The categorization limits for Micro, Small, and Medium Enterprises based on investment in plant & machinery and annual turnover boundaries:
| Enterprise Category | Investment Limit (Plant & Machinery) | Annual Turnover Limit |
|---|---|---|
| Micro Enterprise | ≤ ₹1 Crore | ≤ ₹5 Crores |
| Small Enterprise | ≤ ₹10 Crores | ≤ ₹50 Crores |
| Medium Enterprise | ≤ ₹50 Crores | ≤ ₹250 Crores |
Eligible Enterprises
- ✓ Both Service and Manufacturing MSME units registered under Udyam are covered.
- ✓ New MSME units starting setup operations in Rajasthan during the operative period.
- ✓ Existing MSMEs expanding capacity by at least 25% new investment and generating 20% incremental volume.
- ✓ Service enterprises providing operations specifically listed in Annexure-B (Thrust Sectors).
- ✓ Must commence commercial production within the operative period or within 2 years of the Grant approval.
Excluded & Ineligible (Annexure-A)
- ✕ Purely retail or trading activities (wholesale/retail stores) are strictly excluded.
- ✕ Investments in manufacturing tobacco, tobacco products, and pan masala.
- ✕ Investments in cow/beef processing units.
- ✕ City Gas Distribution Systems are not eligible under standard promotional benefits.
- ✕ Any business activity prohibited by Central or State laws of India.
| Option | Target Sector/Industry | Benefit Details |
|---|---|---|
| Option 1 Standard Subsidy |
All eligible MSME Applicants | 75% reimbursement of SGST due and deposited for 10 years |
| Option 2A Capital Subsidy |
Manufacturers of Alternatives for Plastic Products | 50% of capital investment, subject to a cap of ₹40 Lakhs |
| Option 2B Capital Subsidy |
Agro & Food Processing Units | 50% of capital investment, subject to a cap of ₹1.5 Crores |
Interest subvention benefits on loans taken for purchasing Plant & Machinery / Equipment, valid for 7 years:
| Loan Range | Annual Interest Subvention Rate |
|---|---|
| Up to ₹5 Crores | 6% per annum |
| ₹5 Crores to ₹10 Crores | 4% per annum |
| ₹10 Crores to ₹50 Crores | 3% per annum |
Additional Subvention Provisions
- Khadi Enterprises are eligible for an extended subvention term of 10 years.
- Interest Subvention is telescoped across slabs.
- Loans up to ₹25 Lakhs get an additional 1% Interest Subvention if operating under Rajasthan Rural Tourism Policy or Agro-based sectors.
Employment Generation Subsidy
50% EPF/ESI Reimbursement
Reimbursement of 50% of the employer's contribution towards EPF and ESI schemes for a duration of 7 years. Applies exclusively to Rajasthan-domiciled employees.
Fund Raising Incentive
50% SME Listing Expense Support
One-time financial assistance for raising capital via standard SME platforms — covering 50% of listing expenses up to a maximum of ₹5 Lakhs.
Concessions on state duties, local fees, and conversion charges for qualified units:
| Concession Category | Exemption Details | Validity Term |
|---|---|---|
| Electricity Duty | 100% exemption on state electricity duty | 7 Years |
| Mandi / Market Fee | 100% reimbursement of market fees | 7 Years |
| Stamp Duty | 75% exemption and 25% reimbursement on land purchase/lease or office space (min 2,000 sq. ft.) | One-time |
| Conversion Charges | 75% exemption and 25% reimbursement on land category conversion | One-time |
Boundary Infrastructure
Facilitated land acquisition at government-mandated circle rates; grid electricity and municipal water pipelines constructed directly to the boundary wall of Common Facility Centres (CFCs).
Soft Loans for SPV / CFC
Consortiums or clusters of Micro/Small enterprises forming a Special Purpose Vehicle (SPV) to build shared facilities can access soft loans up to ₹10 Crores at a subsidized 5% interest rate, repayable over 5 years.
Compliance & Caps
- Maximum financial incentives availed by a single MSME under RIPS 2024 shall be capped at ₹5 Crores annually.
- Enterprises undergoing expansion must follow specific guidelines in expansion benefit allocations to ensure fair scaling.
Service enterprises must operate within one of the following domains to qualify for RIPS 2024 benefits:
Technology & Innovation
IT & ITeS, Fintech Services, AVGC-XR Studios, and Knowledge-based Industries.
Tourism & Leisure
Tourism Services, Entertainment Centers, Film City Projects, and Sports Academies.
Social Infrastructure & Utility
Healthcare Facilities, Civil Aviation Hubs, Higher Education Institutions, Vocational Training & Skilling, and Common Utility Centers.
Electricity Duty Concessions
Exemptions apply strictly to electricity units consumed exceeding the maximum annual usage recorded during the three years preceding the expansion project's commercial setup.
Mandi Fee Reimbursement Rules
Mandi fee reimbursement is granted only on the proportion of annual turnover that exceeds the highest volume recorded in any of the three years prior to the expansion setup date.
Conversion Charges Rules
Full exemption applies to all additional conversion charges specifically incurred due to expansion-related construction investments during the promotional window.