Rajasthan Investment Promotion Scheme 2024 (RIPS 2024)

What is the Rajasthan Investment Promotion Scheme 2024?

Rajasthan Investment Promotion Scheme 2024, usually written as RIPS 2024, is the Rajasthan government's headline industrial incentive policy. RIPS 2024 was notified by the Finance Department (Tax Division) through order number F.12(32)FD/Tax/2024-93A dated 8 October 2024, and it succeeds the earlier RIPS notifications as the framework under which new investments in the state claim state support.

RIPS 2024 exists to lower the cost of doing business in Rajasthan and to pull investment into the state, and the policy document ties this to the state's stated ambition of becoming a $350 billion economy. The preface records that Rajasthan's Gross State Domestic Product stood at roughly Rs 15.3 lakh crore in FY 2023-24 with an average growth rate of 12%, that the state covers 3.43 lakh square kilometres, and that industrial output makes up 27% of its GSDP.

Structurally, RIPS 2024 is built as three tiers:

• Tier 1 to Standard Incentive Packages for manufacturing, services, sunrise sectors, MSMEs, start-ups, industrial infrastructure, and R&D, Global Capability Centres and test labs.
• Tier 2 to Add-On Incentives Driven by State Priorities, namely Green Growth, Export Promotion and Capability Development.
• Tier 3 to Customized Incentive Packages, offered as Silver, Gold and Platinum packages for very large investors negotiated case by case.

Who is eligible for RIPS 2024, and who is not eligible?

An enterprise can claim RIPS 2024 incentives if:

• The investment is new and made after the launch of this policy. Clause 2.2 states plainly that new investments made after the launch are eligible to apply only under this policy.
• The investment and employment are physically in Rajasthan. Clause 2.3 counts only investment made and employment generated by an enterprise inside the state.
• The enterprise commences commercial production or operation during the operative period, or within 2 years of the grant of the Entitlement Certificate, whichever is later.
• The enterprise meets the minimum investment threshold for its package: Rs 50 crore for the manufacturing standard package and Rs 25 crore for the services standard package. MSMEs and start-ups qualify under separate, much lower thresholds.
• The applicant is a Farmer Producer Organisation or Farmer Producer Cooperative registered under the Companies Act 2013, the Co-operative Societies Act 1912 or the Societies Registration Act 1860 with a minimum of 50 farmer members; clause 2.5 makes these explicitly eligible for the relevant incentives.

An applicant is not eligible if:

• The sector falls in the list of ineligible industries at Annexure 9.2 of the policy. Clause 2.6 excludes those sectors outright.
• The applicant is an individual seeking a personal cash benefit. RIPS 2024 is an enterprise scheme. A citizen cannot apply for a payment for themselves under it, and there is no individual application form anywhere on the portal.
• The investment was made before the policy was launched and is not covered by the transition provisions in clause 6.2.
• An expansion project that does not meet the twin test, a minimum expansion investment of 25% of existing investment and incremental capacity of at least 20%.

What incentives does RIPS 2024 give?

Asset Creation Incentives (choose one)

Under the manufacturing standard package, an investor picks exactly one of three Asset Creation Incentives, capital subsidy, turnover-linked incentive, or investment subsidy.

• Capital subsidy is expressed as a percentage of Eligible Fixed Capital Investment (EFCI) disbursed in annual instalments over 10 years. For manufacturing, a Large project of Rs 50–300 crore with at least 100 employees and minimum investment of Rs 50 crore draws 13%, 17% or 20% of EFCI depending on whether it sits in Area Category 1, 2 or 3. A Mega project of Rs 300–1,000 crore with at least 250 employees and minimum investment of Rs 150 crore draws 17% or 20% on the same area logic.
• Turnover Linked Incentive (TLI) pays a percentage of net sales turnover for 10 years. An Ultra Mega manufacturing project above Rs 1,000 crore with 750 employees and minimum investment of Rs 500 crore draws 1.65%, 1.85% or 2.00% of net sales turnover for 10 years by area category. TLI carries annual caps of Rs 50 crore in years 1–3, Rs 65 crore in years 4–7 and Rs 80 crore in years 8–10 for manufacturing.
• Investment Subsidy (SGST reimbursement) reimburses 75% of State tax due and deposited for seven years from the date of commencement of commercial production, with annual caps of Rs 50 crore in years 1–3 and Rs 65 crore in years 4–7 for manufacturing.

Boosters on top of the chosen incentive

• Employment Booster adds 10%, 12.5% or 15% to the chosen Asset Creation Incentive where employment reaches 1.5x–2x, 2x–2.5x or more than 2.5x of the minimum threshold.
• Thrust Booster adds a 10% top-up on the chosen incentive for manufacturing thrust sectors; the Anchor Booster adds 20%. An investor takes one of Thrust Booster, Anchor Booster or Interest Subsidy, not all.
• For IT and ITeS, the capital subsidy limit after the 20% anchor booster rises to Rs 100 crore for all 10 years for the first three units making a mega or ultra mega category investment.

Exemptions and reimbursements

• 100% exemption from Electricity Duty for 7 years.
• 100% reimbursement of mandi fee for 7 years.
• 100% stamp duty benefit, released in stages as notified by the state. R&D, GCC and test lab units get 75% stamp duty exemption plus 25% reimbursement, and the same 75%/25% split applies to conversion charges.
• 100% conversion charges benefit, again in notified stages.

