The long-awaited Zaheerabad Industrial Smart City (ZISC) project is set to move forward after receiving all necessary approvals and clearances. Infrastructure development is expected to start in the coming months under the Hyderabad-Nagpur Industrial Corridor.
The project aims to attract ₹15,000 crore in investments and generate nearly two lakh direct and indirect jobs. It will host manufacturing units across a range of sectors, including food processing, automotive, metals, electrical equipment, rail locomotives, aircraft, military hardware, and other non-transport industries.
The Telangana Industrial Infrastructure Corporation (TGIIC) has invited tenders for a request for proposal covering the design, construction, testing, commissioning, operation, and maintenance of ZISC’s infrastructure. Phase I will be developed on 3,245 acres in the Zaheerabad area of Sangareddy district, with future phases planned in adjoining areas.
Of the total Phase I area, 1,900 acres will be allocated for industrial purposes, 650 acres for green zones, and the remainder for amenities, logistics, residential, and commercial infrastructure. Officials said that 2,900 acres have already been acquired, with the balance to be secured soon.
The Zaheerabad Smart City was first conceived as a National Investment and Manufacturing Zone (NIMZ) spread over 12,300 acres, covering 17 villages in Sangareddy district. It was later incorporated into the Hyderabad-Nagpur Industrial Corridor for funding under the National Industrial Corridor Development and Implementation Trust (NICDIT).
The NICDIT board approved the proposal last year. The project is estimated to cost ₹2,369 crore. TGIIC will hold a 51 percent equity stake worth ₹620.96 crore, while NICDIT will contribute 49 percent, valued at ₹596 crore. The remaining cost will be met through debt financing to the special purpose vehicle (SPV) NICDIT Zaheerabad Industrial Smart City Limited, which has been set up for project execution.
According to official sources, tenders for infrastructure works are expected to be finalised by October. Construction and commissioning are projected to take about 18 months after work begins.
The state government has already allotted large industrial plots within the project area. Vem Technologies received 511 acres, while Hyundai was allotted 408 acres. Following these allocations, the total area for Phase I was finalised at 3,245 acres, excluding the land already allotted to these companies.
Officials believe that ZISC will be a major driver of regional growth by attracting global and domestic manufacturers. The strategic location along the Hyderabad-Nagpur corridor offers connectivity to key markets in central and western India. The focus sectors have been chosen to align with national priorities for high-value manufacturing and to complement existing industrial bases in Telangana.
Apart from industrial benefits, the project’s green areas and planned residential and commercial zones are designed to create a self-sustaining urban ecosystem. This aligns with the “smart city” concept, integrating industrial productivity with livable spaces.
The immediate priority is to complete the remaining land acquisition and finalise the tender process. Once the work order is issued, ZISC’s first phase will move from planning to construction, setting the stage for Telangana’s newest industrial hub.
Officials have expressed confidence that the project will meet its investment and job creation targets, provided timelines are maintained and industrial partners come on board as planned.
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