Authority Decision
NICZISCL Issues First Offer Letter to Hyundai Motor India Engineering at Zaheerabad Industrial Smart City
On 26 September 2026, NICDIT Zaheerabad Industrial Smart City Limited (NICZISCL) issued its first formal offer letter to Hyundai Motor India Engineering Pvt Ltd, allotting 270 acres in the Zaheerabad Industrial Smart City. The decision was announced during the inauguration of NICZISCL's new office in Zaheerabad by K Shashanka, IAS, Vice-Chairman and Managing Director of Telangana Industrial Infrastructure Corporation Limited (TGIIC).
| Date of Decision | 26 September 2026 |
|---|---|
| Allottee | Hyundai Motor India Engineering Pvt Ltd |
| Land Allotted | 270 acres |
| Authority Issuing Offer Letter | NICDIT Zaheerabad Industrial Smart City Limited (NICZISCL) |
| Decision Context | NICZISCL office inauguration by K Shashanka, IAS, Vice-Chairman and Managing Director, TGIIC |
| Phase I Development Area | 3,245 acres across Sangareddy District |
| Total Project Cost | ₹2,369 crore |
| TGIIC Equity Contribution | 51% (₹620.96 crore) |
| NICDIT Equity Contribution | 49% (₹596 crore) |
Decision Summary
The new office of NICDIT Zaheerabad Industrial Smart City Limited (NICZISCL), the Special Purpose Vehicle (SPV) for developing the Zaheerabad Industrial Smart City, was inaugurated by K Shashanka, IAS, Vice-Chairman and Managing Director, Telangana Industrial Infrastructure Corporation Limited (TGIIC). He was accompanied by Lt Cdr Ravindranath Reddy, CEO (P), TGIIC, and other senior officials.
On the occasion, NICZISCL issued its first Offer Letter to M/s Hyundai Motor India Engineering Pvt Ltd for the allotment of 270 acres in the Zaheerabad Industrial Smart City. This marks the first formal land allotment by the newly operationalized SPV.
Operative Details
Allottee: Hyundai Motor India Engineering Pvt Ltd (a subsidiary of Hyundai Motor Company)
Land Allotted: 270 acres within Zaheerabad Industrial Smart City
Location: Zaheerabad Industrial Node, spanning 12,635 acres across 17 villages in Sangareddy District, Telangana
Development Scope: The Smart Integrated Industrial City covers 3,245 acres under the Hyderabad-Nagpur Industrial Corridor (HNIC).
Project Financing: The project is estimated to cost ₹2,369 crore. TGIIC will hold a 51 percent equity stake worth ₹620.96 crore, while NICDIT will contribute 49 percent, valued at ₹596 crore. The remaining cost will be met through debt financing to the special purpose vehicle (SPV) NICDIT Zaheerabad Industrial Smart City Limited, which has been set up for project execution.
Practical Effect
The allotment is expected to boost industrial activity in the region, marking the commencement of major anchor tenant acquisition for the Zaheerabad project. Hyundai Motor India Engineering Private Limited (HMIE) was established in November 2006 at Hyderabad, Telangana State, India by Hyundai Motor Group. The company provides engineering and R&D support for the Hyundai-Kia motor group.
This first offer letter signals operational readiness of NICZISCL to attract and process investor applications. The project aims to attract ₹15,000 crore in investments and generate nearly two lakh direct and indirect jobs.
Project Background
The NICDIT Zaheerabad Industrial Smart City Limited, a Special Purpose Vehicle (SPV), has been established to drive the development of the Zaheerabad Industrial Area under the Hyderabad-Nagpur Industrial Corridor (HNIC). The Centre's National Industrial Corridor Development and Implementation Trust holds 49 per cent equity, while Telangana Industrial Infrastructure Corporation (TGIIC) owns 51 per cent.
Target sectors for the Zaheerabad Industrial Smart City have been identified as automobile, electrical equipment, food processing, machinery and equipment, metals and non-metallic based industries, transport equipment.
Development phases
Land use
Frequently asked questions
What is NICZISCL?
NICDIT Zaheerabad Industrial Smart City Limited (NICZISCL) is the Special Purpose Vehicle (SPV) established to develop and manage the Zaheerabad Industrial Smart City in Sangareddy District, Telangana under the Hyderabad-Nagpur Industrial Corridor (HNIC).
What land has been allotted to Hyundai Motor India Engineering?
Hyundai Motor India Engineering Pvt Ltd has been allotted 270 acres within the Zaheerabad Industrial Smart City through NICZISCL's first offer letter dated 26 September 2026.
What is the total project cost and funding structure?
The Zaheerabad Industrial Smart City project is estimated to cost ₹2,369 crore. TGIIC contributes 51% equity (₹620.96 crore), NICDIT contributes 49% equity (₹596 crore), with the remainder met through debt financing.
What sectors will the Zaheerabad Industrial Smart City focus on?
Target sectors include automobile, electrical equipment, food processing, machinery and equipment, metals and non-metallic based industries, and transport equipment.
How large is Phase I of the project?
Phase I of the Zaheerabad Industrial Smart City spans 3,245 acres in Sangareddy District, with approximately 1,900 acres designated for industrial use, 650 acres for green spaces, and the remainder for residential, commercial, and logistical infrastructure.
Who inaugurated NICZISCL's new office?
K Shashanka, IAS, Vice-Chairman and Managing Director of Telangana Industrial Infrastructure Corporation Limited (TGIIC), inaugurated the NICZISCL office on 26 September 2026.
Sources
- Hyundai gets 270 acres at Zaheerabad Smart City
- Zaheerabad Telangana | NICDC
- Centre, Telangana partner to build Zaheerabad smart city
- Work to Begin on ₹2,369 Crore Zaheerabad Industrial Smart City Phase I
- Zaheerabad Industrial Smart City Project Eyes Rs 150 Bn Investment
- Hyundai Motor India Engineering | Corporate Information