DoT and MP Government to Set Up Telecom Zone in Gwalior

The Department of Telecommunications and Madhya Pradesh government sign an MoU to establish an integrated telecom manufacturing zone in Gwalior, backed by ₹493 crore in central funding to boost domestic production, investment and employment.

The Department of Telecommunications (DoT) and the Government of Madhya Pradesh have signed a memorandum of understanding to establish an integrated Telecom Manufacturing Zone (TMZ) in Gwalior, aiming to strengthen domestic telecom manufacturing, attract investment and create employment opportunities.

The agreement was signed on July, 2026, in the presence of Union Communications Minister Jyotiraditya M. Scindia, Madhya Pradesh Chief Minister Mohan Yadav and Union Minister of State for Communications Chandra Sekhar Pemmasani. The proposed zone is designed as a plug-and-play industrial cluster that brings telecom and electronics manufacturing, research and development, innovation and related activities into one ecosystem.

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The first phase will cover an integrated industrial development spanning approximately 350 acres. The Central Government will provide ₹493 crore in funding for core infrastructure, while the Madhya Pradesh government has made around 170 acres of land available free of cost. A special purpose vehicle has been established to implement the project, with the state government holding a 51% stake and DoT holding the remaining 49%.

The zone is intended to support manufacturing across the telecom value chain, including mobile devices, optical fibre, routers, antennas, electronic components and semiconductor-related technologies. It will also provide facilities for product testing, certification, research and development, and next-generation communication technologies such as 5G and 6G. The integrated model is expected to help manufacturers access common infrastructure and reduce the time required to establish production facilities.

The project has attracted investment interest from telecom and electronics companies, including Dixon Technologies, HFCL, Tejas Networks, VVDN and Syrma SGS. Initial commitments announced during the investor roundtable totalled approximately ₹3,500 crore, with the potential to generate around 14,000 employment opportunities. Subsequent investor outreach increased the proposed investment to more than ₹5,500 crore, with the potential to create over 18,000 jobs.

The state government has also announced incentives to encourage companies to establish operations in the zone. These include capital subsidies for eligible investments, employment-generation assistance, skill-development support, power tariff rebates and reimbursement of stamp duty and registration charges. Eligible exporters may also receive freight subsidies, while research and development units can access specified support for innovation and intellectual property filings.

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The initiative aligns with the government’s broader push to strengthen domestic telecom supply chains, reduce dependence on imported equipment and expand India's role in global technology manufacturing. By bringing manufacturing, design, testing and innovation together, the Gwalior zone is expected to support indigenous product development, improve supply chain resilience and strengthen Madhya Pradesh’s industrial ecosystem.