The company has approached the state government for allotment of about 16 acres of land to build the proposed facility at an investment of Rs 150 crore (Rs 1.5 billion).

Though the project looks relatively small when compared with the group's other projects in the state, its location at Tirupati, a tier-II city aspiring to attract IT and BPO companies, is expected have a significant impact.

According to sources, the new facility will be a part of a series of BPO units planned by the company.

"The company will start work on the project as soon as the government allots the land," a company official told Business Standard, confirming the company's move.

The building will be ready in less than a year, the official said. The state government is expected to provide 10 acres for the project initially.

"As we understand, it is going to be their first such BPO facility outside Mumbai. Though it is a small investment for them, the company derives the significance of the project primarily from its location, probably for sentimental reasons," a government official said.

Reliance Energy [Get Quote], a group company, has already been selected to build a 100-storey trade tower-cum-business district with an investment of over Rs 5,500 crore (Rs 55 billion) in Hyderabad.

According to company sources, Anil Ambani is keen on completing the project, which is coming up on nearly 100 acres in three years.

Besides, the company recently emerged as the lowest bidder for developing the Krishnapatnam ultra mega power project in the state.

The group has also announced an IT park in Tamil Nadu with an investment of over Rs 2,000 crore (Rs 20 billion).