Rajasthan Government  ·  Oct 2024 – Mar 2029

Rajasthan Investment Promotion
Scheme 2024 – MSME

A comprehensive incentive framework for Micro, Small & Medium Enterprises in Rajasthan — covering asset creation subsidies, interest subvention, employment support, duty exemptions, and cluster benefits.

✅ Asset Creation Subsidy
💰 Interest Subvention up to 6%
⚡ Electricity Duty Exemption
📋 Max ₹5 Cr/Year Cap
Definition of MSME under RIPS 2024
Micro Enterprise
≤ ₹1 Crore
≤ ₹5 Crores
Small Enterprise
≤ ₹10 Crores
≤ ₹50 Crores
Medium Enterprise
≤ ₹50 Crores
≤ ₹250 Crores
Eligibility Criteria
  • Service and Manufacturing MSME units are eligible. Trading units are excluded.
  • New MSME units setting up operations in Rajasthan.
  • Existing MSMEs undertaking expansion with minimum investment of 25% of existing investment and generating minimum 20% incremental capacity.
  • Enterprise must not be engaged in industries listed in Annexure-A (ineligible industries).
  • Service enterprises must be providing services listed in Annexure-B (thrust sectors) to claim benefits.
  • Enterprise must commence production/operations during the operative period of the policy, or within 2 years after the Grant, whichever is later.
Incentives under RIPS 2024 – MSME Section
1 Asset Creation Incentive
Option Applicable To Benefit
Option 1
Investment Subsidy
All 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 by the unit, subject to a maximum of ₹40 Lakhs
Option 2B
Capital Subsidy
Agro & Food Processing Units 50% of capital investment by the unit, subject to a maximum of ₹1.5 Crores
2 Asset Creation Incentive Top-up (Interest Subvention)

Interest Subvention for 7 years as per the following matrix:

Loan Amount (Plant & Machinery / Equipment) Interest Subvention per Year
Up to ₹5 Crores 6%
₹5 Crores – ₹10 Crores 4%
₹10 Crores – ₹50 Crores 3%

Additional Provisions

  • Khadi Enterprises shall be eligible to avail Interest Subvention for 10 years.
  • Interest Subvention shall be telescoped.
  • For loans taken up to ₹25 Lakhs, an additional 1% Interest Subvention will be offered for beneficiaries under Rajasthan Rural Tourism Policy and Agro-based industries.
3 Special Incentives

Employment Generation Subsidy

Reimbursement of 50% of the employer's contribution towards EPF and ESI for 7 years.

Applicable for domiciled employees only.

Fund Raising Incentive

One-time financial assistance for raising capital through an SME platform — 50% of the investment made in the fund-raising process, up to a maximum of ₹5 Lakhs.

4 Exemptions

Electricity Duty

100% exemption of electricity duty for 7 years.

🌾 Mandi Fee

Reimbursement of 100% of Mandi / market fee for 7 years.

📄 Stamp Duty

Exemption from payment of 75% stamp duty and reimbursement of 25% stamp duty on:
(a) Purchase or lease/sub-lease of land and construction thereon;
(b) Purchase or lease of commercial floor area (minimum 2,000 sq. ft.).

🔄 Conversion Charges

Exemption from payment of 75% conversion charge and reimbursement of 25% conversion charge.

5 Cluster Incentives

Infrastructure Support

Availability of land at the circle rate; facilitation of water and power up to the boundary wall to set up Common Facility Centres (CFCs).

Soft Loan for SPV / CFC

A cluster of Micro & Small enterprises may set up a Special Purpose Vehicle (SPV) for a Common Facility Centre and avail a soft loan of up to ₹10 Crores at 5% interest, repayable in 5 equal annual instalments over 5 years.

Important Rules & Caps

⚠️ Important Rules

  • Maximum incentives under RIPS 2024 – MSME Section shall be capped at ₹5 Crores annually.
  • Restriction on benefits in case of expansion as per Annexure-C (detailed below).
Ineligible Industries
  • Investment for manufacturing tobacco, tobacco products and pan masala.
  • Investment made in cow/beef processing units.
  • Investment made in retail/trading activities.
  • City Gas Distribution System.
  • Any activity which is prohibited by Central/State laws.
Service Thrust Sectors

Service enterprises must operate in one of the following sectors to be eligible for benefits:

IT & ITeS
Tourism
Fintech
Entertainment
Film City
Common Utility Center
Healthcare
Civil Aviation
Sports Academy
AVGC-XR
Higher Education
Vocational Training & Skilling
Knowledge-based Industries
Restriction on Benefits in Case of Expansion
Electricity Duty Exemption

Exemptions apply to electricity consumption exceeding the maximum annual usage recorded during the three years preceding the expansion's commercial production date.

Mandi Fee Reimbursement

Reimbursement is granted on annual turnover that exceeds the highest volume recorded in any of the three years prior to the expansion's commercial production date.

Conversion Charges Exemption

Full exemption from conversion charges applies to all additional charges incurred specifically due to expansion-related investments during the incentive period.