AP LIFT Policy 2024–29
Table of Contents
The Government of Andhra Pradesh has introduced the Land Incentive for Tech Hubs (LIFT) Policy 4.0 (2024–29) to transform the state into a major technology and innovation hub. The policy offers land at a nominal rate of ₹0.99 (nominal price definition) to eligible IT firms, Global Capability Centers, data center companies, and IT park developers making AP one of the most competitive destinations in India for digital investments.
The policy works alongside the AP IT & GCC Policy 4.0 to generate high-quality employment, attract global companies, and develop tier-2 and tier-3 cities like Visakhapatnam into digital growth clusters.
Why LIFT Policy Was Needed
- Post-Bifurcation Economic Gap: After losing Hyderabad, AP needed new high-growth IT hubs.
- Underutilized Advantages: Visakhapatnam has low living costs, strong connectivity, and abundant resources yet lacked anchor investors.
- Competition from Other States: Tamil Nadu, Karnataka, and Telangana offer aggressive land incentives. AP needed to match and exceed them.
- Catalysing Agglomeration Economies: Marquee IT and GCC players naturally attract talent, vendors, infrastructure, and services beginning a growth cycle.
- Fiscal Neutrality: Land is given at nominal cost only if companies meet mandatory job creation and construction milestones.
Eligibility Criteria for IT / ITeS / GCC Companies
For an IT/ITeS/GCCs to be eligible for the incentive under this policy, they have to satisfy any one of the following conditions:
- Have to be part of the following rankings published by Fortune or Forbes magazine in the previous 3 years of filing application for land:
- Fortune 500
- Fortune 500 Europe
- Fortune Global 500
- Fortune 1,000
- Forbes Global 2,000
- Have a market capitalization of at least 1 USD Billion at any time during the last three calendar years
- Have annual revenue of at least 1 USD Billion (individual or group companies) in the last three financial years.
Employment Commitment
| Entity | Jobs Required | Per Acre | Timeline |
|---|---|---|---|
| IT / ITeS Firms | 3,000 | 500 jobs/acre | Within 3 years |
| GCCs | 2,000 | 500 jobs/acre | Within 3 years |
Foreign GCCs must create an Indian legal entity before receiving land.
Eligibility for GCC Developers & IT Park Developers
A. GCC Developers
| Requirement | Details |
|---|---|
| Minimum Built-up Area | 1,00,000 sq ft per acre |
| Anchor Tenant | At least one eligible GCC occupying 20% space |
| Employment | 500 jobs per acre |
| Construction Start | Within 6 months of agreement |
B. IT Park Developers
| Requirement | Details |
|---|---|
| Experience | Must have already developed 10,00,000 sq ft |
| Minimum Built-up Area | 1,00,000 sq ft per acre (10,00,000 total) |
| Employment | 500 jobs per acre |
| Construction Start | Within 6 months |
Eligibility for Data Center Firms
- Only non-captive data centers are eligible.
- Land will be allotted at nominal rates if all commitments are met.
Incentives Under LIFT Policy
| Incentive Type | Details |
|---|---|
| Land at Nominal Cost | ₹0.99 (nominal price defined in policy) |
| Sale Deed Execution | Only after job commitments are fulfilled |
| Other Incentives | As per AP IT & GCC Policy 4.0; no additional incentives |
If companies fail to meet commitments → land cost must be paid at prevailing market value.
Implementation Framework
| Body | Role |
|---|---|
| Andhra Pradesh Economic Development Board (APEDB) | Nodal agency for policy implementation |
| Andhra Pradesh Industrial Infrastructure Corporation (APIIC) | Land allotment oversight and compliance |
| Consultative Committee for Information Technology & Electronics Investments (CCITEI) | Evaluates proposals |
| State Investment Promotion Committee (SIPC) | Recommends approved proposals |
| State Investment Promotion Board (SIPB) | Final authority on land allotment |
Key Definitions for Exam Aspirants
| Term | Meaning |
|---|---|
| IT / IT enabled services | Includes BPO, KPO, cloud services, digital content, engineering design, payroll, finance processes |
| GCC (Global Capability Center) | Offshore centers performing R&D, finance, HR, and IT functions |
| Employment Definition | Must have EPF account in AP; measured as 18-month average |
| Data Center | Non-captive units storing and processing data |
Summary Table: LIFT Policy at a Glance
| Component | Details |
|---|---|
| Policy Period | 2024–2029 |
| Objective | Land incentives to attract IT, ITeS, GCC, Data Centers |
| Nominal Price | ₹0.99 |
| Employment Criteria | 2,000–3,000 (min 500 jobs/acre) |
| Developer Requirements | 1,00,000 sq ft per acre |
| Applicable Region | Entire Andhra Pradesh |
👉 Go to Daily Current Affairs Section
FAQs on LIFT Policy
Who can apply for land under the LIFT Policy?
Only IT, ITeS, GCCs, data center firms, and IT/GCC park developers meeting the strict eligibility criteria.
Is land truly offered at ₹0.99?
Yes. The policy defines Nominal Price = ₹0.99, but the sale deed is executed only after job creation commitments are fulfilled.
What happens if a company fails to create the required jobs?
They must pay market value of land as per APIIC rules.
Can foreign companies apply?
Yes, but they must first create an Indian subsidiary before land allotment.
Reference: Andhra Pradesh Industrial Infrastructure Corporation