Rajasthan Investment Promotion Scheme

If you’re looking to start or expand your manufacturing or service enterprise in Rajasthan, RIPS is a government-backed scheme made just for you. It aims to promote investments by providing attractive subsidies, tax exemptions, and interest subventions. Not only does it help reduce your financial burden, but it also ensures you create employment opportunities. The scheme supports both new projects and expansions in the state, making Rajasthan a business-friendly destination.

What is the Rajasthan Investment Promotion Scheme?

Rajasthan Investment Promotion Scheme (RIPS)  was officially launched on October 8, 2014, and updated with the latest framework in 2024. It’s focused on promoting new enterprises, expansion of existing units, and revival of sick units, particularly encouraging MSMEs and other sectors to grow sustainably.  

It incentivises MSME to invest in Rajasthan by offering financial relief and support for up to 7 years. It offers a range of financial assistance including capital subsidies, turnover-linked incentives (TLI), and interest subventions. It provides other benefits like employment generation subsidies, exemptions on taxes and duties, and incentives for clean technologies and export promotion.

Objectives of the RIPS Scheme

• Encourage investments in Rajasthan to boost industrial growth
• Facilitate employment generation across urban and rural areas
• Support MSMEs with financial assistance and tax benefits
• Promote the revival and modernisation of existing enterprises

Key Features of the RIPS Rajasthan Scheme

• You can get interest subvention for a maturity period of 7 years, with rates varying by loan size: 6% for loans between ₹1-5 crore, 4% for ₹5-10 crore, and 3% for ₹10-50 crore. Khadi units benefit for 10 years.
• Exemptions include 100% waiver on electricity duty, land tax, and market fee (mandi fee) for 7 years.
• You will get 75% exemption and 25% reimbursement on stamp duty and land conversion charges.
• Employment generation subsidy refunds 50% of your employer’s contribution to EPF & ESI for 7 years.
• Fundraising incentive gives you up to ₹5 lakh for capital raised through SME platforms.
• The maximum cap on total incentives for MSMEs is ₹5 crore per year.

Financial Assistance Offered Under RIPS Scheme

Eligibility Criteria for RIPS Scheme

Eligibility

• Your business should be a manufacturing or specified service enterprise with a turnover below ₹250 crore.
• MSME must invest at least Rs 25 crores and large projects must invest a minimum of Rs 50 crores.
• Your project should be located in Rajasthan and comply with the necessary regulatory approvals.
• You must commit to employment generation as per the scheme norms.
• Your business should apply within the prescribed timelines after commercial operation starts.
• The scheme is open to both individuals and institutions such as self help groups (SHGs), societies, partnership firms, LLP firms and companies.

Non-Eligibility

• If your enterprise turnover exceeds ₹250 crore, you may not qualify for this scheme.
• Enterprises outside Rajasthan or without proper registration in the state cannot apply.
• Projects that started before the scheme period without qualifying investments are excluded.
• Units that do not comply with environmental or legal norms may be disqualified.
• Businesses involved in prohibited sectors under the scheme guidelines are not eligible.

Documents Required for the RIPS Scheme

• Copy of your project report certified by a Chartered Accountant
• Proof of identity and address of the business owner/company
• Incorporation Certificate, Memorandum of Association & Articles of Association
• Land ownership or lease documents
• Detailed business plan outlining investment and employment projections
• Bank loan documents if claiming interest subvention
• Proof of EPF/ESI contribution for employment subsidy claims

How to Apply for the RIPS Scheme

Step 1: Visit the Rajasthan State Industrial Development and Investment Corporation (RIICO) website to get the application form.
Step 2: Verify your eligibility based on investment, location, and sector.
Step 3: Fill out the application form with accurate project details and attach supporting documents.
Step 4: Submit the application to the designated screening committee/RIICO authority in Rajasthan within 90 days of your project's commercial operation start date.
Step 5: Track your application status and respond promptly to any queries.
Step 6: On approval, start availing the benefits as per the scheme terms.

Benefits of the RIPS Scheme

• Cost Reduction
  You save on electricity duty, land taxes, and stamp duty, reducing your initial investment burden significantly.
• Financial Support
  Interest subvention lowers your loan interest, easing your capital cost over a long term of 7 years.
• Employment Incentives
  Subsidy on EPF & ESI encourages you to create more jobs without worrying about extra employer contributions.
• Growth Support
  Fundraising incentives motivate you to raise capital and grow your business efficiently.
• Flexible Land Payment Model
  Only 25% of land cost upfront; the remaining 75% can be paid over 10 years with a modest 8% interest—perfect for easing outlays
• Lease Rental Support]
  Service and startup units may receive a 25% office lease subsidy (capped at ₹1 crore annually) for up to 5 years—ideal for operational scaling.

Real-World Examples of RIPS Scheme

• Large MSME manufacturing unit expansion in Jaipur
• Agro-based industries getting benefits in rural Rajasthan
• Khadi and rural tourism units availing extended interest benefits

Related Government Support Plans with RIPS Scheme

Final Words

RIPS is a powerful lever for any MSME like yours aiming to start, expand, or revive a business in Rajasthan. By carefully understanding and applying for the scheme, you can significantly reduce your financial overheads and create more jobs. Make sure you follow application timelines and provide all necessary documentation to maximise your benefits.