RIPS 2024 for MSMEs: Rajasthan's Investment Subsidies, Deadlines and How to Apply on Rajnivesh

The Rajasthan Investment Promotion Scheme 2024 (RIPS 2024) is Rajasthan's main incentive scheme for MSMEs setting up or expanding in the State until 31 March 2029. Its MSME package reimburses 75% of the State tax you deposit for 10 years, gives 3% to 6% interest subvention on plant and machinery loans for 7 years and exempts electricity duty, with all incentives capped at ₹5 crore a year. You apply on the Rajnivesh portal, and the post-production application is due within 90 days of starting commercial operations.

Sources checked: 20 October 2026

Facts checked on 20 October 2026 against the Finance Department's RIPS 2024 order of 8 October 2024, the consolidated text updated to 16 May 2025, the amendment of 16 May 2025 and the procedural guidelines of 3 February 2025 (amended 18 August 2026), all on finance.rajasthan.gov.in.

Key facts

Item	What RIPS 2024 says
Notified	Finance Department order No. F.12(32)FD/Tax/2024-93A, 8 October 2024
Replaces	RIPS 2022 (which replaced RIPS 2019)
Operative till	31 March 2029, or a new policy, whichever is earlier (cl. 2.1)
Investment subsidy	75% of State tax due and deposited, for 10 years
Interest subvention	6% (loans up to ₹5 crore), 4% (₹5–10 crore), 3% (₹10–50 crore), for 7 years
Annual cap	₹5 crore of incentives a year per MSME (cl. 3.4.1.2)
MSME definition	Government of India definition, as amended
Apply on	Rajnivesh portal; Form 3B within 90 days of commercial operations

Who qualifies for the RIPS 2024 MSME package?

• MSMEs in manufacturing and services setting up or expanding in Rajasthan, classified by the Government of India definition as amended from time to time (amendment of 16 May 2025).
• Services MSMEs only in the services thrust sectors listed in Annexure 9.5.
• Only investment made and employment generated in Rajasthan counts (clause 2.3).
• Commercial production must start during the operative period or within two years of the Entitlement Certificate, whichever is later (clause 2.4).
• FPOs and farmer producer co-operatives with at least 50 farmer members are also eligible for the relevant incentives (clause 2.5).
• An existing MSME expanding must invest at least 25% of its existing investment and add at least 20% capacity (section 6.3 as amended on 16 May 2025).
• An MSME with eligible fixed capital investment above ₹25 crore may instead choose the large-project manufacturing or services package (clause 3.4.1.2).

What incentives does the MSME package pay?

Incentive	Quantum
Investment subsidy	75% of State tax due and deposited, for 10 years
Interest subvention	6% / 4% / 3% a year by loan size (up to ₹50 crore) for plant, machinery or equipment, for 7 years; 10 years for Khadi enterprises
Extra interest subvention	1% more on loans up to ₹25 lakh, for agro-based industries and beneficiaries of the Rajasthan Rural Tourism Policy
Employment	50% of the employer's EPF and ESI contribution for 7 years, domiciled employees only
Agro and food processing	Special capital incentive of 50% of capital investment, up to ₹1.5 crore
Plastic alternatives	50% of capital investment, up to ₹40 lakh
Fund raising	One-time 50% of the cost of raising capital on an SME platform, up to ₹5 lakh
Electricity duty	100% exemption for 7 years
Mandi or market fee	100% reimbursed for 7 years
Stamp duty and conversion charges	75% exempted and 25% reimbursed

FPOs owned by SC, ST or women entrepreneurs, and units in Tribal Sub-Plan areas, get 5% more capital subsidy. First-time MSME exporters, including existing units that export for the first time, get 25% of freight to State ICDs or air cargo complexes, up to ₹25 lakh a year (section 4.2.1).

How are the interest subvention and freight subsidy worked out?

