Subsidy and Exemptions

To promote investment in the State, a new Investment Promotion Scheme was launched by the State Government of Rajasthan on 8th October 2014. The State Government of Rajasthan has initiated Investment Subsidy for new enterprises to encourage investment and creation of significant employment. Besides the existing manufacturing and service sectors, the government is promoting investments in social sectors like education, health, skills and more. Special provisions have been made to encourage dairy, plastics to petrol and ceramics industries.


Who are New Enterprises

New enterprise or New Unit is a new manufacturing or service enterprise set up by making investment meaning of clause (xvi) and includes a unit set up by an existing enterprise for manufacturing products or providing services which are different from those being manufactured or provided by it in the State, by making investment within the meaning of clause (xvi) and having separately identifiable books of accounts and depositing the taxes and duties leviable under any State Act including Provident Fund separately.


Investment under clause (xvi)  

Investment or Eligible Fixed Capital Investment (EFCI) means investment made by an enterprise in fixed assets, in the following, up to the date of commencement of commercial production:

(a) Price paid for the land                                                                               

(b) Cost of new factory sheds and other new industrial buildings

(c) Price paid for new plant and machinery or equipment

(d) Other investment made in new fixed assets essential for production of the unit as approved by the Screening Committee and

(e) Technical know-how fees or drawing fees paid in lump-sum to foreign collaborators or foreign suppliers or paid to laboratories recognized by the State Government or the Government of India, provided that investment made in:-

  1. Land in excess of 30% of the total investment/EFCI made;
  2. Purchase of existing factory sheds, industrial buildings;
  3. Old plant & machinery; and
  4. Plant and machinery transferred from other locations, by the Enterprise shall not be included in investment/EFCI.

Provided further if an investment is made in the purchase of a manufacturing enterprise during the operative period of this Scheme or it has been taken over before the beginning of the Scheme and sold during the operative period of the Scheme by RIICO/ RFC/ Central Financial Institutions/ Banks, shall be allowed for computation of EFCI


Definition of Commencement of Commercial Production/ Operation

 For a new enterprise, the date on which the enterprise issues,

  1. The first sale bill of the goods manufactured related to the investment made under the Scheme; or
  2. The first bill of commercial transaction related to the investment made under the Scheme; or
  3. The first receipt of deposit of fee/ charges etc. for providing any service with respect to facilities set up related to investment under the Scheme; or
  4. Provided that investment made in development of an industrial park, it shall mean the date of handing over of possession to the first unit in the park.

Investment Subsidy Benefits to New Enterprises in Various Sectors

  • Manufacturing Enterprises
  • Service Enterprises
  • Ceramic and Glass sector
  • Dairy sector
  • ESDM (Electronic System Design & Manufacturing)sector
  • Industrial Gases sector
  • Pharmaceutical sector
  • Plastic to Oil Manufacturing sector
  • Textile sector
  • Tourism Sector
  • Kota stone, Marble and Granite Sector
  • Defence sector
  • IT Sector
  • Agro-processing and Agri-marketing sector


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