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Benefits and Incentives for Logistic Parks, Warehouses, and Cold Chain Stores

Eligible units may choose one of two major incentives: either Asset Creation Incentives or Interest Subsidy.

(A) Asset Creation Incentives

Under RIPS-2022, eligible enterprises can claim direct capital subsidy for investments in specific sectors, with the following ceiling limits:

SectorPurpose of InvestmentCeiling Limit
Logistic ParkBuilding infrastructure hub and associated facilitiesINR 15 crore
WarehousePurchase of equipmentINR 1 crore
Cold ChainPurchase of plant machinery and equipmentINR 1 crore

This capital subsidy is provided at 25% of the total investment made toward these purposes.

(B) Interest Subsidy

Alternatively, eligible enterprises can opt for an interest subsidy. The subsidy offers 7% on the interest paid for term loans taken from RBI-recognized financial institutions, with a period of seven years. The ceiling limits for this subsidy are:

  • INR 2.5 crore for multi-modal logistic hubs
  • INR 1.5 crore for logistic parks

Additional Incentives and Exemptions

(A) Green Industry Incentive

To promote sustainability, RIPS-2022 provides a 25% subsidy for enterprises that implement green initiatives. This includes investments in electric vehicles (EVs) for transporting goods or personnel and rainwater harvesting systems. The subsidy is capped at INR 50 lakh.

(B) Standard Exemptions

Logistic parks, warehouses, and cold chain enterprises also qualify for several standard exemptions under RIPS-2022, including:

  • 100% exemption from electricity duty for seven years
  • 100% exemption from mandi fees for seven years
  • 100% exemption from land taxes for seven years
  • 100% Stamp Duty exemption, provided in stages as per state notification
  • 100% exemption from conversion charges, provided in stages as notified by the state government

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