Rajasthan Investment Promotion Scheme 2022 (RIPS-2022)

In the intro of the scheme the government have the below objects to design the policy for improve development and promotion of the investment in the state of Rajasthan:

To achieve annual growth rate of 15% in manufacturing and service sector
To foster balanced development in undeveloped areas
To create more employment opportunity for 10 lakh people by 2027
Focusing and get a leadership in sunrise sectors like green hydrogen, alternative energy, medical devices etc.
To become a pioneer in climate & sustainable green, renewable energy.

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Rajasthan Investment Promotion Scheme - 2022

OPERATIVE PERIOD OF THE POLICY

The Policy shall come into effect from the date of issuance of this order and shall remain in force up to 31st March 2027. It may be revised time to time as needed.

APPLICABILITY OF THE POLICY:

The policy is applicable to below class of enterprises and investment made thereunder:

For establishment of new unit by existing or new enterprises
Existing enterprises investing for expansion as per annexure 14.1
Eligible existing enterprises
Enterprises made investment and generate employment in Rajasthan state are eligible under this policy for the benefits.

FOCUSED CATEGORIES:

The RIPS 2022 policy has simplified architectural to enable easier in understanding with considering the FOCUS category classified under RIPS 2019 to ensure there should not be any exclusion in the new policy.

The eight identified priority category under RIPS 2022 as under:

Manufacturing
Services
Sunrise sectors
MSMEs
Startups
Logistics Parks, Warehousing & Cold Chains
R&D, GCC & Test Labs
Renewable Energy Plants

INCENTIVE PACKAGES OR BENEFITS UNDER RIPS 2022:

Government of Rajasthan assist all focused category to maximize favorable externalities in the state:

Focused category wise benefits may be summarized as follow:

A) Incentive for Manufacturing Enterprises

· Standard Package

· Additional or specific package for thrust sector

B) Incentive for Service Sector Enterprises

· Standard Package

· Additional or specific package for thrust sector

C) Incentives for Sunrise Sectors

D) Incentives for MSMEs

E) Incentives for Startups

F) Incentives for Logistic Parks, Warehousing & Cold chain

G) Incentives for R&D, GCC & Test Labs

H) Incentives for Renewable Energy Plants

ELIGIBILITY CRITERIA FOR MANUFACTURING ENTERPRIESES:

Any manufacturing enterprise (excluding negative list manufacturing units) investing minimum amount of INR 50 Crore will be eligible for the benefits of complete standard package as per the policy.

Additionally,

If a manufacturing unit brings a minimum investment of INR 300 Crore or generate a minimum employment of 250 persons, will be fall in a mega project category and provided the investment more than INR 150 Crore will eligible for all incentive as part of their respective slab.
If a manufacturing unit brings a minimum investment of INR 1000 Crore or generate a minimum employment of 750 persons, will be fall in a ultra mega project category and provided the investment more than INR 500 Crore will eligible for all incentive as part of their respective slab.

This policy will be applicable for new unit as well as for expansion of existing facility.

The expansion must be at least 25% of its existing investment and the expansion shall be increase its minimum 20% of existing production capacity. If the expansion meets the both condition will be eligible for the standard package benefits under the category of Large project.

Hence, the eligibility criteria is defined under the policy in three categories

Large Category
Mega Category and
Ultra Mega Category

Which may be better understand by below table;

Sr. No.	Project Category	Defined by investment range		Defined by combination of Investment and Employment
1	Large	Minimum INR 50 Cr. to Maximum 300 Cr.	OR	Minimum investment of INR 50 Cr. And 100 Employment
2	Mega	Minimum INR 300 Cr. to Maximum INR 1000 Cr.		Minimum investment of INR 150 Cr. And 250 Employment
3	Ultra Mega	Above INR 1000 Cr.		Minimum investment of INR 500 Cr. And 750 Employment

COMPLETE BENEFITS IN DETAIL UNDER RIPS, 2022:-

BENEFITS FOR MANUFACTURING SECTOR:

The complete benefits under the RIPS 2022 for a eligible manufacturing enterprises is defined in three PART:

PART-I: ASSETS CREATION INCENTIVES: (In this part investor may choose any of one benefit out of below three options of benefits):

