Telecom Manufacturing Zone

About Telecom Manufacturing Zone

• Location: The Department of Telecommunications (DoT) and the Government of Madhya Pradesh signed a Memorandum of Understanding (MoU) to establish India’s first integrated Telecom Manufacturing Zone (TMZ) in Gwalior, Madhya Pradesh.
• About: t is envisaged as a 350-acre integrated plug-and-play industrial cluster that will provide world-class infrastructure for telecom and electronics manufacturing, research and development (R&D), innovation, and allied activities.
• Objective: The project aims to strengthen India’s domestic telecom manufacturing ecosystem, promote Aatmanirbhar Bharat, and position Gwalior as a major telecom and technology hub.
  •  The initiative will complement the India Semiconductor Mission (ISM), Electronics Components Manufacturing Scheme (ECMS), and Telecom Technology Development Fund (TTDF).
• Industry Participation: Leading companies, including Dixon Technologies, HFCL, Tejas Networks, VVDN, and Syrma SGS, are among the industry players expected to anchor the proposed zone.
• Governance: A Special Purpose Vehicle (SPV) will be established to implement the project, with 51% equity held by the Government of Madhya Pradesh and 49% by the Department of Telecommunications.
• Budgetary allocation:
  • Central Government Support: The Central Government will provide 100% funding for Phase-I, with an allocation of ₹493 crore for the development of core infrastructure.
  • State Government Support: The Government of Madhya Pradesh has provided approximately 170 acres of land free of cost, including 100 acres in the SADA region and 70 acres in the Gwalior IT Park, with a combined value of around ₹596 crore. 
    • Additional land will be made available at a nominal premium of ₹1 and an annual lease rent of ₹1 per square metre for 30 years.
• Features:
  • The Telecom Manufacturing Zone will integrate the entire telecom value chain, covering mobile devices, optical fibre, advanced semiconductor technologies, and next-generation 5G/6G research and development. 
  • It will also house dedicated R&D centres, common testing laboratories, and certification facilities.
  • Incentives: Units established in the Telecom Manufacturing Zone will receive reimbursement of stamp duty and registration charges, power tariff rebates, and other fiscal incentives. 
  • The policy also provides a 50% capital subsidy on Eligible Fixed Capital Investment (EFCI) (up to ₹200 crore), employment generation assistance of ₹5,000 per employee per month for five years, and skill development support of up to ₹13,000 per new employee.
  • R&D and Export Promotion: Eligible units will be provided 50% freight subsidy for exports, financial support for standalone R&D units, and 100% reimbursement of expenses incurred for filing patents, copyrights, and trademarks, within prescribed limits.
• Expected Outcome: It is expected to reduce import dependence, promote exports, strengthen domestic supply chains, enhance telecom security, and establish India as a global hub for telecom manufacturing and innovation.