Investment Incentives under Rajasthan Investment Promotion Scheme – 2014 (RIPS – 2014), Government of Rajasthan

A. GENERAL PROVISIONS APPLICABLE ACROSS THE BOARD

Manufacturing Sectors Investment Subsidy Employment Stamp Duty. Electricity Duty Land Tax Entertainment & Conversion Mandi Fee Entry Tax Exemption
(% re-imbursement of VAT and/or CST paid) Generation Subsidy Exemption Exemption Exemption Luxury Tax Charges Exemption
(% re-imbursement of Exemption Exemption
VAT and CST paid)
General incentives to all 30 % of VAT and CST for 7 yrs (for 10 years Up to 20% for 7 yrs 50 % 50 % for 7 yrs. 50 % for 7 yrs. 50 % 50% for 7 100 % for investment more than 750
manufacturing units in backward and most backward areas) 25% for Tourism yrs** Cr. on capital goods
General Incentives to all 50 % of VAT paid on purchase of P & M or 50 % 50 % for 7 yrs. 25% 50 % for 7 yrs. 50 % for 7 yrs. 50 % 100 % for investment more than 750
Services Sector units equipment for 7 yrs; 25% for entertainment for Entertainment Cr. on equipment

B. SECTOR SPECIFIC INCENTIVES

Investment Range (Rs.) Mandatory Condition, Investment Subsidy Employment Exemption from Stamp Duty. Electricity Duty Entertainment Other Incentives/ special
Manufacturing if any (% re-imbursement of VAT Generation Subsidy (% Entry Tax Exemption Exemption & Luxury Tax provision
Sectors and CST paid) re-imbursement of VAT (Capital goods-C.G. Exemption
and CST paid) Raw Mat – R.M)
MSME in Rural 30 % for 7 yrs Up to 20% for 7 yrs 50% (R.M and 50 % & 75% for 7 yrs. Reduced CST of 1%, against C
areas packaging Reduced stamp duty form, on sale of goods for a
material.) Rs 100 for loan and Rs period of 10 years.
excluding fuel 500 for mortgage
Ceramic and Min. Rs. 5 Cr. 50% for 10 years Up to 10% for 10 years. 50 % 50 % for 7 yrs.
Glass Min. Rs. 50 lakh In notified ceramic 65% for 10 years. Upto 10% for 10 years 50 % 50 % for 7 yrs.
hub
Dairy Min. Rs. 25 Cr. 50% for 10 years. Up to 10% for 10 years. 50% (C.G. only) 50 % 50 % for 7 yrs.
ESDM Rs. 25 Lac.≤ Investments > Rs. 75% - first 4 years, Up to 10% for 10 years. 50% (C.G. only) 50 % 50 % for 7 yrs.
250 Cr. 60% - next 3 years and
50% - last 3 years.
Rs. 250 Cr.≤ Investments > Rs. 90% for 7 years Up to 10% for 7 years 50% (C.G. only) 50 % 50 % for 7 yrs.
500 Cr.
Rs. 500 Cr.≤ Investments 90% for 10 years Up to 10% for 10 years 50% (C.G. only) 50 % 50 % for 7 yrs.
Rs. 25 Lac.≤ Investments > Rs. In Production before 75% - first 4 years Up to 10% for 10 years 50% (C.G. only) 50 % 50 % for 7 yrs.
50 Cr. 31.03.2017 60% - next 3 years
50% - last 3 years
Rs. 50 Cr.≤ Investment In Production before 100% for 10 years. Allowed 75 % (C.G. only) 100 % 50 % for.10 yrs Interest subsidy of 5% for 10
31.03.2017 without any limit or linkage years, subject to max. Rs. 50
Min. Employ:1000 per with EFC Investment lakh per annum.Total investment
subsidy is not linked to EFCI.
Industrial gases Min. Rs. 50 Cr. 60% for 7 years Up to 10% for 7 years. 50 % 50 % for 7 yrs.
Pharmaceutical Min. Rs. 50 Cr. Min. Employ:200 pers. 50% for 7 years Up to 10% for 7 years. 50%: (C.G. only) 50 % 50 % for 7 yrs.
Plastic to Oil Min. Rs. 1 Cr. 60% for 10 years Up to 10% for 10 years. 50% (C.G. only) 50 % 50 % for 7 yrs.
Power loom Min. Investment of Rs. 25 Min. Employ:10 pers. 80% reimbursement of VAT Up to 20% for 7 yrs 50% (C.G. only) 50 % 50 % for 7 yrs. Interest Subsidy: 5%,Additional
Lakh in notified areas of paid on purchase of yarn for 1% for investment more than Rs.
Jodhpur, Pali and 7 years 25 Cr, 7% for Technical Textile
Barmer Sector; Capital Subsidy on ZLD
ETP: 20% of cost, subject to a
maximum of Rs. 1crore
Textile Min. Investment of Rs. 25 50% reimbursement of VAT 50% (C.G. only) 50 % 50 % for 7 yrs. Interest Subsidy: 5%, Additional
Lakh paid on purchase of yarn, 1% for investment more than Rs.
fibre, recycled fibre yarn, 25 Cr, 7% for Technical Textile
cotton and pet bottles Sector; Capital Subsidy on ZLD
ETP: 20% of cost, subject to a