Investment Subsidy (SGST Reimbursement)
Capital Subsidy
Turnover Linkage Incentives

PART-II: SPECIAL INCENTIVES:

Employment Booster
Green Incentives
Cluster Incentive
Freight Subsidy
Training & Skilling Incentive

PART-III: EXEMPTIONS:

Electricity Duty
Stamp Duty
Conversion Charges
Land Tax
Market Fee

PART-I: ASSETS CREATION INCENTICES:- One Option Can be chosen out of three options available

Investment Subsidy (SGST Reimbursement)
Capital Subsidy
Turnover Linkage Incentives

OPTION-I: INVESTMENT SUBSIDY (SGST REIMBURSEMENT):

Investment subsidy of 75% State tax due and deposited for a period of seven years with a ceiling amount INR 50 Crore per annum for first three years and INR 65 per annum for 4^th to 7^th year.

OPTION-II: CAPITAL SUBSIDY:

The capital subsidy will be given to eligible manufacturing enterprises for investment made in eligible fixed assets as defined in the scheme, the capital subsidy is given @ of 13 to 28 percentage as per the investment size and area category/ Location which is as per below table:

Size of Investment		Employment Generation	Location or Area Category
Size of Investment		Employment Generation	Area Category 1	Area Category 2	Area Category 3
Large 50-300 Crore	OR	100 with minimum investment of 50 Crore	13% of EFCI to be disburse in 10 annual installments	17% of EFCI to be disburse in 10 annual installments	20% of EFCI to be disburse in 10 annual installments
Mega 300-1000 Crore		250 with minimum investment of 150 Crore	17% of EFCI to be disburse in 10 annual installments	20% of EFCI to be disburse in 10 annual installments	23% of EFCI to be disburse in 10 annual installments
Ultra Mega 1000 Crore and above		750 with minimum investment of 500 Crore	23% of EFCI to be disburse in 10 annual installments	25% of EFCI to be disburse in 10 annual installments	28% of EFCI to be disburse in 10 annual installments

The eligible capital subsidy will be disbursed in 10 years installment subject to annual ceiling limit as below:

For First three years: – INR 50 Crore per annum
For 4-7 years: – INR 65 Crore per annum
For 8-10 Years: – INR 80 Crore per annum

OPTION-III TURNOVER LINKED INCENTIVE:

In Rajasthan state the turnover linked incentives are first time introduced in RIPS 2022, to promote the manufacturing sectors. Enterprises are eligible to avail the turnover linked incentive after start the commercial production within the period of the scheme.

The turnover linked incentive will gives as per the investment category and location of the project, which is as below:

Size of Investment		Employment Generation	Location or Area Category
Size of Investment		Employment Generation	Area Category 1	Area Category 2	Area Category 3
Large 50-300 Crore	OR	100 with minimum investment of 50 Crore	1.2% of net sales turnover for the period of 10 years.	1.4% of net sales turnover for the period of 10 years.	1.65% of net sales turnover for the period of 10 years.
Mega 300-1000 Crore		250 with minimum investment of 150 Crore	1.4% of net sales turnover for the period of 10 years.	1.65% of net sales turnover for the period of 10 years.	1.85% of net sales turnover for the period of 10 years.
Ultra Mega 1000 Crore and above		750 with minimum investment of 500 Crore	1.65% of net sales turnover for the period of 10 years.	1.85% of net sales turnover for the period of 10 years.	2% of net sales turnover for the period of 10 years.

**The state government will give a 1.2 to 2 precent of sales turnover for the period of 10 years with a annual ceiling amount as below:

For First three years: – INR 50 Crore per annum
For 4-7 years: – INR 65 Crore per annum
For 8-10 Years: – INR 80 Crore per annum

PART -II SPECIAL INCENTIVES:

All special incentives will be applicable if the investment is more than INR 50 Crore as per the policy, furthermore the total amount of all incentives, special incentives will not exceed the annual ceiling value as per the policy.

1. Employment booster special incentives: If the enterprises provides the extra employment exceed minimum 1.5x will be gate the additional special incentive in chosen in standard package as Capital Subsidy, Turnover Linked incentive or State tax reimbursement.

