Investment Policy
The Rajasthan Investment Promotion Scheme (RIPS) aims to promote investment in Tourism, Education, Medical & Health, Information Technology and other service sectors besides manufacturing. The Policy is a package of exemptions and subsidies, especially developed for the "new economy".

View Details
DownloadAdobe Reader to view PDF file TOP

• 50% exemption of electricity duty for 7 years
• 50% exemption from stamp duty
• 50% exemption from conversion charge
• Allotment of land on 10% DLC rate
• Exemption from payment of Entry Tax
• Exemption from Merit Order Dispatch Regulations
• Wheeling & banking facilities available

• Promoting suitable institutions as Medical Tourism Destinations.
• Identifying the available land for healthcare facilities.
• Facilitating investment through time-bound disposal and through financial incentives.
• A rebate gradient and customised package for corporate health bodies and investment in healthcare Facilities in places of tourism importance. The rebates and concessions available are related to land allotment linked to size of investment, geographical area and hospitals in places of tourism importance.
• Special concessions/customized package for NRI investors and national level corporate healthcare entities.
• Simple & transparent process with time-bound disposal.
• The Tax exemptions relate to Electricity Duty (50% for 7 years.), (as per clause 8(iii) of RIPS 2003).
• Stamp duty (50%) (as per clause 8(iv) of RIPS 2003).
• Land use conversion charges (50%) (as per clause 8(v) of RIPS 2003).

• An escort service would be started with one Government official becoming the single point of contact for approvals and clearances.
• Self certification allowed for IT & ITES companies for several compliances.
• Exemption from certain provisions related to working on declared holidays, opening and closing hours and running 3-shift operations.
• Inspection by Labour Department waived off
• IT and ITES units declared as Public Utility Services under the provisions of the Industrial Disputes Act, 1947
• The FAR applicable shall be up to double of what is applicable for commercial buildings
• Software units would be permitted to be set up in residential areas.
• Fiscal incentives would be, as given in the Rajasthan Investment Promotion Policy, 2003.
• VAT on all products has been rationalised at minimum floor rate of 4%.
• Special package of incentives for Micro, Small & Medium Enterprises
• Mega Projects shall be entitled to a special package of incentives
• Rebate in cost of Government land or land made available by the RIICO

• The minimum and maximum area for land to be auctioned from the land bank has been prescribed. The minimum area in the 2007 policy is the maximum area in the policy of 2006.
• The cost of land has been differentiated with the budget and 3-star hotels base price fixed at less than 50% of the commercial reserve price.
• Under Rule 7 of the Rajasthan Land Revenue (conversion of agricultural land for non agricultural purpose in rural areas) Rules 2007, a proviso has been added exempting from conversion charges all those desirous of establishing hotels or any other tourism unit on the land held by him/them.
• Regarding conversion of residential land and heritage properties into hotels and other tourism units, a proviso has been added to the Rajasthan Municipal Corporation (land utilization conversion) Rules 2000 where heritage property owners would not have to pay 40% of residential reserve price for conversion of the property into a heritage hotel with the rider that the property should have a minimum of 10 rooms.
• FAR of existing hotels would be increased from 1.75 to 2, to allow construction of an additional floor. However, the land coverage area would be similar to previous permissible area. The additional floor would only be used for rooms.

Policy Package for Micro, Small and Medium Enterprises 2008
The vision and endeavour of Government of Rajasthan is to graduate its Micro, Small and Medium Enterprises (MSME) to a globally competitive level. The highlights of the policy package are:

• RIICO to provide land at 50% of the prevailing DLC rates
• State Government to provide 50% of capital cost for establishment of Common Effluent Treatment Plants (CETP)/ facilities by MSMEs
• Reimbursement of expenses incurred towards filing, sharing patent/ ISO certification
• Establishment of national laboratories like CLIR, CFTRI, R&D laboratories by providing land at 50% of DLC rates and part of capital cost
• Restructuring of State Government Companies/ Boards/ Societies under Industries Departments to focus on their key development/ commercial goals
• To ensure easy and smooth credit flow to the artisans, the State Government will get at least 10,000 'Artisans Credit Cards' issued per year from different banks in the next five years
• RIICO shall develop separate rural, small and medium industrial areas for MSME with 24 hour uninterrupted power supply and enabling infrastructure
• Encouraging private sector investment for setting up industrial parks and clusters by providing level playing field vis-à-vis RIICO
  
  Fiscal Incentives
• Exemption from Entry Tax on inputs (Raw material, processing material, packaging material except fuel)
• CST shall be reduced to 0.25% only
• Stamp duty chargeable on loan agreements and deposit of title deed and lease contract shall be reduced to Rs100 per document
• Exemption of 75% from Electricity Duty to the units located in rural areas
• KVIB/KVIC registered units shall continue with Pre VAT tax structure. TOP
  
  

Social Sector Viability Gap Funding Scheme
This Policy intends to address viability gap for meeting two kinds of service provisions in the social sector:

• Establishment of new social service facilities i.e. expansion of existing social sector facilities like opening of colleges, hospitals, hostels, etc;
• Operation and management of existing government facilities like PHCs, veterinary hospitals, agriculture extension work, etc.
  • Proposals for Viability Gap Funding shall be prepared by the concerned Department/ autonomous organization/ local body.
  • Proposals of autonomous organizations/local bodies would be vetted by the concerned Administrative Department. The concerned Department will be responsible for submitting the project for viability gap funding to the Secretariat of the Empowered Committee. Viability Gap Support under this scheme shall be determined by Empowered Committee on a case-to-case basis.
  • Private organization shall be selected as partner through a transparent and open process. Suo moto proposals for PPP projects would also be considered on a Swiss Challenge method.
  • The Administrative Department and the Private Organization shall enter into a bipartite agreement for the purposes of this scheme.