INDIAN STATE : RAJASTHAN
Investment Incentives as under the "Rajasthan
Investment Promotion Scheme" (2003)
- 100 percent exemption of luxury tax for seven years.
- 50 percent exemption of entertainment tax for seven
- 50 percent exemption of electricity duty for a period
of seven years.
- 50 percent exemption from mandi tax for seven years.
- 50 percent exemption from stamp duty.
- 50 percent exemption from conversion charge.
- 5 percent interest subsidy.
- Wage/ employment subsidy set off against sales tax.
Major incentives for information technology units
(Under IT Policy 2000)
- Commercial buildings which are fully dedicated to
Software / IT industry will be exempted from Land
& Building Tax on a case to case basis by the
Empowered Committee on investment chaired by the Chief
Secretary. If the use of building changes, this exemption
would automatically get revoked.
- Software units have already been permitted to be
set up in urban areas. To further liberalize this
aspect, Software units will be permitted to be set
up in residential plots without change in land use.
- Property transactions in designated IT Parks will
be exempted from Stamp Duty.
- Rajasthan State Electricity Board (RSEB) shall endeavor
to ensure uninterrupted supply of power. There will
be no requirement of taking permission from RSEB regarding
installation of DG sets of any capacity for captive
use up to 50% of the industry's demand.
- IT Software and IT Services companies, being the
constituents of the knowledge industry, shall be exempted
from routine inspection by inspectors like those for
Factory, Boiler, Excise, Labor, Pollution, Environment,
Industry, RESB etc. in line with the approved policy
of Government of India.
- IT Software and IT Services shall be deemed as
manufacturing activity for the purpose of incentives
for the industry in line with the approved policy
of Government of India. Depreciation norms and Loan
for capital investments and working capital requirements
will be in line with the approved policy of Government
- State Fls and the banks will be allowed to invest
in the form of equity in line with the approved policy
of Government of India.
- All promotional and liberalized policy instruments
available to the IT Software and IT Services shall
be made available to the IT enabled Services including
the Information Content Industry by classifying IT
enabled Services as tantamount to IT Software and
IT Services in line with the approved policy of Government
- The State Government would encourage flow of investments
including FDI and would provide full support wherever
required. The State Government will offer customized
package of incentives for prestigious investment proposals,
e.g., projects where total investments are more than
Rs. 10 Crores or a Fortune 500 company is implementing
the project. All such proposals shall be received
by BIP and would be put up to Board of Infrastructure
Development & Investment Promotion for approval
on case-to-case basis on merit. Before putting up
the case to BIDIP recommendations of Directorate of
Information Technology (DoIT) will be obtained.
- The State FIs will provide term loans and equity
on priority to units at a reduced rate of promoter's
contribution that will not exceed 30% of the total
project cost considering merit of the case.
- The State FIs will consider security margin of
30% of the total assets on case-to-case basis.
- 12. Software industries will be treated as industrial
(and not commercial) consumers and electricity tariff
applicable to the industrial consumers will be levied
on such industries.
Special land package to It industries
in IT parks/ designated IT Zones
- Very Prestigious Investment - in IT Software, ITES
and IT Hardware - For the industry which is set up
on the allotted plot by any company with a minimum
fixed investment of Rs. 10 crores or by a fortune
500 company, within a period of 3 years, entitled
land rebate shall be @ 60% of the plot allotment rate.
- Prestigious Investment - in IT Software, ITES and
IT Hardware - For the industry which is set up on
the allotted plot with a minimum fixed investment
of Rs. 1 crore within a period of 3 years, entitled
land rebate shall be @ 50% of the allotment rate for
the plot upto maximum of 5 acres area.
- General Investment - in IT Software, ITES and IT
Hardware - For the industry which is set up on the
allotted plot with a minimum fixed investment of about
Rs. 10 lacs per 500 sqm. land and Rs. 2 lac for every
subsequent 100 sqm. within a period of 3 years, entitled
land rebate shall be @ 25% of the allotment rate for
the plot upto maximum of 2000 sqm. area.
- Advanced IT Institutes- For the institute which
is set up on the allotted plot with a minimum fixed
investment of Rs. 5 crores within a period of 3 years,
entitled land rebate shall be @ 25% of the allotment
rate for the plot upto maximum of 5 acres area.
- Advanced IT Institutes would mean institutes offering
exclusive IT courses at least of the level of MCA
/BE / M.Tech (IT) /MBA (IT) /MSC (IT) or of a recognized
- General Computer Training Institutes- No rebate
in the allotment rate shall be allowed. However, RIICO
may consider land allotment upto maximum of 2000 sqm.
On prevailing rate provided unit makes fixed investment
of about Rs. 5 lacs per 500 sqm. land within 3 years
a) Production activities will need to be started within
three years from the date of possession or from the
date of lease deed execution, whichever is earlier.
b) The minimum fixed investment should be made within
3 years from the date of possession or from the date
of lease deed execution, whichever is earlier.
c) An undertaking / certificate shall also be submitted
by IT unit every year for the use of land for the purpose
the land is allotted.
d) Fixed investment shall mean investment in land, building,
computers, printers, scanners, plotters, licensed software's,
EPABX, networking equipment, UPS, DG-Sets, CVT"s,
AC, LAN Cable and other equipment and furniture.
e) In case of failure to observe the terms and conditions
regarding investment and time schedule mentioned in
the package, the concessional amount shall be recovered
from allottee with interest from the date on which concession
amount has been reimbursed.
f) In each case the decision of RIICO shall be final
as to what qualifies as IT Industry/ Institute for the
purpose of above said incentive.
g) For reimbursement of the concessional amount, the
plot allottee would be required to inform RIICO office
by a registered AD letter sent prior to the scheduled
date regarding the building construction. After verification
by the Unit Head, the Cheque or rejection letter, as
the case may be, will be sent by RIICO within 30 days
by registered AD letter
Incentives Available for Establishment of Tourism
State government has declared tourism as an industry
and has designed a lucrative investment package to promote
the tourism industry.
