The Department of Telecommunications (DoT), Government of India and the Government of Madhya Pradesh signed a Memorandum of Understanding (MoU) for the establishment of a Telecom Manufacturing Zone (TMZ) in Gwalior, Madhya Pradesh. The MoU marks a significant milestone in strengthening India’s domestic telecom manufacturing ecosystem and advancing the Prime Minister Shri Narendra Modi’s vision of Aatmanirbhar Bharat in the telecommunications sector.
The Telecom Manufacturing Zone is envisaged as an integrated 350-acre plug-and-play industrial cluster, designed to provide world-class infrastructure and a conducive ecosystem for telecom and electronics manufacturing, research and development, innovation and allied activities. The initiative is aimed at positioning Gwalior as a premier industrial and technology hub in Central India and strengthening India’s position as a global telecom manufacturing and innovation hub.
The signing of the MoU will pave the way for the establishment of a Special Purpose Vehicle (SPV) for the TMZ, with 51 per cent equity from the Government of Madhya Pradesh and 49 per cent from the Department of Telecommunications.
The Central Government is providing 100 per cent funding support for Phase-I, with an allocation of Rs 493 crore for development of core infrastructure. The Government of Madhya Pradesh, in turn, has extended significant support for the project, including approximately 170 acres of land free of cost.
Under the special policy package extended by the Government of Madhya Pradesh, 100 acres in the SADA region and 70 acres in the Gwalior IT Park have been allocated free of cost, with a combined value of approximately Rs 596 crore. Additional land will be made available at a nominal premium of Rs 1 and a fixed lease rent of Rs 1 per square metre per annum for 30 years. Units established in the TMZ will also benefit from reimbursement of stamp duty and registration charges, power tariff rebates and other fiscal incentives.
The policy package provides substantial support to investors and manufacturers, including 50 per cent capital subsidy on Eligible Fixed Capital Investment (EFCI), subject to a maximum of Rs 200 crore, along with employment generation assistance of Rs 5,000 per month per employee for five years for eligible mega projects. Skill development support of up to Rs 13,000 per new employee will also be available, subject to applicable conditions.
To promote exports, eligible units will receive a 50 per cent freight subsidy on finished goods transported to seaports or air cargo facilities, subject to prescribed limits. The package also provides incentives for research and development, including reimbursement support for standalone R&D units and 100 per cent reimbursement of expenses incurred for filing patents, copyrights and trademarks, within specified limits.
The TMZ is expected to serve as a major investment catalyst, with initial commitments of approximately Rs 5,000 crore for Phase-I and projected total investments of Rs 12,000–15,000 crore over time. The project is expected to generate approximately 14,000 direct skilled jobs, including around 3,500 jobs in Phase-I, besides creating tens of thousands of indirect employment opportunities.
Leading telecom and electronics companies, including Dixon Technologies, HFCL, Tejas Networks, VVDN and Syrma SGS, are among the industry players anchoring the proposed zone.
The TMZ is envisaged to bring together the entire telecom value chain, ranging from mobile devices and optical fibre to advanced semiconductor technologies and next-generation 5G/6G research and development. Dedicated R&D centres, common testing laboratories and certification facilities will support the development and validation of indigenous telecom technologies and products in accordance with global standards.
The initiative will also create synergies with key national programmes, including the India Semiconductor Mission (ISM), Electronics Components Manufacturing Scheme (ECMS) and Telecom Technology Development Fund (TTDF). By strengthening domestic manufacturing of critical telecom equipment such as routers, antennas, optical fibre and chips, the TMZ will contribute towards reducing import dependence, promoting exports, strengthening domestic supply chains and enhancing telecom security.
The signing of the MoU between the Department of Telecommunications, Government of India, and the Government of Madhya Pradesh marks the beginning of a new chapter in India’s journey towards becoming a global hub for telecom manufacturing and innovation.
