LIST OF INCENTIVES


TYPES OF INCENTIVES
All eligible Manufacturing Enterprises as per Rajasthan Investment Promotion Scheme – 2019
  1. Investment Subsidy of 75% of State tax due and deposited, for seven years
  2. 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% of 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.
  3. Exemption from payment of 100% of Electricity Duty for seven years
  4. Exemption from payment of 100% of Electricity Duty for seven years
  5. Exemption from payment of 100% of Land Tax for seven years;
  6. Exemption from payment of 100% of Market Fee (Mandi Fee) for seven years;
  7. Exemption from payment of 100% of Stamp Duty:
    • On purchase or lease/sub-lease of land and construction or improvement on such land;
    • 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
  8. Exemption from payment of 100% of Land Tax for seven years;

As per Rajasthan Investment Promotion Scheme – 2019, the State Government may grant a special package of incentives and exemptions, which may be over and above the benefits available to a Manufacturing Enterprise in a thrust sector which are as:

SECTOR ELIGIBILITY TYPES OF INCENTIVES
1. Agro-Processing Sector Investment equal to or above rupees five crore
  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 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
  3. 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 a period of five years subject to a maximum of rupees fifty lakh per year.
2. Bio-Technology Investment more than rupees five crore but below rupees twenty-five crore
  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
  3. 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 a period of five years subject to a maximum of rupees twenty-five lakh per year.
Investment equal to or above rupees twenty-five crore
  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 upper limit of 75% Employment Generation Subsidy for any employee, towards employees EPF and ESI, for seven years;
  3. 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 a period of five years subject to a maximum of rupees twenty-five lakh per year.
  4. 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 50 lakhs.
3. Ceramic and Glass Sector Investment equal to or above rupees ten crore
  1. Investment Subsidy of 25% of State tax due and deposited, for additional three years
  2. 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 a period of five years subject to a maximum of rupees twenty-five lakh per year
4. Defense Investment equal to or above rupees one hundred crore but below five hundred crore rupees
  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 a period of five years subject to a maximum of rupees twenty-five lakh per year.
  2. Electricity Duty exemption for additional 3 years.
Investment equal to or above rupees five hundred crore
  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 a period of five years subject to a maximum of rupees one crore per year.
  2. Electricity Duty exemption for additional 3 years.
5. DMIC Investment equal to or above rupees ten crore
  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.
  2. Capital Subsidy equivalent to 25% of investment made on the plant & machinery, subject to a maximum of rupees twenty five lakh.
6. Electric Vehicle Investment equal to or above rupees 50 crores
  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 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 a maximum of rupees fifty lakh.
7. Food Processing Investment equal to or above rupees five crore
  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 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, subject to a maximum of rupees twenty five lakh.
  3. 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 a period of five years subject to a maximum of rupees fifty lakh per year.
8. Auto-Component, Electronic System Design Manufacturing (ESDM), Chemical, Petrochemical, Petroleum Ancillary and Pharmaceutical Investment equal to or above rupees ten crore
  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 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, subject to a maximum of rupees fifty lakh.
9. Leather, Footwear and Accessories Sector, Gems & Jewellery Sector, Mineral Investment equal to or above rupees two crore
  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 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, subject to a maximum of rupees twenty five lakh.
10. Handicraft Investment equal to or above rupees twenty five lakh
  1. 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 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, subject to a maximum of rupees twenty five lakh.
11. Industrial Gases Investment equal to or above rupees fifty crore
  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.
12. M- Sand Investment equal to or above rupees two crore
  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 Institutions or State Financial Institutions or Banks recognized by Reserve Bank of India, for a period of five years subject to a maximum of rupees twenty five lakh per year; or
  3. Capital Subsidy equivalent to 20% of investment made on the plant & machinery, subject to a maximum of rupees twenty five lakh.
13. Medical Device Investment equal to or above rupees five crore
  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 a period of five years subject to a maximum of rupees fifty lakh per year; or
