New Cities India

Infrastructure Review

Telangana Chief Secretary Fast-Tracks Zaheerabad Industrial City Progress

Chief Secretary Sanjay Jaju on July 10 chaired a review meeting with senior officials of the Industries and Commerce department at the Secretariat to assess progress of key industrial infrastructure projects being developed across Telangana. The review covered major projects implemented by the Telangana Industrial Infrastructure Corporation (TGIIC), including Bharat Future City, Zaheerabad Industrial City, Kakatiya Mega Textile Park and other strategic industrial infrastructure initiatives.

Zaheerabad Industrial Smart City — Telangana Chief Secretary Fast-Tracks Zaheerabad Industrial City Progress
Meeting Date10 July 2026
Meeting LocationTelangana Secretariat, Hyderabad
Meeting ChairChief Secretary Sanjay Jaju
Expected InvestmentOver Rs 15,000 crore
Expected Job CreationNearly two lakh direct and indirect jobs
Phase 1 Area (Industrial Smart City)3,245 acres
Project CostRs 2,369.82 crore
Equity StructureTelangana holds 51% stake via TGIIC (land contribution) and GoI holds 49% (cash for internal infrastructure)
Union Cabinet Debt ApprovalRs 655 crore for internal infrastructure
External Infrastructure SoughtAround Rs 500 crore (water, power, roads)

What Happened

Chief Secretary Sanjay Jaju on Friday chaired a review meeting with senior officials of the Industries and Commerce department at the Secretariat to assess the progress of key industrial infrastructure projects being developed across the state. The meeting covered the Bharat Future City, Zaheerabad Industrial City, Kakatiya Mega Textile Park and other strategic industrial infrastructure initiatives.

MD TGIIC Shashanka briefed the Chief Secretary on the present status of these projects, the infrastructure being created, investment prospects and the timelines for their completion.

Directives Issued

Chief Secretary Sanjay Jaju instructed the TGICC to expedite the process to develop industrial infrastructure. He emphasised that all departments and implementing agencies should function in close coordination to ensure the timely execution of industrial projects without delays, and instructed officials to regularly monitor progress, identify bottlenecks early and resolve them through effective inter-departmental coordination.

Jaju asked officials to adopt a proactive approach in creating essential infrastructure and providing investor facilitation services to ensure successful implementation of these projects.

Strategic Objectives

The meeting focused on accelerating industrial growth, attracting investments and creating large-scale employment opportunities in the State. The Chief Secretary stressed that the primary objective should be to position Telangana as a preferred investment destination by facilitating industries with world-class infrastructure and a business-friendly ecosystem, and said that attracting both domestic and global investments is essential for sustaining the State's economic growth and generating large-scale employment opportunities for the youth.

Project Significance and Potential Impact

The flagship projects have the potential to transform Telangana's industrial landscape by attracting major investments, strengthening manufacturing and promoting balanced regional development.

Zaheerabad is positioned as a big standalone industrial township with access to west coast ports, attracting companies that have import/export components in their business. Telangana has already allotted around 500 acres to anchor clients such as Korean auto giant Hyundai (300 acres) for its R&D facility and test track and aerospace & defence player VEM Technologies.

Organizational and Governance Structure

The Centre and Telangana government have partnered to develop a Smart Integrated Industrial City covering 3,245 acres under the Hyderabad Nagpur Industrial Corridor (HNIC). The new Zaheerabad Industrial Area (ZIA) will be managed by a special purpose vehicle called NICDIT Zaheerabad Industrial Smart City, with the Centre's National Industrial Corridor Development and Implementation Trust holding 49 per cent equity and TGIIC owning 51 per cent.

Attendees

Industries and Commerce Special Secretary Krishna Aditya, Handlooms and Textiles Special Secretary Katyayani Devi, Invest Telangana CEO Ajit Reddy, Future City Development Authority Commissioner Shashanka, Industries Director Nikhil Chakravarthi, and other senior officials attended the review meeting.

Development phases

Frequently asked questions

What is Zaheerabad Industrial Smart City?

A 3,245-acre industrial smart city approved as part of the Rs 28,602 crore National Industrial Corridor Development Programme (NICDP), to be developed at a cost of Rs 2,369.82 crore under the overall master plan of the erstwhile Zaheerabad NIMZ (National Investment and Manufacturing Zone).

What investment and employment is expected?

Investments worth over Rs 15,000 crore and creation of nearly two lakh direct and indirect jobs.

Who owns and operates the project?

A special purpose vehicle (SPV) in which Telangana holds 51% stake (via TGIIC, by way of land) and Government of India holds 49% (via NICDIT, in cash for constructing internal infrastructure).

What was the Chief Secretary's main directive?

Chief Secretary Sanjay Jaju instructed TGICC to expedite the process to develop industrial infrastructure. He emphasised that all departments and implementing agencies should function in close coordination to ensure timely execution of industrial projects without delays.

What sectors will the industrial city focus on?

There is a strong automotive cluster already. The focus will be on pushing more automotive, EV and energy storage players, and other sectors keen on having port access. Additional target sectors include electrical equipment, food processing, machinery, metals, and transport equipment.

What infrastructure funding has been approved?

The Union cabinet has approved a debt of Rs 655 crore for internal infrastructure, and the state has sought support for building external infrastructure such as water, power and roads at an outlay of around Rs 500 crore.

What timeline was mentioned for project completion?

Tenders for infrastructure work are expected to be finalized by October, and project completion is targeted within 18 months.

Sources

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