राजस्थान निवेश प्रोत्साहन योजना (RIPS): रक्षा क्षेत्र

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 "Defence Sector" aims to promote large-scale investment in the Defence Sector by providing interest subsidy on term loans and electricity duty exemption. It supports enterprises investing ₹100 crore and above to strengthen defence manufacturing infrastructure.

Entrepreneurs are eligible to apply for the scheme.

Enterprises with Investment of ₹100 Crore to Below ₹500 Crore:

• Interest Subsidy: 5% Interest Subsidy on term loan taken from Financial Institutions, State Financial Institutions, or banks recognized by the Reserve Bank of India, for investment in plant and machinery, for a period of 5 years, subject to a maximum of ₹25,00,000 per year.

• Electricity Duty Exemption: Exemption from Electricity Duty for an additional period of 3 years.

Enterprises with Investment of ₹500 Crore and Above:

• Interest Subsidy: 5% Interest Subsidy on term loan taken from Financial Institutions, State Financial Institutions, or banks recognized by the Reserve Bank of India, for investment in plant and machinery, for a period of 5 years, subject to a maximum of ₹1,00,00,000/- per year.

• Electricity Duty Exemption: Exemption from Electricity Duty for an additional period of 3 years.

Application for Claim of Interest 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.

For Exemption from Electricity Duty:

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).

Online - via CSCs

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.

Exclusions

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.

NA

Who is eligible for benefits under this component?

Enterprises making an investment of ₹100 crore or more in the Defence Sector are eligible.

What is the minimum investment required to avail benefits?

The minimum investment required is ₹100 crore.

Are different benefits available for different investment levels?

Yes, benefits vary for investments between ₹100 crore to below ₹500 crore and for investments of ₹500 crore and above.



What interest subsidy is provided under the scheme?

A 5% interest subsidy on term loans is provided.

Which loans are eligible for interest subsidy?

Term loans taken from Financial Institutions, State Financial Institutions, or banks recognized by the Reserve Bank of India are eligible.

For what purpose must the loan be used to receive interest subsidy?

The loan must be used for investment in plant and machinery.



For how many years is the interest subsidy available?

The interest subsidy is available for a period of 5 years.

What is the maximum interest subsidy for investment between ₹100 crore and below ₹500 crore?

What is the maximum interest subsidy for investment between ₹100 crore and below ₹500 crore?

What is the maximum interest subsidy for investment of ₹500 crore and above?

The maximum interest subsidy is ₹1,00,00,000/- per year.

For how many years is electricity duty exemption provided?

Electricity duty exemption is provided for an additional period of 3 years.

Is electricity duty exemption available for all eligible Defence Sector enterprises?

Yes, it is available to all eligible enterprises covered under the scheme.

Does the scheme provide any subsidy other than interest subsidy?

Yes, electricity duty exemption is also provided.

Is the interest subsidy linked to any specific authority?

Yes, the loan must be taken from institutions or banks recognized by the Reserve Bank of India.