FAQ

FAQ Regarding Subsidy

1. Where the application for claiming benefits under RIPS-2014 is to be filed?
Answer:

With the Member Secretary of appropriate Screening Committee as shown below: a) For investments upto Rs. 10 crore—Member Secretary of District Level Screening Committee of the concerned district (District Industries Centre) b) For investments above Rs. 10 crore—Member Secretary of the State Level Screening Committee i.e. Commissioner of Industries, Government of Rajasthan.

2. Which is the Nodal Agency for sanctioning benefit on the investment made in the State under RIPS-2014?
Answer:

Investment upto Rs. 10 crores: District Level Screening Committee of the concerned District.

Investment above Rs. 10 crores: State Level Screening Committee.

 

3. What is the meaning of “Investment”?
Answer:

Investment means the investment made by the enterprise in fixed assets which constitutes the cost of land, cost of factory and building, cost of plant and machinery or equipment, other investment made in fixed assets which is essential for production from the unit and fee involving technical know how or drawing fee paid to the service provider.

4. Does this scheme apply to new enterprises only?
Answer:

The Scheme applies to new investment and expansion made by the existing and sick enterprises.

5. How long shall this scheme remain in force?
Answer:

The operative period of the Scheme is from 8th October, 2014 to 31st March, 2019.

6. Can I also avail the benefits under Government of India scheme along with RIPS-2014?
Answer:

Yes. However, in case the enterprise is availing any Investment Subsidy under any other Scheme of Government of Rajasthan in respect of investment made in fixed assets, the total subsidy payable under this Scheme shall be reduced to the extent of Investment Subsidy so received.

7. Is there any limit to making investment in the state?
Answer:

There is no upper ceiling for investment.

8. Are there additional benefits for large capital investment?
Answer:

Any investment having the capital investment of Rs 500 cr. and above or providing employment to 500 persons and above or Enterprises investing more than Rs. 100 crore and using the minerals mentioned in Annexure-III appended to the Scheme, as raw material can avail customized incentive benefits under the scheme.

9. Is there any procedure to claim benefits under this scheme?
Answer:

Yes, the procedure for claiming exemptions i.e. 50% exemption in Stamp Duty, Conversion Charges, Electricity Duty, Entertainment Tax and Mandi Fee are mentioned under clause 11 of  the scheme. In the same clause procedure for claiming Employment Generation Subsidy, Reimbursement of VAT on purchase of plant and machinery or equipment, claim of Capital Subsidy and determination of Zero Liquid Discharge based Effluent Treatment Plant and claim of Reimbursement of VAT for Textile sector have been detailed out.

10. Are there any forms to submit for claiming the benefits?
Answer:

Yes. Different application forms for different benefits are required to be submitted, duly completed, which are attached to the scheme.

11. Are there any sectors which cannot claim benefits/incentives under this scheme?
Answer:

Yes, the list of ineligible investment proposals is at Annexure-I of the scheme.

12. Are goods taxable @ upto 5% below the RVAT, 2003 eligible for claiming benefits?
Answer:

No. However, list of goods as and when specified by the State Government in the Finance Department would be eligible from the date of issue of the Notification.

13. Are there any special incentives offered to Women, Scheduled Castes and Scheduled tribes entrepreneurs under this scheme?
Answer:

Yes, additional incentives are offered to Women, Scheduled Castes and Scheduled tribes entrepreneurs which is mentioned at clause 6 of the scheme.

14. Are there any other special incentives offered to specific region/zone in the state?
Answer:

Yes this scheme offers special benefits to Backward Region (Revenue District of Barmer, Dholpur, Jaisalmer and Karauli) and Most Backward Region (All blocks of Tribal Sub Plan area, Revenue District of Baran and Jhalawar) of the state. Additional benefits to the Backward and Most Backward areas can be seen at clause 7. For identification/addition in the list of Backward and Most Backward areas, notification/s will be issued by the concerned department from time to time.

15. Does the state has any priority sectors to promote the investment? If yes, what are those sectors?
Answer:

Yes the state has identified the thrust sectors to be promoted for investment which are Ceramics & Glass, Dairy, Electronic & System Design, Industrial  gases, Micro Small and Medium, Pharma, Plastic to Oil, Powerloom, Textile and Tourism.

16. What is the procedure to claim customized benefits under this scheme?
Answer:

Eligible enterprise have to apply under Single Window Clearance Mechanism to BIP, the Nodal Agency for State Empowered Committee (SEC) constituted under the chairmanship of Chief Secretary. The SEC either rejects or recommends the proposal to the cabinet for approval.

17. Does this scheme offer any additional benefit to enterprises which have established their own effluent treatment plant?
Answer:

This scheme offers capital subsidy to such enterprises which plan to establish zero liquid discharge based effluent treatment plant. However, this benefit is limited to enterprises of Textile sector or revival of sick industrial enterprises.

18. In what form the incentives are given to the enterprises?
Answer:

- Subsidy: VAT/CST/SGST reimbursement

- Exemptions as mentioned under answer to Q. No. 9 above.

 

19. Do sick enterprises receive any interest free loan?
Answer:

No.

20. Do MSMEs receive any term loan facility under this scheme?
Answer:

No. However, MSMEs can avail the term loan facility from any FIs, Banks and other Non Banking Financial Institutions, duly recognized by RBI.

21. Does the scheme also provide incentive/s to service based industry?
Answer:

Yes.

22. What type of incentives are provided to the service based enterprises?
Answer:

Incentives are provided in the form of VAT/CST/SGST reimbursement and exemptions as mentioned under answer to the Q.9 above. However, for the enterprises related to Entertainment, the reimbursement of amount is restricted to 25% of the VAT paid.

23. Are there any terms and conditions related to avail the benefits under this scheme? If yes, what are those?
Answer:

The terms and conditions for availing the benefits are mentioned under clause 14 of the Scheme.

24. Is there any penalty if any unit/s violate/s the terms and conditions mentioned under the Scheme?
Answer:

In case of breach of any of the condition/s mentioned anywhere in the Scheme, the benefits availed under this Scheme, is liable to be withdrawn by the appropriate Screening Committee and on its recommendation the concerned Department shall recover the benefits availed by the enterprise along with interest @ 18% per annum from the date from which the benefits have been availed. 

25. Are there any additional benefit provided to the units which are engaged in fulfilling corporate social responsibility?
Answer:

No. But it is one of the mandatory condition to avail benefits under the Scheme.

 

26. Does this scheme necessitate the competent authority to deliver or grant the benefits through electronic mode?
Answer:

This scheme encourages the competent authority to grant the benefits through electronic mode. Besides it also encourages the competent authority to change any procedure mentioned under this scheme to facilitate the electronic mode of delivery of benefit.

27. Which authority will implement the scheme?
Answer:

All related competent authorities shall implement the scheme i.e. provide benefits after the enterprise has been provided Entitlement Certificate by the concerned Screening Committee.

Copyright © 2015 Government of Rajasthan. All Rights Reserved