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RIICO Scheme

What is RIICO?

The Rajasthan State Industrial Development and Investment Corporation Limited (RIICO) is the industrial development arm of the Rajasthan Government. It plays a multifaceted role as a:

  • Developer of industrial infrastructure, having set up 424 industrial areas covering approximately 93,815 acres.

  • Provider of financial support, offering term loans and catalysing investment exceeding ₹98.6 billion, which has led to the establishment of over 44,550 industrial units and created employment for more than 113,000 individuals.

RIICO’s infrastructure development includes roads, power, water supply, drainage, lighting, and an array of social amenities across its industrial areas.

Summary
Component Highlights
Infrastructure Development
424 industrial areas; essential utilities & social amenities
Land Allotment (Direct)
Reserved plots for MoU holders; phases completed with strong investor participation
E-Auctioning
Available where land saturation occurs; includes industrial and institutional plots
Affordable Land Sales
Undeveloped/semi-developed land offered at discounted rates
Project Extension Oversight
Centralized control for granting time extensions on delays
Tax Policy Reform
Zero-tax revenue reinvested into industrial infrastructure
Smart Industrial Township
JPMIA development aligning with national infra corridors
Land Allotment & Allocation Mechanisms

Direct Land Allotment (for Rising Rajasthan MoU Holders)

  • Launched post the Rising Rajasthan Global Investment Summit – 2024, this scheme allows investors who executed MoUs by April 30, 2025, to apply for industrial plots at reserved rates.

  • Investors may apply for up to three plots, ranked by preference, and get allotted one based on merit, investment capacity, employment potential, among other criteria. In cases of comparable rankings, allocation is decided by higher investment.

  • In cases of single applicants per plot, allotment is direct; otherwise, e-lottery is used.

  • The first phase issued 103 offer letters, generating approximately ₹353 crore in revenue.

  • The second phase, starting May 15, 2025, opened up ~7,100 plots across 98 industrial areas for MoU holders—applications were received and e-lotteries held.

E-Auction of Land

  • In areas where >80% of plots are already allotted, RIICO conducts e-auctions to facilitate further industrial growth.

  • Since April 7, 2025, 197 plots were offered, with 182 sold, raising about ₹300 crore. Total allocated land value crosses ₹650 crore.

  • Auctioning has been extended to include non-industrial plots for hospitals, schools, hotels, and other institutional uses.

Affordable Land for Industrial Expansion

  • RIICO introduced a scheme to sell undeveloped and semi-developed land at lower rates, calculated based on basic District Level Committee (DLC) value plus development charges. This applies across both remote and urban industrial zones.

Policy Reforms & Strategic Enhancements

Transition to Direct Allotment

  • In a move to simplify land acquisition and reduce costs for investors, the government discontinued land auctions in favor of direct allotment under RIICO.

Centralized Oversight on Project Delays

  • Authority to grant up to one-year extension for project commencement has shifted from regional unit heads to RIICO’s Advisor (Infra), while extensions beyond one year require approval from the Managing Director.

Zero-Tax Policy for Infrastructure Reinvestment

  • The state is exploring a zero-tax regime under RIICO, wherein revenue generated by RIICO is reinvested into industrial infrastructure development, bolstering efficiency and competitiveness.

Strategic Development: JPMIA Smart Township

  • The Jodhpur-Pali-Marwar Industrial Area (JPMIA), a smart industrial township, is being developed under RIICO. Covering 3,600 hectares, it aims to attract ₹19,000 crore in investments across sectors such as solar components, textiles, and engineering. Infrastructure tenders worth ₹465 crore have been floated, with more underway.

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