Rajasthan Investment Promotion Scheme 2019

Rajasthan Investment Promotion Scheme 2019

The Rajasthan government has issued Rajasthan Investment Promotion Scheme on 17-12-2019 and following are the salient features of the scheme.

Applicability of the Scheme

1. The scheme is applicable to new and existing enterprises making an investment in a new unit

2. The scheme is also applicable to existing enterprises making investment for expansion.
a. Here expansion means investment of more than 25% of the gross block or Rs. 10 Crores whichever is less.

3. The Manufacturers and Service provider enterprises will get the benefit under this scheme. Traders are not covered under the scheme.

4. The commercial production of the unit must start after 17-12-2019. So units starting before this date cannot apply under RIPS 2019. They will have to opt for benefits under RIPS 2014.

5. The units availing benefits under RIPS 2014 or RIPS 2003 will not be eligible for applying under this scheme.

Eligible Fixed Capital Investment (EFCI) under the Scheme

Items Included in EFCI

1. Land cost

2. Factory and Shed construction Cost

3. Plant and Machinery Cost

4. Other investment made in new fixed assets essential for production in the unit.

5. In case of service enterprises the cost of AC, servers, computers, printers, IT infrastructure, furniture and fixtures

Items excluded in EFCI

1. Land cost in excess of 30% of total EFCI

2. Purchase of existing factory sheds and industrial buildings

3. Old plant and machinery

4. Plant and Machinery transferred from other locations of the enterprise

Benefits to Manufacturing and Service Enterprises under the Scheme

1. Investment subsidy of 75% of SGST deposited through cash ledger after adjusting all ITC for seven years.

2. Reimbursement of 50% of employer’s contribution of PF & ESI deposited

a. 75% reimbursement in case of Women, SC, ST and Person with disability employee

b. 75% reimbursement if enterprise is providing more than 75% of employment to persons domiciled in Rajasthan

3. Exemption from payment of 100% of electricity duty for 7 years

4. Exemption from payment of 100% of land tax for 7 years

5. Exemption from payment of 100% of Market Fee (Mandi Fee) for 7 years

6. Exemption from payment of 100% of stamp duty on purchase, lease or sub lease of land and building.

7. Exemption from Payment of 100% of conversion charges payable on change of land use


Amit Mundhra FCA
The author is a member of ICAI. He can be reached at amit.mundhra@gmail.com

Author: Amit Mundhra CA
Amit Mundhra FCA is a Fellow member of the Institute of Chartered Accountant of India. He is senior partner in Karnani & Co., Chartered Accountants. He is having 20+ years of experience in Income Tax, GST, VAT, Accounting, Audit and Assurance field.

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