The interest subvention is telescoped, like income-tax slabs. The scheme's own illustration: on a ₹6 crore loan for plant and machinery, the unit gets 6% on the first ₹5 crore (₹30 lakh) and 4% on the next ₹1 crore (₹4 lakh) in a year. Khadi enterprises get the subvention for 10 years instead of 7.

The freight subsidy is a share of actual freight. In the scheme's illustration, a first-time exporter that spends ₹80 lakh in a year on freight through State ICDs and air cargo complexes gets 25%, which is ₹20 lakh; the reimbursement can never exceed ₹25 lakh a year per exporting unit, and only exporting units registered in Rajasthan qualify.

Remember the overall limit: everything an MSME receives under the package in a year is capped at ₹5 crore.

What if my unit stops being an MSME?

Units grow, and the MSME limits change. Clause 1.23 of the procedural guidelines, inserted on 18 August 2026, says that if an enterprise is no longer an MSME under the Government of India definition, the MSME-category benefits originally approved for a project continue for the rest of the approved period. The same amendment (clause 1.22) confirms that the MSME package applies only to manufacturing and services MSMEs in sectors eligible under the manufacturing and services standard packages.

Who cannot claim RIPS 2024?

• Ineligible industries (Annexure 9.2): tobacco, tobacco products and pan masala; cow beef processing; retail and trading activities; city gas distribution; and any activity prohibited by law.
• Services MSMEs outside Annexure 9.5.
• Renewable energy generation and storage, and M-Sand, which must use their own sector packages (procedural guidelines clause 1.21).
• Units that start production outside the time allowed, or count investment outside Rajasthan.

Units that applied under the older scheme should read our RIPS 2019 page, which explains how it was superseded.

How do I apply on Rajnivesh, step by step?

1. Create the enterprise profile (Form 1) and the project profile (Form 2) on the Rajnivesh portal. The incentive package you choose in Form 2 cannot be changed once you apply for the stamp duty and conversion-charge exemptions, so decide before you file.
2. Before production, file Form 3A if you want the 75% stamp duty and conversion-charge exemptions; you receive an Entitlement Certificate for them.
3. Start commercial production and keep the first sale or tax invoice as proof.
4. Within 90 days of commencement of commercial operations, file Form 3B with the incentive-specific forms. This is the application for the Entitlement Certificate for the remaining incentives.
5. The District Level Sanctioning Committee screens and sanctions applications under the MSME package (the State committee only where the investment spans several districts).
6. Claim the incentives each year through the portal with the tax-deposit and expenditure records.

Existing units claiming only the freight subsidy or green incentives apply within 12 months of the date of the invoice for that expenditure.

Which documents do I need?

• Udyam Registration and GST registration
• First sale or tax invoice, as proof of commercial production
• Capacity certificate (self-certified) and an investment certificate certified by a chartered accountant
• List of employees in the prescribed format, with EPF/ESI registration (for the employment subsidy)
• Consent to Operate from the Rajasthan State Pollution Control Board
• Term-loan sanction letter and repayment details (for interest subvention)
• Land or lease documents (for stamp duty and conversion-charge benefits)

Our DPR Builder helps you prepare the project report the bank will ask for.

What are the common mistakes?

• Missing the 90-day Form 3B window. A late application needs condonation by the sanctioning committee.
• Using the old investment and turnover table. It was deleted by the May 2025 amendment; use the current Government of India limits.
• Assuming every service qualifies. Only Annexure 9.5 services do; trading never does.
• Forgetting the ₹5 crore annual cap when projecting cash flows.
• Skipping Form 3A before production when you want the stamp duty and conversion-charge exemptions, which are selected at the pre-commencement stage.

What should I do now?

If you are investing in Rajasthan, create your Rajnivesh profile, decide the incentive package and diarise the 90-day Form 3B deadline from the day production starts. See the local picture on our Jaipur and Jodhpur district pages, read the RIPS 2024 scheme page, run the eligibility checker, or ask our expert team to review your application.