Dixon, HFCL, VVDN among 14 firms committing ₹3,500 cr for telecom manufacturing hub in Gwalior
Electronic and telecommunication equipment manufacturers like HFCL Ltd, Dixon Technologies (India) Ltd, VVDN Technologies among more than 14 companies total ₹An investment of Rs 3,500 crore will be made for India’s first telecom manufacturing zone at Gwalior in Madhya Pradesh, the Center said on Thursday.
Established as a joint venture between the Center and the Madhya Pradesh government, the manufacturing zone is positioned as a central hub to locally design, manufacture and test telecommunication equipment. A special purpose vehicle will be created soon, with 51% equity owned by the state government and 49% equity capital from the Centre.
The center signed the investment ₹493 crore to set up infrastructure; More than half of the expenses go to establishing the testing and laboratory ecosystem. Along with the expenses, the center also plans to establish the internal infrastructure of the production zone, followed by the technology center and marketing costs to attract companies.
“The project, which brings the entire telecom value chain from R&D and design to testing and production under one roof, will significantly increase India’s global competitiveness in the telecom sector,” said communications minister Jyotiraditya Scindia, adding that the project will create 14,000 jobs.
On the other hand, the Madhya Pradesh government has initially allocated 170 acres of land for the district with local incentives, including providing maximum 50% capital support. ₹200 crore to companies setting up production facilities. R&D support up to TL ₹25 crore and land to companies ₹Annual lease of 1 per square meter for 30 years are some of the important sauces.
Also, the state government will offer electricity tariff discount ₹2 per unit to companies, followed by subsidized water charges.
At an investor roundtable with state and central governments, industry executives praised the plan.
“This is a very encouraging investment. Dixon is tentatively considering investing in: ₹“1200 people are expected to be employed and 200 crore,” said Atul Lall, vice president and managing director of Dixon Technologies.
Dixon will focus on telecommunications consumer facilities (CPE) products, networking equipment and telecom components, Lall said, adding that the company will also evaluate optical transceivers to support data centers.
Of course, Dixon, through its subsidiary Dixon Electroconnect, announced a joint venture with Taiwan’s Gemtek Technology on making optical transceivers and telecom components.
Telecom gear maker HFCL made a statement ₹He said that he will establish an optical connectivity solutions factory by investing 700 crore for the first phase of the project.
HFCL General Manager Mahendra Nahata said that the factory will employ at least 750 people and 80% of the production will be for export.
However, Nahata raised the issue with representatives of the state government, including Madhya Pradesh chief minister Mohan Yadav, that land should be allowed to be held as collateral with banks for loan purposes. Representatives of the state government gave assurances in this regard.
Centre has set a long-term goal to attract ₹A total of 10,000 crore has been invested in the region. The Madhya Pradesh government said of the total investment: ₹12,000 crore, government will provide almost a stimulus spend ₹8,000 crore in 10 years.
Domestic software and electronics manufacturer VVDN Technologies said it plans to establish a state-of-the-art R&D and design facility to create next-generation products in 5G, 6G and satellite communications. More than 5,000 engineers work in the company.
Vivek Bansal, founder and chairman of VVDN, said the company is committed ₹500 crore and 5,000 jobs are expected to be created in the new manufacturing zone.
Other companies such as Syrma SGS and Sparsh CCTV have also committed to investments in: ₹250 crore and ₹300 crore respectively to the government.