  2. Capital Subsidy equivalent to 20% of investment made on the plant & machinery, subject to a maximum of rupees fifty lakh.
14. MSME As defined under Micro, Small and Medium Enterprises Development Act, 2006
  1. Water Conservation and Green Measures Subsidy in the form of Reimbursement of :
    1. i.i) 50% of cost incurred on water audit by any Government empanelled or Government approved agency subject to maximum of rupees two lakh
    2. i.ii) 50% of amount paid to the suppliers for the plant, excluding civil work, for establishing zero liquid discharge based effluent treatment plant.
    3. i.iii) 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 2000 sq mtrs.
    4. i.iv) 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.
    5. Maximum total amount of subsidy including (i.i), (i.ii) and (i.iii) as above shall be subject to maximum of rupees fifty lakh and shall be one time assistance.
  2. One-time reimbursement of 50% of cost incurred on obtaining quality certification for manufacturing or processes or certification related to export, issued by any Government agency, subject to maximum of rupees twenty five lakh.
  3. One-time reimbursement of 50% cost incurred to acquire advanced technology from premier national institutes, subject to maximum of rupees ten lakh.
  4. One-time financial assistance equivalent to the assistance provided by Government of India for obtaining Patents, Geographical Indication (GI) Tagging, and Trademark Registration.
  5. One-time reimbursement of 50% of investment made on plant and machinery and testing equipments for obtaining Silver or Gold or Diamond or Platinum rating under Zero Defect and Zero Effect Certification Scheme of Government of India, subject to maximum of rupees five lakh.
  6. One-time financial assistance on raising funds (capital) through SME platform, to the extent of 50% of the investment made in process of raising funds (capital), subject to a maximum of rupees five lakh.
15. Solar Equipments Investment equal to or above rupees ten crore
  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 upper limit of 75% Employment Generation Subsidy for any employee, towards employees EPF and ESI for seven years.
  3. Exemption from payment of Electricity Duty for additional three years.
  4. 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 rupees twenty-five lakh per year; or
  5. Capital Subsidy equivalent to 20% of investment made on the plant & machinery, subject to a maximum of rupees fifty lakh.
16. Start-ups Investment equal to or above rupees twenty five lakh (Agro Cooperative or Producer Organization or Special Purpose Vehicle)
  1. 25% additional Investment Subsidy of State tax due and deposited, for seven years.
17. Textile Sector and Apparel Investment equal to or above rupees twenty-five lakh
  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.
  2. 5% Interest Subsidy on term loan taken by enterprise from Financial Institutions or State Financial Institutions or Banks recognized by Reserve Bank of India, specified under the TUF Scheme of Government of India, for a period of five years; or
  3. 6% Interest Subsidy on term loan taken by enterprise from Financial Institutions or State Financial Institutions or Banks recognized by Reserve Bank of India 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
  4. 7% Interest Subsidy on term loan taken by enterprise from Financial Institutions or State Financial Institutions or Banks recognized by Reserve Bank of India 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
  5. Capital Subsidy equivalent to 25% of the investment made on the plant & machinery as specified under the TUF Scheme of Government of India, subject to a maximum of rupees fifty lakh.
18. Wind Turbine Manufacturing Investment equal to or above rupees ten crore
  1. 25% additional Investment Subsidy of State tax due and deposited
  2. 25% additional Employment Generation Subsidy in the form of reimbursement of employers contribution, subject to upper limit of 75% Employment Generation Subsidy for any employee, towards employees EPF and ESI
  3. Exemption from payment of Electricity Duty for additional three years
  4. 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 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, subject to a maximum of rupees fifty lakh
TYPES OF INCENTIVES
All eligible Service Enterprises as per Rajasthan Investment Promotion Scheme – 2019
  1. Investment Subsidy of 75% of State tax due and deposited, for seven years
  2. 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% of 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.
  3. Exemption from payment of 100% of Electricity Duty for seven years
  4. Exemption from payment of 100% of Land Tax for seven years;
  5. Exemption from payment of 100% of Market Fee (Mandi Fee) for seven years;
  6. Exemption from payment of 100% of Stamp Duty:
    • On purchase or lease/sub-lease of land and construction or improvement on such land;
    • 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; or
      4. Tourism Sector; and
  7. Exemption from payment of 100% of Land Tax for seven years;

As per Rajasthan Investment Promotion Scheme – 2019, the State Government may grant a special package of incentives and exemptions, which may be over and above the benefits available to a Service Enterprise in a thrust sector which are as:

