Synopsis

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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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.