Around 24 companies have begun the application process to establish manufacturing units in Asia’s first dedicated Telecom Manufacturing Zone (TMZ) in Gwalior, Union Communications Minister Jyotiraditya Scindia said. The proposed zone is expected to attract investments of approximately Rs 5,500 crore and create more than 18,000 direct employment opportunities. It will be developed at the Shrimant Madhavrao Scindia Counter Magnet City, also known as SADA, and the Gwalior IT Park.

Scindia inspected the proposed site along with the Secretary of the Department of Telecommunications and some other senior government officials. He said the project would go beyond creating individual factories and establish a complete industrial ecosystem for telecom manufacturing.

“This project is not about setting up a single industrial unit, but about creating a complete industrial ecosystem comprising 24-25 telecom manufacturing units in Gwalior,” Scindia said.

Around 170 acres identified

Approximately 90 acres in SADA and another 70 acres in the IT Park have been identified for the first phase of the TMZ. The total area available for the project is therefore expected to be around 170 acres. Scindia said investor interest had exceeded the land currently available. Since the number of applications is higher than the available capacity, additional land will be identified for the expansion of the first phase.

“Interest from investors has been significant, with applications currently exceeding the land available,” he said. Land allocation will be increased as required to accommodate eligible companies and support the zone’s future growth.

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The proposed units will manufacture telecom equipment and a broad range of components. The government expects the cluster-based approach to strengthen local supply chains and help position Gwalior as an emerging telecom manufacturing hub.

Investor commitments from Delhi and Mumbai

The investment interest followed investor roadshows held in Delhi and Mumbai in August. The events were led by Scindia and Madhya Pradesh Chief Minister Mohan Yadav. The Delhi roadshow resulted in investment commitments of approximately Rs 3,500 crore, with the potential to generate around 14,000 employment opportunities. The Mumbai roadshow, held on August 4, attracted commitments of nearly Rs 2,000 crore and was linked to approximately 4,000 potential jobs.

Scindia clarified that the commitments were not limited to preliminary announcements. Companies that expressed interest were asked to participate in the formal application process during land allocation.

“As a result, 24 companies have now initiated the application process for setting up units in the TMZ,” the minister said.

Six manufacturing verticals planned

The TMZ is being designed as an integrated manufacturing ecosystem covering six key verticals of the telecom industry. Although the government has not detailed each vertical, the zone is intended to include the production of telecom equipment and related components.

A common industrial ecosystem could help companies access shared infrastructure, testing facilities, skilled workers and supply-chain support. It could also reduce the time and cost involved in establishing individual manufacturing operations.

The Department of Telecommunications has proposed a Common Testing Lab package worth approximately Rs 500 crore. The facility is expected to support testing and certification requirements for telecom products manufactured in the zone.

Incentives for investors

The Madhya Pradesh government has prepared an incentive package aimed at attracting telecom manufacturing companies to Gwalior.

The package includes incentives linked to:

  • Land leases
  • Electricity and power usage
  • Employment generation
  • Production
  • Environmental sustainability
  • Green development

Scindia thanked MP CM Mohan Yadav and the Madhya Pradesh government for creating an investment framework tailored to the requirements of the telecom manufacturing sector. The Union government, the state government and relevant departments have also assured investors of support in establishing their units and developing operations within the zone.

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Connectivity and skilled workforce

The government has identified Gwalior’s connectivity, infrastructure and human resources as key advantages for the TMZ. The approximately 120-kilometre Agra-Gwalior High-Speed Corridor is expected to improve Gwalior’s links with Delhi and other major markets in North India. The corridor will bring the city closer to important industrial and commercial centres and support the movement of goods.

Gwalior is also connected to major railway routes, providing access to markets and labour across the country. In addition, the city’s airport was developed at a cost of approximately Rs 650 crore in 16 months. It now provides air connectivity with cities including Delhi, Mumbai and Bengaluru.

The city also has a significant engineering education base. Around 25,000 engineering students graduate from institutions in and around Gwalior every year, helping provide a potential pool of technical and skilled workers for the telecom manufacturing industry.

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From counter-magnet city to telecom hub

SADA was originally established as a Counter Magnet City with the objective of developing Gwalior as a new industrial centre and an alternative growth hub to Delhi. The proposed TMZ is intended to carry that vision forward by creating a specialised industrial cluster focused on telecom equipment and components. Its development could expand Gwalior’s industrial base, attract new companies and create employment for local residents.

The Department of Telecommunications and the Madhya Pradesh government signed a memorandum of understanding for establishing the TMZ in July 2026. The agreement was signed under the leadership of Scindia and CM Yadav. The proposed zone is expected to become a major part of the government’s efforts to strengthen domestic telecom manufacturing and build a larger industrial ecosystem around the sector.

Scindia also announced that he would travel to Bengaluru on September 22 after completing his two-day visit to Gwalior. He is scheduled to participate in another investor roadshow involving companies from the telecom sector. “The Bengaluru outreach is also expected to further promote the Gwalior TMZ and attract additional manufacturers, technology companies and component suppliers,” he said.