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Benefits Available Under Rajasthan Investment Promotion Scheme 2014 To Agri Processing And Agri Marketing Sector

The following is a summary of benefits available under Rajasthan Investment Promotion Scheme [RIPS] 2014 to Agro processing and Agri Marketing sector.

 

What are the business covered in Agro Processing and Agri Marketing under RIPS 2014

 

  • “Agriculture products” means produce of agriculture, horticulture, sericulture, floriculture, aromatic, herbal & medicinal plants, fisheries, poultry, apiculture, dairy and shall include minor forest produce and livestock bases products.

 

  • “Agri Marketing” means processes that use agriculture products, agri-waste, and intermediate agricultural products to produce products in a manner that there is a transformation in the nature of the agricultural product.

 

  • “Agro Processing and Agri Marketing Sector” means the sector comprising of enterprises engaged in such agro-processing and agri-marketing activities as mentioned in Annexure IV of the scheme

 

ANNEXURE – IV – List of Agro-Processing and Agri-Marketing Activities

 

S.N. Nature of Activities
1 Part A Post harvest crop activities
a. Preparation of crops for primary markets, i.e. cleaning, trimming, grading, disinfecting
b. Ripening of fruits and vegetables
c. Seed processing for propagation
d. Packaging of fruits, vegetables & horticulture products
e. Warehousing Refrigerated
2 Part- B (i) Manufacturing and processing of Animal Products mentioned below
a. Processing and preserving of meat/ meat products
b. Processing, preservation and canning of poultry meat
c. Artificial dehydration of fish
d. Radiation preservation of fish and similar food
e. Production of fishmeal for human consumption or animal feed
  Part-B (ii) Manufacturing and processing of agri products mentioned below
a. Processing and preserving of fruits and vegetables, canning of fruits and vegetables
b. Processing of flowers
c. Artificial dehydration of fruits and vegetables
d. Radiation/steam sterilization of fruits & vegetables and other agricultural commodities
Part-B (iii) Manufacture of fruit and vegetable juices or their concentrates, squashes and powder
a. Manufacturing of sauces, jams, jellies
b. Manufacture of pickles, chutney etc.
Part-B (iv) Manufacturing of cereal breakfast obtained by roasting or swelling cereal grains
Part-B (v) Manufacturing of starches and starch products
Part-B (vi) Processing of medicinal/ Aromatic plants and minor forest products
Part-B (vii) Processing of spices and condiments
Part-B (viii) Manufacturing of cattle feed/ poultry feed/ fish feed.

 

What are the benefits available to Agro Processing and Agri Marketing under RIPS 2014

 

Agro processing and agri marketing sector is one of the thrust sectors in the Rajasthan Investment Promotion Scheme. Following benefits are available to this sector.

 

  • For Enterprises engaged in activities of Part A of Schedule IV (As per table above)

 

  • 5% Interest subsidy
  • Exemption from payment of 50% of entry tax on plant and machinery brought into Rajasthan before the date of commercial production.

 

  • For Enterprises other than cattle feed/ poultry feed/ fish feed engaged in activities of Part B of Schedule IV (As per table above)

 

For Enterprises making investment upto Rs. 25 Lacs

 

  • Investment subsidy of 30% of VAT and CST which have become due and deposited by the enterprise for 7 years
  • Employment generation subsidy of 20% of VAT and CST which have become due and deposited by the enterprise for 7 years.

 

For Enterprises making investment of more than Rs. 25 Lacs

 

  • Investment subsidy of 60% of VAT and CST which have become due and deposited by the enterprise for 7 years
  • Employment generation subsidy of 10% of VAT and CST which have become due and deposited by the enterprise for 7 years.
  • Exemption from payment of 50% of entry tax on plant and machinery brought into Rajasthan before the date of commercial production.
  • Capital subsidy on zero liquid discharge based effluent treatment plant equivalent upto 20% of amount paid to the suppliers for the plant excluding civil work, subject to maximum of Rs. 25 Lacs.

 

  • For Enterprises engaged in manufacturing of cattle feed/ poultry feed/ fish feed as per Part B of Schedule IV (As per table above)

 

  • 5% Interest subsidy

 

 

Conditions applicable for Interest subsidy

 

  • Interest subsidy is allowed in the term loan taken from State Financial Institution / Financial Institution/ Bank recognized by Reserve Bank of India for making investment in Agro processing and Agri Marketing sector.
  • Interest subsidy including subsidy provided b government of India under any scheme shall not exceed the amount of interest paid by enterprise to the financial institution.
  • Interest subsidy shall be available only for interest levied by the Financial Institution/ Bank. Penal interest or other charges shall not be reimbursed.
  • Interest subsidy shall be allowed from the date of commencement of commercial operation for a period of 5 years or up to the period of repayment of loan, whichever is earlier.
  • Interest subsidy shall be given to the enterprise which pays regular instalments and interest to the financial institution/ bank. If the enterprises becomes the defaulter, it will not get interest subsidy for the default period and such defaulting period will be deducted from the period mentioned above.
  • The maximum interest subsidy shall not exceed Rs. 5 Lacs per annum.

 

Conditions applicable for Capital Subsidy on Zero Liquid Discharge based Treatment Plant

 

  • The enterprise shall produce a certificate to the effect that the effluent treatment plant set up by it is a zero liquid discharge based effluent treatment plant from Rajasthan State Pollution Control Board.
  • Such plant should be set up along with the plant of manufacturing at common site. No subsidy will be allowed if such EFT plant is set up at a site other than the site of the plant of manufacturing.
  • ETP shall be installed by the enterprise during the operative period of the scheme.
  • Enterprise availailing capital subsidy under any other scheme/package of the state government shall not be eligible for subsidy under this scheme.

 

Amit Mundhra FCA

Author is a Fellow member of the Institute of Chartered Accountants of India. He can be reached at amit.mundhra@gmail.com. Mobile : 9 8 2 9 0 1 0 1 7 2

 

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