Rajasthan Investment Promotion Scheme 2024
RIPS 2024 replaced RIPS 2022 and is Rajasthan’s main incentive scheme for new investment, operative until 31 March 2029 or until a new policy is notified. MSMEs in manufacturing and services receive an asset-creation incentive of 75% of State tax due and deposited for ten years from commercial production, with top-ups for interest subvention and EPF/ESI, special capital incentives for agro and food processing and plastic alternatives, green, training and export incentives, and exemptions from electricity duty and mandi fee. All incentives for an MSME are capped at ₹5 crore a year.
Key Benefits
- Investment subsidy of 75% of State tax due and deposited, for ten years from the date of commercial production.
- Interest subvention for seven years: 6% on loans up to ₹5 crore, 4% on ₹5–10 crore and 3% on ₹10–50 crore; 1% more for rural and agri-processing units, and ten years for Khadi.
- 50% of the employer’s EPF and/or ESI contribution for seven years.
- Special capital incentive of 50% of capital investment for agro and food processing (up to ₹1.5 crore) and for makers of plastic alternatives (up to ₹40 lakh).
- Green incentives up to ₹1 crore: 50% of environmental project costs, 10% of clean-technology machinery, 100% electricity duty exemption on captive renewable energy for seven years, and a 50% consent-fee waiver.
- Training: 50% of employee training costs for six months, up to ₹20,000, ₹30,000 or ₹40,000 a month for micro, small or medium units.
- First-time MSME exporters: 25% of freight to State ICDs or air cargo, up to ₹25 lakh a year.
- Exemptions: 100% of electricity duty and mandi fee for seven years; stamp duty and land-conversion benefits in stages as notified.
Who Can Apply
- MSMEs in manufacturing and services setting up or expanding in Rajasthan. The scheme’s thresholds: micro up to ₹1 crore investment and ₹5 crore turnover; small up to ₹10 crore and ₹50 crore; medium up to ₹50 crore and ₹250 crore.
- Commercial production must start within the operative period or within two years of the Entitlement Certificate, whichever is later (clause 2.4).
- Only investment made and employment created in Rajasthan counts (clause 2.3).
- FPOs and farmer producer co-operatives with at least 50 farmer members are also eligible (clause 2.5).
Eligible Business Types
MSME Category Applicability
Eligible Industries
How to Apply
- Apply on the Rajnivesh single-window portal for an Entitlement Certificate.
- After commercial production, claim the incentives each year through the portal with the tax-deposit and expenditure records.
Apply at: Rajnivesh single-window portal
Required Documents
- Udyam Registration
- GSTIN
- Project report with investment break-up
- Bank sanction letter (for interest subvention)
- Land or lease documents
- EPF/ESI registration (for the employment top-up)
Stacking Compatibility
This scheme can be combined with the following for higher total benefits:
Common Rejection Reasons
- Commercial production outside the operative period
- Investment or employment outside Rajasthan counted
- Claim made without an Entitlement Certificate
Subsidy Setu's DPR preparation process addresses all common rejection points before filing.