Unlocking Opportunities for Sunrise Sectors under Rajasthan Investment Promotion Scheme (RIPS) 2022
As part of its strategic vision, Rajasthan is positioning itself as the preferred investment destination for sunrise sectors, offering robust incentives for industries that promise significant advancements in technology, economic growth, and skill development. These sectors represent the future of innovation and economic prosperity in the state. Let’s explore the key benefits available under RIPS-2022 for sunrise sector enterprises.
Sunrise Sectors Under RIPS-2022
Businesses operating in the following sectors with a minimum investment of Rs. 50 crore can qualify as part of Rajasthan’s sunrise sectors:
- Green Hydrogen
- Ethanol
- Medical Devices and Equipment
- Biotechnology
- New Battery Technologies
- Industry 4.0
- Data Centers
- Rare Earth Elements
These industries are expected to drive Rajasthan’s progress in cutting-edge technologies, sustainability, and economic development.
Key Benefits for Sunrise Sector Units
(A) Asset Creation Investment Benefits
For asset creation, sunrise sector units can avail the same investment benefits as those offered to manufacturing units. These benefits include:
- Capital Subsidy
- SGST Reimbursement
- Turnover Linked Incentive (TLI)
(B) Special Benefits for Mega and Ultra Mega Projects
To incentivize large-scale investments, the first three sunrise sector units that fall under the Mega and Ultra Mega Project categories (as per manufacturing sector slabs) are eligible for an additional 20% asset creation incentive. Beyond these initial three units, further investments will be treated under the Manufacturing Thrust Sector category.
Additionally, these first three sunrise sector Mega and Ultra Mega Projects will receive 100% waiver or reimbursement of banking, wheeling, and transmission charges, providing a significant financial advantage to pioneering enterprises.
(C) Green Incentives
Sunrise sector units can access the same green incentives as manufacturing sector units. These incentives encourage sustainability through measures such as water conservation, waste management, and eco-friendly technologies.
(D) Exemptions
Sunrise sector enterprises are entitled to several key exemptions, mirroring those offered to manufacturing sector units. These include:
- 100% exemption from Electricity Duty for seven years
- 100% exemption from Land Tax for seven years
- 100% exemption from Market Fees (Mandi Fees) for seven years
- 100% Stamp Duty exemption, provided in stages as notified by the state government
- 100% exemption from Conversion Charges, provided in stages as per state notification
Employment Booster Incentives
To encourage job creation, RIPS-2022 offers Employment Booster Special Incentives to sunrise sector enterprises that exceed the minimum employment threshold by 1.5x or more. The special incentives are provided based on the employment slab reached, and businesses can choose from the following benefits:
- Capital Subsidy
- Turnover Linked Incentive (TLI)
- SGST Reimbursement
The employment booster incentives are structured as follows:
| Employment Slab | Incentive Booster on Selected Scheme (Capital Subsidy, TLI, SGST Reimbursement) |
| 1.5x – 2x of minimum threshold | 10% |
| 2x – 2.5x of minimum threshold | 12.5% |
| Above 2.5x of minimum threshold | 15% |
These incentives are designed to reward businesses that make significant contributions to employment generation in the state.
Additional Special Incentives
Sunrise sector units can also access other special incentives similar to those provided to the manufacturing sector, including:
- Green Incentives
- Cluster Incentives
- Freight Subsidy
- Training & Skilling Incentive
These incentives are intended to foster growth, encourage innovation, and facilitate the development of skilled workforces within sunrise sectors.