The Japanese major has applied to the Foreign Investment Promotion Board (FIPB) for setting up the multi-crore centre. The company will make a formal announcement once the approval is through, official sources said.

Other software majors like Microsoft, Oracle, ApliSoft and Cybermate have already booked space at the first phase of the Rs 120-crore Hi-Tec City project. IBM, Invensys Inc, and Sun Micro Systems have also shown interest in setting up shop at the facility which is being set up through a joint venture between the L&T and the Andhra Pradesh Industrial Infrastructure Corporation (APIIC).

The Hi-Tec city being build at a cost of over Rs 1,500 crore is spread over 152 acres. Although it has come in for international attention,achieving break-even is still a long way away.

Nevertheless officials point out that companies have blocked up to 70 per cent of the space and expect them to follow-up with firm bookings soon. Some firms like Microsoft and Oracle have begun work on interiors and furnishing and will move in soon, they said.

When complete the entire Hi-Tec City will have a five-star hotel, a convention centre to seat 2,000 people and a club house apart from built-up office space for software companies in about 70 odd acres. The remaining land is being provided to companies for setting up their own structures in the second phase.

While Microsoft has bought 16 acres in the second phase, companies like Wipro and Oracle have also shown their inclination to acquire land, the officials said. However, one of the pre-conditions is that these companies will have to contract out construction of their facilities to L&T.

This has been done to ensure a degree of uniformity and quality of construction, an official said. Apart fromthe software companies, space in the Hi-Tec City has also been provided to a host of banking institutions which had decided to start operations with immediate effect.

These include the SBI, SBH, Andhra Bank, ICICI Bank and Punjab National Bank. While the Exim Bank of India and IndusInd Bank have also shown interest, they have yet to confirm their booking.