Rajasthan Investment Promotion Scheme (RIPS): Electric Vehicle (EV)

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 "Electric Vehicle (EV)" aims to promote Electric Vehicle manufacturing by providing financial incentives to eligible Automobile Sector enterprises. It offers interest subsidy or capital subsidy to enterprises making investment of ₹50 crore or above in Electric Vehicle manufacturing units.

Entrepreneurs are eligible to apply for the scheme.

Enterprises in the Automobile Sector making an investment equal to or above ₹50 crore in an Electric Vehicle Manufacturing Unit:

• Interest Subsidy: 5% Interest Subsidy on term loan taken from Financial Institutions, State Financial Institutions, or Banks recognized by the Reserve Bank of India. The loan must be for investment in plant and machinery. The subsidy is available for 5 years, subject to a maximum of ₹1,00,00,000/- per year.

Or,

• Capital Subsidy: Capital Subsidy equivalent to 25% of investment made on plant and machinery. The subsidy is subject to a maximum limit of ₹50,00,000/-.

Check Eligibility

Rajasthan

Rajasthan Investment Promotion Scheme (RIPS): Electric Vehicle (EV)

Business

Electric Vehicle

Entrepreneurship

Incentive

MSMEs

Subsidy

Details

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 "Electric Vehicle (EV)" aims to promote Electric Vehicle manufacturing by providing financial incentives to eligible Automobile Sector enterprises. It offers interest subsidy or capital subsidy to enterprises making investment of ₹50 crore or above in Electric Vehicle manufacturing units.



Benefits

Enterprises in the Automobile Sector making an investment equal to or above ₹50 crore in an Electric Vehicle Manufacturing Unit:

• Interest Subsidy: 5% Interest Subsidy on term loan taken from Financial Institutions, State Financial Institutions, or Banks recognized by the Reserve Bank of India. The loan must be for investment in plant and machinery. The subsidy is available for 5 years, subject to a maximum of ₹1,00,00,000/- per year.

Or,

• Capital Subsidy: Capital Subsidy equivalent to 25% of investment made on plant and machinery. The subsidy is subject to a maximum limit of ₹50,00,000/-.



Eligibility

• Entrepreneurs are eligible to apply for the scheme.



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.



Application Process

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.



Documents Required

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.

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 minimum investment required to avail benefits?

The minimum investment required is ₹50 crore.



What type of unit is covered under the scheme-component?

Electric Vehicle manufacturing units are covered under the scheme-component.

What financial benefits are provided under the scheme?

The scheme provides interest subsidy or capital subsidy.



What is the rate of interest subsidy offered?

An interest subsidy of 5% is offered.



On which loans is interest subsidy applicable?

The interest subsidy is applicable on term loans taken from Financial Institutions, State Financial Institutions, or banks recognized by the Reserve Bank of India.

For what purpose should the term loan be used?

The term loan must be used for investment in plant and machinery.

For how long is the interest subsidy available?

The interest subsidy is available for a period of 5 years.

What is the maximum limit of interest subsidy?

The maximum limit of interest subsidy is ₹1,00,00,000 per year.

Is capital subsidy available under the scheme?

Yes, capital subsidy is available as an alternative benefit.

What is the rate of capital subsidy?

The capital subsidy is equivalent to 25% of investment made on plant and machinery.

What is the maximum limit of capital subsidy?

The maximum limit of capital subsidy is ₹50,00,000.

Is the benefit linked to investment in plant and machinery?

Yes, the benefits are linked to investment in plant and machinery.

Can an enterprise avail both interest subsidy and capital subsidy?

No, the enterprise can avail either interest subsidy or capital subsidy.