Bhopal: India’s first Telecom Manufacturing Zone (TMZ) is set to be established in Gwalior, Madhya Pradesh, following a historic Memorandum of Understanding (MoU) between the Ministry of Communications, Government of India, and the Madhya Pradesh Government.
The proposed Telecom Manufacturing Zone is expected to attract investments of around ₹3,500 crore and create more than 14,000 jobs. The project aims to establish Gwalior as a global hub for telecom equipment manufacturing, testing, research and development, and exports.
Madhya Pradesh Chief Minister Dr. Mohan Yadav attended the MoU signing ceremony at Vigyan Bhawan in New Delhi on Thursday. Union Communications Minister Jyotiraditya M. Scindia and Union Minister of State for Communications P.S. Chandrasekharan were also present.
Gwalior Telecom Manufacturing Zone to Be Developed in 170 Acres
The Telecom Manufacturing Zone in Gwalior will be developed across approximately 170.5 acres as a modern plug-and-play industrial ecosystem.
The project will be developed through a Special Purpose Vehicle (SPV), with:
- 51% stake: Government of Madhya Pradesh
- 49% stake: Department of Telecommunications, Government of India
- Master Developer: Madhya Pradesh Industrial Development Corporation (MPIDC)
The zone is planned to provide an integrated ecosystem covering the entire telecom manufacturing value chain, from design and testing to manufacturing, development, certification and exports.
The project is expected to support the manufacturing of:
- 5G and 6G equipment
- Optical fibre equipment
- Semiconductor equipment
- Networking devices
- Electronic hardware
- Other advanced telecom products
The zone will also include engineering services, logistics, warehousing and linkages with technical institutions, potentially making Gwalior a major telecom manufacturing centre in North India.
Government Approves ₹493 Crore Grant Support
The Government of India has approved ₹493 crore in grant assistance for developing the Telecom Manufacturing Zone.
The funding will be utilised across several components:
- ₹270.24 crore for advanced testing laboratories and lab ecosystem.
- ₹180 crore for internal infrastructure.
- ₹34.20 crore for buildings and plug-and-play facilities.
- ₹5 crore for a technology centre.
- ₹4 crore for investment promotion activities.
The funding is aimed at creating world-class infrastructure that can support telecom companies in manufacturing, testing, certification and research activities.
Advanced Testing and Cybersecurity Labs to Be Set Up
One of the key features of the Gwalior Telecom Manufacturing Zone will be its advanced testing and certification infrastructure.
The zone will have testing facilities for a range of telecom technologies and equipment, including:
- 5G core networks
- Satellite communication equipment
- Optical Fibre Cables (OFC)
- SIMs
- Passive Optical Network (PON) equipment
- Routers
- 4G and 5G network equipment
A dedicated cybersecurity laboratory will also be established to conduct security testing of 4G, 5G and other telecom equipment.
The integrated testing ecosystem is expected to reduce the dependence of telecom manufacturers on facilities located in other states or overseas for testing and certification.
₹3,500 Crore Investment and Over 14,000 Jobs Expected
The project has received strong interest from the telecom and electronics manufacturing industry.
Based on commitments and proposed investments discussed during the industry roundtable, the Telecom Manufacturing Zone is expected to attract around ₹3,500 crore in investment and generate more than 14,000 employment opportunities.
The proposed investments and employment commitments include:
- HFCL: ₹700 crore investment; 750 jobs; 80% export focus.
- Dixon Technologies: ₹200 crore; 1,200+ jobs.
- VVDN Technologies: ₹500 crore; 5,000 jobs.
- Technotrendz Solutions: ₹10 crore; 50–100 jobs.
- Optimus Electronics: ₹150 crore; 400 jobs.
- Brandwork Technologies: ₹200 crore; 1,000 jobs.
- Syrma SGS Technology: ₹250 crore; 2,000 jobs.
- Cox & Kings: ₹230 crore; 500 jobs.
- Pranav Tech One: ₹100 crore; 500 jobs.
- Sparsh CCTV: ₹300 crore; 1,000 jobs.
- IN Telecom: ₹300 crore; 300 jobs.
- Lava Mobiles: ₹130 crore; 170 jobs.
- ICEA: Centre of Skill and Centre of Excellence.
