For Promoting investment and creation of new employment state cabinet has approved the Rajasthan Investment Promotion Scheme-2014(RIPS 2014) salient features of the scheme are as under:-
- Under the provisions of the Scheme Incentive will be provided for investment made by enterprise for establishment of new unit and investments made by the existing Enterprise for expansion.
- Under the provisions of the Scheme following benefits are available to manufacturing Units :-
(i) 30% Investment subsidy (of VAT and CST deposited).
(ii) Up to 20% Employment Generation Subsidy (of VAT and CST deposited).
(iii) 50 % Exemption from payment of Electricity Duty;
(iv) 50 % Exemption from payment of Mandi Fee;
(v) 50 % Exemption from payment of Land Tax;
(vi) 50 % Exemption from payment of Stamp Duty; and
(vii) 50 % Exemption from payment of conversion charges.
- For specified services, initially for services related to Health, Education, Skill Development, development of Industrial parks, Hotel and Entertainments, following benefits are available, under the provisions of the scheme:-
(i) Reimbursement of 50% of VAT paid on purchase of capital goods (for hotel and lodging 25%);
(ii) 50 % Exemption from payment of Electricity Duty (for hotel and lodging 25%);
(iii) 50 % Exemption from payment of Entertainment Tax;
(iv) 100 % Exemption from payment of Luxury Tax;
(v) 50 % Exemption from payment of Land Tax;
(vi) 50 % Exemption from payment of Stamp Duty; and
(vii) 50 %Exemption from payment of conversion charges.
- Under the provision of this scheme Employment Generation Subsidy shall be 30000 per annum for Women/SC/ST/Person with disability (PwD) and 25000 per annum for General Category Employee. This amount shall be increased annually by 5%.
- Women/SC/ST/Person with disability (PwD) Manufacturing Enterprise shall get 10% additional Investment Subsidy and such Service Sector Enterprise shall get 10% additional reimbursement of VAT paid on purchase of Capital Goods.
- Service Sector Enterprise established in backward area shall get 10% additional reimbursement of VAT paid on purchase of Capital Goods.
- Manufacturing Enterprise (Excluding Cement) established in most backward areas shall get 20% additional Investment Subsidy and Service Sector Enterprise established in such areas shall get 20% additional reimbursement of VAT paid on purchase of Capital Goods.
- Under the provisions of the scheme more subsidy has been given to following thrust sectors :-
(i) Ceramic and Glass sector
(ii) Dairy sector
(iii) Electronic System Design and manufacturing (ESDM) sector:
(iv) Industrial Gases sector
(v) Pharmaceutical sector
(vi) Power loom sector
(vii) Plastic to Petrol Manufacturing sector
(viii) Textile sector
(ix) Tourism sector
- Under the provisions of the scheme, the State Government on recommendations of State Empowered Committee may grant customized package to the enterprises (excluding cement units), investing Rs. 500 crores or generating employment to 500 persons or enterprises investing more than 100 crore and using specified minerals as raw material.
- Under the provisions of the scheme, benefits are provided for 7 years but for enterprises located in backward area and most backward area the benefits shall be for 10 years.
- Provisions regarding e-governance have been incorporated in the scheme.
- Provision has also been made that the enterprise availing benefit under the Scheme shall spend the funds earmarked for Corporate Social Responsibility (CSR) in the state of Rajasthan during the period benefits are availed.
- The benefits under the scheme shall be available during the period for which the enterprise has obtained “consent to operate” from Central / State Pollution Control Board.
- The maximum limit of subsidy shall be equal to Eligible Fixed Capital Investment (EFCI).
- Following enterprise/investment are not eligible under the scheme:-
(i) Investment for manufacturing Tobacco products, Pan Masala containing tobacco and Gutka.
(ii) Investment in all kinds of edible oil extracting or manufacturing industry including ghanies, expellers except solvent extraction plants with Oil Refineries.
(iii) Investment for manufacturing and bottling of Potable liquor and Beer.
(iv) Investment on stand-alone bottling plants for potable liquor and beer; or in bottling/packaging water or aerated drinks.
(v) Investment made for manufacturing of goods taxable at the rate up to five percent under the Rajasthan Value Added Tax Act, 2003, as may be specified by the State Government, in the Finance Department.
Provided that on recommendation of State Empowered Committee the State Government may grant benefits of the scheme to the first manufacturing enterprise in most backward area investing more than 250 crore for manufacturing of goods excluding the goods mentioned at serial no. (i) & (iv) above.
- The Scheme shall remain operative from the date of issuance of the order up to 31.03.2019.Major Changes in RIPS-2014
- 1. Eligibility Criteria:
- Ø The restrictions of minimum investment and employment have been lifted up.
