­Telangana State Industrial Infrastructure Corporation Limited (TSIICL) was established pursuant to A.P. Reorganisation Act, 2014 and incorporated under the Companies Act 2013 as a separate legal entity on 4 September 2014. The key objectives of the corporation are identification of land for the development of industrial parks and SEZs, land allotment, providing infrastructure facilities and other services for the promotion of industries in Telangana and manage, control and operate these parks. The current directors of the company are Mr. J Nikhil Chakravarthi, Mr. Shanshanka Konduru, Mr. Sanjay Kumar, Mr. Devalapura Somaraju Lokesh Kumar, Ms. Nirmala Thurpu and Mr. Ravi Gugulothu. The company has its registered office at Hyderabad, Telangana.

­Acuite has considered the consolidated financial risk profile of TSIICL and its subsidiaries namely Ecity Manufacturing cluster ltd, Maheshwaram science Park Limited, Fabcity SPV India Private Limited, Zaheerabad NIMZ Limited, Hyderabad Pharma City Limited, Telangana Life Sciences Infrastructure Development Limited, Bio Tech Hub limited, CETP-KMPT Warangal Limited.

­ACUITE A+ | Stable (Post notch up in the view of the support from Government of Telangana)

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Government guarantee for DSRA replenishment
The Government of Tamil Nadu (GoT) has provided a guarantee to cover any shortfall in the Debt Service Reserve Account (DSRA) within the specified timeline. The issuer is responsible for ensuring that the necessary funds are transferred to the Bond Service Account (BSA) in order to maintain the full servicing amount, at least 45 days before the relevant quarterly servicing date (T-45). If a shortfall in funds is identified in the BSA five days prior to the servicing date (T-5), the shortfall will be addressed by transferring funds from the DSRA. The Debenture Trustee will verify the adequacy of the DSRA at the beginning of each servicing cycle. In the event of a shortfall due to previous cycle utilization, the state government will be required to cover the shortfall within the next 30 days (T+30). If this is not met, the state government’s guarantee will be invoked, and the Debt Default Mechanism (DDM) will be triggered the following day (T+31) to meet shortfall amount, forthwith, directly into DSRA.

Stress case Scenario
Acuite believes that, given the adequacy of the structure and unconditional, irrevocable guarantee provided by Government of Telangana (GOT) including direct debit mechanism (DDM), TSIIC will be able to service its debt on time, even in a stress scenario.

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• Unconditional and Irrevocable Guarantee from Government of Telangana for timely servicing of Interest and Principal in respect of Bonds, including defined recourse in the post invocation scenario.

• Maintenance of Debt Service Reserve Amount (DSRA) to the extent of fully covering the peak servicing requirements for 2 quarters as liquidity support.

• Progressive monetization of the Designated Land Bank to meet servicing requirement with shortfall support from the State Government as provided under the Deed of Guarantee.

• Stipulation for invocation of Government Guarantee for impairment of DSRA if not remedied within stipulated timelines and defined recourse in the post invocation scenario.

• Stipulation for invocation of Government Guarantee in case of an Event of Default, if settlement of entire liabilities not effected with stipulated timelines and defined recourse in the post invocation scenario.

• Asset coverage ratio

  • The Issuer shall, at all times until the Final Settlement Date, maintain a minimum Asset Coverage Ratio of 1.50 (one decimal five zero).

  • The Asset Coverage Ratio requirement under above shall be tested on a yearly basis (or such other frequency as may be required under Applicable Law) (each such date shall be the “Testing Date”).

  • On each Testing Date, the Issuer shall procure a certificate stating the value of the Designated Land Bank from an independent practicing chartered accountant, which shall be prepared on the basis of the latest available land valuation figures as certified by a registered valuer.

• Notwithstanding anything contained in this Deed or any other Transaction Document, the Debenture Trustee (acting on the instructions of the Bond Holders) may require the Issuer to, within 60 (sixty) days of such occurrence, create such further Security Interest as may be required, in the event the Issuer fails to maintain the Asset Coverage Ratio at the level stipulated in sub-clause (i) hereinabove.

• The Issuer shall submit/ provide to the Debenture Trustee relevant documents/ information, as applicable, including the reports / certifications set out below, to enable the Debenture Trustee to submit the reports / certifications to the stock exchanges as required under the SEBI DTMaster Circular as maybe amended from time to time:

  • an asset cover certificate in such form as may be required by the Debenture Trustee on a quarterly basis within 60 (sixty) calendar days from end of each Quarter or within such other timelines as maybe prescribed under Applicable Law;

  • a statement of value for any security offered on a quarterly basis within 60 (sixty) calendar days from end of each Quarter or within such other timelines as maybe prescribed under Applicable Law;and

  • a valuation report for the Secured Properties on an annual basis within 75 (seventy-five) calendar days from end of each financial year or within other such timelines as maybe prescribed under Applicable Law.

• The Issuer shall provide information pertinent to a credit assessment of the Issuer undertaken by the Bond Holders as may be required from time to time, including but not limited to the latest financial information, rating letter and Rating Rationale
  
  , copies of the board and shareholder resolutions (as applicable) authorizing the Bonds and the latest company profile.

• The Issuer shall submit a progress report in respect of implementation of the project(s) situated in the area comprising the Designated Land Bank on a half-yearly basis to the Debenture Trustee in aform acceptable to Bond Holder(s), within 60 (sixty) calendar days from end of each calendar half year.

• The Issuer shall, at least 44 (forty-four) days prior to each Due Date (T-44 days), provide the bank account statement of the Bond Servicing Account, the Debt Service Reserve Account and the Demat Account to the Debenture Trustee.

TGIIC's liquidity position is adequate, supported by healthy cash and bank balances of Rs.3,280 crore as on FY2026 (Prov.), maintenance of the stipulated DSRA of Rs.1,080.86crore and timely servicing of debt obligations. The structured NCD transaction benefits from an exclusive mortgage over the Designated Land Bank, escrow-based payment mechanism through the Bond Servicing Account (BSA), and an unconditional and irrevocable guarantee from the Government of Telangana. TGIIC has debt servicing obligation of Rs. 1296 Cr in FY27 and Rs. 2196 Cr in FY28 as against expected surplus of ~Rs. 4527 Cr and Rs. 4583 Cr respectively for debt servicing. As per the projected base case cash flows, the company is expected to maintain an average DSCR of ~ 5.23 times over the tenure of the bonds, providing adequate coverage for debt servicing obligations. Going forward, timely monetisation of the designated land bank and sustenance of operating cash flows will remain key monitorable.