24 Companies Apply to Invest Rs 55,000 Crore in Gwalior Telecom Manufacturing Zone, India

en.Wedoany.com Reported - On September 20, India's Minister of Communications Jyotiraditya Scindia, along with officials including the Secretary of the Department of Telecommunications, inspected the proposed site for Phase I of the Gwalior Telecom Manufacturing Zone (TMZ) in Madhya Pradesh. Twenty-four companies have initiated the application process for entry, with proposed investments totaling approximately Rs 55,000 crore. About 170 acres of land has been finalized for Phase I, of which more than 90 acres is located in Shrimant Madhavrao Scindia Counter Magnet City (SADA) and more than 70 acres in Gwalior IT Park; the land area required by existing company applications has already exceeded the land available in the first batch, and Phase I land will continue to be expanded.

The manufacturing zone has a total planned area of approximately 350 acres and adopts a ready-to-use industrial park development model, with plans for approximately 24–25 telecom equipment and component manufacturing units. The industry scope covers communication products such as mobile terminals, optical fibers, routers, antennas, and chips, and is equipped with 5G/6G R&D, public testing laboratories, certification, and product validation facilities. India's Department of Telecommunications has divided the industrial system into 6 key manufacturing directions, and the park simultaneously accommodates manufacturing, R&D, testing, and certification functions.

The project is jointly promoted by India's Department of Telecommunications and the Government of Madhya Pradesh. The two parties signed a memorandum of understanding on July 30 for the construction of the manufacturing zone and plan to establish a project special purpose vehicle, in which the Government of Madhya Pradesh will hold 51% equity and India's Department of Telecommunications will hold 49%. The Central Government of India has arranged Rs 4.93 billion in funding for Phase I core infrastructure; the Government of Madhya Pradesh will provide the first batch of land free of charge, including 100 acres in the SADA area and 70 acres in Gwalior IT Park, with an estimated land value of approximately Rs 5.96 billion. Additional land can be acquired at a nominal premium of Rs 1, with a fixed land rent of Rs 1 per square meter per year and a lease term of 30 years.

Madhya Pradesh has established fixed asset investment subsidies for manufacturing projects entering the park. Eligible fixed capital investment can receive a subsidy of up to 50%, with a cap of Rs 2 billion per project; eligible large projects can receive employment support of Rs 5,000 per employee per month for 5 consecutive years, and each newly added employee can also receive up to Rs 13,000 in skills training support. When eligible finished products are transported to ports or air cargo facilities, a 50% transportation cost subsidy can be obtained, and R&D institutions as well as patent, copyright, and trademark applications are also included in the scope of cost support. India's Department of Telecommunications has additionally proposed a plan to build a public testing laboratory at a cost of approximately Rs 5 billion.

After the project signing at the end of July, the Central Government of India and the Government of Madhya Pradesh successively held investor promotion events. The Delhi promotion generated approximately Rs 35 billion in investment intentions, and the Mumbai promotion added approximately Rs 20 billion in investment intentions, after which the relevant companies entered the land application process. India's communications authorities plan to continue holding a project roadshow for telecom industry investors in Bangalore on September 22.