The employment booster special incentives will given as per the below table:

Slab 1

Slab 2

Slab 3

Employment Slab in multiple of minimum threshold

1.5x-2x

2x-2.5x

Above 2.5x

% Booster on selected incentive on under the scheme i.e. Capital Subsidy, Turnover Linked Incentive or SGST Reimbursement

10%

12.5%

15%

2. Green Incentives: To achieve the sustainable development growth with environmental ethics Government of Rajasthan better understand to develop the industries with prevention of Air, Water pollution etc.

In this part the policy offers incentive for below mentioned solutions in order to promote greater adherence to environment standard and support construction to reduce Air and water pollution:

Green Incentive Themes	Incentive Provided
Environment Infrastructure Facility such as Waste Management Projects, ETPs etc.	One time capital subsidy upto 50% of project cost subject to maximum of INR 10 Crore
Zero Liquid Discharge Unit	Enterprises practicing at least 50% waste recovery through Zero Liquid Discharge as certified by Rajasthan Pollution Control Board shall be provided upto 50% capital subsidy on cost of relevant equipment with a ceiling amount of INR 1 cr.
Air Pollution Control Measures	One-time capital subsidy up to 50% of the cost of projects subject to a ceiling of Rs. 1 cr. per project
Water Measures	50% cost of equipment subject to a max of Rs. 10 lakhs
Captive Renewable Energy Generation	100% electricity duty exemption for 7 years
Energy Efficiency Measures	Upto 50% consent fee waiver for industries under Rajasthan Green Rating System
Other Emerging Green Technology Areas	The State shall decide the appropriate incentive on a case-to-case basis

3. Cluster Incentives: If a group/cluster of enterprises are investing a minimum amount of INR 500 Crore in a particular area (within a radius of 50KM) shall be eligible for a Cluster incentive and get the same benefits as per the standard package defined under the scheme, RIPS -2022.

4. Freight Subsidy: An exporting unit registered within the state of Rajasthan will be eligible to gate a freight subsidy for transportation charges for export from state Inland Container Depot (ICD) to gateway ports.

The benefit will be INR 10,000 or INR 20,000 per TEU 20feet or 40 Feet Container respectively or 25% of total expenses of freight whichever is less, subject to maximum ceiling of INR 20 Lakh per annum.

5. Training & Skilling Incentive: Skilling support can be availed in form of a Training Subsidy of INR 4,000 per worker per month for 6 months for training given in Rajasthan

PART- III EXEMTIONS:

The eligible manufacturing enterprises will also gets the below mentioned exemption benefits under the RIPS-2022 Scheme:

Exemption from payment of 100% of Electricity Duty for seven years.
Exemption from payment of 100% of Land Tax for seven years.
Exemption from payment of 100% of Market Fee (Mandi Fee) for seven years.
100% Stamp Duty benefit will be given in stages as notified by the State.
100% conversion charges benefits given in stages as notified by the State.

ADDITIONAL BENEFITS FOR THURST SECTOR MANUFACTURING ENTERPRISES:

To promote the special class of manufacturing sectors which are in mature stage with a significant market size and high job creation potential, leveraging and building a strong ecosystem advantage are special focused by the state of Rajasthan and providing additional “Thrust Sector Top Up” @ 10% over the assets creation incentive option chosen from Standard Package.

The focused Thrust Sectors under RIPS 2022 are as below:

Agri & Food Processing
Dairy
Textiles
Apparels
Handicraft
Leather, Footwear and Accessories
Gems & Jewellery
Automobile, Electric Vehicle (EV) & Auto- Component
Petrochemicals & Petroleum Ancillary
Chemicals
Pharmaceuticals
Minerals
Ceramics
Glass
Biodegradable Plastic Substitutes
Electronics System Design and Manufacturing (ESDM)
Industrial Gases
Renewables
Defense

BENEFITS FOR SERVICE SECTOR:

A service enterprise engaged in providing specified services below mentioned below as per the scheme RIPS 2022 will be eligible to get the offered benefits for Service Sector unit under RIPS 2022:-

Amusement Park
Cold Chain and Preservation Infrastructure
Convention Centre
Cluster/Electronic Manufacturing Cluster
Healthcare
IT & ITeS
Fintech
Hotel & Tourism
Entertainment
Film City
Cold Chain in Pharmaceuticals
Common Utility Centre
Infrastructure for Value-Addition or
Preservation of Agricultural Products
Plug and Play Office Complex
Social Infrastructure

THE ELIGIBILITY CRITERIA FOR SERVICE SECTOR UNDER RIPS 2022 ARE AS FOLLOW:

All service sector projects defined under RIPS 2022 investing minimum amount of INR 50 Crore will be eligible for the benefits of complete standard package as per the RIPS 2022.

