Rajasthan Investment Promotion Scheme (RIPS): Benefits to Manufacturing Enterprise

The "Rajasthan Investment Promotion Scheme (RIPS)" is an umbrella scheme launched by the Commissioner Industries, Commerce, and CSR Department, Rajasthan. It aims to generate employment opportunities and promote rapid, sustainable, and balanced economic growth in the State of Rajasthan. Effective from December 12, 2019, to March 26, 2026, this initiative provides benefits to eligible manufacturing and services sector enterprises.

The component "Benefits to Manufacturing Enterprise" aims to encourage investment in the State and to provide financial and non-financial incentives and benefits to manufacturing enterprises.

Entrepreneurs are eligible to apply for the scheme.

• Investment Subsidy: Investment Subsidy to the extent of 75% of State Tax Due and Deposited (STDD) for a period of 7 years.
• Employment Generation Subsidy: Employment Generation Subsidy to the extent of 75% of State Tax Due and Deposited (STDD) for a period of 7 years.
• Exemption from Electricity Duty: Exemption from payment of Electricity Duty for a period of 7 years.
• Exemption from Conversion Charges: Exemption from payment of Conversion Charges for land used for industrial purposes.
• Exemption from Stamp Duty: 100% Exemption from Stamp Duty on land purchased for setting up the enterprise.

Additional Provisions for Manufacturing Enterprises:

• Critical Infrastructure Development: Reimbursement of 50% of expenditure incurred on developing critical infrastructure up to ₹10,00,000/-.
• Water Conservation / Harvesting System: Reimbursement of 50% of expenditure on Water Conservation/Harvesting System up to ₹5,00,000/-.
• Environmental Compliance: Reimbursement of 50% of expenditure on pollution control equipment up to ₹10,00,000/-.
• Quality Certification: Reimbursement of 50% of expenditure incurred for quality certification up to ₹5,00,000/-.
• Skill Development: Reimbursement of 50% of expenditure incurred on skill development up to ₹5,00,000/-.

For Exemption from Stamp Duty and/or Conversion Charges:

1. Project report duly authenticated.
2. Self-attested declaration on a Non-judicial stamp paper of Rupees One Hundred Only in support of the facts of the application.

For Exemption from Land Tax/ Electricity Duty/ Market Fee(Mandi Fee):

1. Copy of Project Report duly authenticated by the applicant.
2. Self-attested declaration in support of the facts of the application.
3. Proof of investment.
4. Copy of the first bill of supply/ invoice/ tax invoice for proof of commencement of commercial production, if applicable.
5. Copies of the Challan of EPF / ESI, if any.
6. Proof of Deposit of State Tax, if any.
7. Copy of resolution passed by the Board of Directors.
8. Others, if any (Please Specify).

Application for Claim of Interest Subsidy/ Capital Subsidy:

1. Copy of the first bill of supply/ invoice/ tax invoice for proof of commencement of commercial production, if applicable.
2. Copy of sanction letter of term loan issued by Bank/ Financial Institutions
3. Copy of Project Report duly authenticated by the applicant.
4. Chartered Accountant Certificate for Actual investment & Bank finance availed for Plant & Machinery and for Textile sector enterprise Chartered Accountant Certificate for Actual investment & Bank finance availed for Plant & Machinery as specified in the updated list of machinery under TUFS Scheme of Government of India. In case of expansion, Chartered Accountant certificate certifying details of existing investment and investment made in expansion.
5. Detailed expenditure statement of Plant & Machinery indicating mode of payment.
6. Project completion Certificate by Bank.
7. In the case of imported plant & machinery, submit separate expenditure statement mentioning new plant & machinery and second hand plant & machinery, with copy of invoices and copy of Bill of entry.
8. In the case of second hand Plant & Machinery, proof of the cost of the Plant and Machinery.

Note: Any financial transactions/expenditure statements submitted by the enterprise must be signed by the authorized signatory of the enterprise and certified by the chartered accountant.

Claim of Investment Subsidy / Employment Generation Subsidy:

1. Copy of project report duly authenticated by the applicant;
2. Proof of investment;
3. Copies of bills/vouchers along with payment receipts from the concerned foreign supplier/suppliers
4. Copies of Challan for the amount of contribution of EPF and ESI deposited;
5. Proof of deposit of State Tax, if already deposited;
6. A self-attested declaration on a Non-judicial stamp paper of Rupees OneHundred Only in support of the facts of the application; and
7. Certificate of valuation by Chartered Accountant in Form-E appended to the Scheme.
8. An undertaking to the effect that subsidy is not being availed on second hand machinery.

Online - via CSCs

Mode of Online Application: e-Mitra

• The applicant can submit the online application by visiting the nearest e-Mitra center or by using their own e-Mitra account.

• The application is free of cost.

Exclusions

Investment not eligible for benefits of subsidies and/or exemptions under the Rajasthan Investment Promotion Scheme

• Investment for manufacturing tobacco, tobacco products and pan masala.
• Investment made in cow beef processing units.
• Investment made in retail/trading activities.
• Any activity which is prohibited by Central/State laws.

NA

What is the objective of this scheme?

The scheme aims to encourage investment in the State through providing financial and non-financial incentives and benefits to manufacturing enterprises.



What benefits are available to a manufacturing enterprise?

A manufacturing enterprise receives financial and non-financial incentives and benefits.



For how many years is the Investment Subsidy available?

It is available for 7 years.



For how many years is the Employment Generation Subsidy available?

It is available for 7 years.

Is Electricity Duty exempted?

The manufacturing enterprise receives exemption from payment of Electricity Duty for 7 years.

Is Stamp Duty exempted?

The manufacturing enterprise receives 100% exemption from Stamp Duty.

Is Conversion Charges exemption available?

Yes, the manufacturing enterprise receives exemption from payment of Conversion Charges.



What reimbursement is available for critical infrastructure?

A manufacturing enterprise receives reimbursement of 50% of expenditure up to ₹10,00,000/-.

What reimbursement is available for water conservation or harvesting?

A manufacturing enterprise receives reimbursement of 50% of expenditure up to ₹5,00,000/-.

What reimbursement is available for pollution control equipment?

A manufacturing enterprise receives reimbursement of 50% of expenditure up to ₹10,00,000/-.

Is reimbursement available for quality certification?

Yes, a manufacturing enterprise receives reimbursement of 50% of expenditure up to ₹5,00,000/-.

Is land purchase covered under benefits?

Yes, land purchased for setting up the enterprise receives 100% exemption from Stamp Duty.

Do the benefits require expenditure documentation?

Yes, expenditure documents are required for reimbursement benefits.