Rajasthan Investment Promotion Scheme 2024 (RIPS-2024)

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:

The state of Rajasthan currently have Gross Domestic State Production (GDSP) at a impressive level INR 15.3 lac crore in FY 2023-24 and average growth rate @12% p.a.
The state have an ambition to double the GDSP in next 5 years.
To foster balanced development in undeveloped areas
The State is uniquely positioned to leverage its geographic diversity, abundant natural resources, and growing economy to drive sustainable development across multiple sectors.
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 - 2024

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 2029. 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 in the state Rajasthan Only:

For establishment of new unit by existing or new enterprises
Existing enterprises investing for “expansion as per the definition of expansion.”
New investments made after the launch of this Policy ara aligible to apply only under this Policy.
The commercial production of the unit must be started within the operative period of the policy or 2 years from the date of issuance of entitlement certificate which ever is later.

FOCUSED CATEGORIES:

The RIPS 2024 is not applicable to sector specified in Annexure 9.2 (ineligible industries) of policy.

The RIPS 2024 policy has simplified architectural to enable easier in understanding with considering the FOCUS category classified under RIPS 2022 to ensure there should not be any exclusion in the new policy.

The seven identified priority category under RIPS 2024 as under:

Manufacturing
Services
Sunrise sectors
MSMEs
Startups
Industrial Infrastructure
R&D, GCC & Test Labs

STANDARD INCENTIVE PACKAGES OR BENEFITS UNDER RIPS 2024:

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

· Add-on additional incentives

B) Incentive for Service Sector Enterprises

· Standard Package

· Add-on additional incentives

C) Incentives for Sunrise Sectors

D) Incentives for MSMEs

E) Incentives for Startups

F) Incentives for industrial infrastructure

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

COMPLETE BENEFITS FOR MANUFACTURING UNIT UNDER RIPS, 2024:-

ELIGIBILITY CRITERIA FOR MANUFACTURING ENTERPRISES

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

MSME-I
MSME-II
Large Category
Mega Category and
Ultra Mega Category

Which may be better understand by below table:-

Eligibility Category	Eligible Fixe Capital Investment Criteria (EFCI)	OR	Minimum Employement Criteria	Incentive Package Category
MSME 1	Investment less than INR 25 Crore		N/A	Benefits under MSME category
MSME 2	Investment INR >25 <50 Crore		N/A	Under MSME or under large category
LARGE	Investment INR >50 <300 Crore	OR	100 Employee with EFCI Rs. 50 Cr.	Manufacturing Standard Package of Investment subsidy or capital subsidy or Turn Over Link subsidy
MEGA	Investment INR >300 <1000 Crore		250 Employee with EFCI Rs. 150 Cr.
ULTRA MEGA	Investment INR >1000 Crore		750 Employee with EFCI Rs. 500 Cr.

BENEFITS FOR MANUFACTURING SECTOR:

The complete benefits, under the RIPS 2024 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: ASSETS CREATION INCENTIVES: Top-Ups

Employment Booster
Thrust Booster or Anchor Booster or Interest Subvention

PART-III: EXEMPTIONS:

Electricity Duty
Stamp Duty
Conversion Charges
Mandi Fee
Market Fee

PART-I: ASSETS CREATION INCENTICES:- Any of one option may be choose out of below three options:

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 Crore 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 capital investment 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:

Project Category	Location or Area Category
Project Category	Area Category 1	Area Category 2	Area Category 3
Large	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	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	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:

Project Category	Location or Area Category
Project Category	Area Category 1	Area Category 2	Area Category 3
Large	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	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	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

ASSETS CREATION INCENTIVES: Top-Ups

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. THRUST BOOSTER:

Eligible manufacturing enterprises engaged in thrust sector as below, will be eligible for thrust booster @10% over the assets creation incentives:

List of Manufacturing Thrust sector:

Auto, Auto Component & EV
Petrochemical (inc. ancillary)
Chemical
Textiles, Apparels & Garments
Mineral Processing & Ceramics
ESDM
Renewable Manufacturing
Agri & Food Processing
Glass
Dairy
Pharmaceuticals
Industrial Gases
Leather, Footwear & Accessories
Gems & Jewellery
Handicrafts
Sports Goods
Toys
Metals
Construction Equipments
Pumped Hydro Storage Manufacturing
Electrolyzer Manufacturing

3. ANCHOR BOOSTER:

Eligible regional or sectoral anchors as defined in policy shall be eligible to get anchor booster:
(A) 20% over the chosen assets creation incentives
OR
(B) 20% over annual ceiling limit of prescribed assets creation benefits.
Additionally, regional and sectoral anchors shall also be eligible for 100% banking, wheeling and transmission charges waived off/ reimbursement for the period of disbursal corresponding assets creation benefits.