- Aycasonics India: ₹1 crore; 100–200 jobs.
- Bhansali Cables: ₹5 crore; 75 jobs.
India Cellular & Electronics Association (ICEA) has also proposed establishing a Centre of Skill and Centre of Excellence in the zone.
Madhya Pradesh Offers Major Investment Incentives
The Madhya Pradesh Government has announced several incentives to attract telecom and electronics manufacturers to the zone.
Companies investing in the Telecom Manufacturing Zone will be eligible for benefits including:
- Land lease at ₹1 per square metre per year for 30 years.
- 100% stamp duty reimbursement.
- Nominal land premium of ₹1.
- Electricity tariff rebate of ₹2 per unit for the first five years.
- Water supply at ₹25 per kilolitre.
- 50% capital subsidy, subject to a maximum of ₹200 crore.
- Research and Development assistance of up to ₹25 crore.
- Export freight subsidy.
- Support for Effluent Treatment Plants (ETP) and Zero Liquid Discharge systems.
- Training assistance.
- Employment support.
The state government has highlighted that its CAPEX support package, including provisions for capitalisation of R&D expenditure, is among the most competitive incentives available globally for such investments.
Gwalior’s Location to Support Telecom Manufacturing Hub
Madhya Pradesh’s central location and existing infrastructure are expected to make the Gwalior zone attractive for telecom and electronics manufacturers.
The state has highlighted several advantages, including:
- 31 GW of installed power capacity.
- Availability of surplus electricity.
- More than 1 lakh acres of industrial land.
- 1,000 MCM of dedicated industrial water.
- Eight airports.
- Five economic corridors.
- Availability of skilled human resources.
Gwalior’s proximity to key infrastructure, including the Gwalior Airport, railway station, ICD Malanpur and National Highway-44, is expected to strengthen logistics connectivity.
CM Mohan Yadav Invites Telecom Companies to Invest in Gwalior
Addressing the MoU ceremony, Madhya Pradesh Chief Minister Dr. Mohan Yadav said the establishment of the Global Telecom Manufacturing Hub and Special Economic Zone in Gwalior marks the beginning of a new era for the state.
He said the project would help make telecom equipment manufactured in Madhya Pradesh available in India and global markets.
The Chief Minister also highlighted the potential for around ₹3,500 crore in investment and more than 14,000 jobs based on discussions with industry representatives.
Dr. Yadav invited telecom sector investors to invest in Gwalior and assured them that Madhya Pradesh would offer facilities and incentives that may not be available elsewhere.
Jyotiraditya Scindia Highlights ‘Design in India, Make in India’ Vision
Union Communications Minister Jyotiraditya M. Scindia said India’s objective is not limited to becoming a consumer of telecom equipment.
He said the country aims to design, develop and manufacture telecom products in India and export them to countries across the world.
According to Scindia, the Gwalior Telecom Manufacturing Zone will support the vision of:
- Design in India
- Make in India
- Export from India
The project is expected to help position India as a major global centre for telecom manufacturing and exports while giving further momentum to the Atmanirbhar Bharat initiative.
CM Highlights Five Major Projects Coming to Madhya Pradesh
During his address, Chief Minister Mohan Yadav also highlighted five major projects that he said have been supported by the Central Government.
These include:
- The PM MITRA Park being developed in Dhar district, described as India’s largest such park, with significance for cotton farmers and the textile sector.
- A modern metro and railway coach manufacturing project through BEML in Raisen district.
- The Bina petroleum refinery project.
- The Ken-Betwa River Linking Project.
- The Parvati-Kalisindh-Chambal River Linking Project.
The Chief Minister said these projects would contribute to the industrial and economic development of Madhya Pradesh.
Industry Welcomes Telecom Manufacturing Zone Initiative
Industry representatives participating in the roundtable meeting welcomed the proposed Telecom Manufacturing Zone and highlighted the investment incentives offered by the Madhya Pradesh Government.Industry stakeholders particularly praised the state’s CAPEX support, including a 50% capital subsidy of up to ₹200 crore and the provision allowing capitalisation of R&D expenditure.
Atul B. Lal also appreciated the TMZ initiative and said that the joint participation of the Government of India and the Madhya Pradesh Government could play an important role in creating a complete and globally competitive telecom manufacturing ecosystem in Gwalior.
