Nizam Ali Khan was the fourth son of Nizam-Ul-Mulk. He was the first ruler of Hyderabad State to use the title “Nizam”. He saved the AsafJahi dynasty from both internal and external forces. Further, he strengthened the administration of the State. Recognising the importance of strategic location, Nizam Ali Khan shifted the State capital from Aurangabad to Hyderabad in 1763. It proved to be a turning point in the rule of the AsafJahis. He also entered into alliances with the British and the French to deal with the Maratha and Mysore rulers. He was the first Indian ruler who signed the treaty of Subsidiary Alliance with the British. As a result of this, he has come under the military protection of the British. For that, in lieu of cash payment, he ceded the Kadapa, Kurnool, Bellary and Ananthapur Districts to the British. During his tenure, the English gained supremacy over coastal Andhra and Rayala seema region by forcing him to conclude treaties.