Additionally,

If a service unit brings a minimum investment of INR 100 Crore or generate a minimum employment of 2000 persons with minimum investment of INR 75 Crore, will be fall in a mega project category will eligible for all incentive as part of their respective slab.

If a Service unit brings a minimum investment of INR 250 Crore or generate a minimum employment of 4000 persons with minimum investment of INR 150 Crore, will be fall in a ultra mega project category will eligible for all incentive as part of their respective slab.

This policy will be applicable for new unit as well as for expansion of existing facility.

The expansion must be at least 25% of its existing investment and the expansion shall be increase its minimum 20% of existing production capacity. If the expansion meets the both condition will be eligible for the standard package benefits under the category of Large project.

Hence, the eligibility criteria is defined under the policy in three categories

Large Category
Mega Category and
Ultra Mega Category

Which may be better understand by below table;

Sr. No.	Project Category	Defined by investment range		Defined by combination of Investment and Employment
1	Large	Minimum INR 50 <100 Cr.	OR	Minimum investment of INR 50 Cr. And 500 Employment
2	Mega	Minimum INR 100 Cr. <250 Cr.		Minimum investment of INR 75 Cr. And 2000 Employment
3	Ultra Mega	INR 250 Crore or more		Minimum investment of INR 150 Cr. And 4000 Employment

THE VARIOUS BENEFITS OFFERED UNDER RIPS 2022 FOR ELIGIBLE SERVICE SECTOR UNITS ARE AS BELOW:

Part-I: Assets Creation Incentives (In this part investor may choose any of one benefit out of below three options of benefits):

Investment Subsidy (SGST Reimbursement)
Capital Subsidy
Turnover Linkage Incentives

Part-II: Special Incentives:

Employment Booster
Training & Skilling Incentive

Part-III: Exemptions:

Electricity Duty
Stamp Duty
Conversion Charges
Land Tax
Market Fee

PART-I ASSETS CREATION INCENTIVES:

One option can be chosen out of three available options to get assets creation incentives, the three options are in details below:

OPTION-I: Investment Subsidy (SGST Reimbursement)

Investment subsidy of 75% State tax due and deposited for a period of seven years with a ceiling amount INR 10 Crore per annum for first three years and INR 15 Crore per annum for 4^th to 7^th year.

Size of Investment		Employment Generation	Location or Area Category
Size of Investment		Employment Generation	Area Category 1	Area Category 2	Area Category 3
Large 50-100 Crore	OR	500 with minimum investment of 50 Crore	10% of EFCI to be disburse in 10 annual installments	12% of EFCI to be disburse in 10 annual installments	14% of EFCI to be disburse in 10 annual installments
Mega 100- 250 Crore		2000 with minimum investment of 75 Crore	12% of EFCI to be disburse in 10 annual installments	14% of EFCI to be disburse in 10 annual installments	16% of EFCI to be disburse in 10 annual installments
Ultra Mega 250 Crore and above		4000 with minimum investment of 150 Crore	16% of EFCI to be disburse in 10 annual installments	18% of EFCI to be disburse in 10 annual installments	20% of EFCI to be disburse in 10 annual installments

The eligible capital subsidy will be disbursed in 10 years installment subject to annual ceiling limit as below:

For First three years: – INR 10 Crore per annum
For 4-7 years: – INR 15 Crore per annum
For 8-10 Years: – INR 20 Crore per annum

OPTION-II TURNOVER LINKED INCENTIVE:

The Rajasthan state first time introduced the turn over linked incentive in a scheme RIPS 2022, the eligible enterprises can avail the turnover linked incentive benefits @1%-1.4% of net sales turnover on the basis of commitment investment and number of employment generation as per the below table:-

