BHOPAL: Central government’s Department of Telecommunications (DoT) and the Madhya Pradesh government signed a Memorandum of Understanding (MoU) on Thursday, for establishing the country's first telecom manufacturing zone (TMZ) in the central Indian state’s Gwalior district.
The MoU which was signed in the presence of union minister of communications Jyotiraditya Scindia and MP chief minister Dr Mohan Yadav in Delhi, marks a significant milestone in strengthening India’s domestic telecom manufacturing ecosystem.
Importantly, the Gwalior district is the home district of union minister Jyotiraditya Scindia, who is the sitting MP from adjoining Guna Lok Sabha constituency.
The TMZ 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. It aims 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 MP government and 49 per cent from the Department of Telecommunications.
The centre will provide 100 per cent funding support for Phase-I, with an allocation of Rs 493 crore for development of core infrastructure. The MP government, 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 MP Government, 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.
Addressing the event marking the signing of the historic MoU, Scindia said, “India must now move beyond being a telecom service provider to becoming a telecom manufacturer, and that building a strong indigenous ecosystem is essential to achieving this goal. TMZ is a major step in that direction.”
Speaking at the event, the MP CM Dr Mohan Yadav highlighted the significance of TMZ in his state and said, “The TMZ would shape not only the industrial and technological future of Madhya Pradesh but also of the country. What cannot be found anywhere else in India will now be available in Madhya Pradesh.”
“Gwalior is set to become a national hub for electronics and telecom manufacturing, attracting significant investment, employment and technological innovation,” Yadav added.
Following the MoU signing, an Investor Roundtable was held, which brought together representatives of telecom manufacturers and industry stakeholders from across the country to discuss investment opportunities, industry requirements and the potential of the TMZ in Gwalior to strengthen India’s telecom manufacturing ecosystem.
Various industry leaders applauded the initiative. At the end of the roundtable, a total of Rs 3,500 crore investment and 14,000 job opportunities were committed by the industry towards the TMZ.