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Zaheerabad Smart City Project Eyes Rs 150 Bn Investment

2025-08-19

The ambitious Zaheerabad Industrial Smart City (ZISC) is ready to break ground in the coming months, with all key approvals and clearances now in place. Designed to attract Rs 150 billion in investments, the project is projected to create up to 2 lakh direct and indirect jobs, spurring economic growth in the region.

ZISC will serve as a multi-sector industrial zone, hosting manufacturing units across food processing, automotive, electrical equipment, metals, and transport industries, including rail locomotives and aircraft.

The Telangana Industrial Infrastructure Corporation (TGIIC) has floated a Request for Proposal (RFP) for the design, development, and maintenance of the project’s core infrastructure. This initiative forms a key part of the Hyderabad-Nagpur Industrial Corridor and aims to position Zaheerabad as a national manufacturing powerhouse.

Phase I of the development will span 3,245 acres in Sangareddy district, with 1,900 acres earmarked for industrial use and 650 acres allocated for green zones. The remaining land will support residential, commercial, and logistics infrastructure, providing holistic urban support for the industrial zone.

Initially envisioned as a National Investment and Manufacturing Zone (NIMZ), ZISC extends over 12,300 acres across 17 villages. It has secured funding under the National Industrial Corridor Development and Implementation Trust (NICDIT).

The total project cost is estimated at Rs 23.69 billion, with TGIIC holding 51 per cent equity (Rs 6.20 billion) and NICDIT contributing 49 per cent (Rs 5.96 billion). The remaining funds will be sourced through debt by the SPV — NICDIT Zaheerabad Industrial Smart City Limited.

Officials stated:

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

They added that 2,900 of the required 3,200 acres for Phase I have already been acquired, with the rest to follow shortly.

ZISC is poised to become a strategic industrial hub, driving long-term growth and employment in Telangana.