Department of Telecommunications (DoT) and Madhya Pradesh Sign MoU for India's First Telecom Manufacturing Zone at Gwalior with Rs 493 Crore Grant-in-Aid

Key facts

• On July 30, 2026, the Department of Telecommunications (DoT) and the Government of Madhya Pradesh signed an MoU to establish India's first Telecom Manufacturing Zone in Gwalior.
• The total grant-in-aid from DoT for the two industrial parks spanning 170 acres is Rs 493 crore, with Rs 270 crore earmarked as capital outlay for testing facilities and the laboratory ecosystem, including two laboratory centres covering eight testing domains.
• Industrial plots will be made available to telecom manufacturing and testing units at an annual lease of Re 1 per square metre for 30 years.
• Land will also be earmarked for micro, small and medium enterprises (MSMEs), plug-and-play facilities and logistics operations.
• The government announced a capital subsidy of 50 per cent on a minimum investment of Rs 200 crore, along with support of up to 25 per cent of standalone R&D investment or Rs 25 crore, whichever is lower.
• The project offers 100 per cent reimbursement of stamp duty and concessions on water and power supply.
• Employment assistance of Rs 5,000 per month for new employees and training support of Rs 13,000 each for the first 4,000 new employees were announced.
• The government intends to attract investments of around Rs 8,000-9,000 crore and create 9,000-10,000 jobs through the project.
• A special purpose vehicle (SPV) will be constituted, with the Telecom Secretary and a representative of the Madhya Pradesh government as co-chairs.
• At an investor roundtable, at least 15 companies, including Dixon Technologies, committed investments of nearly Rs 3,500 crore and proposed creating around 14,000 jobs.