4. INTEREST SUBVENTION:

5% Interest subvention shall be allowed to eligible manufacturing enterprises for term loan taken to purchase plant & machinery & equipments from financial institutions/ bank recognised by RBI, for the period of 5 years subject to maximum 2.5% of EFCI per year.

5. SPECIAL INCENTIVES:

Flexible Land payment model:

Eligible thrust sector manufacturing enterprises which are Mega or Ultra mega unit shall be eligible for make flexible land payment as per below table:

PARTICULAR	Payment Schedule
25% of Land cost + 75% of land cost as bank guarantee for three years	Upfront
75% Of Land cost	Disbursement equally over 10 annual installments at an interest rate of 8%

The 75% of land cost payable in 10 annual instalment with an interest of 8% shall be adjusted against the subsidy disbursal (as applicable)

The land cost support is available only if:

Once per eligible manufacturing enterprises making new investment and
Land lease from RIICO, and
For the purpose of establishing the manufacturing project in which the enterprises is seeking incentives under this policy.

PART- III EXEMTIONS:

The eligible manufacturing enterprises will also gets the below mentioned exemption benefits under the RIPS-2024 Scheme:

Exemption from payment of 100% of Electricity Duty for seven years.
Exemption from payment of 100% of Mandi fee for seven years.
Exemption from payment of 100% of Market Fee for seven years.
75% Stamp Duty exemption and 25% stamp duty reimbursement.
75% conversion charges exemption and 25% reimbursement of conversion charges.

COMPLETE BENEFITS FOR SERVICE SECTOR UNDER RIPS, 2024:-

BENEFITS FOR SERVICE SECTOR:

A service enterprise engaged in providing specified services below mentioned below as per the scheme RIPS 2024 will be eligible to get the offered benefits for Service Sector unit under RIPS 2024:-

Healthcare
IT & ITeS
Fintech
Tourism
Entertainment
Film City
Civil Aviation
Common Utility Centre
Sports Academy
AVGC-XR
Higher Education
Plug and Play Office Complex
Social Infrastructure
Vocational Training and Skilling
Knowledge based Industries

APPLICABILITY OF RIPS 2024 SCHEME FOR SERVICE SECTOR:

The policy is applicable to NEW or Existing enterprises making investment in new unit or making Expansion as per the scheme.
Enterprises acquiring assets under liquidation by order of NCLT and making a minimum additional investment equivalent to to 25% but the liquidating enterprises should not availed benefits under any previous RIPS scheme.
The Service enterprises shall commence commercial production or operation during operative period of the scheme.

THE ELIGIBILITY CRITERIA FOR SERVICE SECTOR UNDER RIPS 2024 ARE AS FOLLOW:

All eligible service thrust sector projects defined as above under RIPS 2024 investing minimum amount of INR 25 Crore will be eligible for take benefits under Large, Mega or Ultra Mega project category which are as below:

Eligibility Category	Eligible Fixe Capital Investment Criteria (EFCI)	OR	Minimum Employement Criteria	Incentive Package Category
For Tourism Unit	Investment INR >10 <100 Crore		N/A	Service Standard Package of Investment subsidy or capital subsidy or Turn Over Link subsidy
LARGE	Investment INR >25 <100 Crore	OR	500 Employee with EFCI Rs. 25 Cr.
MEGA	Investment INR >100 <250 Crore		2000 Employee with EFCI Rs. 75 Cr.
ULTRA MEGA	Investment INR >250 Crore		4000 Employee with EFCI Rs. 150 Cr.

BENEFITS FOR THRUST SERVICE SECTOR:

The complete benefits, under the RIPS 2024 for a eligible thrust sector service 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: ASSETS CREATION INCENTIVES: Top-Ups

Employment Booster
Thrust Booster or Anchor Booster

PART-III: EXEMPTIONS:

Electricity Duty
Stamp Duty
Conversion Charges
Mandi Fee
Market Fee

PART-I: ASSETS CREATION INCENTICES:- Any of one option may be choose out of below three options:

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 10 Crore per annum for first three years and INR 15 Crore per annum for 4^th to 7^th year.