*This table is for indicative purpose only. For detailed provisions, exemptions, other terms & conditions, amendments etc. please refer to applicable Rajasthan Investment Promotion Scheme – 2014 and visit www.investrajasthan.com
 Investment Incentives under Rajasthan Investment Promotion Scheme – 2014 (RIPS – 2014), Government of Rajasthan
Investment Range (Rs.) Mandatory Condition, Investment Subsidy Employment Exemption from Stamp Duty. Electricity Duty Entertainment Other Incentives/ special
Manufacturing if any (% re-imbursement of VAT Generation Subsidy (% Entry Tax Exemption Exemption & Luxury Tax provision
Sectors and CST paid) re-imbursement of VAT (Capital goods-C.G. Exemption
and CST paid) Raw Mat – R.M)
maximum of Rs. 1crore
Tourism Min Investment of Rs. 2 Crore. Hotels having 50% for 7 years; Up to 10% for 7 years. 50 % & 25% 50 % of Land allotment in urban and
minimum 20 let-able Reimbursement of 25% of additional exemption Entertainment rural areas at DLC rates; 100%
rooms; Heritage Hotel VAT paid on P & M for a on purchase or lease of Tax for seven exemption on payment of
certified by Govt or period up to 7 years. more than 100 yrs old years; 100 % conversion charges; and 100%
Convention Centre or heritage property of Luxury Tax exemption from payment of
Resort. for seven years development charges
Kota Stone, Min. Investment of Rs. 25 55% for 7 years Up to 10% for 7 years 50 % 50 % for 7 yrs.
granite and Lakh
Marble
Defence Rs. 100 Cr.≤ Investment > Rs. 50% for 7 years up to 10% for 7 years 50% (C.G. only) 50 % 50 % for 7 yrs.
500 Cr.
Rs. 500 Cr ≤ Investment 65% for 10 years up to 10% for 10 years 50% (C.G. only) 50 % 50 % for 7 yrs.
Desalination Rs. 4 Cr ≤ Investment 50% reimbursement of VAT 50% (C.G. only) 50 % 50 % for 7 yrs.
on P & M; 50%
reimbursement of VAT on
membrane for 7 years.
IT up to Rs. 5 Cr. 30% for 7 Yrs. Up to 20% for 7 Yrs. 50% 50 % for 7 yrs.
Manufacturing Rs. 5 Cr.< Investments > Rs. 60% for 7 Yrs. Up to 10% for 7 Yrs. 100% 50 % for 7 yrs.
25 Cr.
Min. Rs. 25 Cr. 70% for 7 Yrs. Up to 10% for 7 Yrs. 100% 50 % for 7 yrs.
Min. Investment Rs. 50 crore Only for Robotic 70% for 7 Yrs. Up to 10% for 7 Yrs. 100% 50 % for 7 yrs. Interest subsidy - 5% on the term
Enterprises loan, for a period of five years
IT Services Min. Investment of Rs. 25 Reimbursement of 50 % 50 % 50 % for 7 yrs Interest subsidy - 5% for a
Lakh VAT paid on P & M or period of 5 years, subject to max
equipment for 7 yrs. of 5 lakh rupees per annum.
Min. Investment of Rs. 5 Cr. Reimbursement of 50 % 100% 50 % for 7 yrs Interest subsidy - 5% for a
VAT paid on purchase of P period of five years, subject to a
& M or equipment for 7 yrs. max. of 5 lakh rupees per annum

