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Andhra Pradesh Information Technology & Global Capability Centers (GCC) Policy (4.0)
Andhra Pradesh Information Technology & Global Capability Centers (GCC) Policy (4.0)

June 10, 2025

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The Government of Andhra Pradesh issued the Andhra Pradesh IT & Global Capability Centers (GCC) Policy (4.0) 2024–2029 on December 12, 2024. They have recently issued the operating guidelines for the same. Nasscom was part of the entire consultation process for both the policy as well as the operating guidelines.

 

The policy envisions the transformation of Andhra Pradesh into a global IT and GCC powerhouse through a structured approach to infrastructure development, financial incentives, and human capital enhancement. It aligns with the state’s broader economic aspirations under the Swarna Andhra Vision 2047 and aims to establish Andhra Pradesh as a hub for global technology investments, hybrid workspaces, and IT-led economic growth.

 

Some of the Financial & Non-Financial Incentives offered are:

 

For IT & GCC Firms

 

Eligibility to avail the incentives:

  • IT Annual turnover ≥ INR 30 Cr orat least 50 employees
  • Firms must maintain employment for at least 18 months to qualify for subsidies

 

Description

​​​​Incentives

Land

Land facilitation for setting up operations through APIIC

Job creation subsidy for IT Firm

6 months' CTC; disbursed after 18 months: - INR 1.5L for AP graduates - INR 3L for Top 10 NIRF or experienced hires - 100% EPF share for 6 months for Women/BC/SC/ST/Transgender

Rental subsidy

Rs. 2,000 /seat, for 24 months, as per committed seats.

Power Incentive for IT firm

Power Incentive: Industrial tariff will be applicable and discount of INR 1/unit for 5 years

Employee incentive

  • HRA or Education Allowance up to INR 1L/employee for 3 years
  • Must complete 18 months in AP
  • Claimed via employer portal

Tailor made incentives

Custom incentives for firms creating 2,000+ jobs or 1M+ sq. ft. development

Early Bird incentives

Rent exemption for 5 years in Government buildings

 

For Developers

 

The eligibility criteria under all the three models are as follows:

 

Model 1: Co-working space developers

  • Turnover of at least INR 100 Cr or developed co-working space of minimum 20,000 seats.
  • Coworking spaces which creates co-working spaces which can accommodate a minimum of 100 seats per facility or have 10,000 sqare feet of developed workspace.
  • Typical co-working spaces will be located in Tier I and Tier II locations and are large buildings that can accommodate IT workforces from multiple firms in a single location.

 

Model 2: Neighbourhood workspace developers

  • Turnover of at least INR 100 Cr or developed co-working space of minimum 5,000 seats.
  • Typical neighbouring workspaces will be located in Tier I, II or Tier III locations. Neighboorhood workspaces developers who develop workspace which can accommodate a minimum of 10 seats per facility or have 1,000 square feet of developed workspace. 
  • These workspaces are typically smaller buildings and could be located within smaller government buildings, apartment complexes, schools or houses that could be leased out. These spaces could house working spaces for as few as 10 people.


Model 3: IT Campus Developers

  • Developers who developed minimum office space of 5 Lakh square feet.
  • IT campuses will be located in Tier I and Tier II locations who develops more than 5 Lakh sqare feet with seating requirements determined as per individual proposals. This model would be applicable to developers, IT companies and GCCs. 
  • IT firms must create employment for over 50 employees of the appropriate cadre for at least 18 months to be eligible for the respective benefits. This requirement applies to mid-size IT firms and larger.

 

 

 

Co-working space
Developers

Neighborhood
Working space Developers

IT-Campus
Developers ​​

Capital subsidy

50% of capex cost
Maximum: Rs. 2,000/ Sqft. * total developed Sqft.
Subsidy disbursed after 50% seats are filled. Paid Over 3 years.

50% of capex cost
Maximum: Rs. 1,000/ Sqft. * total developed Sqft.
Subsidy disbursed after 80% seats are filled.
Paid Over 1 year

50% capital subsidy
Maximum: Rs. 2,000/ Sqft
Paid over 5 years
Subsidy to be disbursed once at least 30% of land/seats committed are filled

Rental lease subsidy

Rs. 2,000 /seat, for 6 months, as per committed seats.

Rs. 1,000 /seat, for 6 months. Mandatory to meet standards of seats/Sqft.

None

Other Benefits

Industrial Tariff power

None

Industrial tariff power
Power at doorstep, 100 feet road
system to fast-track approvals
area master plans
infrastructure buildup
Mixed use (not exceeding 33%)

Early Bird

Government buildings – Rent exemption for 5 years
Rental assistance – Rs. 2,000/seat for one year
if firms create more than 1,000 seats over 12 months

Government buildings – Rent exemption for 5 years
Rental assistance – Rs 1,000 per seat for 12 months
if firm creates 500 seats across the state within one year of policy

Exemption of contract demand charges for 3 years from start of phase 1
Land at subsidised cost

Tailor-made incentives

Firms creating more than 2,000 workstations across the state

Firms creating more than 2,000 work-stations across the state

Firms creating more than 1 million Sqft for office space

 

Governance & Policy Implementation

 

To ensure effective implementation, the government has established:

 

  1. State Investment Promotion Board (SIPB): Headed by the Chief Minister to drive major investments.
  2. State Investment Promotion Committee (SIPC): An advisory body to recommend policy modifications.
  3. Consultative Committee for IT & Electronics Investments (CCITEI): A joint government-industry body to fast-track approvals.
  4. Transparent Operational Guidelines: Clear regulatory procedures for accessing incentives and subsidies.

 

Implementation

This policy has come into effect from the date of its notification, i.e., Dec 12, 2024 and will remain in force for the period of 5 years.


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Download Attachment

AP IT & GCC Policy (4 0) 2024-2029_ G O MS No.9, dt 12 12 2024 (1).pdf

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Vertika Misra
Director - Public Policy

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