Historical policy context: RIPS 2022. This article concerns the 2022 scheme. Its incentive summary and sector list must be checked against the applicable policy, amendments and project approval. For a current enquiry, see the official policy register and our RIPS 2024 consultancy page.
RIPS 2022 Sunrise Sectors: Project Review Context
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
The following sector examples appear in this historical overview. Check the notified sector definition, investment threshold and other eligibility conditions for the relevant policy edition before classifying a project:
- Green Hydrogen
- Ethanol
- Medical Devices and Equipment
- Biotechnology
- New Battery Technologies
- Industry 4.0
- Data Centers
- Rare Earth Elements
These industries can support Rajasthan’s progress in technology, 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, the scheme treats further investments 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 employment slab determines the special incentive. Eligible businesses can choose from the following benefits:
- Capital Subsidy
- Turnover Linked Incentive (TLI)
- SGST Reimbursement
The table below sets out the employment booster slabs:
| 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 reward businesses that create jobs 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 support growth, innovation and workforce skills within sunrise sectors.
Sunrise-Sector Projects: Frequently Asked Questions
Does using an emerging technology establish sunrise-sector eligibility?
No classification should be assumed from a marketing label. Match the actual project activity to the notified definition and check the applicable policy conditions.
Are the RIPS 2022 and RIPS 2024 sector lists interchangeable?
Treat each edition and its amendments separately. A sector reference in an older article should not be used as confirmation under a later policy.
What project information is useful for a review?
Prepare a technology and process description, proposed location, investment breakdown, project dates, capacity and existing approval references. Confirm the final checklist with the reviewer.
Can incentives from different categories simply be added together?
Check permitted combinations, exclusions and approval conditions in the governing documents. Do not treat several headline figures as a guaranteed combined benefit. Contact LegalMan to discuss the review scope.