Hyderabad Pharma City, launched by K. Chandrashekar Rao (KCR) and the Bharat Rashtra Samithi (BRS) government in 2018, is one of Telangana’s largest planned pharma hubs. Spread over 19,333 acres in Mucherla, it was designed to relocate polluting pharmaceutical units from Hyderabad city and provide eco-friendly infrastructure for the industry. The project initially aimed to attract around ₹64,000 crore in investments and generate nearly 5.6 lakh jobs, making it an important industrial initiative for Telangana. For land buyers and developers, Hyderabad Pharma City has influenced land values and local development significantly.
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Investor Benefits in Hyderabad Pharma City
Companies investing in Hyderabad Pharma City land were offered fast approvals under TS-iPASS, 15% capital subsidies, tax holidays, and SGST (state GST) reimbursements. Units in Special Economic Zones (SEZs) also received duty-free import benefits.Nearby towns like Jadcherla and Mucherla have seen rising land prices, attracting both industrial and residential investors. Road improvements, electricity upgrades, and basic infrastructure developments have further increased the area’s appeal.
Current Status and Developments
The Hyderabad Pharma City project, now often referred to as the Green Pharma City or as part of the broader Future City initiative under the current government, has made substantial progress in its initial phase, with core infrastructure development nearing completion. Industries are anticipated to commence operations within the coming year.
Infrastructure: The first phase covering 9,212 acres is largely complete, including internal roads, power, and water supply systems. Pollution control and waste management systems have been implemented, featuring an advanced Zero Liquid Discharge (ZLD) method.
Investments: Over 150 companies have been allotted land, with major firms like Dr. Reddy’s Laboratories, Aurobindo Pharma, Hetero Drugs, Laurus Labs, and MSN Pharmaceuticals establishing facilities on 50-acre plots each. Additionally, at the BioAsia 2025 event, the Telangana government signed MoUs with 11 more companies, further boosting investments.
Connectivity: Plans are underway for enhanced connectivity, including a 300-foot-wide highway linking the site to the Regional Ring Road (RRR), a dedicated pharma cargo terminal at Rajiv Gandhi International Airport (RGIA), and a proposed Metro Rail extension.
Government Shift: Originally a flagship initiative of the BRS government, designated a National Investment and Manufacturing Zone (NIMZ) by the Government of India, the project has been rebranded under the current Congress government led by Chief Minister Revanth Reddy as part of Future City. Opposition parties have criticized this move, claiming it prioritizes real estate over industry.
Legal Challenges: The government faces legal hurdles regarding the repurposing of land acquired for the original Pharma City project to the new Future City plan, adding uncertainty for investors and landowners.
Controversies: Future City and Land Disputes
Despite progress, Hyderabad Pharma City has faced political and legal challenges. On December 20, 2025, KCR accused the Congress government of undermining the original pharma vision by merging it into Future City Hyderabad, focusing more on real estate than industry.
KCR claimed the government misled courts and allocated land to private firms despite judicial restrictions. Farmers have also protested, citing forced land acquisitions, delayed or unequal compensation, and pollution concerns. For many, the project has turned promised benefits into livelihood losses, creating uncertainty for nearby communities.
Economic Impacts: Gains and Concerns
Positive impacts:
- Creation of around 1.5 lakh direct jobs in pharma and supporting sectors.
- Infrastructure improvements benefiting Mucherla and Jadcherla.
- Rising land values, attracting property buyers and investors.
- Growth in logistics, research, and ancillary industries.
Negative impacts:
- Displacement of farmers reduces agricultural income.
- Delays and political shifts create uncertainty for investors.
- Legal and policy overlaps between Pharma City and Future City may affect long-term confidence.
KCR’s Stand on Hyderabad Pharma City
KCR defends Hyderabad Pharma City as an extension of Genome Valley, Hyderabad, claiming it offers better incentives than the existing pharma cluster. He has criticized Congress for stopping subsidies, taking over compensation plots, and focusing on real estate instead of industry.
Outlook for Investors and Land Buyers
The Congress government continues with Future City Hyderabad, while some land has been allotted to large pharmaceutical companies. Operations are expected to begin by 2026, pending legal approvals and resolution of farmer disputes.
For land buyers and investors, the region offers potential but requires careful due diligence. Verifying approvals, ownership, and future zoning is essential before investing in Mucherla, Jadcherla, or the surrounding areas.
Conclusion
Hyderabad Pharma City, now part of the Green Pharma City / Future City initiative, remains a key project with both industrial and real estate relevance. With KCR defending the original pharma vision and Congress moving forward with Future City, the area is at a critical stage. Investors and property buyers need to monitor updates closely to assess opportunities and risks in the region.