OPTION-II: CAPITAL SUBSIDY:

The capital subsidy will be given to eligible enterprises for investment made in eligible fixed capital investment as defined in the scheme, the capital subsidy is given @ of 10 to 20 percentage as per the investment size and area category/ Location which is as per below table:

Project Category	Location or Area Category
Project Category	Area Category 1	Area Category 2	Area Category 3
Large	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	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	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-III TURNOVER LINKED INCENTIVE:

In Rajasthan state the turnover linked incentives are also introduced in RIPS 2024, to promote the service 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:

Project Category	Location or Area Category
Project Category	Area Category 1	Area Category 2	Area Category 3
Large	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	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	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 1.0 to 1.4 precent 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

ASSETS CREATION INCENTIVES: Top-Ups

The eligible service enterprises can avail top-ups assets creation incentives as below:

– Employment booster, and

– Either thrust booster or anchor booster

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. THRUST BOOSTER:

Eligible thrust sector service enterprises, will be eligible for thrust booster @10% over the assets creation incentives.

3. ANCHOR BOOSTER:

Eligible regional or sectoral anchors as defined in policy shall be eligible to get anchor booster:
(A) 20% over the chosen assets creation incentives
OR
(B) 20% over annual ceiling limit of prescribed assets creation benefits.
Additionally, regional and sectoral anchors shall also be eligible for 100% banking, wheeling and transmission charges waived off/ reimbursement for the period of disbursal corresponding assets creation benefits.

4. SPECIAL INCENTIVES:

Office Space Lease Rental Subsidy:

Eligible service sector enterprises shall be provided office lease rental subsidy @25% of lease rental for the period of 5 years subject to maximum 1 crore per annum.

The eligible service enterprises other terms & conditions are as below:

– The subsidy shall be granted once per enterprises making new investment.

– The lease rental will be provided only for the service enterprises specifically setup and availed benefit under this policy.

PART- III EXEMTIONS:

The eligible manufacturing enterprises will also gets the below mentioned exemption benefits under the RIPS-2024 Scheme:

Exemption from payment of 100% of Electricity Duty for seven years.
Exemption from payment of 100% of Mandi fee for seven years.
Exemption from payment of 100% of Market Fee for seven years.
75% Stamp Duty exemption and 25% stamp duty reimbursement.
75% conversion charges exemption and 25% reimbursement of conversion charges.

BENEFITS FOR SUNRISE SECTORS UNDER RIPS 2024:

ELIGIBILITY CRITERIA:

The below sectors are considered as SUNRISE SECTOR in RIPS 2024:

Green Hydrogen
Ethanol
Medical Devices & Equipment
Biotechnology
New Battery Technology
Industry 4.0
Data Centeres
Rare Earth Elements
Lab-grown Diamonds
Aero & Space
Defence
Drones
Semiconductors
Agri-Tech
Waste Recycling

BENEFITS:

– The eligible sunrise sector unit may choose additionally either Sunrise booster or Anchor booster on chosen assets creation incentives benefits subject to maximum of 100% of SGST Due and deposited for the period of seven years.

– The first three sunrise sector unit which are mega or ultra mega category are eligible for sunrise sector booster @25% as top-up incentive over the chosen assets creation (Investment subsidy or capital subsidy or turnover link subsidy) benefits.

– First three data centre unit with a minimum capacity of 10MW, will be eligible for sunrise sector booster @ 25% as top-up incentive over the chosen assets creation benefits.

– Additionally, unit can avail sunrise booster or thrust sector booster or anchor booster or interest subvention as per manufacturing/ service sector category.

– All other sunrise sector units falls under large category will be eligible for sunrise booster @ 10% as top-up like thrust sector unit over the chosen assets creation benefits.

– Assets creation incentives:

The eligible sunrise sector unit may choose any of one option as below:

Investment Subsidy
Capital Subsidy
Turnover linked incentives

– INTEREST SUBVENTION:

5% Interest subvention shall be allowed to eligible sunrise enterprises for term loan taken to purchase plant & machinery & equipments from financial institutions/ bank recognised by RBI, for the period of 5 years subject to maximum 2.5% of EFCI per year.

PRODUCTION LINKED INCENTIVE (PLI) FOR ETHANOL MANUFACTURING UNDER RIPS 2024:

An Ethanol manufacturing unit may choose capital subsidy @ INR 1.5 per Ltr for ethanol manufactured and supplied to Oil Marketing Companies (OMCs), the maximum benefit is upto 100% of amount invested in plant & machinery for the period of seven years.

