RIPS 2024 is the State's principal investment incentive scheme. For an MSME it offers SGST reimbursement for ten years, interest subvention for seven, employment support, and a set of duty exemptions. The headline rates are generous — but the incentives are capped in aggregate, and which category you claim under changes what you get. This page sets out both.
At a glance
| Operative period | Until 31 March 2029 from the date of issuance |
| Administering department | Department of Industries & Commerce, Government of Rajasthan |
| Who this page covers | Enterprises claiming under the MSME category (Section 3.4). Manufacturing, Services, Sunrise, Start-up and Infrastructure categories have separate incentive tables. |
| MSME definition applied | Government of India definition, as amended. Micro: plant & machinery ≤ ₹1 crore and turnover ≤ ₹5 crore. Small: ≤ ₹10 crore and ≤ ₹50 crore. Medium: ≤ ₹50 crore and ≤ ₹250 crore. |
| Overall cap | ₹5 crore per annum — total incentives for an MSME claiming under this Section |
| Commencement condition | The enterprise must commence commercial production or operation during the operative period, or within 2 years of grant of the eligibility certificate |
| Source | Rajasthan Investment Promotion Scheme 2024, as updated 16 May 2025 (MSME definition amended by Finance Notification F.12(32)FD/Tax/2024-Pt-II-03 dated 16.05.2025) |
Check these before you read the benefits
The election that costs the most money
An MSME with EFCI above ₹25 crore may claim under the MSME category, or under Manufacturing (Large project category, for investments of ₹50–300 crore), or under Services. These are alternatives, not additions. Because the MSME route carries a hard ₹5 crore annual ceiling, a larger project frequently does better outside it — but that comparison has to be run in rupees before you elect.
Asset creation incentives
| Incentive | What you get | Duration | Conditions that matter |
|---|---|---|---|
| Investment Subsidy (SGST reimbursement) | Reimbursement of 75% of State tax due and deposited | 10 years | Reimbursement under the Investment Subsidy must not exceed 100% of State tax due and deposited. Reimbursement is against SGST paid by debit in the electronic cash ledger. |
| Special incentive — plastic alternatives | 50% of capital investment, capped ₹40 lakh | One-time | Only for enterprises manufacturing alternatives to plastic products. |
| Capital Subsidy — agro & food processing | 50% of capital investment, capped ₹1.5 crore | One-time | Restricted to enterprises engaged in agro and food processing. |
| Additional capital subsidy | 5% additional | — | For FPOs owned by SC/ST or women entrepreneurs, or enterprises setting up in areas identified under the Tribal Sub-Plan. |
Interest subvention
Available for 7 years on loans for plant and machinery, equipment or apparatus. The rate steps down as the loan grows, and is telescoped — each band applies only to the slice of the loan within it.
| Loan amount | Interest subvention per year |
|---|---|
| Up to ₹5 crore | 6% |
| ₹5 crore – ₹10 crore | 4% |
| ₹10 crore – ₹50 crore | 3% |
Worked example, straight from the policy
On a ₹6 crore loan for plant and machinery: 6% on the first ₹5 crore (₹30 lakh) plus 4% on the remaining ₹1 crore (₹4 lakh) — ₹34 lakh in year one, not 4% of the whole ₹6 crore. Reading the band as applying to the entire loan is the most common arithmetic error we see on this incentive.
- Khadi enterprises may avail interest subvention for 10 years rather than 7.
- On loans up to ₹25 lakh, an additional 1% subvention applies to beneficiaries under the Rajasthan Rural Tourism Policy, and to agro-based industries.
Special incentives
| Incentive | What you get | Conditions that matter |
|---|---|---|
| Employment Generation Subsidy | Reimbursement of 50% of the employer's EPF and ESI contribution, for 7 years | Domiciled employees only. Contributions for non-domiciled staff do not qualify — this is where payroll-based claims most often shrink on scrutiny. |
| Fund Raising Incentive | 50% of the cost of raising capital, capped ₹5 lakh | One-time, and only for funds raised through an SME platform. |
Exemptions
| Head | Relief |
|---|---|
| Electricity Duty | 100% exemption for 7 years |
| Mandi / market fee | 100% reimbursement for 7 years |
| Stamp Duty | Exemption from 75% and reimbursement of the remaining 25% — on purchase or lease of land and construction on it, and on purchase or lease of floor space in a constructed commercial building of at least 2,000 sq ft |
| Conversion Charges | Exemption from 75% and reimbursement of 25% |
Cluster incentive
A cluster — at least 20 enterprises within a district producing the same or similar products — may form a Special Purpose Vehicle under Section 8 of the Companies Act to establish a Common Facility Centre.
- Land available at circle rate, with water and power facilitated to the boundary wall.
- Soft loan up to ₹10 crore from the State at 5% interest, repayable over 5 years in 5 equal annual instalments.
Phasing, expansion and transition
- The committed investment must be made within the operative period of the Policy.
- Phased investment continuing beyond the operative period may still be eligible under RIPS 2024 for an additional 2 years after the period ends, subject to the policy's conditions.
- The policy applies to both new investments and expansions made during the operative period.
- Enterprises that do not complete their total investment commitment within the operative period face consequences for their incentive entitlement — confirm your phasing plan before you commit.
Where these claims usually come apart
- Reading an interest subvention band as applying to the whole loan rather than telescoping across bands.
- Claiming EPF/ESI reimbursement on non-domiciled employees.
- Electing the MSME route without modelling it against the Manufacturing or Services route, and hitting the ₹5 crore annual ceiling.
- Commercial production commencing outside the operative period, or later than 2 years from grant of the eligibility certificate.
- The activity falling within the excluded list at Annexure 9.2.
- Investment or employment attributed to operations outside Rajasthan.
- Stamp duty claimed on commercial floor space below the 2,000 sq ft threshold.
Interaction with other schemes
RIPS 2024 is the capital and operating incentive layer. It sits alongside the Rajasthan Export Promotion Policy 2024, which reimburses export-specific costs such as freight, certification and product testing. A manufacturing exporter in Rajasthan is typically running claims under both, on different heads. The same expense must not be claimed twice — under RIPS 2024 the policy also carries specific provisions on transition and on availing benefits under a single scheme, which should be checked against your particular facts.
Source: Rajasthan Investment Promotion Scheme 2024, Department of Industries & Commerce, Government of Rajasthan — policy document as updated 16 May 2025. Figures on this page are drawn from Section 3.4 (MSMEs) and the general conditions at Section 2.