Size of Investment		Employment Generation	Location or Area Category
Size of Investment		Employment Generation	Area Category 1	Area Category 2	Area Category 3
Large 50-100 Crore	OR	500 with minimum investment of 50 Crore	1.0% of net sales turnover for the period of 10 years.	1.1% of net sales turnover for the period of 10 years.	1.2% of net sales turnover for the period of 10 years.
Mega 100- 250 Crore		2000 with minimum investment of 75 Crore	1.1% of net sales turnover for the period of 10 years.	1.2% of net sales turnover for the period of 10 years.	1.3% of net sales turnover for the period of 10 years.
Ultra Mega 250 Crore and above		4000 with minimum investment of 150 Crore	1.2% of net sales turnover for the period of 10 years.	1.3% of net sales turnover for the period of 10 years.	1.4% of net sales turnover for the period of 10 years.

The state government will give a 1 to 1.4 percent of sales turnover for the period of 10 years with a annual ceiling amount as below:

For First three years: – INR 10 Crore per annum
For 4-7 years: – INR 15 Crore per annum
For 8-10 Years: – INR 20 Crore per annum

PART-II SPECIAL INCENTIVE;

All special incentives will be applicable if the investment is more than INR 50 Crore as per the policy, furthermore the total amount of all incentives, special incentives will not exceed the annual ceiling value as per the policy.

A) Employment booster special incentives

: If the enterprises provides the extra employment exceed minimum 1.5x will be gate the additional special incentive in chosen in standard package as Capital Subsidy, Turnover Linked incentive or State tax reimbursement.

The employment booster special incentives will given as per the below table:

Slab 1

Slab 2

Slab 3

Employment Slab in multiple of minimum threshold

1.5x-2x

2x-2.5x

Above 2.5x

% Booster on selected incentive on under the scheme i.e. Capital Subsidy, Turnover Linked Incentive or SGST Reimbursement

10%

12.5%

15%

B) Training & Skilling Incentive: Skilling support can be availed in form of a Training Subsidy of INR 4,000 per worker per month for 6 months for training given in Rajasthan

PART- III EXEMTIONS:

The eligible service enterprises will also gets the below mentioned exemption benefits under the RIPS-2022 Scheme:

Exemption from payment of 100% of Electricity Duty for seven years
Exemption from payment of 100% of Land Tax for seven years
Exemption from payment of 100% of Market Fee (Mandi Fee) for seven years
100% Stamp Duty benefit will be given in stages as notified by the State
100% conversion charges benefits given in stages as notified by the State

ADDITIONAL BENEFITS FOR THURST SECTOR SERVICE ENTERPRISES:

To promote the special class of service sectors which shows very high potential to attract investment and capable generate maximum number of employment are entertain by additional benefits over and above the standard package benefits to build a strong ecosystem advantage are special focused by the state of Rajasthan and providing additional “Thrust Sector Top Up” @ 10% over the assets creation incentive option chosen from Standard Package.

The focused Thrust Service Sectors under RIPS 2022 are as below:

IT & ITeS
FinTech
Hotel & Tourism
Entertainment
Film City
Cold Chain in Pharmaceuticals
Common Utility Centre
Infrastructure for Value-Addition or Preservation of Agricultural Products
Plug and Play Office Complex
Social Infrastructure

ANCHOR INVESTMENTS:

There are two types of anchor investments defined in the policy:

Regional Anchor:

First three units making investment in mega or ultra-mega project category in Area category 2 or Area category 3 within district which have at least 60 % tehsil in area category 2 and area category 3, as notified by government.

Irrespective of sector shall be eligible for a 20% anchor booster on top of the chosen Asset Creation incentive, provided the cumulative number of units in mega/ultra-mega category within the specified region does not exceed 3.

Sectoral Anchor:

Alternatively, The first three units making investment under the mega or ultra-mega category in the state of Rajasthan in specified sector, irrespective of specified area will also be eligible for a 20% anchor booster on top of the chosen Assets creation incentive, provided that the the cumulative number of units shall not be exceed 3, under mega or ultra-mega investment category.

BENEFITS FOR MSME SECTOR UNDER RIPS 2022:

(A) MANUFACTURING ENTERPRISES:

All manufacturing units (except tobacco/pan masala, cow beef, aerated water plants, retail/ trading activity, other prohibited activity) are eligible to get benefits under RIPS 2022 in the category as MSME.