The Ethanol manufacturing unit may choose either turnover link subsidy or product link subsidy as above.

FLEXIBLE LAND PAYMENT MODEL:

Eligible Sunrise Sector enterprises which are Mega or Ultra mega unit shall be eligible for make flexible land payment as per below table:

PARTICULAR	Payment Schedule
25% of Land cost + 75% of land cost as bank guarantee for three years	Upfront
75% Of Land cost	Disbursement equally over 10 annual installments at an interest rate of 8%

The 75% of land cost payable in 10 annual instalment with an interest of 8% shall be adjusted against the subsidy disbursal (as applicable)

The land cost support is available only if:

Once per eligible manufacturing enterprises making new investment and
Land lease from RIICO, and
For the purpose of establishing the manufacturing project in which the enterprises is seeking incentives under this policy.

OFFICE SPACE LEASE RENTAL SUBSIDY:

Eligible service sector enterprises shall be provided office lease rental subsidy @25% of lease rental for the period of 5 years subject to maximum 1 crore per annum.

The eligible service enterprises other terms & conditions are as below:

– The subsidy shall be granted once per enterprises making new investment.

– The lease rental will be provided only for the service enterprises specifically setup and availed benefit under this policy.

PART- III EXEMTIONS:

The eligible manufacturing enterprises will also gets the below mentioned exemption benefits under the RIPS-2024 Scheme:

Exemption from payment of 100% of Electricity Duty for seven years.
Exemption from payment of 100% of Mandi fee for seven years.
Exemption from payment of 100% of Market Fee for seven years.
75% Stamp Duty exemption and 25% stamp duty reimbursement.
75% conversion charges exemption and 25% reimbursement of conversion charges.

BENEFITS FOR MSME SECTOR UNDER RIPS 2024:

MSME ENTERPRIES MEANS:

Micro, Small and Medium Enterprises means:

Micro Enterprises:

A micro enterprise is a very small business. According to the new rules from July 1, 2020, a business is considered a micro enterprise if:

The money spent on machines or equipment is less than one crore rupees.
The total sales or turnover of the business is less than five crore rupees.

Small Enterprises:

A small enterprise is a bit bigger than a micro one but still not very large. Under the updated rules, a business is a small enterprise if:

The money spent on machines or equipment is less than ten crore rupees.
The total sales or turnover of the business is less than fifty crore rupees.

Medium Enterprises:

Medium enterprises are larger than micro and small ones but still not huge. According to the new rules, a business is a medium enterprise if:

The money spent on machines or equipment is less than fifty crore rupees.
The total sales or turnover of the business is less than two hundred and fifty crore rupees.

ELIGIBILITY:

(A) MANUFACTURING ENTERPRISES:

All manufacturing units (except tobacco/pan masala, cow beef, retail/ trading activity, city gas distribution system, other prohibited activity) are eligible to get benefits under RIPS 2024 in the category as MSME.

(B) SERVICE ENTERPRISES:

Service enterprises engaged in the below business are eligible to get the benefits under RIPS 2024:-

- Healthcare
- IT & ITeS
- Fintech
- Tourism
- Entertainment
- Film City
- Civil Aviation
- Common Utility Centre
- Sports Academy
- AVGC-XR
- Higher Education
- Plug and Play Office Complex
- Social Infrastructure
- Vocational Training and Skilling
- Knowledge based Industries

MSMEs unit having minimum investment of INR 25 Crore in a project will be eligible to take benefits either in Large Category or in MSME Category.

BENEFITS FOR MSME UNITS UNDER RIPS 2024:

Eligible manufacturing or service enterprises can avail the below benefits under RIPS 2024:

(A) Assets Creation Benefits: Investment subsidy of 75% SGST due and deposited for a period of 10 years

CAPITAL SUBSIDY	Any MSME unit engaged in manufacturing of alternative plastic products will be eligible for a capital subsidy @ 50% of total capital investment, maximum upto INR 40 Lakh.
	Enterprices engaged in Agro & Food processing will be eligible to get a capital subsidy @ 50% of the capital investment, subject to maximum upto INR 1.50 Crore
	5% Additional capital subsidy will be provided if the FPOs owned by ST/SC/ Women enterprenuer or unit setup in indentified tribal-plan area.

