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:
Sector | Purpose of Investment | Ceiling Limit |
Logistic Park | Building infrastructure hub and associated facilities | INR 15 crore |
Warehouse | Purchase of equipment | INR 1 crore |
Cold Chain | Purchase of plant machinery and equipment | INR 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