- Ø The enterprise established at the site of the existing enterprise, which were ineligible under RIPS-2010 made eligible, under new scheme.
- Ø Tourism sector has made eligible under the scheme.
- For Manufacturing sector employment generation subsidy enhanced:
- Ø The amount of employment generation subsidy per employee per year has been increased from Rs. 18000/- to Rs. 30000/- for Women/ SC/ST/ Person with disability (PwD) categories of employees and for others from Rs. 15000/- to Rs 25,000/- for the year 2014-15.
- Ø 5% increase in employment generation subsidy per employee has also been proposed on 1st April of every year.
- 3. Benefits for Following Service sectors:-
- Ø Hospitals, Dispensaries, Poly Clinics, Diagnostic Centres, Research and Development Laboratories/ Centres, having minimum investment of five crore rupees.
- Ø Universities and Colleges affiliated to any University, having minimum investment of ten crore rupees.
- Ø Vocational Training & Skill Development Centers, having the minimum investment of fifty lakh rupees.
- Ø Development of Industrial Parks, including Textile Parks, having minimum investment of five crore rupees.
- Ø Enterprises providing entertainment, having minimum investment of ten crore rupees.
4. Additional Benefit of Reimbursement of VAT to Service Sector:
- Ø Reimbursement of 50% of amount of VAT paid on purchase of plant and machinery or equipment up to seven years, however, for enterprises engaged in entertainment 25% reimbursement of VAT has been allowed.
- Ø 10% additional reimbursement of VAT for Women/SC/ST/Person with disability service enterprises.
- Ø 10% additional reimbursement of VAT for Enterprise established in Backward Area.
- 5. Concept of Backward Area and Most Backward Area:
- Ø For enterprises located in backward area, the period of benefit has been extended to ten years, other than the benefit of interest subsidy.
- Ø For enterprise located in backward area other than the cement manufacturing unit, the benefit may be provided which are provided for such enterprises in most backward area, on the recommendation of State Empowered Committee.
- Ø 20% Additional investment subsidy for a period of seven year for manufacturing enterprise, other than cement manufacturing enterprise, located in most backward area has been allowed.
- Ø 20% Additional Reimbursement of VAT for seven years, to the service enterprise located in a most backward block has been allowed.
- 6. Concept of Thrust sector introduced:
- Ø Additional benefits has been proposed to the following thrust sectors:
- Ceramic and Glass Sector
- Dairy Sector
- ESDM Sector
- Industrial Gases Sector
- MSME Sector
- Pharmaceutical Sector
- Plastic to Oil Manufacturing Sector
- Power Loom Sector
- Textile Sector
- Tourism Sector
- 7. Additional benefits to Textile sector
- Ø Capital subsidy on zero liquid discharge based effluent treatment plant has been allowed
- Ø 50% of reimbursement of VAT on purchase of yarn, fibre, recycled fibre yarn, cotton and pet bottles for use in manufacture of goods within the State
- 8. Benefits to tourism sector
- Ø Investment subsidy of 50% of VAT and CST for seven years
- Ø Employement generation subsidy upto 10% of VAT and CST for seven years
- Ø Reimbursement of 25% of amount of VAT paid on purchase of plant and machinery or equipment for seven years
- Ø Exemption from payment of 50% of Entertaiment for seven years
- Ø Exemption from payment of 100% of luxury Tax for seven years
- Ø Land allotment in urban and rural areas at DLC rates
- Ø 50% exemption from stamp duty, however 75% exemption from payment of stamp duty for heritage property and
- Ø 50% conversion charges, however 100% exemption from payment of conversion charges for hertigae property
- 9. Power to Grant Customize Packages Enhanced:
- Ø In order to exploit the mineral resources of the State, power to grant customized package for manufacturing enterprise other than cement manufacturing enterprise has been proposed making investment more than Rs.100 crore and using the minerals as specified in the scheme as raw material has been proposed.
- 10. Expansion redefined:
- Ø The expression Expansion has been modified, diversification and modernization has been included in the definition of expansion.
- Ø Minimum investment limit in case of expansion has been proposed to the extent of 25% of the existing investment.
- 11. Maximum Limit of Subsidy:
- Ø A cap on subsidy to the extent of 100% of investment or eligible fixed capital investment made by the enterprise has been proposed.
- 12. Corporate social responsibility:
- Ø For availing the benefit under the scheme the condition of investment of funds earmarked for corporate social responsibility (CSR) in the State has been proposed first time in the scheme.
- 13. Environmental Protection:
- The condition of consent to “operate” from central / state pollution control board has been incorporated in the scheme first time, so that the benefits would only be allowed as long as the consent to operate is with the enterprise.
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