India's first Telecom Manufacturing Zone to be set up in Gwalior

India signed an MoU with Madhya Pradesh to establish the country's first Telecom Manufacturing Zone in Gwalior with ₹493 crore central support

On Thursday, a MoU was signed between the Government of India and the Government of Madhya Pradesh to establish the country’s first integrated Telecom Manufacturing Zone (TMZ) in Gwalior. The agreement was signed at Vigyan Bhawan in New Delhi in the presence of Madhya Pradesh Chief Minister Mohan Yadav, Union Minister for Communications Jyotiraditya Scindia, and Union Minister of State for Communications P.S. Chandrasekharan.

 

On the occasion, Chief Minister Yadav said that the upcoming Global Telecom Manufacturing Hub in Gwalior would make Madhya Pradesh a national and global center for telecom equipment production. He added that during a roundtable meeting with industry leaders, investment worth around ₹3,500 crore and the creation of more than 14,000 jobs was projected.

   

State-of-the-art industrial ecosystem to be developed on 170 acres

 

The zone, spread over approximately 170.5 acres, will be based on a plug-and-play model, offering the entire value chain from design, manufacturing, testing, certification, to export within a single campus. It will produce 5G, 6G, optical fiber, semiconductors, networking equipment, and other electronic hardware.

 

The project will be developed through a Special Purpose Vehicle, with 51% stake held by the Madhya Pradesh government and 49% by the Department of Telecommunications. MPIDC will act as the master developer.

 

Centre to provide ₹493 crore support

 

The Government of India will provide grant assistance of ₹493 crore for the project. This funding will cover advanced testing labs, lab ecosystem, internal infrastructure, plug-and-play facilities, technology centers, and investment promotion activities.

 

The zone will also house testing laboratories for 5G core networks, satellite communication, optical fiber, SIM, PON, routers, and a cyber security lab.

 

The state government has announced several special incentives for investors, including:

 

Annual lease of ₹1 per sq. meter for up to 30 years

100% stamp duty reimbursement

Nominal land premium of ₹1

Concession of ₹2 per unit in electricity charges for the first five years

50% capital subsidy (up to ₹200 crore)

R&D support, export freight subsidy, and training & employment assistance

Union Minister Jyotiraditya Scindia said that India’s goal is not just to be a consumer of telecom equipment but to achieve global leadership in their design, development, and manufacturing. He added that the Gwalior Telecom Manufacturing Zone will realize the vision of “Design in India, Make in India, and Export from India,” playing a crucial role in making India a global hub for telecom manufacturing and exports.

 

Major investment proposals  Several leading companies expressed interest in investing during the roundtable meeting, including HFCL, VVDN Technologies, Dixon Technologies, Lava Mobile, and Optimus Electronics.