Agro-processing Agro – Procesing & Agri 50 % ( P&M Interest subsidy-5%

and Agri- marketing Activities (Ann.- IV) only)
marketing Up to Rs. 25 lakh 30% for 7 Yrs. Up to 20% for 7 Yrs. 50 % 50 % for 7 yrs
More than Rs. 25 lakh 60% for 7 Yrs. Up to 10% for 7 Yrs. 50% (P&M only) 50 % 50 % for 7 yrs Capital Subsidy on ZLD ETP
equivalent to 20% of cost
subject to a max Rs. 25 lakh.
Biotechnology Rs.5 Cr.< Investments up to Rs. 60% for 7years up to 10% for7 yrs. 50 % 50% for 7 yrs Capital Subsidy on ZLD ETP
Manufacturing 25 Cr. equivalent to 30% of cost,
subject to a max. Rs. 1 crore
More than Rs. 25 Cr. 70% for 7 years up to 10% for 7 yrs. 100% (C.G. only) 100% 50% for 7 yrs
Biotechnology Min. Rs. 25 Cr. 75% for 7 years. 100% (equipment 100% 50% for 7 yrs Interest subsidy – 5 %
Services only)
Food Processing More than Rs. 25 lakh 60% for 7 years 10% For 7 years 50% 50% for 7 yrs Capital Subsidy on ZLD ETP
equivalent to 20% of cost
subject to a max Rs. 25 lakh.
Food Park 50%
** Mandi fee exemption shall not be allowed to the enterprises engaged in: (i) Primary Processing Activities such as cleaning, trimming, grading, disinfecting and packing activities; and
(ii) Animal products and Dairy products if the investment in plant and machinery is less than rupees one crore.
*This table is for indicative purpose only. For detailed provisions, exemptions, other terms & conditions, amendments etc. please refer to applicable Rajasthan Investment Promotion Scheme – 2014 and visit www.investrajasthan.com
 Investment Incentives under Rajasthan Investment Promotion Scheme – 2014 (RIPS – 2014), Government of Rajasthan
C. SPECIAL PROVISIONS FOR INCENTIVES IN BACKWARD AND MOST BACKWARD AREAS:

Subsidy/ Exemption Backward Area Most Backward Area Rest of Rajasthan

S.No.
1 Investment Subsidy 30% for 10 years 35% for 7 yrs 30% for 7 yrs
2 Additional Investment Subsidy 15% for 7 yrs 20% for first 7 yrs Nil
3 Electricity Duty Exemption 50% for 10 yrs 50% for 7 yrs 50% for 7 years
4 Conversion Charges 50% on CLU 50% on CLU 50% on CLU
5 Special Interest Subsidy 0.5% in eligible sectors 1% in eligible sector Nil
6 Infrastructure Support (For road, water & electricity Most Backward Area – Maximum limit of Rs. 5 crore, if the total investment is more than 750 crore
up to the premises of unit)

