Rajasthan Scheme

Definitions

• “Agricultural Product” means produce of Agriculture, Horticulture, Sericulture, Floriculture, Aromatic, Herbal & Medical plants, Fisheries, Poultry, Apiculture, and Dairy. It shall include derivatives or residues of agricultural product or intermediate agriculture products and shall also include minor forest produce and livestock based products;
• “Agro Cooperative” means any Special Purpose Vehicle or Producer Organisation formed by farmers and registered under the Rajasthan Cooperative Act, where they pool their resources to engage in manufacturing or service activities
• “Agro Processing Sector” sector comprising manufacturing enterprises which add value to agriculture products through processing to manufacture marketable products in a manner that results in the emergence of a new product having a distinct name, character and use;
• “Anchor Enterprise” means first enterprise set up in a district with investment of more than rupees one hundred crore and by providing direct employment to more than hundred persons and engaged in manufacturing in any of the thrust sectors. Provided that all eligible enterprises set up in backward areas and most backward areas with an investment of more than rupees one hundred persons shall be treated as Anchor Enterprise;
• “Amusement Park” means Theme Park or Water Park or Adventure Park or Entertainment Park or Desert Park for providing recreational or Fun or Entertainment facilities with amusement rides, games, rope way, water slides, restaurants, theme area, activity area etc ( not mandatory to have all the features) in minimum area of ten acres of land;
• “Apparel Sector” means a sector comprising enterprises engaged in manufacturing of motor vehicle having equal to or more than two wheels with seating capacity of more than one person and powered by an internal combustion engine or electric power;

Applicability of the Scheme

• The Scheme shall be applicable to the following classes of enterprises and investment, excluding investment mentioned in the list appended
• The scheme shall not be applicable to a unit enterprise if its commercial production or operation has commenced before the issuance of this order or an entitlement certificate has been issued to provide any exemption or benefit under Rajasthan Investment Promotion scheme-2014 or Rajasthan Investment Promotion Scheme- 2010 or Rajasthan Investment promotion scheme-2003
• Notwithstanding anything contained , the State Government, on the recommendation of the State Empowered Committee (SEC), may grant the benefit of the scheme to an enterprise to whom any customized package under the RIPS-2010 or RIPS-2014 has been issued but due to genuine hardship, has failed to; avail the benefits to it under the said entitlement certificate; or initiate civil work related to factory building or installation of Plant & Machinery of the proposed project up to the date of issuance of RIPS-2019; or has failed to start commercial production within the operative period of the scheme under which it has been issued the entitlement certificate for customized package, due to reason beyond its control.
• Notwithstanding anything contrary contained anywhere in the Scheme, where an enterprise or Agro Cooperative or Producer Organization or Special Purpose Vehicle has availed the applicable benefits in this scheme as Electronic Manufacturing Cluster, Industrial park or IT park or Logistic Park or Multi-Modal Logistics Hub and if any other individual enterprise further purchases a smaller pert or take on lease/sub-lease of land and/or building in the Electronic Manufacturing Cluster, Industrial Park or IT park or Logistic Park or Multi-Modal Logistics Hub, such individual enterprise shall be eligible or all be applicable benefits under this scheme as a new enterprise.
• Where an enterprise is engaged in eligible activities of both the categories i.e. manufacturing and service, it shall have to opt for benefits in any one of the following two categories, namely ;- a) As Manufacturing Enterprise; or b) As service Enterprise.
• The investment made and employment generated in the State of Rajasthan shall only be eligible to be counted for investment and employment, whichever conditions of minimum investment and employment are specified under this scheme or Customized Package issued under the Scheme.
• The employment generated in the State of Rajasthan shall only be eligible to be counted for Employment Generation Subsidy as an eligible enterprise specified under this Scheme.

Benefits to Manufacturing Enterprises

1. An eligible manufacturing enterprise shall be granted benefits and incentives as given below:-
2. Investment Subsidy of 75% of State tax due and deposited, for seven years;
3. Employment Generation Subsidy in the form of reimbursement of 50% of employers contribution towards employees EPF and ESI, for seven years: Provided that the Employment Generation Subsidy in the form of reimbursement of 75% od employers contribution towards EPF and ESI shall be granted

• For employees belonging to Women, Schedule Caste (SC), Schedule Tribe (ST) , Person with disability (PwD); and
• For all employees if the enterprise is providing more than 75% direct employment to persons domiciled in Rajasthan. Provided Further that the Employment Generation Subsidy shall not be granted for those employees for which employer is receiving reimbursement under any other scheme of Government of India or Government of Rajasthan;
• Exemption from payment of 100% of electricity Duty for seven years;

1. Exemption from payment of 100% of land Tax for seven years;
2. Exemption from payment of 100% of Market Fee (Mandi Fee) for seven years;
3. Exemption from payment of 100% of Stamp duty;

• On purchase or lease/sub-lease of land and construction or improvement on such land; and
• On purchase or lease/sub-lease of floor area/space in any constructed commercial building for setting up of enterprise in:-

1. IT sector; or
2. Apparel Sector; or
3. Industry 4.0; and

• Exemption from payment of 100% of conversion charges payable for change of land use and conversion of land.