Capability Development and Export Promotion

• Skilling and training: reimbursement of 50% of employee training cost, up to Rs 4,000 per worker per month for 6 months, or alternatively up to Rs 1,00,000 per employee per year for a maximum of 20 employees, as a one-time incentive. For MSMEs the monthly ceiling is expressed per unit size; Rs 20,000 for micro, Rs 30,000 for small and Rs 40,000 for medium units.
• IP creation: for in-house R&D, the government pays 50% of the cost up to Rs 1 crore for patents, copyrights, trademarks and geographical indicators. Start-ups get up to 75% of the cost of acquiring patents, capped at Rs 5 lakh.
• Freight subsidy for first-time exporters: MSME exporters get 25% of freight charges for exports routed through state ICDs or the air cargo complex, capped at Rs 25 lakh per exporting unit per year.

Green Growth add-ons include 50% reimbursement of the cost of setting up environmental infrastructure, 10% of the cost of clean-production machinery, 100% electricity duty exemption on captive renewable generation for 7 years and a 50% consent fee waiver under the Rajasthan Green Rating System, up to a ceiling of Rs 10 crore.

What are the MSME and start-up packages?

RIPS 2024 defines MSMEs in line with the national definition: micro at investment up to Rs 1 crore and turnover up to Rs 5 crore, small at up to Rs 10 crore and Rs 50 crore, medium at up to Rs 50 crore and Rs 250 crore. All MSME incentives are capped annually at Rs 5 crore.

Two MSME special incentives stand out. Enterprises manufacturing alternatives to plastic products get a special capital incentive of 50% of capital investment, up to Rs 40 lakh. Enterprises in agro and food processing get 50% of capital investment up to Rs 1.5 crore, with an additional 5% capital subsidy for FPOs owned by SC, ST or women entrepreneurs and for units in Tribal Sub-Plan areas.

For start-ups, eligibility runs through the state's Q-Rate programme. The enterprise must meet the Bronze or higher qualifying criteria. Start-up incentives are likewise capped at Rs 5 crore a year.

Logistics and industrial infrastructure carry their own table: 25% capital subsidy for warehouses, silos, multi-modal logistics parks, ICDs, CFS, air freight stations, cargo terminals and truckers' parks, and 20% for cold storage, with annual ceilings of Rs 15 crore for warehouse, silo and cold storage, Rs 50 crore for MMLP, ILP, ICD, CFS, air freight station and cargo terminal, and Rs 5 crore for truckers' parks.

How to apply for RIPS 2024 incentives

1. Register the enterprise on the Raj Nivesh single window portal at rajnivesh.rajasthan.gov.in, which is the state's Single Window Clearance System and the only route for RIPS applications.
2. Use the portal's LaabhCalc incentive calculator to model which Asset Creation Incentive: capital subsidy, TLI or SGST reimbursement; is worth most for your project size, sector, employment and tehsil area category.
3. File the application for an Entitlement Certificate, attaching the detailed project report, incorporation documents, GST registration, land or RIICO allotment proof and the proposed investment and employment plan.
4. Respond to queries raised by the concerned department. Annexure 9.7 of the policy lists which department handles which sector, and the sanctioning authority differs by project size, with customized Tier-3 packages sanctioned at a higher level than standard packages.
5. On receipt of the Entitlement Certificate, commence commercial production within the operative period or within 2 years of the certificate, whichever is later.
6. File the disbursement claim after commercial production begins, supported by a chartered accountant's certificate of eligible fixed capital investment, employment records and, for SGST reimbursement, evidence of state tax actually deposited.
7. Track the application and each annual instalment on the same portal.

Key dates and area categories

• 8 October 2024; RIPS 2024 notified by the Finance Department.
• 31 March 2029; end of the operative period, unless a new policy is notified sooner.
• 2 years from the Entitlement Certificate, outer limit for commencing commercial production where that falls later than the operative period.

Rajasthan is divided into three area categories, with every tehsil mapped to one of them in Annexure 9.3. The category decides the incentive percentage: less developed tehsils sit in the higher category and draw the larger subsidy. Checking your tehsil's category before choosing a site is the single decision that moves the incentive number most.

Common reasons a RIPS claim is rejected or delayed

• Sector appears in the ineligible list at Annexure 9.2.
• Investment threshold not met, for example a services project below the Rs 25 crore floor, or an expansion below the 25% and 20% twin test.
• Employment shortfall against the minimum threshold for the claimed project category, which knocks out both the base incentive band and the employment booster.
• Commercial production not commenced within the operative period or within 2 years of the Entitlement Certificate.
• Investment made before the policy launch and outside the transition provisions of clause 6.2.
• Incomplete chartered accountant certification of eligible fixed capital investment at the disbursement stage.

Help and grievance redressal

• Bureau of Investment Promotion, Udyog Bhawan, Tilak Marg, Jaipur
• Phone: +91-141-2227899, 9:30 AM to 6:00 PM, Monday to Friday
• Email: bip.raj@nic.in
• Finance Department: rajfd@rajasthan.gov.in

The Government of Rajasthan reported disbursing Rs 765.78 crore in investment incentives during 2024-25, which gives some sense of the scale at which RIPS operates. The full policy text, including all incentive tables, the list of ineligible industries and the tehsil-to-area-category mapping, is published as a PDF on the state's own iStart and Finance Department sites.