Andhra Pradesh has unveiled its Land Incentive for Tech Hub (LIFT) Policy 4.0 (2024–2029), offering land at a highly subsidised rate of just ₹0.99 per acre. Designed to harness the state’s available land and skilled workforce, the policy aims to attract major IT, ITES, and GCC players by reducing relocation costs and risk.
Key Eligibility Criteria
- IT/ITeS Companies must:
- Be Fortune/Forbes-listed or have a market value/annual revenue of ≥USD 1 billion.
- Commit to creating 3,000 jobs in 3 years, at 500 jobs per acre.
- GCCs must create 2,000 jobs in 3 years, with the same job-per-acre density.
- IT Park Developers must:
- Have previously developed ≥1 million sq ft.
- Achieve ≥100,000 sq ft construction per acre.
- Ensure at least 20% anchor tenancy and sell 50% of space to eligible firms.
- Begin construction within 6 months of the sale agreement.
Strategic Rationale
The policy leverages the challenge of congested Tier 1 cities—like Bengaluru, Hyderabad, and Gurgaon—as an opportunity to promote Andhra Pradesh as a cost-competitive, infrastructure-ready alternative. Budding land incentives with job-creation commitments reinforces the state’s dual goals of economic transformation and inclusivity.
TheFlexInsights Take
- Bold market signal: ₹0.99 per acre pricing isn’t just a deal—it’s a powerful statement of intent to compete with established tech hubs.
- Balanced structure: By pairing incentives with strict job and build mandates, the policy blends opportunity with accountability.
- Tier‑II city leap: With Hyderabad no longer an option post-bifurcation, this policy could realign India’s IT geography toward emerging corridors like Visakhapatnam and Amaravati.
- Expansion ahead: Following the TCS and Cognizant land deals, this framework opens the door for continued tech investments—if execution meets design.
Andhra Pradesh’s move could redefine regional tech playbooks—by making land itself a lever for transformation, not just infrastructure.