2. Notwithstanding anything contained in the Scheme, the State Government may grant a special package of incentives and exemption, which may be over and above the benefits available to a Manufacturing Enterprise in a thrust sector.
3. Notwithstanding anything contained in the Scheme, an eligible manufacturing enterprise will be provided all the applicable benefits, as mentioned and applicable additional benefits as Thrust Sector enterprise, subject to the condition that enterprise may opt for and shall be provided either one of the following benefits, as mentioned below, namely :-
4. Applicable Interest Subsidy; or
5. Applicable Capital Subsidy.

Provided that Capital Subsidy on zero liquid discharge based effluent treatment plant applicable to textile sector and apparel sector shall not be counted as capital subsidy for the purpose of this clause.

Provided further that where an eligible enterprise falls under more than one category of Thrust Sector, it shall have to opt for benefits in any one of the Thrust sector and can avail additional benefits provided in one Thrust Sector only.

Benefits to Manufacturing Enterprising in Thrust Sectors

Agro-Processing Sector: Enterprises making an investment equal to or above rupees five crores in Agro-Processing Sector shall be granted the following benefits:-

1. 5% interest subsidy on term loan taken by enterprise from Financial Institution or State Financial Institution or Banks recognized by Reserve Bank of India, for making an investment in plant & machinery, for a period of five years subject to a maximum of Rs.twenty-five lakh per year; or
2. Capital Subsidy equivalent to 25% of the investment made on the plant & machinery, subject to a maximum of rupees fifty lakh.

Provided that enterprises established by Farmers Producer Organization or Agro Cooperatives shall be granted 7% Interest Subsidy on term loan taken by enterprise from Financial Institutions or State Financial Institutions or Banks recognized by Reserve Bank of India, for making an investment in plant & machinery, for a period of five years subject to a maximum of rupees fifty lakh per year.

Bio-Technology Sector:

Enterprises making an investment more than rupees five crore but below rupees twenty-five crore in Bio-Technology Sector shall be granted the following benefits :-

1. 25% additional Investment Subsidy of State tax due and deposited, for seven years;
2. 25% additional Employment Generation Subsidy in the form of reimbursement of employers contribution, subject to an upper limit of 75% Employment Generation Subsidy for any employee, towards employees EPF and ESI, for seven years; and
3. 5% Interest Subsidy on term loan taken by the enterprise from Financial Institutions or Banks recognized by Reserve Bank of India, for making an investment in plant & machinery for a period of five years subject to a maximum of rupees twenty-five lakh per year.

Dairy Sector:

Enterprises making an investment equal to or above rupees five crores in the Dairy Sector shall, be granted the following benefits:

1. 5% interest subsidy on term loan taken by enterprise from Financial Institutions or State Financial Institutions or Banks recognized by Reserve Bank of India, for making an investment in plant & machinery, for a period of five years subject to a maximum of Rs. Twenty-five lakh per year; or
2. Capital Subsidy equivalent to 25% of the investment made on the plant & machinery, subject to maximum of rupees fifty lakh.

Provided that enterprises established by Farmers Producer Organization or Agro Cooperatives shall be granted 7% Interest Subsidy on term loan taken by enterprise from Financial Institutions or State Financial Institutions or Banks recognized by Reserve Bank of India, for making an investment in plant & machinery, for a period of five years subject to a maximum of rupees fifty lakh per year.

Defence Sector:

Enterprises making an investment equal to or above rupees one hundred crore but below five hundred crore rupees in the Defence Sector shall be granted the following benefits:

1. 5% Interest Subsidy on term loan taken by the enterprise from Financial Institutions or State Financial Institutions or Banks recognized by Reserve bank of India, for making an investment in plant & machinery on the plant and machinery for a period of five years subject to a maximum of rupees twenty-five lakh per year.
2. Electricity Duty exemption for additional 3 years.

Enterprises making an investment equal to or above rupees five hundred crore in the defence sector shall be granted the following benefits:

1. 5% Interest Subsidy on term loan taken by the enterprise from Financial Institutions or State Financial Institutions or Banks recognized by Reserve Bank of India, for making an investment in plant & machinery on the plant and machinery for a period of five years subject to maximum of rupees one crore per year;
2. Electricity Duty exemption for additional 3 years.

