Eligibility Criteria for MSMEs under RIPS 2024

Any enterprise falling under the Micro, Small or Medium category as defined by the Government of India (based on investment and turnover) and undertaking eligible manufacturing, service, agro-processing, or green technology activities in Rajasthan is eligible for benefits under RIPS 2024.

• New Enterprises: Fresh investments in new units.

• Existing Enterprises: Expansions, modernization, or diversification.

• Startups and First-Generation Entrepreneurs: Special incentives are available.

• Women, SC/ST Entrepreneurs: Additional benefits and relaxed norms.

• Rural, Tribal, and Backward Areas: Higher capital subsidies and exemptions.

Key Benefits for MSMEs under RIPS 2024

1. SGST Reimbursement

• Eligible MSMEs receive up to 75% reimbursement of State Goods and Services Tax (SGST) paid, for a period of 10 years from the date of commencement of commercial production.

• This benefit ensures consistent working capital support and improved liquidity.

2. Capital Subsidy

• Plastic Alternatives Units: Capital subsidy of 50% of investment, up to ₹40 lakh, to promote sustainable manufacturing.

• Agro & Food Processing Units: Capital subsidy up to ₹1.5 crore, covering up to 50% of capital cost.

• Startups & Innovation-driven Enterprises: Customized capital assistance depending on sector and scale.

• Additional 5% subsidy for enterprises owned by:

  • SC/ST entrepreneurs

  • Women entrepreneurs

  • Enterprises located in Tribal Sub-Plan (TSP) areas

3. Interest Subsidy on Loans

• MSMEs availing term loans are eligible for an interest subsidy of up to 6% per annum.

• Additional interest subsidy is provided under the Rajasthan MSME Policy 2024, on the differential amount as per the investment slab:

  • Up to ₹5 crore: Additional 2%

  • ₹5 crore to ₹10 crore: Additional 1%

  • ₹10 crore to ₹50 crore: Additional 0.5%

• Total duration of interest subsidy: up to 7 years.

4. Credit Guarantee Fee Reimbursement

• For MSMEs availing collateral-free loans up to ₹5 crore under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme, 100% of annual guarantee fees will be reimbursed by the State Government for a period of seven years.

• This provision enables risk-free credit access and encourages first-time borrowers.

5. Exemptions & Reimbursements

• 100% exemption on electricity duty for seven years on:

  • Captive renewable energy generation

  • Clean production technologies

• 50% reimbursement of expenditure on pollution control, energy audit, and water conservation projects (up to ₹1 crore).

• 100% exemption or reimbursement on:

  • Stamp Duty

  • Land Conversion Charges

  • Mandi Fees (for agro-based industries)

6. Startup-Specific Incentives

• Women-led startups are eligible for 100% SGST reimbursement for 2 years from date of registration.

• Support for product development, testing, patent filing, and market linkage.

• Incubation and mentorship support through State Startup Policy synergy.

Ease of Doing Business – Digital Single Window Clearance

The Government of Rajasthan facilitates all investor services through the RajNivesh Portal – an online, transparent, and time-bound single-window system. MSMEs can:

• Apply for registration under RIPS 2024

• Submit investment proposals

• Track approvals and incentive disbursements

• Receive automatic alerts for compliance and updates

For more details or to register, visit: https://rajnivesh.rajasthan.gov.in

Special Incentives for Priority Sectors within MSMEs

RIPS 2024 offers enhanced support to MSMEs in priority sectors such as:

• Renewable Energy and Green Manufacturing

• Agro & Food Processing

• Handicrafts, Handlooms, and Khadi

• Pharmaceuticals and Medical Devices

• E-Mobility and Electronics

• Tourism & Wellness

• IT/ITeS & Data Centres

• Plastic Alternative Products (biodegradable, recyclable)

Validity of the Scheme

• The incentives and benefits under RIPS 2024 are applicable for eligible projects approved on or before 31st March 2029.

• Benefits can be claimed for up to 10 years from the commencement of operations or as per specific incentive timelines.

Implementation & Monitoring

• The Department of Industries, Government of Rajasthan, is the nodal agency for scheme implementation.

• A dedicated Investment Promotion Cell ensures end-to-end support for MSMEs, from application to disbursal of incentives.

• Periodic reviews and digital dashboards ensure transparency, timely approvals, and effective grievance redressal.

Empowering Rajasthan through MSMEs

The Rajasthan Investment Promotion Scheme 2024 is a transformative step toward a vibrant, inclusive, and resilient economy. Through targeted incentives, access to affordable credit, and simplified governance, the Scheme empowers Rajasthan’s MSMEs to innovate, expand, and compete globally — thereby reinforcing their role as the backbone of the State’s economic future.