INFRASTRUCTURE
PM Modi Lays Foundation Stone for Zaheerabad Industrial Smart City, Reviving Cross-Border Industrial Hopes
Prime Minister Narendra Modi laid the foundation stone for the Zaheerabad Integrated Industrial Smart City in Telangana on 10 May 2026. The foundation stone generated fresh hopes among industrialists and traders in neighbouring Bidar district, Karnataka, located barely 30 kilometres away, with expectations for indirect economic benefits across real estate, transport, tourism and retail sectors.
| Development Authority | NICDC (National Industrial Corridor Development Corporation) |
|---|---|
| Location | Spanning 12,635 acres across 17 villages in Sangareddy District, Telangana |
| Phase 1 Area | 3,245 acres |
| Phase 1 Cost | Rs 2,350 crore |
| Expected Investment | More than Rs 10,000 crore |
| Employment Target | 1.74 lakh jobs by 2029 |
| Key Sectors | Logistics, auto components, non-metallic minerals, electrical and electronics, machinery, metals, and food processing |
| Distance from Hyderabad | Approximately 80 km northwest |
| Distance from Bidar, Karnataka | Approximately 10 km northwest |
What Happened
Prime Minister Narendra Modi laid the foundation stone for the Zaheerabad Integrated Industrial Smart City in Telangana on 10 May 2026. The Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Modi had previously approved the project as part of 12 Industrial Smart Cities under the National Industrial Corridor Development Programme (NICDP) with an estimated investment of Rs 28,602 crore.
The upcoming industrial hub is located barely 30 kilometres from Bidar city in Sangareddy district and is being developed under the Hyderabad-Nagpur Industrial Corridor as part of the National Industrial Corridor Development Programme.
Who Decided
Prime Minister Narendra Modi laid the foundation stone for the project taken up at an estimated cost of Rs 2360.54 crore on May 10, 2026. Congress MP from Zaheerabad constituency Suresh Shetkar acknowledged Chief Minister A. Revanth Reddy for pursuing the Zaheerabad Industrial Smart City project seriously with the Centre soon after assuming office in December 2023.
Industry representatives recalled that the Centre had granted in-principle approval in 2013 for establishing a National Investment and Manufacturing Zone (NIMZ) in Bidar district, with land identified across several villages, but the proposal never materialised in Karnataka and the project eventually shifted to neighbouring Telangana.
The Numbers
The project will be developed in phases across nearly 12,000 acres, with the first phase developing around 3,245 acres at an estimated cost of Rs 2,350 crore.
The project has the investment potential of more than Rs 10,000 crore generating 1.74 lakh jobs by 2029. The development will include residential, commercial and educational facilities alongside industrial zones.
The total Zaheerabad Industrial Node spans 12,635 acres across 17 villages in Sangareddy District.
What It Changes
Business leaders and traders in Bidar expect indirect economic benefits from the project, with experts believing the growth of industries in Zaheerabad could positively impact Bidar's real estate, transport, tourism, hotel, and retail sectors. Since Bidar enjoys relatively pleasant weather, there is optimism that professionals working in Zaheerabad may prefer residing in Bidar, boosting housing demand and commercial activity in the city.
The smart city under the Hyderabad–Nagpur Industrial Corridor in Telangana, upon operationalisation, will boost manufacturing and economic development. 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.
What Is Next
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.
The project will be developed by a special purpose vehicle (SPV) in which Telangana will hold 51% stake and Government of India the rest. Telangana's stake will be held by Telangana Industrial Infrastructure Corporation Ltd (TGIIC) by way of land and NICDIT (National Industrial Corridor Development and Implementation Trust), and the Centre's stake will be in cash for constructing internal infrastructure.
While the Union cabinet has already approved a debt of Rs 655 crore for internal infrastructure, the state has also sought support for building external infrastructure such as water, power and roads at an outlay of around Rs 500 crore.
Development phases
Frequently asked questions
What is the difference between Zaheerabad Industrial Smart City and the earlier NIMZ project?
Both projects are related to industrial development in the Zaheerabad region. However, the Industrial Smart City is being developed under the National Industrial Corridor programme with smart integrated infrastructure planning, as opposed to the earlier NIMZ (National Investment and Manufacturing Zone) framework.
How far is Zaheerabad from Hyderabad and Bidar?
The site is located at a distance of approximately 80 km northwest of Hyderabad and approximately 10 km northwest of Bidar Town, Karnataka.
What will be the main industries in this smart city?
The focus sectors include logistics, auto components, non-metallic minerals, electrical and electronics, machinery, metals, and food processing.
How much land has been acquired so far?
Among the 3,245 acres needed for Phase 1, already 80 percent of land has been acquired by Telangana state government.
Who will develop and operate the project?
The project will be developed by a special purpose vehicle (SPV) in which Telangana will hold 51% stake and Government of India the rest. Telangana's stake will be held by Telangana Industrial Infrastructure Corporation Ltd (TGIIC) and NICDIT (National Industrial Corridor Development and Implementation Trust), and the Centre's stake will be in cash for constructing internal infrastructure.
When is the project expected to be operational?
Foundation stone was laid on 10 May 2026. While specific operational timelines are not yet announced, the project is expected to generate 1.74 lakh jobs by 2029, suggesting a phased rollout through that period.
What does this mean for Bidar, Karnataka?
The foundation stone has generated fresh hopes among industrialists, traders, and unemployed youth in Karnataka's Bidar district. The project revived discussions about opportunities Bidar lost when in-principle NIMZ approval granted in 2013 for Bidar district never materialised, as the project eventually shifted to neighbouring Telangana.
Sources
- Zaheerabad smart city puts neglected Bidar back on the map
- PM to lay the foundation stone for Zaheerabad Industrial Smart City
- Modi to Lay Foundation Stone for Zaheerabad Industrial Smart City Project on May 10
- Centre Approves Industrial Smart City at Zaheerabad
- Zaheerabad Telangana
- PM lays the foundation stone, inaugurates and dedicates to the nation multiple development projects worth around ₹9,400 crore in Hyderabad, Telangana