DMIC Area:

Enterprises making an investment equal to or above rupees ten crore in the DMIC Area, shall be granted the following benefits:

1. 5% Interest Subsidy on term loan taken by the enterprise from Financial Institutions or State Financial Institutions or Banks recognized by Reserve Bank of India, for making an investment in plant & machinery, for a period of five years subject to a maximum of Rs.twenty five lakh per year or
2. Capital Subsidy equivalent to 25% of investment made on the plant & machinery, subject to a maximum of rupees twenty five lakh.

Electric Vehicle (EV) :

Enterprise in Automobile Sector, making an investment equal to or above rupees 50 crores in Electric Vehicle Manufacturing Unit, shall be granted the following benefits:

1. 5% Interest Subsidy on term loan taken by the enterprise from Financial Institutions or State Financial Institutions or Banks recognized by Reserve Bank of India, for making an investment in plant & machinery on the plant and machinery for a period of five years subject to a maximum of rupees one crore per year; or
2. Capital Subsidy equivalent to 25% of investment made on the plant & machinery. Subject to maximum or rupees fifty lakh.

Food Processing Sector:

Enterprises making an investment equal to or above rupees five crore in Food-Processing Sector shall be granted the following benefits:

1. 5% Interest Subsidy on term loan taken by enterprise from Financial Institution or State Financial Institutions or Banks recognized by Reserve Bank of India, for making an investment in plant & machinery, for a period of five years subject to a maximum of rupees twenty-five lakh per year; or
2. Capital Subsidy equivalent to 25% of investment made on the plant & machinery, maximum of rupees twenty five lakh.

Provided that enterprises established by Farmers Producer Organization or Agro Cooperatives shall be granted 7% Interest Subsidy on term Loan taken by enterprise from Financial Institutions or State Financial Institutions or Banks recognized by Reserve Bank of India, for making investment in plant & machinery, for a period of five years subject to a maximum of rupees fifty lakh per year.

Auto-Component Sector, Electronic System Design Manufacturing (ESDM) Sector, Chemical Sector, Petrochemical Sector, Petroleum Ancillary and Pharmaceuticals Sector:

Enterprises making an investment equal to or above rupees ten crore in the Auto-Component Sector or Electronic System design manufacturing (ESDM) sector or Chemical Sector or Petrochemical Sector or Petroleum Ancillary or Pharmaceuticals Sector shall be granted the following benefits:

1. 5% Interest Subsidy on term loan taken by enterprise from Financial Institution or State Financial Institutions or Banks recognized by Reserve Bank of India, for making an investment in plant & machinery, for a period of five years subject to a maximum of rupees twenty-five lakh per year; or
2. Capital Subsidy equivalent to 25% of investment made on the plant & machinery, maximum of rupees twenty five lakh.

Leather, Footwear and Accessories Sector, Gems and Jewellery Sector, Mineral Sector:

Enterprises making an investment equal to or above rupees two crore in the Leather. Footwaer and Accessories Sector or Mineral Sector shall be granted the following benefits:

1. 5% Interest Subsidy on term loan taken by enterprise from Financial Institution or State Financial Institutions or Banks recognized by Reserve Bank of India, for making an investment in plant & machinery, for a period of five years subject to a maximum of rupees twenty-five lakh per year; or
2. Capital Subsidy equivalent to 25% of investment made on the plant & machinery, maximum of rupees twenty five lakh.

Handicraft Sector:

Enterprises making an investment equal to or above rupees twentyfive lakh in the Hndicraft Sector shall be granted the following benefits:

1. 7% Interest Subsidy on term loan taken by enterprise from Financial Institution or State Financial Institutions or Banks recognized by Reserve Bank of India, for making an investment in plant & machinery, for a period of five years subject to a maximum of rupees twenty-five lakh per year; or
2. Capital Subsidy equivalent to 25% of investment made on the plant & machinery, maximum of rupees twenty five lakh.

Industrial Gases Sector:

Enterprises making an investment equal to or above rupees fifty crore in the Industrial Gases Sector shall be granted the following benefits:

1. Investment Subsidy of 75% of State tax due and deposited, for additional three years; and
2. Exemption from payment of Electricity Duty for additional three years.

M-Sand Sector:

Enterprises making an investment equal to or above rupees two crore in the manufacturing of M-sand shall be granted the following benefits:-

1. 25% additional Investment Subsidy of State tax due and deposited for seven years; and
2. 5% Interest Subsidy on term loan taken by enterprise from Financial Institution or State Financial Institutions or Banks recognized by Reserve Bank of India, for making an investment in plant & machinery, for a period of five years subject to a maximum of rupees twenty-five lakh per year; or
3. Capital Subsidy equivalent to 25% of investment made on the plant & machinery, maximum of rupees twenty five lakh.

