"Infosys officials have approved the location identified by the government after visiting the site," an APIIC official said.

According to the plan, part of the software SEZ will be developed by these software companies either by themselves or in association with private developers.

Another 250-acre area, which is slightly away from the 1,250-acre, is expected to be handed over to a private developer.

Officials feel that the presence of companies like Infosys, TCS and Microsoft will help speed up the SEZ development.