Introduction:
The Zaheerabad Industrial Smart City project in Telangana, recently greenlit by the Union Cabinet as part of 12 new industrial cities across India, is poised to revolutionize the region’s industrial landscape. With an anticipated investment of over ₹15,000 crore and the creation of nearly 2 lakh direct and indirect jobs, this project is set to establish Zaheerabad as a major standalone industrial township with strategic access to west coast ports—making it an attractive destination for companies involved in import-export operations.
Strategic Industrial Growth and Decentralization in Telangana
Telangana’s focus on decentralizing industrial growth is at the core of this project. Jayesh Ranjan, the Special Chief Secretary for Industries and Commerce in Telangana, emphasized the importance of spreading industrial development across the state. “The Zaheerabad Industrial Smart City is located in a region with a large rural catchment area, which is beneficial for the state and aligns with our strategy of decentralized industrial growth,” Ranjan shared with TOI.
A Cornerstone of the Hyderabad-Nagpur Industrial Corridor:
The Zaheerabad Industrial Smart City will cover 3,245 acres, making it the primary industrial node of the Hyderabad-Nagpur Industrial Corridor. Approved under the National Industrial Corridor Development Programme (NICDP), which has a total outlay of ₹28,602 crore, this smart city is being developed in line with the original master plan for the Zaheerabad NIMZ (National Investment and Manufacturing Zone). The project’s development will involve an estimated cost of ₹2,369.82 crore, as per the proposal submitted by the Telangana government to the Centre.
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Zaheerabad Industrial Smart City Project Details:
| Parameter | Details |
|---|---|
| Project Name | Zaheerabad Industrial Smart City |
| Location | Zaheerabad, Sangareddy District, Telangana |
| Total Area | 3,245 acres |
| Estimated Project Cost | ₹2,369.82 crore |
| Overall Investment Potential | ₹15,000 crore |
| Expected Job Creation | Nearly 2 lakh (direct and indirect) |
| Key Sectors | Automotive, Electric Vehicles (EVs), Energy Storage, Electrical Equipment, Food Processing, Metals, Machinery |
| Primary Industrial Node | Hyderabad-Nagpur Industrial Corridor |
| Master Plan | Aligned with the original Zaheerabad National Investment and Manufacturing Zone (NIMZ) |
| Development Agency | Special Purpose Vehicle (SPV) |
| Stakeholders | Telangana Industrial Infrastructure Corporation Ltd (TGIIC) – 51% National Industrial Corridor Development and Implementation Trust (NICDIT) – 49% |
| Funding | Union Government: ₹655 crore (internal infrastructure) State Government: Seeking ₹500 crore (external infrastructure) |
| Anchor Clients | Hyundai (R&D facility and test track) – 300 acres VEM Technologies (Aerospace & Defense) |
| Environmental Clearances | Approved by the Union Ministry of Environment and Forests |
| Phase 1 Development Area | 3,245 acres |
| Future Expansion Area | 12,500 acres designated for full project development |
| Project Implementation Timeline | Expected completion in 2-3 years |
| Political Support | Union Minister G. Kishan Reddy and Zaheerabad MP Suresh Shetkar |
| Related Infrastructure | Access to West Coast Ports, Water, Power, Road Connectivity |
| Historical Context | Revival of NIMZ established in 2013 under the UPA government |
Public-Private Partnership: Special Purpose Vehicle (SPV) for Development
The development of the Zaheerabad Industrial Smart City will be overseen by a Special Purpose Vehicle (SPV), with the Telangana government holding a 51% stake through the Telangana Industrial Infrastructure Corporation Ltd (TGIIC). The Government of India (GoI) will hold the remaining stake through the National Industrial Corridor Development and Implementation Trust (NICDIT). The Union Cabinet has already approved a ₹655 crore debt for internal infrastructure, and the state is seeking an additional ₹500 crore for external infrastructure, including essential amenities such as water, electricity, and road connectivity.
Current Status and Future Development Plans:
Land acquisition for the project has been completed, and some infrastructure work is already underway. Land allotment to key industries has begun, with approximately 500 acres already allocated to major anchor clients, including Hyundai, which will establish an R&D facility and test track, and VEM Technologies, a significant player in the aerospace and defense sector. The project, which had been delayed for over five years, is now expected to reach completion within the next two to three years.
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Sectoral Focus: Driving Growth in Automotive, EV, and Beyond
Zaheerabad is already recognized as a manufacturing hub, particularly for Mahindra & Mahindra’s small tractors and commercial vehicles. The Zaheerabad Industrial Smart City will further bolster the region’s industrial capabilities by focusing on key sectors such as automotive manufacturing, electric vehicles (EVs), energy storage, and other industries that benefit from port access. Union Coal and Mines Minister G. Kishan Reddy highlighted additional target sectors, including electrical equipment, food processing, machinery, metals, and transport equipment. The project has received all necessary environmental clearances from the Union Ministry of Environment and Forests, ensuring smooth progress in the development phase.
Hyderabad To Zheerabad
The distance from Hyderabad to Zaheerabad is approximately 105 kilometers (about 59 to 68 miles) by road, depending on the specific route taken. The journey typically takes around 2 to 2.5 hours, depending on traffic and road conditions.
National Investment and Manufacturing Zone (NIMZ)
The Zaheerabad Industrial Smart City is essentially a revival of the National Investment and Manufacturing Zone (NIMZ) that was initially established in 2013 under the Congress-led UPA government. This revitalized project will now take shape under the framework of the National Industrial Corridor Development and Implementation Trust (NICDIT), with 3,245 acres being developed in the first phase. The smart city will encompass 17 villages in the Nyalakal and Jharasangam mandals, which were identified during the initial phase of the NIMZ project.
Political Support and Strategic Importance
The Zaheerabad Industrial Smart City has garnered strong political support, with Union Minister G. Kishan Reddy and Zaheerabad MP Suresh Shetkar expressing gratitude to Prime Minister Narendra Modi and Union Commerce and Industries Minister Piyush Goyal for including Zaheerabad in the National Corridor Development Programme. This project is expected to play a crucial role in enhancing Telangana’s industrial ecosystem and positioning the state as a key player in India’s industrial growth narrative.
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Conclusion:
The Zaheerabad Industrial Smart City represents a major milestone in Telangana’s industrial development strategy. With substantial investment potential, significant job creation prospects, and a focus on key industrial sectors, this project is set to transform Zaheerabad into a thriving industrial hub, contributing to the region’s and nation’s broader economic growth. As the project progresses, it will serve as a model for future industrial developments across India.
Frequently Asked Questions:
It’s a major industrial development in Telangana, covering 3,245 acres with a ₹15,000 crore investment, aimed at creating nearly 2 lakh jobs.
Automotive, EVs, energy storage, electrical equipment, food processing, metals, and machinery.
Expected completion is in 2 to 3 years.
Funded through a Special Purpose Vehicle with a ₹655 crore Union Government loan for internal infrastructure and an additional ₹500 crore sought for external infrastructure.
Hyundai (R&D facility) and VEM Technologies (aerospace & defense) are major anchor clients.
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