SECTOR ELIGIBILITY TYPES OF INCENTIVES
1. Cold Chain in Pharmaceuticals Investment equal to or above rupees two crore
  1. Capital Subsidy equivalent to 25% of the investment made on the plant & machinery and equipments, subject to a maximum of rupees twenty-five lakh
2. Common Utility Centre Any enterprise or Agro Cooperative or Producer Organization or SPV in a building of more than 5000 Sq ft area having an investment equal to or above rupees five crore
  1. Capital Subsidy equivalent to 20% of investment made on the plant & machinery and equipments, subject to a maximum of rupees fifty lakh
3. Industrial Park Enterprise or Special Purpose Vehicle, making an investment equal to or above rupees twenty-five crore
  1. Capital Subsidy equivalent to 20% of the investment made on the development of common infrastructure in the Industrial Park, subject to maximum rupees two crore, or
  2. 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 a period of five years subject to a maximum of rupees fifty lakh per year.
4. Infrastructure for Value-addition or Preservation of Agricultural Products Investment equal to or above rupees one crore in Forward and Backward Linkage for Agro-Processing Sector in rural areas by creation of infrastructure for Value-addition or Preservation of Agricultural Products, in any of the activities mentioned in the end of clause 6 of RIPS – 2019 :List-3
  1. Capital Subsidy equivalent to 25% of the investment made on the plant & machinery, subject to a maximum of rupees twenty-five lakh; and
  2. Capital Subsidy equivalent to 25% of the investment made on maximum two movable refrigerated vehicles, subject to a maximum of rupees twenty-five lakh.
5. IT Park Investment equal to or above rupees fifteen crore
  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 five years, subject to maximum rupees seventy-five lakh per annum.
6. IT Sector Investment equal to or above rupees five crore
  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 for development of IT infrastructure, subject to a maximum of rupees twenty-five lakh per year.
7. Logistic Infrastructure (Multi-Modal Logistics Hub) Investment equal to or above rupees fifty crore
  1. 5% interest subsidy on term loan taken by an enterprise or Special Purpose Vehicle from Financial Institutions or State Financial Institutions or Banks recognized by Reserve Bank of India, for a period of five years, subject to a maximum of rupees one crore per year; or
  2. Capital Subsidy equivalent to 20% of the investment made for building common infrastructure, subject to maximum rupees four crore
8. Logistic Infrastructure (Logistic Park) Investment equal to or above rupees thirty crore
  1. 5% interest subsidy on term loan taken by an enterprise or Special Purpose Vehicle from Financial Institutions or State Financial Institutions or Banks recognized by Reserve Bank of India, for a period of five years, subject to a maximum of rupees fifty lakh per year; or
  2. Capital Subsidy equivalent to 20% of the investment made for building common infrastructure, subject to maximum rupees two crore and fifty lakh.
9. Warehouse Investment equal to or more than rupees two crore, having capacity of at least 3000 MT and having accreditation as per the norms fixed by the Warehousing Development and Regulatory Authority
  1. Capital Subsidy equivalent to 20% of the investment made in equipments, subject to a maximum of rupees two lakh, for Warehouse in land measuring up to two acres.
  2. Capital Subsidy equivalent to 20% of the investment made in equipments, subject to a maximum of rupees five lakh, for Warehouse in land measuring above two acres.
10. Plug and Play Office Complex Investment equal to or above rupees five crore
  1. 5% interest subsidy on term loan taken by enterprise or Special Purpose Vehicle from Financial Institutions or State Financial Institutions or Banks recognized by Reserve Bank of India, for a period of five years, subject to a maximum of rupees twenty-five lakh per year.
11. Start-ups Investment equal to or above rupees twenty-five lakh
  1. 25% additional Investment Subsidy of State tax due and deposited, for seven years.
12. Testing Laboratory Investment equal to or above rupees five crore
  1. Capital Subsidy equivalent to 25% of investment made on the plant & machinery or equipments, subject to a maximum of rupees fifty lakh.

Note:
The above mentioned information is for indicative purpose, for more details kindly refer Rajasthan Investment Promotion Scheme - 2019 RIPS - 2019

List of service sectors for benefits under RIPS

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