In a strategic move to reignite its IT ecosystem post-bifurcation, the Andhra Pradesh cabinet has approved the Land Incentive for Tech Hub (LIFT) Policy 4.0 (2024–2029). The policy offers highly competitive land rates—just ₹0.99 per acre on lease for eligible IT, ITES, and Global Capability Centers (GCCs) across the state.
Eligibility & Conditions
To qualify, IT/ITES companies must meet one of the following:
- Listed in Fortune or Forbes in the past 3 years, or
Have a market capitalization or annual turnover of at least USD 1 billion.
They must also commit to creating 3,000 jobs within three years, with a density of 500 jobs per acre.
Global Capability Centres (GCCs) must generate 2,000 jobs in three years and adhere to the same job density criteria. Developers of IT parks are required to have already built 1 million sq ft and must start new construction within six months of land agreement signing.
Strategic Context
The policy addresses the void left by Hyderabad’s exit as Andhra Pradesh’s IT nucleus, offering a clear, cost-effective growth alternative. With Tier-1 cities like Bengaluru and Gurugram facing high real estate costs and saturation, Andhra Pradesh is leveraging its land assets to attract firms seeking affordable, scalable environments.
Early Wins
Visakhapatnam has already benefited from the policy. Five IT firms were allotted land under preferential terms, attracting a collective ₹19,000 crore in planned investments and pledging significant job creation—e.g., ANSR Global commits ₹1,000 crore and 10,000 jobs.
Broader Ecosystem
The LIFT 4.0 initiative fits within Andhra Pradesh’s broader 4.0 policy suite—including Industrial Development, MSME, Electronics, and Food Processing—targeted at making the state one of India’s most compelling industrial hubs.