ASSETS CREATION INCENTIVE TOP-UP:

(B) The enterprises can avail interest subvention under RIPS 2024 for a period of 7 years, The interest subsidy slab under RIPS 2024 for MSME units are as below:

Loan Amount for Plant & Machinery/ Equipment or apparatus	Interest Subvention
1 Crore to 5 Crore	6%
5 Crore to 10 Crore	4%
10 Crore to 50 Crore	3%

Khadi unit will get interest benefits for a period of 10 years.

For loan taken upto INR 25 Lakh by Rajasthan Rural Tourism unit or by agro-based industries then it will be get an additionally 1% interest subvention.

(C) Exemptions: The eligible MSME enterprises will also gets the below mentioned exemption benefits under the RIPS-2024 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
75% Stamp Duty exemption and 25% stamp duty reimbursement.
75% conversion charges exemption and 25% reimbursement of conversion charges.

(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) Other Incentives:

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.

“ALL INCENTIVES FOR MSME ARE CAPPED UPTO INR 5 CRORE PER ANNUM.”

BENEFITS FOR STARTUPS UNDER RIPS 2024:

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.

ELIGIBILITY:

A) Startups qualified minimum ‘Bronze’ category under Rajasthan Govt. Q-rate program will be eligible for take benefit under RIPS 2024.

B) Incubators and accelerators who are separate legal entity from host institute/ enterprises will be eligible to avail special incentives offered for establishment of business incumbents centres.

Hence, the below incentives are offered under RIPS 2024 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 10 years from the date of commencement of commercial production. Additional 25% reimbursement of SGST due & deposit will be provided for women founded and led startups for the period of first two years. 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 75% Stamp Duty exemption and 25% stamp duty reimbursement. 75% conversion charges exemption and 25% reimbursement of conversion charges.
BUSINESS INCUBATION CENTRES	Business Incubation Centres The policy will provide support up to INR 2.5 Crore to Government institutes & INR 1.5 Crore to private institutes for setting up business incubation centres. The amount will be disbursed in 5 annual equal instalments.

BENEFITS FOR LOGISTIC INFRASTRUCTURE PRIVATE INDUSTRIAL PARK, WAREHOUSE AND COLD CHAIN STORES ETC. UNDER RIPS 2024:

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 2024 scheme:

The Policy offers incentives in below two categories under Industrial Infrastructure-

(A) Logistics Infrastructure

(B) Private Industrial Parks

Eligibility Criteria and sub segments of Logistics Infrastructure are as below:

Logistics Infrastructure Sub Segment	Minimum Investment Criteria
Warehouse or Cold Chain	INR 2 Crore
Trucker Park	INR 5 Crore
Silo	INR 15 Crore
Multi Modal Logistics Park (MMLP), Integrated Logistics Park (ILP), Inland Container Deport (ICD), Container Freight Station (CFS), Air Freight Station (AFS), Cargo Terminal	INR 50 Crore

Benefits/ Incentives for Logistic Infrastructure, Warehouse & Cold chain under RIPS-2024:

A) Capital subsidy @ 25% of the EFCI will be given to the eligible logistic infrastructure project subject to prescribe annual ceiling limit as per below table:

Logistics Infrastructure Sub Segment	Maximum annual capital subsidy
Warehouse or Cold Chain	INR 15 Crore
Trucker Park	INR 5 Crore
Silo	INR 15 Crore
Multi Modal Logistics Park (MMLP), Integrated Logistics Park (ILP), Inland Container Deport (ICD), Container Freight Station (CFS), Air Freight Station (AFS), Cargo Terminal	INR 50 Crore

The capital subsidy will be disbursed in 10 annual instalment.

B) An interest subvention @ 7% will be given to the eligible logistic infrastructure for the period of 7 years subject to maximum of INR 50 Lakh per annum.

The enterprises may choose either capital subsidy or interest subvention.

(C) Exemptions: The eligible MSME enterprises will also gets the below mentioned exemption benefits under the RIPS-2024 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
75% Stamp Duty exemption and 25% stamp duty reimbursement.
75% conversion charges exemption and 25% reimbursement of conversion charges.

PRIVATE INDUSTRIAL PARK:

Eligibility Criteria:

Particular	Minimum Land Area for Eligibility of Private Industrial Park
Private Industrial Parks	In Area Category 1: 30 Acres
Private Industrial Parks	In Area Category 2 & 3: 20 Acres
Food Processing Parks, Waste Processing Parks	In Area Category 1: 15 Acres
Food Processing Parks, Waste Processing Parks	In Area Category 2 & 3: 10 Acres

INCENTIVES FOR PRIVATE INDUSTRIAL PARK:

Eligible Private industrial park, food processing parks, waste processing parks can get land allotment from government at circle rate.

