The policy aims to reposition Andhra Pradesh as a tech hub post the loss of Hyderabad and counters high costs in Tier-1 cities.Â
In a move to attract investments to the State, the Andhra Pradesh Cabinet approved the Land Incentive for Tech Hub (LIFT) Policy 4.0 for IT and ITES companies on Tuesday.Â
As part of this, the State Government will allocate land at 99 paise per acre throughout the State on lease to prospective investors, subject to the condition that the process of obtaining legal licenses and commencement of construction will be completed within six months from the date of the sale agreement.
Eligibility norms
The eligibility norms to avail of benefits under the LIFT scheme are as follows: IT and ITeS companies must have a Fortune/Forbes ranking listing in the past three years or a market capitalisation of at least $1 billion or annual revenue. They must create at least 3,000 jobs in three years. The prospective Global Capability Centres (GCCs) investors must create at least 2,000 jobs in 3 years and 500 jobs per acre.
The interested IT Park developers must have already developed at least 10,00,000 sq.ft. commercial office space, construct at least 1,00,000 sq.ft. per acre, and have a total of 10,00,000 sq.ft. built space.
Norms for GCCs
For GCC developers, there should be an anchor tenant agreement for 20 per cent of the built-up space, and at least 50 per cent of the IT office space must be sold to eligible companies.
Following the state bifurcation and the loss of Hyderabad, this policy has been formulated to utilise the infrastructure and talent in Andhra Pradesh, with a focus on establishing new economic centres.Â
“Considering the increasing congestion and costs in Tier-1 cities like Bangalore, Hyderabad, and Gurgaon, this cost-based attraction strategy has been formulated to be useful to people by choosing land as a development driver, eliminating relocation costs and associated risks, and attracting prominent companies,’‘ the Government said in a release.
Published on August 6, 2025