NICDIT Awards Zaheerabad Industrial Smart City Infrastructure EPC Contract to GVPR-SRR Joint Venture

Tender Process and Award

NICDIT Zaheerabad Industrial Smart City Ltd floated its second call for EPC tender on 28 October 2025, following annulment of the first tender. The tender submission deadline was 27 November 2025 at 15:00 IST, with documents available on the Telangana government procurement portal and TGIIC website.

A pre-bid meeting for trunk infrastructure works was held at the TSIIC Ltd Office in Hyderabad, attended by senior officials of Telangana State Industrial Infrastructure Corporation, NICDC, and their Knowledge Partner Jacobs. TCEConnect, appointed as the Programme Manager for New Cities, presented project location advantages, statutory approvals, and tender timelines.

The Letter of Award was issued to M/s GVPR Engineers Ltd and SRR joint venture on 12 January 2026 for ₹1,197 crore. Kick-off meeting with the EPC contractor was held on 28 January 2026, with participation from TSIIC, NICDC, and PMNC officials.

Project Scope and Contract Obligations

The EPC contract covers design, construction, testing, commissioning, and operation and maintenance of infrastructure works at Zaheerabad node under the Hyderabad–Nagpur Industrial Corridor. The scope includes engineering, procurement, and construction of infrastructure works on an EPC basis.

The Special Purpose Vehicle, NICDIT Zaheerabad Industrial Smart City Ltd, was incorporated with equity contribution from the National Industrial Corridor Development and Implementation Trust and Telangana Industrial Infrastructure Corporation Limited. Letter of Award for the Programme Manager for New Cities was issued on 29 July 2025, establishing project oversight alongside the EPC contractor.

The PMNC will be responsible for monitoring overall project execution, ensuring alignment and coordination between various stakeholders including the EPC contractor, to ensure adequate monitoring, coordination and the overall execution of the project.

Project Scale and Investment Framework

Phase I activation area covers 3,245 acres out of an overall project area of approximately 12,500 acres, with total Phase 1 project cost of ₹2,361 crore under the NICDIT framework. TGIIC holds a 51 percent equity stake worth ₹620.96 crore, while NICDIT contributes 49 percent valued at ₹596 crore. The remaining cost is met through debt financing to the SPV.

The state government has already allotted large industrial plots within the project area, with Vem Technologies receiving 511 acres and Hyundai allotted 408 acres. The project is expected to attract investments worth over ₹15,000 crore and create nearly two lakh direct and indirect jobs across sectors including automotive, food processing, and military hardware.

Timeline and Next Steps

Construction and commissioning are projected to take approximately 18 months after work commences. The kick-off meeting held on 28 January 2026 marked the formal start of coordination between TSIIC, NICDC, and the contractor team.

Immediate priorities include completing the remaining land acquisition and finalising the tender process. Once the work order is issued, Zaheerabad's first phase will move from planning to construction, setting the stage for Telangana's newest industrial hub.

Target sectors for the Zaheerabad Industrial Smart City include automobile, electrical equipment, food processing, machinery and equipment, metals and non-metallic based industries, and transport equipment.

Location and Connectivity

The Zaheerabad Industrial Node spans 12,635 acres across 17 villages in Sangareddy District, Telangana, located 9 km north of Zaheerabad, 80 km from Hyderabad, and close to NH-65, with excellent connectivity to major road networks including the Hyderabad Outer Ring Road and the proposed Regional Ring Road.

Multi-modal connectivity includes the 2-lane SH-14 (Zaheerabad–Bidar) approximately 2 km from the site and SH-16 (Nizampet–Bidar) that abuts the site, with Metalkunta Railway Station at 12 km and Zaheerabad Railway Station at 19 km. The international airport at Shamshabad is about 125 km away, JNPT sea port near Mumbai is at 600 km, and Krishnapatnam Port in Andhra Pradesh is at 620 km.