(B) SERVICE ENTERPRISES:

Service enterprises engaged in the below business are eligible to get the benefits under RIPS 2022:-

Cold Chain and Preservation Infrastructure
Convention Centre
Cluster/Electronic Manufacturing Cluster
Healthcare
IT & ITeS
Fintech
Hotel & Tourism
Entertainment
Film City
Cold Chain in Pharmaceuticals
Common Utility Centre
Infrastructure for Value-Addition or
Preservation of Agricultural Products
Plug and Play Office Complex
Social Infrastructure

BENEFITS FOR MSME UNITS UNDER RIPS 2022:

Eligible manufacturing or service enterprises can avail the below benefits under RIPS 2022:

(A) Assets Creation Benefits: Investment subsidy of 75% SGST due and deposited for a period of 7 years

AND

(B) The enterprises can avail interest subsidy either in MLUPY scheme or under RIPS 2022. The interest subsidy slab under RIPS 2022 for MSME units are as below:

Interest Subsidy Per Year	Loan Amount
1 Crore to 5 Crore	6%
5 Crore to 10 Crore	4%
10 Crore to 50 Crore	3%

(C) Exemptions: The eligible MSME enterprises will also gets the below mentioned exemption benefits under the RIPS-2022 Scheme:

Exemption from payment of 100% of Electricity Duty for seven years
Exemption from payment of 100% of Land Tax for seven years
Exemption from payment of 100% of Market Fee (Mandi Fee) for seven years
100% Stamp Duty benefit will be given in stages as notified by the State
100% conversion charges benefits given in stages as notified by the State

(D) Employment Generation Subsidy: The eligible MSME enterprise will get reimbursement of 50% of employer’s contribution of EPF and ESI for the period of seven years.

(E) Green Incentive:

Water Conservation Incentive: Reimbursement of 50% of cost incurred on water audit by any Government empanelled or Government approved agency subject to maximum of INR 2 lacs & reimbursement of 25% of the cost of equipment recommended by the auditing authority up to INR 20 lacs
50% of the cost of equipment purchased for waste water recycling & rain water harvesting up to INR 7.50 lacs
Waste Management: 50% of amount paid to the suppliers for the plant, excluding civil work, for establishing ZLD based ETP, adopting green building measures & establishing industrial reduce, reuse, recycle plant up to 1 crore

(F) Other Incentives:

One time reimbursement of 50% cost incurred to get quality certificate for manufacturing or process or certification related for export issued by government or other government approved agencies with a maximum ceiling amount of Rs. 25 lakh.
Subsidy up to 75% of the cost of acquiring patents up to INR 5 lacs to be provided.
Fund Raising Incentive: One-time financial assistance on raising funds (capital) through SME platform, to the extent of 50% of the investment made in process of raising funds (capital), subject to a maximum of five lakh

BENEFITS FOR SUNRISE SECTORS UNDER RIPS 2022:

The state of Rajasthan aims to be first choice of investment in sunrise sector to empower the below business units as the sunrise sectors with a minimum investment size of Rs. 50 Crore:

Green Hydrogen
Ethanol
Medical devices and equipment
Biotechnology
New Battary technologies
Industry 4.0
Data Centre
Rare Earth Elements

These industry will play a vital role in in economic development, skill advancement and technologies developments for the state.

The assets creation investment benefits amount has been on caped same as mentioned for manufacturing sector units in any selected benefit as Capital Subsidy/ SGST Reimbursement/ TLI.

Additionally,

First 3 sunrise sector units falling under Mega and Ultra Mega project category slab (as per manufacturing unit) will be entertained additionally 20% assets creation incentive as a sunrise booster and after first three sunrise sector mega and ultra mega units will be entertained as Manufacturing Thrust Sector investment.
These First 3 sunrise sector units falling as Mega and ultra mega project slab as per manufacturing unit will also get 100% Banking, Wheeling & transmission charges waived off or reimbursement.
Green Incentive: The green incentives for sunrise sector has been entertained same as per the manufacturing sector.
Exemptions: Exemptions offered for the sunrise sector is also be available same as per manufacturing sector, which are as below;

Exemption from payment of 100% of Electricity Duty for seven years
Exemption from payment of 100% of Land Tax for seven years
Exemption from payment of 100% of Market Fee (Mandi Fee) for seven years
100% Stamp Duty benefit will be given in stages as notified by the State
100% conversion charges benefits given in stages as notified by the State

5. Employment booster:

Employment booster special incentives: If the enterprises provides the extra employment exceed minimum 1.5x will be gate the additional special incentive in chosen in standard package as Capital Subsidy, Turnover Linked incentive or State tax reimbursement.