I) The following incentives will be available to the
new tourism units such as hotels and lodging houses
The prescribed authority, under the new Rajasthan investment
promotion policy 2003, shall grant the following exemptions.
The following exemptions will be available between the
period of July 2003 to 31st March 2008.
- Exemption in Luxury Tax: 100 percent exemption of
luxury tax for a period of seven years
- Exemption in Stamp Duty: 50 percent exemption in
stamp duty for a period of seven years
- Other Incentives
- 50% exemption of entertainment tax for seven
- 50% exemption of electrical duty for seven years.
- 50% exemption from conversion charge; and/or
- 50% exemption from mandi tax for seven years
- Interest Subsidy to Tourism Units such as Hotel,
Motel etc.: 5% Interest subsidy and wage/ employment
subsidy would be made available to eligible investor
during the operative period of the scheme. An additional
interest subsidy of 1% shall be made available to
II) Allotment/ conversion of land to tourism industry
- Under the Rajasthan Land Revenue (Conversion of
agriculture land for non agriculture purpose) rule
(1992), no land use conversion charges will be paid
for establishment of tourism units up to the land
of 2000 sq. mts. subject to the condition that 100%
unskilled workforce will be employed from the local
- Under Rajasthan Land Revenue (Industrial area allotment)
rule 1959 allotment of Govt. Agriculture Land up to
4 bigha in Rural Area on payment of 25% of the reserve
price of the prevailing market price in the concerned
area subject to the condition that 100% unskilled
workforce will be employed from the local area.
- For Heritage Hotels in Rural Areas no land Conversion
Charge are taken. In urban areas conversion charge
are levied under the provisions of Rajasthan urban
improvement trust rules 1974 on built up areas only.
- For Tourism units conversion / allotment of land
is being done under Rajasthan Land Revenue (Industrial
area allotment) rule 1959 and Rajasthan Land Revenue
(Conversion of agriculture land for non agriculture
purpose) rule 1992 on Industrial rates. (Other than
point no. a & b above)
- Under Rajasthan Development Trust (Urban Land) rule
1974 - rule 15 & 15B tourism projects to be established
in Rajasthan, the Land will be allotted on rates and
basis of following investment: -
||Cost of Investment
||Rate of allotment
||Up to an investment of Rs. 5.00
Crore. 200% of the concerned area residential reserve
||200% of the concerned area residential
||An investment of more than Rs.
5.00 crore and up to Rs. 25.00 crore. 125% of the
concerned area residential reserve price.
||125% of the concerned area residential
||An investment of more than Rs.
25.00 crore and up to Rs. 50.00 crore. 75% of the
concerned area residential reserve price.
||75% of the concerned area residential
||More than an investment of Rs.
50.00 crore 60% of the concerned area residential
||60% of the concerned area residential
III) New Multiplex Cinema Halls, Drive in Theatres/
Films which have been 75% picturised in Rajasthan and
having U- certificate are 100% exempted from Entertainment
Tax (including additional Entertainment Tax) for one
year from the date of its first exhibition.
For new Multiplex Cinema Halls, Drive in Theatres/
Cinemas in Rajasthan are exempted from Entertainment
Tax for 3 years from the date of Commencement of their
commercial exhibition as follow.
1. 75% for First Year,
2. 50% in Second year, and
3. 25% in Third Year.
- Stone Sector
- Job-work processing of imported marble &
- Stone-craft items - Buy Back agreements and
- Production facilities for consumable: Collaborations,
- Joint venture for mechanized quarrying
- Production of machinery: Collaborations, joint
ventures, technology transfers
- International marketing tie-ups for purchase
of stones from Rajasthan
- Information Technology and IT enabled Services
- Bio Technology (BT)
- Research and development in the cattle species
improvement programme and Biotechnology incubation
- Bio-pesticides and bio-fertilizers
- Genetic improvement of seeds
- Genetic improvement of animal breeds
- Dry farming
- Treatment of industrial effluents
- Recycling/recovery of bio-products
- Waste management
- Bio fuels/energy
- Industrial enzymes
- Fermentation products for better yeast
- Agro Based Industries
The agro and food processing sector offers scope
for development of several industries such as solvent
extraction, oleo- resins, kinnow/ orange juice,
malt extracts, floriculture and a host of other
items. Besides these, items like mushrooms, tomato
processing, other processing industries based on
mango, ber, pomegranate and other vegetable like
onion, potato, garlic. Industries based on herbal
and medicinal plants, sheep, goat, buffalo meat
processing, poultry and poultry products and non-edible
oil processing industries have bright export prospects.
The state government on its part, is alive to the
needs of this sector with regard to training, technology
upgradation, improvement in infrastructural facility
and a progressing Government policy with these measures,
along with support from central government and the
coordinated efforts of various institutions working
in the filed of agro and food products. It is expected
that this industries with come to occupy its due
place in the agro industrial development of Rajasthan.
- Power Sector
- Education Institutes
- Urban Infrastructure
- Tourism Sector
- Gems & Jewellery
- Garments and Textiles
- Road & Bridges
State Industrial Development & Investment Corporation