New Delhi: The Department of Telecommunications (DoT) and the Madhya Pradesh government on Thursday signed a memorandum of understanding to establish a plug-and-play telecom manufacturing zone in Gwalior.The zone will attract investments of more than ₹3,500 crore from 14 manufacturers, including Dixon Technologies, VVDN Technologies, HFCL and Optiemus Electronics, who made on-spot commitments.Besides these projects, the government expects ₹10,000-12,000 crore worth of investments in the first phase of the project.Union communications minister Jyotiraditya Scindia said the manufacturing zone will be governed by a special purpose vehicle, with the telecom secretary appointed as its chairman.To set up the zone, the DoT has committed to invest ₹293 crore to install 4G and 5G testing centres and infrastructure, while the state government is offering a comprehensive incentive package, which includes subsidies for land, water and electricity along with capital subsidy.The manufacturing zone will cover a 170-acre land parcel in the first phase.In a roundtable with investors, the Madhya Pradesh government said firms investing in the zone will get land at ₹1 per square meter, power tariff at ₹2 per unit and water at ₹25 per kilo litres per day. The state government will also offer 50% capital subsidy up to ₹200 crore.To drive job creation, the state government will offer ₹13,000 per new employee (capped at 4,000 employees) alongside an additional assistance of ₹5,000 per month for eligible new hires.The state government promised highly efficient incentive clearances, guaranteeing a maximum waiting time of one year after a company's commercial operation date.As part of the commitment, Dixon Technologies said it will be setting up a plant to manufacture optical transducers and telecom routers at a facility in the zone with an investment of ₹200 crore. HFCL said it will be setting up an optical solutions manufacturing facility with an investment of ₹700 crore, 80% of which will be exported. VVDN Technologies said it will be investing ₹500 crore in a research and development and design facility.Future expansion of the zone will cover segments such as data centres, chip manufacturing, satellite communications, and active and passive electronic components, Scindia said.
DoT, Madhya Pradesh sign MoU for telecom manufacturing zone in Gwalior
The Department of Telecommunications and Madhya Pradesh government signed an agreement for a new manufacturing zone. This Gwalior facility will attract over ₹3,500 crore in initial investments from fourteen manufacturers. The government expects ₹10,000-12,000 crore more investment in the project's first phase. The zone offers substantial incentives including land and capital subsidies for businesses.
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