Historical policy context: RIPS 2022. This article concerns the earlier scheme. Incentive percentages, ceilings and eligible project categories must be checked against the applicable policy, amendments and approval conditions. See the official policy register and our separate RIPS 2024 consultancy page for a current enquiry.
RIPS Logistics, Warehouse and Cold-Chain Incentives
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
Logistics Project Incentives: Frequently Asked Questions
Are a logistics park, warehouse and cold-chain project the same category?
Describe the actual facilities and activities separately. Check the notified category, eligible expenditure and project conditions rather than assuming that one category covers every storage activity.
Can capital support and interest support be combined?
Check the permitted choices and combinations under the applicable policy and approval. Do not add headline benefits together without reviewing exclusions and conditions.
Does a stated ceiling mean that amount will be sanctioned?
No. A ceiling is not a project-specific entitlement or payment promise. Eligibility, approved expenditure and the claim process require separate assessment.
What should I prepare for an initial project discussion?
Prepare the site location, land/building arrangements, facility type, capacity, investment breakdown, financing and project timeline. Include existing applications or approvals. Contact LegalMan to agree the review scope.