The State Cabinet, under the chairmanship of Chief Minister N Chandrababu Naidu, approved the AP Land Incentive for Tech Hub (LIFT) Policy (4.0) 2024-2029, leveraging the state’s land bank to attract prominent companies. Given the increasing congestion and costs in Tier-1 cities like Bangalore, Hyderabad, and Gurgaon, this cost-based attraction strategy aims to attract prominent companies by choosing land as a development driver, eliminating relocation costs and associated risks.

The Andhra Pradesh Cabinet has approved the Land Incentive for Tech Hub (LIFT) Policy 4.0 to attract IT and ITeS investments by leasing land at 99 paise per acre statewide. Companies must complete legal approvals and start construction within six months. Eligibility norms require IT/ITeS firms to have a recent Fortune/Forbes listing or $1 billion market cap/annual revenue and create 3,000 jobs in 3 years; Global Capability Centres (GCCs) must generate 2,000 jobs and 500 jobs per acre. IT park developers need 10 lakh sq.ft. prior experience and must build 1 lakh sq.ft. per acre. GCC developers require 20% anchor tenancy and must sell 50% of space to eligible firms. Aimed at post-bifurcation economic growth, the policy leverages low-cost land to attract firms from congested Tier-1 cities, reduce relocation costs, and create new tech hubs in Andhra Pradesh.