VIJAYAWADA: In a bid to emerge as a major IT hub, the Andhra Pradesh government is offering an attractive incentive - land at a mere 0.99 rupees per acre across the state.
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.
This policy was formulated to utilise the infrastructure and talent in Andhra Pradesh, keeping in mind the need for new economic centres after the loss of Hyderabad city following the state’s bifurcation.
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 policy outlines specific rules for financial investment institutions.
GCCs need to create 500 jobs per acre
For IT/ITeS companies, the criteria include having Fortune/Forbes rankings listing in the past 3 years or at least USD 1 billion market capitalization or annual revenue, creating at least 3,000 jobs in 3 years, and 500 jobs per acre. For Global Capability Centers (GCCs), the criteria include creating at least 2,000 jobs in 3 years and 500 jobs per acre.
For IT Park Developers, the requirements include having already developed at least 10,00,000 sq.ft. commercial office space, constructing at least 1,00,000 sq.ft. per acre, and having a total of 10,00,000 sq.ft. built space. For GCC Developers, the requirements include an anchor tenant agreement (20% built-up space) and at least 50% of the IT office space must be sold to eligible companies. The construction period requires legal licenses and construction commencement within 6 months from the sale agreement.