Rajasthan Investment Promotion Scheme – 2014 [RIPS – 2014] – 1st Article

RAJASTHAN INVESTMENT PROMOTION SCHEME – 2014

SAILENT FEATURES OF RIPS – 2014

1. Applicability of the Scheme

1. New and existing enterprises making investment for setting up new units;
2. Existing enterprise making investment for expansion; and
3. Sick enterprise making investment for its revival
4. Scheme Shall not be applicable to an enterprise if its commercial production or operation has commenced before the issuance of this order or an entitlement certificate is issued under any previous scheme.

2. Benefits to Manufacturing Enterprises

• Investment subsidy of 30% if VAT and CST which have become due and have been deposited by the enterprise, for 7 years.
• Employment generation subsidy upto 20% of VAT and CST which have become due and have been deposited by enterprise, for 7 years.
• Exemption from payment of 50% of electricity duty for 7 years, provided that for enterprises engaged in tourism sector, it shall be restricted to 25% of the electricity duty.
• Exemption from payment of 50% of land tax for 7 years.
• Exemption from payment of 50% of Mandi Fee for 7 years.
• Exemption from payment of 50% of Stamp Duty on purchase or lease of land and construction or improvement on such land; and
• Exemption from payment of 50% of conversion charges payble for change of land use.

3. Benefits to Services Enterprises

• Reimbursement of 50% of amount of VAT paid on purchase of plant and machinery or equipment for a period upto seven years from the date of issuance of the entitlement certificate, provided that for enterprises engaged in providing entertainment, the reimbursement shall be restricted to 25% of such amount of VAT paid.
• Exemption from payment of 50% of Entertainment Tax for 7 years.
• Exemption from payment of 50% of Electricity Duty for 7 years, provided that for enterprises engaged in providing entertainment, it shall be restricted to 25% of the Electricity Duty.
• Exemption from payment of 50% of land tax for 7 years.
• Exemption from payment of 50% of Stamp Duty on purchase or lease of land and construction or improvement on such land; and
• Exemption from payment of 50% of conversion charges payble for change of land use.

4. Special provisions for Women, Scheduled Castes, Scheduled Tribes and persons with Disability enterprise

• Such manufacturing enterprise shall get additional investment subsidy to the extent of 10% of VAT and CST which have become due and have been deposited by the enterprise.
• Such Service Enterprise shall get additional 10% reimbursement of VAT paid on plant and machinery and equipment for a period upto seven years from the date of issuance of entitlement certificate for this purpose.

5. Benefits to Enterprise in Backward and Most Backward Area

Ordernotifying Backward Area

Ordernotifying Most Backward Area

• For Manufacturing Enterprises, additional investment subsidy of 20% of VAT and CST which have become due and have been deposited by the enterprise for a period of 7 years.
• All eligible enterprise, except cement manufacturing enterprise, set in backward and most backward areas shall get all the benefits of scheme however the period of the scheme except for interest subsidy shall be extended to 10 years.
• For Service Enterprise, additional 10% reimbursement of VAT paid for backward area and additional 20% reimbursement of VAT paid for most backward area, on plant and machinery and equipment for a period upto seven years from the date of issuance of entitlement certificate for this purpose.