- March 15, 2025
- Posted by: Amit Mundhra CA
- Category: Rajasthan Investment Promotion Scheme
Rajasthan Investment Promotion Scheme (RIPS) 2024 is a government initiative designed to attract businesses by offering a range of financial incentives, tax benefits, and infrastructure support. If you’re planning to expand your business or start a new manufacturing unit, Rajasthan provides a business-friendly environment with lucrative incentives under this scheme.
Categories of Enterprises in RIPS 2024
Now, before we dive into the details, let’s get one thing clear—RIPS 2024 is designed for two types of businesses:
- Large Enterprises: Companies investing ₹50 Cr or more.
- MSMEs (Micro, Small, and Medium Enterprises): Companies investing below ₹50 Cr.
While both categories get benefits, this article is all about how Large Enterprises can make the most of RIPS 2024. If your company falls into this category, you’re in for some exciting incentives, including investment subsidies, capital support, employment benefits, and special industry-specific incentives.
So, let’s explore how RIPS 2024 can help your business save money, grow faster, and maximize profits in Rajasthan!
Eligibility Criteria for Large Enterprises in RIPS 2024
Before you start planning, you need to check whether your business qualifies as a Large Enterprise under RIPS 2024. The government has set clear guidelines on investment amount, employment requirements, and project location. If your business meets these conditions, you can apply for some great incentives.
1. Investment Criteria for Large Enterprises in RIPS 2024
To be considered a Large Enterprise, your business must invest at least ₹50 Crores in Rajasthan. The scheme further divides Large Enterprises into three sub-categories:
- Large Enterprise: Investment of ₹50 Cr to ₹300 Cr
- Mega Enterprise: Investment of ₹300 Cr to ₹1000 Cr
- Ultra Mega Enterprise: Investment of ₹1000 Cr and above
The higher your investment, the more incentives you can claim under the scheme.
2. Minimum Employment Criteria
Apart from investment, a business can also qualify as a Large Enterprise if it meets the minimum employment criteria along with a specified level of Eligible Fixed Capital Investment (EFCI).
A company can qualify under either of the following conditions:
Investment-Based Criteria:
- Large Enterprises: Investment of ₹50 Cr to ₹300 Cr.
- Mega Enterprises: Investment of ₹300 Cr to ₹1000 Cr.
- Ultra Mega Enterprises: Investment of ₹1000 Cr and above.
Employment-Based Criteria (with minimum EFCI requirement):
- Large Enterprises: At least 100 employees and a minimum ₹50 Cr EFCI.
- Mega Enterprises: At least 250 employees and a minimum ₹150 Cr EFCI.
- Ultra Mega Enterprises: At least 750 employees and a minimum ₹500 Cr EFCI.
3. Location-Based Incentives
Where you set up your business in Rajasthan matters. The state is divided into different zones, and some areas offer higher incentives to attract businesses:
- Area 1 (Developed Regions): Standard incentives apply.
- Area 2 (Developing Regions): Extra benefits like higher subsidies and tax rebates.
- Area 3 (Backward & Tribal Areas): Maximum incentives to promote industrial growth in underdeveloped regions.
If you invest in Area 2 or Area 3, you can receive additional capital subsidies and tax exemptions beyond what’s available in Area 1.
4. Special Eligibility Cases
Even if your business doesn’t fall into the usual Large Enterprise category, you may still qualify if:
- You acquire an industrial unit under insolvency and invest at least 25% of its acquisition cost in modernization.
- You set up a regional or sectoral anchor unit, meaning your company is the first in its sector to invest in a region.
Are You Eligible?
If your business meets these investment, employment, and location requirements, you qualify as a Large Enterprise under RIPS 2024! Now, let’s move on to the exciting part—the incentives you can claim!
Types of Incentives Available for Large Enterprises in RIPS 2024
Now that you know your business qualifies for RIPS 2024, let’s talk about what’s in it for you! The scheme offers several types of incentives that can significantly reduce costs, improve cash flow, and boost profitability. Here’s a breakdown of the key benefits:
1. Asset Creation Incentives (Any one is available)
As a Large Enterprise, you can choose one of the following incentives based on your business model and financial strategy:
- Investment Subsidy: Get 75% reimbursement of SGST (State Goods & Services Tax) paid for 7 years. This helps businesses recover a significant portion of their tax expenses.
- Capital Subsidy: Receive 13%-28% of your Eligible Fixed Capital Investment (EFCI) as a direct financial benefit over 10 years.
- Turnover-Linked Incentive (TLI): Earn 1.2%-2% of your net sales turnover as an incentive for 10 years, helping businesses scale faster with additional working capital.
