The Telangana government is targeting March 2028 for completion of the 3,245-acre Zahirabad Industrial Smart City, with the industrial development expected to attract around INR 15,000 crore in investments and generate nearly two lakh direct and indirect employment opportunities. 
Telangana IT and Industries Minister D Sridhar Babu announced the project timeline during a virtual meeting of the National Industrial Corridor Development and Implementation Trust (NICDIT), attended by Union Finance Minister Nirmala Sitharaman, Union Commerce and Industry Minister Piyush Goyal and representatives from several states. 
The Zahirabad project is being developed as a major industrial and manufacturing hub in Telangana. Spread across 3,245 acres, the development is intended to create the infrastructure required to attract large-scale industrial investment and establish a broader manufacturing ecosystem in the region. 
The state government holds a 51% stake in the project through its contribution of land, while the Centre is providing financial support for infrastructure development along the industrial corridor. The development plan has been submitted to the special purpose vehicle overseeing the project, with infrastructure works being taken forward under the Engineering, Procurement and Construction (EPC) model. 
Sridhar Babu said the government is working to ensure that essential infrastructure is delivered within the proposed timeline. Tendering for water-supply infrastructure has already been completed, while power-related works are also being progressed as part of the development programme. 
The availability of industrial infrastructure is expected to be a key factor in attracting companies to the smart city. By providing serviced land and supporting infrastructure, the project is intended to create conditions for industrial units to establish operations without having to develop basic infrastructure independently. 
Once fully operational, the project is expected to support significant employment generation. The government estimates that nearly two lakh direct and indirect jobs could be created through industrial activity and associated services within and around the development. 
The project is also being positioned as part of Telangana’s wider industrial corridor strategy. Improved industrial infrastructure around Zahirabad could strengthen manufacturing activity outside Hyderabad and encourage investment in the state’s regional industrial centres. 
During the NICDIT meeting, Sridhar Babu also sought the allocation of four plug-and-play industrial parks to Telangana from the 100 parks proposed under the Centre’s Bharat Audyogik Vikas Yojana (BHAVYA). Such facilities are intended to provide ready industrial infrastructure and help reduce the time required for companies to establish manufacturing operations. 
The request forms part of Telangana’s effort to expand its industrial infrastructure base and attract new manufacturing investments. Additional plug-and-play facilities could complement the Zahirabad development by providing businesses with ready-to-use industrial locations and supporting infrastructure. 
For the Zahirabad Industrial Smart City, the next phase will focus on completing the core infrastructure needed to make the industrial node investment-ready. Water supply, power and other supporting facilities will have to progress in line with the March 2028 completion target. 
The scale of the proposed investment also indicates the project's intended role in Telangana’s industrial expansion. If the INR 15,000-crore investment target is achieved, the development could become an important manufacturing and employment centre in the state. 
With infrastructure works moving ahead and the government maintaining a March 2028 deadline, Zahirabad Industrial Smart City is being positioned as a long-term industrial growth node designed to attract private investment, expand manufacturing capacity and create employment opportunities in the region. 
Sources: Telangana State Industrial Infrastructure Corporation