Rajasthan Investment Promotion Scheme (RIPS): MSME Sector

The "Rajasthan Investment Promotion Scheme (RIPS)" is an umbrella scheme launched by the Commissioner Industries, Commerce, and CSR Department, Rajasthan. It aims to generate employment opportunities and promote rapid, sustainable, and balanced economic growth in the State of Rajasthan. Effective from December 12, 2019, to March 26, 2026, this initiative provides benefits to eligible manufacturing and services sector enterprises.
The component "MSME Sector" aims to support MSME sector enterprises by providing one-time financial assistance and reimbursements for water conservation, green measures, quality certification, technology acquisition, innovation, and fund raising. It promotes sustainable practices, quality improvement, and competitiveness of MSMEs.

• Investment Subsidy: Investment Subsidy to the extent of 75% of State Tax Due and Deposited (STDD) for a period of 7 years. - Employment Generation Subsidy: Employment Generation Subsidy to the extent of 75% of State Tax Due and Deposited (STDD) for a period of 7 years. - Exemption from Electricity Duty: Exemption from payment of Electricity Duty for a period of 7 years. - Exemption from Conversion Charges: Exemption from payment of Conversion Charges for land used for industrial purposes. - Exemption from Stamp Duty: 100% Exemption from Stamp Duty on land purchased for setting up the enterprise.

  Additional Provisions for Manufacturing Enterprises:

• Critical Infrastructure Development: Reimbursement of 50% of expenditure incurred on developing critical infrastructure up to ₹10,00,000/-. - Water Conservation / Harvesting System: Reimbursement of 50% of expenditure on Water Conservation/Harvesting System up to ₹5,00,000/-. - Environmental Compliance: Reimbursement of 50% of expenditure on pollution control equipment up to ₹10,00,000/-. - Quality Certification: Reimbursement of 50% of expenditure incurred for quality certification up to ₹5,00,000/-. - Skill Development: Reimbursement of 50% of expenditure incurred on skill development up to ₹5,00,000/-.

• Water Conservation and Green Measures Subsidy: Reimbursement of 50% of cost incurred on approved green measures, subject to prescribed limits and provided as one-time assistance.- Water Audit Subsidy: Reimbursement of 50% of cost incurred on water audit by a Government empanelled or Government approved agency, subject to a maximum of ₹2,00,000/-.- Zero Liquid Discharge Effluent Treatment Plant Subsidy: Reimbursement of 50% of amount paid to suppliers for the plant, excluding civil work.- Green Building Measures Subsidy: Reimbursement of 50% of amount paid to suppliers for adopting Green Building Measures for buildings having a minimum floor space of 2,000 square metres, excluding civil work.- Reuse and Recycling of Industrial Waste Plant Subsidy: Reimbursement of 50% of amount paid to suppliers for establishing Reuse and Recycling of Industrial Waste Plant, excluding civil work, subject to a maximum of ₹50,00,000/-, as one-time assistance.- Overall Cap on Green Measures Subsidy: The maximum total subsidy under water audit, zero liquid discharge plant, and green building measures is limited to ₹50,00,000/-, as one-time assistance.- Quality Certification Subsidy: One-time reimbursement of 50% of cost incurred on obtaining quality certification related to manufacturing, processes, or export, subject to a maximum of ₹25,00,000/-.- Advanced Technology Acquisition Subsidy: One-time reimbursement of 50% of cost incurred to acquire advanced technology from premier national institutes, subject to a maximum of ₹10,00,000/-.- Patent, GI Tagging, and Trademark Assistance: One-time financial assistance equivalent to the assistance provided by the Government of India for patents, Geographical Indication (GI) tagging, and trademark registration.- Zero Defect Zero Effect Certification Subsidy: One-time reimbursement of 50% of investment made on plant and machinery and testing equipment for obtaining Silver, Gold, Diamond, or Platinum rating, subject to a maximum of ₹5,00,000/-.- SME Platform Fund Raising Assistance: One-time financial assistance of 50% of investment made in the process of raising capital through the SME platform, subject to a maximum of ₹5,00,000/-.

  
  

• Entrepreneurs are eligible to apply for the scheme.

Online - via CSC

Mode of Online Application: e-Mitra

• The applicant can submit the online application by visiting the nearest e-Mitra center or by using their own e-Mitra account.

• The application is free of cost.

For Exemption from Stamp Duty and/or Conversion Charges:

1. Project report duly authenticated.
2. Self-attested declaration on a Non-judicial stamp paper of Rupees One Hundred Only in support of the facts of the application.

For Exemption from Land Tax/ Electricity Duty/ Market Fee(Mandi Fee):

1. Copy of Project Report duly authenticated by the applicant.
2. Self-attested declaration in support of the facts of the application.
3. Proof of investment.
4. Copy of the first bill of supply/ invoice/ tax invoice for proof of commencement of commercial production, if applicable.
5. Copies of the Challan of EPF / ESI, if any.
6. Proof of Deposit of State Tax, if any.
7. Copy of resolution passed by the Board of Directors.
8. Others, if any (Please Specify).

Application for Claim of Interest Subsidy/ Capital Subsidy:

1. Copy of the first bill of supply/ invoice/ tax invoice for proof of commencement of commercial production, if applicable.
2. Copy of sanction letter of term loan issued by Bank/ Financial Institutions
3. Copy of Project Report duly authenticated by the applicant.
4. Chartered Accountant Certificate for Actual investment & Bank finance availed for Plant & Machinery and for Textile sector enterprise Chartered Accountant Certificate for Actual investment & Bank finance availed for Plant & Machinery as specified in the updated list of machinery under TUFS Scheme of Government of India. In case of expansion, Chartered Accountant certificate certifying details of existing investment and investment made in expansion.
5. Detailed expenditure statement of Plant & Machinery indicating mode of payment.
6. Project completion Certificate by Bank.
7. In the case of imported plant & machinery, submit separate expenditure statement mentioning new plant & machinery and second hand plant & machinery, with copy of invoices and copy of Bill of entry.
8. In the case of second hand Plant & Machinery, proof of the cost of the Plant and Machinery.

Note: Any financial transactions/expenditure statements submitted by the enterprise must be signed by the authorized signatory of the enterprise and certified by the chartered accountant.

Claim of Investment Subsidy / Employment Generation Subsidy:

1. Copy of project report duly authenticated by the applicant;
2. Proof of investment;
3. Copies of bills/vouchers along with payment receipts from the concerned foreign supplier/suppliers
4. Copies of Challan for the amount of contribution of EPF and ESI deposited;
5. Proof of deposit of State Tax, if already deposited;
6. A self-attested declaration on a Non-judicial stamp paper of Rupees One Hundred Only in support of the facts of the application; and
7. Certificate of valuation by Chartered Accountant in Form-E appended to the Scheme.
8. An undertaking to the effect that subsidy is not being availed on second hand machinery.

Investment not eligible for benefits of subsidies and/or exemptions under the Rajasthan Investment Promotion Scheme

• Investment for manufacturing tobacco, tobacco products and pan masala.
• Investment made in cow beef processing units.
• Investment made in retail/trading activities.
• Any activity which is prohibited by Central/State laws.