2. Employment Booster
RIPS 2024 encourages businesses to create more jobs by offering extra incentives based on employment numbers. If your company hires more employees than the minimum requirement, you can earn an additional incentive on your chosen benefit—whether it’s SGST reimbursement, capital subsidy, or turnover-linked incentive.
How the Employment Booster Works
- Hiring 1.5x to 2x the required jobs → Extra 10% incentive.
- Hiring 2x to 2.5x the required jobs → Extra 12.5% incentive.
- Hiring more than 2.5x the required jobs → Extra 15% incentive.
Example Calculation
Let’s say your Mega Enterprise qualifies for a ₹50 Cr capital subsidy and the minimum required employees are 250. If you increase hiring to:
- 375 employees (1.5x requirement) → You get an extra 10% of ₹50 Cr = ₹5 Cr, making your total subsidy ₹55 Cr.
- 500 employees (2x requirement) → You get an extra 12.5% of ₹50 Cr = ₹6.25 Cr, making your total subsidy ₹56.25 Cr.
- 625 employees (2.5x requirement) → You get an extra 15% of ₹50 Cr = ₹7.5 Cr, making your total subsidy ₹57.5 Cr.
This incentive applies to SGST reimbursement and turnover-linked incentives in the same way, helping businesses save even more while creating jobs in Rajasthan.
3. Thrust Booster & Anchor Booster
Some industries are given special importance under RIPS 2024, and businesses investing in these sectors can get additional benefits.
Thrust Booster (10% Extra Incentive)
Businesses investing in the following priority sectors qualify for an additional 10% incentive on their chosen benefit (SGST reimbursement, capital subsidy, or turnover-linked incentive):
- Renewable Energy Equipment Manufacturing
- Electric Vehicles (EV) and Battery Manufacturing
- Electronics & Semiconductor Manufacturing
- Pharmaceuticals & Medical Devices
- Textiles & Garments
- Petrochemicals & Specialty Chemicals
- Aerospace & Defense Manufacturing
- Food Processing & Agro-Based Industries
- Green Hydrogen & Sustainable Energy Solutions
Anchor Booster (20% Extra Incentive)
Enterprises that are the first to invest in a sector within a region can receive an additional 20% incentive. This applies to businesses that help establish a new industry ecosystem in Rajasthan, such as:
- First Semiconductor Fabrication Unit in the state
- First Electric Vehicle (EV) Gigafactory
- First Large-Scale Green Hydrogen Production Facility
- First Mega Textile Park in a new region
- First Aerospace & Defense Cluster Unit
These incentives are designed to encourage pioneering industries to establish themselves in Rajasthan, creating long-term economic and industrial benefits for the state.
4. Interest Subvention in RIPS 2024
Interest subvention under RIPS 2024 is available only in specific cases for Large Enterprises. The key details are:
- 5% interest subsidy on term loans taken for investment in plant & machinery or equipment for 5 years, subject to a maximum of 2.5% of the Eligible Fixed Capital Investment (EFCI), distributed equally over 5 years.
- Higher interest subsidy for Textile, Garment & Apparel Sector enterprises, capped at 2.5% of EFCI per year, making it a greater benefit compared to general industries.
- Loan eligibility restriction: If a term loan includes items beyond plant, machinery, equipment, or apparatus, interest subvention will only be available in proportion to the eligible components of the loan.
- No restriction on Turnover-Linked Incentive (TLI): Businesses opting for the Turnover-Linked Incentive (TLI) can still claim interest subvention, provided they meet the eligibility criteria.
5. Special Incentives for Power-Intensive & Green Manufacturing Units in RIPS 2024
If your business uses a lot of power or invests in sustainable manufacturing, you can get extra benefits:
- 5% extra reimbursement on SGST for power-intensive industries.
- Renewable power investments included in EFCI, increasing subsidy amounts.
- 100% Banking, Wheeling & Transmission charge waivers, reducing electricity costs.
6. Exemptions & Reimbursements Available in RIPS 2024
In addition to direct financial incentives, RIPS 2024 also offers significant tax exemptions:
- 100% exemption on electricity duty & mandi fee for 7 years.
- 75% exemption on stamp duty & land conversion charges.
- Flexible Land Payment Model: 25% upfront payment, 75% payable over 10 years at 8% interest.
With so many incentives available, Large Enterprises have a huge opportunity to reduce costs and expand profitably in Rajasthan.
Download RIPS 2024 Scheme Document
You can download the complete RIPS 2024 document by following below link.
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