Notified most backward area for the applicable scheme: Notified backward area for the applicable scheme:
 Revenue District of Baran  Revenue District of Barmer
 Revenue District of Jhalawar  Revenue District of Dholpur
 Revenue District of Jaisalmer
 Revenue District of Banswara
 Revenue District of Karauli
 Revenue District of Dungarpur
 Tribal Sub-Plan Area of Revenue District of Udaipur, Sirohi and Pratapgarh including municipal areas thereof,
as specified by Scheduled Areas (State of Rajasthan) Order, 1981 dated 12.02.1981.
D. CUSTOMIZED PACKAGE

Notwithstanding anything contained in the scheme, the State Government on recommendation of State Empowered Committee may grant customized package to manufacturing enterprises:
(a) Min. Investment Rs. 100 crore or Min. employment to 200 persons, in most backward areas as notified under the Scheme.
(b) Min. Investment Rs. 200 crore or Min. employment to 250 persons, in backward areas as notified under the Scheme.
(c) Min. Investment Rs. 400 crore or employment to more than 400 persons, in general area.
(d) Min. Investment Rs. 100 crore and using the minerals mentioned in Annexure III in RIPS-2014, as main raw material
(e) Bio-Technology sector: Min. Investment Rs. 100 crore and employment to more than 200 persons.
(f) Agro-procesing & Agri – Marketing sector: Min. Investment Rs. 100 cr. or more and employment to at least 250 persons
(g) Cement manufacturing enterprises - Min investment of Rs 750 Cr
(h) Notwithstanding anything contained in the Scheme, the State Government may grant a customized package to the manufacturing enterprises in IT sector investing more than Rs. 200 crore or providing employment to more than 400 persons.
Notwithstanding anything contained in the Scheme, the State Government may grant a customized package to the service enterprises investing more than Rs. 200 crore or providing employment to more than 500 persons.

E. MAXIMUM EXTENT OF SUBSIDY:

 The maximum amount of subsidy (investment subsidy + employment generation subsidy + additional Investment subsidy) in any period shall not exceed the amount of VAT and CST due and paid in that period. Moreover, the total amount of subsidy paid
shall not exceed the eligible fix capital investment as approved by the appropriate Screening Committee.

F. EMPLOYMENT GENERATION SUBSIDY:

 The amount of employment generation subsidy per employee per year shall be Rs. 35000/- for Women/ SC/ST/ Person with disability (PwD) categories of employees and Rs 30,000/- for others. However, for the enterprises of Agro-processing and Agri
marketing sector the amount of employment generation subsidy per employee per year shall be Rs. 37500/- for Women/ SC/ST/ Person with disability (PwD) categories of employees and Rs 30,000/- for others. Enterprises making investment in backward
and most backward areas, the amount of employment generation subsidy per employee per year for bonafide resident of Rajasthan shall be Rs. 40,000/- for women/Scheduled Cast(SC)/Scheduled Tribe(ST)/Person with Disability(PWD) category of em-
ployee and Rs. 35,000/- for others.
G. INELIGIBLE ENTERPRISES:

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Enterprises which are ineligible for benefits of subsidies and/ or exemptions under the Rajasthan Investment Promotion Scheme-2014 are listed as Annexure – I in RIPS – 2014. (Please visit www.investrajasthan.com)
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Notwithstanding anything contained in clause 3.1 of RIPS - 2014, the State Government, on the recommendation of the State Empowered Committee (SEC), may grant the benefit of the Scheme to the first manufacturing enterprise, investing Rs. 250 crore or more
in a block notified as a most backward area, provided that the investment is not related to entry number 1 and 4 of Annexure I, appended to the Scheme.

*This table is for indicative purpose only. For detailed provisions, exemptions, other terms & conditions, amendments etc. please refer to applicable Rajasthan Investment Promotion Scheme – 2014 and visit www.investrajasthan.com