The employment booster special incentives will given as per the below table:

Slab 1

Slab 2

Slab 3

Employment Slab in multiple of minimum threshold

1.5x-2x

2x-2.5x

Above 2.5x

% Booster on selected incentive on under the scheme i.e. Capital Subsidy, Turnover Linked Incentive or SGST Reimbursement

10%

12.5%

15%

6. Special Incentives; Other special incentives are applicable same as per the manufacturing sector name wise, Green Incentives: Cluster Incentives: Freight Subsidy: Training & Skilling Incentive.

BENEFITS FOR STARTUPS UNDER RIPS 2022:

The Rajasthan government understands better how startups can give new dimensions to the state’s technology and economy, so the state government has made special provisions in this scheme for the purpose of promoting startups.

Hence, the below incentives are offered under RIPS 2022 for startups:

Type of Benefits	Benefits
Startup booster incentives	Assets creation benefits: investment subsidy as 75% of SGST due and deposited for the period of 7 years from the date of commencement of commercial production. Seed Support: Any startups which activity has been identified under “sunrise sectors” will be entertained by one time financial assistant of 10% of external capital raised to be provided upto INR 30 Lacs.
Exemptions Benefits	100% exemption of electricity duty, mandi fee & land taxes for 7 years 100% Stamp Duty benefit will be given in stages as notified by the State 100% conversion charges benefits given in stages as notified by the State
Other Incentives	Skill Development Incentives Reimbursements up to INR 1 lac per startup for training in management, entrepreneurship, or soft skills from a recognized institute IP Creation Incentive Reimbursement up to 75% of the costs of acquiring patents up to INR 5 lacs to be provided. For obtaining geographical identification & trademark registration, the State will match the financial assistance provided by Government of India Quality Certification Incentives One time reimbursement of 50% of the cost incurred in obtaining quality certification up to INR 25 lacs Business Incubation Centres The policy will provide support up to 2.5 Crore to Government institutes & 1.5 lacs to private institutes for setting up business incubation centers.

BENEFITS FOR LOGISTIC PARKS, WAREHOUSE AND COLD CHAIN STORES UNDER RIPS 2022:

The state of Rajasthan aims to improve and develop the strong distribution network in the state of Rajasthan, to achieve this object the state government provided special provisions to encourage and attract investment in the sector of logistic parks, warehouse & cold chain. The state government provides below benefits for eligible logistic parks, warehouse & cold chain under RIPS 2022 scheme:

Eligibility Criteria of minimum investment amount:

Logistic Park: INR 50 Cr.

Warehouse: INR 2 Cr.

Cold Chain: INR 2 Cr.

Benefits/ Incentives for Logistic Park, Warehouse & Cold chain under RIPS-2022:

The eligible unit may claim any of one benefit either assets creation incentives or interest subsidy benefit which are as below:

(A) Assets Creation Incentives: The Assets creation incentives are provided in two options for logistic park, warehouse & cold chain:

Direct Capital Subsidy: Capital subsidy will be provided @ 25% of investment made for below mentioned purpose with the below provided ceiling limits:

Sector	Purpose of investment	Ceiling Limit
For logistic park	Building Logistics Infrastructure hub and common associated infrastructure	INR 15 Crore
For Warehouse	To buy equipment	INR 1 Crore
For Cold Chain	For plant machinery and equipment	INR 1 Crore

OR

(B) Interest Subsidy: The interest subsidy will be provided @ 7% interest paid by the enterprises for the term loan taken from financial institution or bank recognized by RBI for making investment in logistic infrastructure, for a period of seven years with a ceiling limit of INR 2.5 Crore for multi-model logistic hub and INR 1.5 Crore for logistic park.

