Andhra Pradesh IT Incentives

Employment creation has been made the prime goal regardless of size of the firm/ project. According to the policy, the firm, whether existing or new (relocating or expanding in Andhra Pradesh) would be entitled to the benefits for every job created, if the employee completes one year of continued service in the firm.
• CCITI (Consultative Committee for Information Technology Industry) would administer the incentives in a speedy, time-bound and transparent manner.

Fiscal Incentives:

  • Employment Incentive:
Category Incentive Amount per Employment Generated
Mega Projects – with land allotment Rs.50,000 OR 6 months CTC, whichever is lower
General Projects – with land allotment Rs.50,000 OR 6 months CTC, whichever is lower
General Projects – without land allotment Rs.1,00,000 OR 6 months CTC, whichever is lower
MSME/ SC/ ST/ Women Projects Rs.1,50,000 OR 6 months CTC, whichever is lower
  • Training companies: Training Companies are eligible for investment subsidy of 50% or Rs. 1 Crore, whichever is lower.


    (Mega Projects: Mega Projects are projects which create employment of 5000 or more in a span of 5 years in case where the company owns the land.)

Land Allotment

Allotment of Government land or land held by APIIC for industrial development, to the IT units shall be governed by the following principles.

  • The land allotment would be based on the business proposal and the investment capacity of the company/investor.
  • Only the IT units with IT employee strength of a 250 and annual turnover of Rs.25 Cr. in previous financial year will be eligible to be considered for allotment of land.
  • Rebate on cost of land allotted:
Mega IT Projects Rs. 60,000 per employee
Other IT Projects Rs. 40,000 per employee

**Subject to maximum of 80% of the land cost as determined by the allotment agency.

  • The facility to be created shall be adequate to provide space for 500 IT professionals on every acre of land.
  • Land Usage: Mixed purpose land usage will be allowed up to 20% of the land allotted for employee recreation / Housing.
  • Project Timelines: Companies / Enterprises which are allotted land shall follow the timelines as mentioned below:
T = Date of CCITI Meeting & Decision for Land Allotment
T+3 months T+6 months T+36 months T+60 months T+72 months
Company to start operations in leased premises
Begin Construction
30% of employment obligation to be fulfilled
70% fulfilled
100% fulfilled

Additional Incentives

  • MSME IT units: Units that have an annual turnover of upto Rs 25 cr (Rs. 250 mil). All turn key projects with an outlay upto Rs 5 cr (50 Mil) to be undertaken by Government Departments would be reserved for MSMEs registered and operating in AP.
  • Rural IT Units: IT Units established in Rural areas shall be eligible for the following incentives:

a.         All district based turn key projects with an outlay upto Rs 50 Lakhs would be reserved for Rural IT companies.
b.         Subsidized loans towards the infrastructure/operations cost through SFC/ rural banks would be arranged for such enterprises.

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“One lakh new IT jobs for the youth will be created in the state within a couple of years. Five lakh jobs would also be created in the electronics, manufacturing sectors etc. “

Shri Nara Lokesh
Minister , Information Technology

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