Industrial Development
Telangana Minister Updates on Zaheerabad Industrial Smart City Progress Toward March 2028 Deadline
Telangana IT and Industries Minister Duddilla Sridhar Babu stated that the Zaheerabad Industrial Smart City would generate direct and indirect employment opportunities for 200,000 people once fully operational, targeting investments worth approximately ₹15,000 crore across 3,245 acres. Development works for the Zaheerabad Smart City would be completed by March 2028.
| Development area | 3,245 acres in Sangareddy district, Telangana |
|---|---|
| Target investment | ₹15,000 crore |
| Projected employment | 200,000 direct and indirect jobs |
| Completion target | March 2028 |
| State equity stake | 51% (Telangana, via land contribution) |
| Centre equity stake | 49% (Government of India) |
| Total project cost | ₹2,360–2,369 crore |
| Execution model | Engineering, Procurement and Construction (EPC) |
| Status as of August 2026 | Water supply tendering completed; power works on schedule |
| Key sectors targeted | Automobile, electrical equipment, food processing, machinery, metals, transport equipment |
The Announcement
On Monday, August 18, 2026, Sridhar Babu participated virtually in a video conference of the National Industrial Corridor Development and Implementation Trust (NICDIT) from the Telangana Secretariat, chaired from New Delhi by Union Finance Minister Nirmala Sitharaman and Union Minister for Commerce and Industry Piyush Goyal, with Chief Ministers and Industries Ministers from multiple states. He stated that the Zaheerabad Industrial Smart City would provide a fresh boost to Telangana's industrial sector.
Project Scale and Targets
The target is to attract investments worth approximately ₹15,000 crore for the smart city, which is being developed across 3,245 acres. The project would generate direct and indirect employment opportunities for 200,000 people once fully operational. 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.
Governance and Financing
State Government holds a 51% stake in the smart city in the form of land, while the Centre is providing funds for development activities. NICDIT Zaheerabad Industrial Smart City Ltd., a Special Purpose Vehicle has been incorporated with equity contribution from National Industrial Corridor Development and Implementation Trust (NICDIT) and Telangana Industrial Infrastructure Corporation Limited (TGIIC) for development of Zaheerabad Industrial Area in Telangana.
Development Plan and Infrastructure Status
Officials have submitted the development plan to the special purpose vehicle (SPV) set up for the project. Agencies are carrying out the works under the engineering, procurement and construction (EPC) model. Officials have completed the tendering process for water supply works. Power supply works will also meet the deadline.
Request for Plug-and-Play Parks
Sridhar Babu urged Piyush Goyal to allocate four of the 100 plug-and-play industrial parks announced under the Bharat Audyogik Vikas Yojana (BHAVYA) to Telangana. These parks would provide immediate industrial space and utilities without requiring tenant companies to develop their own infrastructure.
Broader Context
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 project has been proposed as part of the 12 Industrial Smart Cities which will be established as part of the National Industrial Corridor Development Programme (NICDP) with an estimated investment of Rs 28,602 crore. The Zaheerabad node is located in Sangareddy district, approximately 80 km from Hyderabad and close to National Highway 65.
Frequently asked questions
What is Zaheerabad Industrial Smart City?
It is a Smart Integrated Industrial City covering 3,245 acres under the Hyderabad Nagpur Industrial Corridor, aimed to attract investments with modern infrastructure and boost economic growth in the region.
When will the project be completed?
Development works for the Zaheerabad Smart City would be completed by March 2028, with projects executed under the Engineering, Procurement, and Construction (EPC) model to be finished within the stipulated timeframe.
How are Telangana and the Centre sharing the project?
State Government holds a 51% stake in the smart city in the form of land, while the Centre is providing funds for development activities.
What sectors will operate in Zaheerabad Industrial Smart City?
Target sectors have been identified as automobile, electrical equipment, food processing, machinery and equipment, metals and non-metallic based industries, transport equipment.
What is the current status of infrastructure work?
Officials have completed the tendering process for water supply works. Power supply works will also meet the deadline.
How many jobs will the project create?
The project would generate direct and indirect employment opportunities for 200,000 people once fully operational.
Sources
- Zaheerabad Smart City to Boost Industry and Employment: Minister Sridhar Babu
- Zahirabad Smart City to Attract ₹15,000 Crore Investment, Create 2 Lakh Jobs
- Zahirabad Industrial Smart City to draw ₹15,000 Cr in investments, generate 2L jobs
- Zaheerabad Smart City To Boost Industry And Employment: Sridhar Babu
- Centre, Telangana partner to build Zaheerabad smart city
- Centre Approves Industrial Smart City at Zaheerabad
- Zaheerabad Telangana | NICDC