A day before important roadshow of Rising Rajasthan at New Delhi, Rajasthan government has come up with Rajasthan Investment Promotion scheme -2024 to attract businesses to invest in the state.
The provisions of RIPS – 2024 will not only be a magnet for new investments but also applicable for existing businesses. It will also bail out sick units struggling to do business.
To promote fresh investment, the government has halved the investment cap from Rs 50 crore to Rs 25 crore to be eligible for standard service package. For tourism units, the cap has further reduced to Rs 10 crore.
However, companies will continue to get customised package on mega investments. For investment more than Rs 3,000 crore, the incentives given will be five times to compete with other states.
Startups owned by women entrepreneurs will get a refund of complete SGST for two years.
Diya Kumari, deputy chief minister, said that the focus of government is on MSME, green energy sector, tourism, manufacturing sector and other sunrise industries. The benefits of RIPS – 2024 will be extended to those investing in green development and talao to those who are first time exporters.
“The government has extended the list of sun rise industries by including new sectors like aero and space, defence, semiconductors, agri tech and waste recycling. We are promoting entrepreneurs to invest in these sectors,” she said.
Land and power incentives
Diya Kumari said that the government will offer land and power incentives to cut down the operational cost of the manufacturing units. The facilities will be on request extended to even those which are already operational.
“We have introduced flexible model of land cost in RIPS – 2024. manufacturing units may pay upfront 25% of the land cost and can pay the remaining 75% in 10 instalments at interest rate of 8%,” she said.
Diya Kumari said that electricity incentive will be provided to 8 types of power intensive industries to cut down their operational cost.
“Investment on captive renewable machineries will get a refund of 5% SGST or 5% VAT refund on the cost of piped natural gas besides other subsidies.
More facilities for MSME under RIPS – 2024
The benefits of RIPS – 2024 shall be extended to event those MSME units which have capital investment for less than Rs 1 crore. The government expects MSME sector to grow and generate jobs for youngsters.
“MSME sector will get the relief in interest for more years (seven years) as compared to industries under Standard Manufacturing Package. Similarly, units related to Khadi, rural tourism and agro processing units will get extra benefits. These will get subsidy benefits on investment for 10 years,” she said .
Prakash Bhandari is a veteran journalist with over 50 years of experience. He has worked with The Times of India for 30 years and contributed to leading publications as well as international news agency AFP.
