The town's name is derived from the Urdu and Hindi languages; shakkar "sugar" and nagar "a small area where the people live".
The representative of the town for the local legislative assembly was personally involved in the auction of the facility.
At that time, the sugar factory's holdings included over 1,600 square kilometres of land, 14 village camps, and the Super Specialty Hospital.
Other services that were provided for the children of employees included the Madhu Malancha high school and junior and degree colleges.
Shakkaranagar was designed as a model town to provide basic amenities for specialized services in the areas of education, health, sports, and cultural activities.