Medical Device Manufacturing Sector:

Enterprises making an investment equal to or above rupees two crore in the manufacturing of M-sand shall be granted the following benefits:-

1. 5% Interest Subsidy on term loan taken by enterprise from Financial Institution or State Financial Institutions or Banks recognized by Reserve Bank of India, for making an investment in plant & machinery, for a period of five years subject to a maximum of rupees twenty-five lakh per year; or
2. Capital Subsidy equivalent to 25% of investment made on the plant & machinery, maximum of rupees fifty lakh.

MSME Sector:

Enterprises of MSME sector shall, in addition to benefits, be granted the following benefits:

1. Water Conservation and Green Measures Subsidy in the form of Reimbursement of

• 50% of cost incurred on water audit by any Government empanelled or Government approved agency subject to maximum of rupees two lakh;
• 50% of amount paid to the suppliers for the plant, excluding civil work, for establishing zero liquid discharge based effluent treatment plant;
• 50% of amount paid to the suppliers for the plant, excluding civil work, for adopting green building measures for the building having a minimum floor space of 2000sq mtrs; and
• 50% of amount paid to the suppliers for the plant, excluding civil work, for establishing “Reuse and Recycling of Industrial Waste Plant” , subject to maximum of rupees fifty lakh and shall be one time assistance;

Provided that maximum total amount of subsidy including first 3 shall be subject to maximum of rupees fifty lakh and shall be one time assistance;

Solar Equipment Sector:

Enterprises making an investment equal to of above rupees ten crore in Solar Equipments Sector shall be granted the following benefits:

1. 25% additional Investment Subsidy of State tax due and deposited for seven years; and
2. 25% additional Employment Generation Subsidy in the form of reimbursement of employer contribution, subject to upper limit of 75% Employment Generation Subsidy for any employee, towards employees EPF and ESI for seven years; and
3. Exemption from payment of Electricity Duty for additional three years; and
4. 5% Interest Subsidy on term loan taken by enterprise from Financial Institution or State Financial Institutions or Banks recognized by Reserve Bank of India, for making an investment in plant & machinery, for a period of five years subject to a maximum of rupees twenty-five lakh per year; or
5. Capital Subsidy equivalent to 20% of investment made on the plant & machinery, maximum of rupees fifty lakh.

Start-Ups :

Start-up set-up by an enterprise or Agro Cooperative or Producer Organization or Special Purpose Vehicle making an investment equal to or above rupees tweny five shall be granted 25% additional Investment Subsidy of State tax due and deposited, for seven years.

Textile Sector and Apparel Sector:

Enterprises making an investment equal to or above rupees twenty-five in the Textile Sector shall be granted the following benefits:

1. Capital Subsidy on zero liquid discharge based effluent treatment plant equivalent to 20% of the amount paid to the suppliers for the plant excluding civil work, subject to a maximum of rupees one crore, to enterprises of Textile & Apparel Sector; and
2. 5% Interest Subsidy on term loan taken by enterprise from Financial Institution or State Financial Institution or Banks recognised by Reserve Bank of India, for making an investment in plant & machinery as specified under the TUF Scheme of Government of India, for a period of five years, for enterprises making investment more than rupees twenty-five crore; or
3. 7% Interest Subsidy on term loan taken by enterprise from Financial Institution or State Financial Institutions or Banks recognised by Reserve Bank of India, for making an investment in plant & machinery as specified under the TUF Scheme of Government of India, for a period of five years, for Apparel Sector and enterprises manufacturing Technical Textiles, Khadi & Handloom; or

Wind Turbine Manufacturing Sector:

Enterprises making an investment equal to or above rupees ten crore in Wind Turbine Manufacturing Sector shall be granted the following benefits:

1. 25% additional Investment Subsidy of State tax due and deposited; and
2. 25% additional Employment Generation Subsidy in the form of reimbursement of employees contributions, subject to upper limit of 75% Employment Generation Subsidy for any employee, towards employees EPF and ESI, and
3. Exemption from payment of Electricity Duty for additional three years; and
4. 5% Interest Subsidy on term loan taken by enterprise from Financial Institution or State Financial Institutions or Banks recognized by Reserve Bank of India, for making an investment in plant & machinery, for a period of five years subject to a maximum of rupees twenty-five lakh per year; or
5. Capital Subsidy equivalent to 20% of investment made on the plant & machinery, maximum of rupees fifty lakh.