Additionally, The state government will facilitate electricity and water at the private industrial park boundary wall.

BENEFITS FOR R&D, Global Capability Centre (GCC), Test Labs under RIPS-2024

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 2024 the eligible investment size is INR 5 Crore.

The bundle of Benefits for R&D, Global Capability Centre, Test Labs under RIPS- 2024 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 10 crore for a period of 10 years.
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 M-SAND MANUFACTURING CRUSHER PLANT UNDER RIPS-2024:

M-Sand is an alternative sustainable source of traditional river sand used in construction and helps to mitigate the environmental demaged caused due to exceed mining of river sand.

The benefits for M-Sand manufacturing crusher plant under RIPS 2024 are as under:

Benefits/ Inventive	Descriptions
Asset Creation Incentives	Investment subsidy of 75% SGST due and deposited for the period of 10 years from date of commencement of commercial production.
Exemptions	Exemption from 100% of electricity duty for 7 years 75% conversion charges exempt and 25% conversion charges reimbursment. 75% stamp duty exempt and 25% stamp duty reimbursment.
Other incentive	– Reimbursment of 50% of employer contribution towards EPF and ESI for a period of 7 years. – One time financial assistant for for fund (capital) raising through SME platform 50% of cost incured maximum upto INR 5 Lakh.

DOCUMENTS REQUIRED FOR APPLICATION UNDER RIPS: 2024

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 2024 (RIPS-2024)

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What is RIPS 2024? orWhat is the new industrial policy 2024 in Rajasthan?

RAJASTHAN INVESTMENT PROMOTION SCHEME - 2024

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 2029. 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 in the state Rajasthan Only:

For establishment of new unit by existing or new enterprises

Existing enterprises investing for “expansion as per the definition of expansion.”

New investments made after the launch of this Policy ara aligible to apply only under this Policy.

The commercial production of the unit must be started within the operative period of the policy or 2 years from the date of issuance of entitlement certificate which ever is later.

FOCUSED CATEGORIES:

The RIPS 2024 is not applicable to sector specified in Annexure 9.2 (ineligible industries) of policy.

The RIPS 2024 policy has simplified architectural to enable easier in understanding with considering the FOCUS category classified under RIPS 2022 to ensure there should not be any exclusion in the new policy.

The seven identified priority category under RIPS 2024 as under:

Manufacturing

Services

Sunrise sectors

MSMEs

Startups

Industrial Infrastructure

R&D, GCC & Test Labs

STANDARD INCENTIVE PACKAGES OR BENEFITS UNDER RIPS 2024:

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

· Add-on additional incentives

B) Incentive for Service Sector Enterprises

· Standard Package

· Add-on additional incentives

C) Incentives for Sunrise Sectors

D) Incentives for MSMEs

E) Incentives for Startups

F) Incentives for industrial infrastructure

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

COMPLETE BENEFITS FOR MANUFACTURING UNIT UNDER RIPS, 2024:-

ELIGIBILITY CRITERIA FOR MANUFACTURING ENTERPRISES

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

MSME-I

MSME-II

Large Category

Mega Category and

Ultra Mega Category

Which may be better understand by below table:-

BENEFITS FOR MANUFACTURING SECTOR:

The complete benefits, under the RIPS 2024 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: ASSETS CREATION INCENTIVES: Top-Ups

Employment Booster

Thrust Booster or Anchor Booster or Interest Subvention

PART-III: EXEMPTIONS:

Electricity Duty

Stamp Duty

Conversion Charges

Mandi Fee

Market Fee

PART-I: ASSETS CREATION INCENTICES:- Any of one option may be choose out of below three options:

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 Crore per annum for 4th to 7th year.

OPTION-II: CAPITAL SUBSIDY:

The capital subsidy will be given to eligible manufacturing enterprises for investment made in eligible fixed capital investment 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:

Project Category

Location or Area Category

Area Category 1

Area Category 2

Area Category 3

Large

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

17% of EFCI to be disburse in 10 annual installments

What is RIPS 2024?
or
What is the new industrial policy 2024 in Rajasthan?

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 Crore per annum for 4^th to 7^th year.