Additionally,

GREEN INDUSTRY INCENTIVE: Enterprises undertaking green and sustainable initiatives such as EV for transport of goods and personnel within facility premise and adopting rainwater harvesting etc. shall be eligible for a 25% subsidy on cost of capital of setting up/undertaking such initiatives, subject to a limit of INR 50 lakh.
Exemption: On top of all the logistic park, warehouse & cold chain will also entertain the standard exemptions under RIPS 2022 which are as below:

100% exemption of electricity duty, mandi fee & land taxes for 7 years
100% Stamp Duty benefit will be given in stages as notified by the State
100% conversion charges benefits given in stages as notified by the State

BENEFITS FOR R&D, Global Capability Centre (GCC), Test Labs under RIPS-2022

Rajasthan state has global competitive and strong workforce to develop the R&D in technologies to encourage the ecosystem of research & development in the state. Hence, the policy promote R&D centres, Global Capability Centre, Test Labs.

To get the benefits under RIPS 2022 the eligible investment size is INR 5 Crore.

The bundle of Benefits for R&D, Global Capability Centre, Test Labs under RIPS- 2022 as under:

Benefits/ Inventive	Descriptions
Asset Creation Incentives	The Government would provide assistance in setting up of R&D centers, Global Capability Centers and Test labs upto 50% of the project cost, excluding the cost of land and buildings, for centers setup by Industries Association and upto 30% for centers setup by private enterprises, subject to a maximum of INR 5 crore
Training Assistance	R&D Training Incentive of INR 10,000 per person per month can be availed for 12 months. This incentive is intended for employees engaged in core R&D, as defined in the scheme.
Quality Assistance	Projects obtaining certifications such as ISO, ISI, BIS, FPO, BEE, AGMARK, and ECOMARK, as well as any other national or international certification, are eligible for a 50% reimbursement of the total cost of obtaining the certification, as attested by the Chartered Accountant, up to a maximum of Rs. 1 crore for the investment period, provided the certificate is valid for at least 3 years
Land Cost Incentive	Reimbursement of 50% of cost of purchase of land or lease of floor area upto a maximum of INR 50 lakhs for setting up of R&D centers, Global Capability centers and Test labs
Patents and IP Support	For in-house R&D, the government will pay 50% of the cost incurred upto a maximum of INR 1 Crore for patent, copyright, trademark, and registration of geographic indicators and INR 5 Crore for standalone R&D assets.
Contract Research Assistance	The Government will contribute 50% of the project cost, excluding the cost of land and buildings, to recognised R&D institutions and technical colleges certified by AICTE for contract or sponsored research activity, up to a maximum of INR 50 lakhs.
Exemptions	100% of land tax for seven years

BENEFITS FOR RENEWABLE ENERGY PLANT UNDER RIPS-2022:

The Rajasthan state have huge potential of renewal energy specially for solar power plants, as the state has more than 300 sunny days in a year, hence it’s make the first choice for solar power plants in India.

The benefits for renewable energy plants under RIPS 2022 are as under:

Benefits/ Inventive	Descriptions
Asset Creation Incentives	Investment subsidy of 75% SGST due and deposited for the period of 7 years from date of commencement of commercial production.
Exemptions	Exemption from 100% of electricity duty for 7 years 100% Exemption form conversion charges
Other incentive	The State will promote development of Solar Plants in Joint Venture with private developers by investing up to 50% equity or any other percentage of equity participation as decided by the State Government. The cost of land allocated by State Government would be part of its equity participation in the joint venture enterprise, as proposed in Rajasthan Solar Energy Policy, 2019

DOCUMENTS REQUIRED FOR APPLICATION UNDER RIPS: 2022

Documents required for RIPS Application are as under:

Aadhar, Pan of owner, partner, director as the case may be.
PAN Card of Firm or Company.
Partnership Deed (in case of partnership firm or LLP)
Certificate of incorporation, MOA, AOA (for companies)
Quotations of machinery
Category of investment (Expansion or new unit)
Land documents where the project proposed (land area, cost, shed)
Number of employment details
Pollution certificate details (if applicable)
Proof of investment
Project report signed by applicant
Copy of first bill/ invoice as proof of commencement of production
Self attested declaration of facts of application on Rs. 100 stamp
Board resolution in case of company
Certificate of valuation in form E
CSR Undertaking
Other relevant documents.

Rajasthan Investment Promotion Scheme 2022 (RIPS-2022)

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