State policy

Rajasthan government has taken several steps aimed at streamlining the approval processes, promote export and knowledge intensive industries and provide better quality infrastructure. The main objective of these initiatives is to improve the investment and business climate in the state. A number of innovative policies has been announced by the state government have boosted the investment prospects in the state. Various investment promotion policies currently in force are as follows:

Rajasthan Industrial and Investment Promotion Policy (RIIPP) 2010

The policy has been announced with a vision to catalyze investments, accelerate inclusive economic growth and create large scale employment opportunities in Rajasthan.


Following are the key features of the policy:

  • Improving the business climate through policy initiatives and systemic changes
  • Developing high quality infrastructure
  • Enhancing skill levels and employability by setting up training institutes in PPP
  • Easy availability of land for projects
  • Focus on MSMEs growth by giving high priority to cluster based development of MSMEs
  • Promotion of Thrust Areas


Policy to Promote Private Investment in Healthcare Facility 2006

The policy aims to promote private sector investment in healthcare facilities through:

  • Identifying the available land for healthcare facilities
  • Maintaining a land bank exclusively for health care institutions
  • Promoting suitable institutions as medical tourism destinations
  • Facilitating investment through time-bound clearances and through financial incentives
  • Creation of regulatory body with appropriate authority and supportive role for ensuring quality care and addressing grievances
  • Laying down of minimum standards through a committee on standards to help in certification/accreditation
  • Offering paid consultancy/services related to hospital planning and operations


Under the policy, the eligible investors in private health sector setting up healthcare facility in Rajasthan, shall be entitled for following exemptions as per RIPS 2010:

  • 50% exemption from Electricity Duty for a period of 7 years
  • 50% exemption in Stamp duty
  • 50% exemption in conversion charges


Solar Policy 2011

The policy aims to establish Rajasthan as a National leader in solar energy in phased manner by creating the policy frame work for promoting use of solar energy in various applications. Various incentives provided under the policy by the State Government are as follows:

Exemption from Electricity Duty: The energy consumed by the power producers for own use will be exempted from payment of electricity duty.

Grant of Incentives available to industries: Generation of electricity from Solar Power Plants shall be treated as eligible industry under the schemes administered by the Industries Department and incentives available to industrial units under such schemes shall be available to the Solar power producers. Availability of water for Power Generation: Water Resource Department will allocate required quantity of water from Indira Gandhi Nahar Project (IGNP) canal or the nearest available source for development of Solar Thermal Plants subject to the availability of water for power generation.

Power producer will intimate estimated water requirement to RREC along with source of water. After assessment/scrutiny, case of water requirement shall be forwarded to the Water Resource Department. The modification(s) required, if any, in the existing canal system shall be done by the Water Resource Department at the cost of the power producer.


Rajasthan Solar Energy Policy - 2014​

Policy for Promotion of Agro-Processing and Agri-Business 2010

The policy for the promotion of agro processing industries and agri-business seeks to address the entire value chain in agro processing and marketing, including development of the supply chain, market development and diversification.


This policy is aimed at the following objectives:

  • To increase the income in the hands of the farmers through more remunerative prices of their produce
  • To encourage value addition in agricultural produce and to reduce post harvest losses
  • To bring in new technologies and practices to modernize agro-processing and marketing
  • To promote export of agri-products of the State and to build a strong State brand in the domestic and international market
  • To attract private investment in agro processing and create new employment opportunities on a large scale.


Agro processing and agri-business would be entitled to the following category of incentives:

  • Incentives admissible under RIPS 2010
  • Additional incentives/concessions under this policy
  • Incentives/assistance admissible under ongoing or specific schemes/ programs


Rajasthan Micro, Small and Medium Enterprises (MSMEs) Development Assistance Scheme, 2008

With a view to strengthening the institutional support framework, improving quality of MSME's products through Research & Development (R&D) and compatibility with the environmental benchmarks, the scheme is introduced in the State under Incentive Package for MSMEs 2008.


50% of the Capital cost for establishment of Common Effluent Treatment Plant/Facilities (CETF/Facilities) by industries association of MSMEs in industrial areas/clusters in the State. 50% of the Capital cost incurred by MSMEs for the establishment of individual Effluent Treatment Plant/Facility This benefit would be available only if the enterprises establish the Effluent Treatment Plant/Facilities, using 80% of the recycled water. Reimbursement of the expenses subject to a limit of 2 lacs or 10 times of the fees, whichever is lower, incurred for filing and obtaining Patent/ISO Certification during the period between 14-2007 to 31-12-2011 by industrial enterprises or R&D unit or testing laboratories.Part of the capital cost as decided by the competent committee under clause 6(I) for setting up a regional office or the branch of national laboratories in the State.

Part of the capital cost as decided by the appropriate committee mentioned under clause 6 for the establishment of Research, Development and Testing laboratories set up by MSMEs Association. Maximum limit of part of the capital cost to be provided under the Scheme by the State Govt. would be 2 crores. This benefit would be available only to such laboratories which obtain accreditation from national level accreditation board/authority.50% of the capital cost for setting up of training institute in the State by National/State Level Institutions forensuring availability of skilled manpower in the State..

Exemptions: 75% exemption from Electricity Duty to the MSMEs located in rural areas.


IT & ITES Policy 2007

An investor friendly IT Policy is already in place which provides lucrative incentives to IT industries. The following concessions are being available in IT Parks:

  • Land rebate up to 60%, depending upon type & size of investment
  • Exemption of Stamp Duty on registration of land
  • 50% Exemption from electricity duty for 7 years
  • Simplified Labour Laws. (Women are allowed to work in night shift, self certification under various State enactments, etc.)
  • Customized package for Investment beyond 10 crore.
  • Venture Capital support


Tourism Units Policy 2007

The Tourism Units Policy 2007 covers Hotels, as well as all other units such as Heritage Hotels, Camping Sites, Holiday Resorts, Health Spas, etc. The minimum and maximum area for land to be auctioned from the land bank has been prescribed. The minimum area in the 2007 policy is the maximum area in the policy of 2006.

The cost of land has been differentiated with the budget and 3-star hotels base price fixed at less than 50% of the commercial reserve price. Under Rule 7 of the Rajasthan Land Revenue Rules 2007 (conversion of agricultural land for non-agricultural purpose in rural areas), a proviso has been added exempting from conversion charges all those desirous of establishing hotels or any other tourism unit on the land held by them.

Regarding conversion of residential land and heritage properties into hotels and other tourism units, a proviso has been added to the Rajasthan Municipal Corporation Rules 2000 (land utilization conversion), where heritage property owners would not have to pay 40% of residential reserve price for conversion of the property into a heritage hotel, with the rider that the property should have a minimum of 10 rooms.

FAR of existing hotels would be increased from 1.75 to 2, to allow construction of an additional floor. However, the land coverage area shall be similar to previous permissible area. The additional floor would only be used for rooms.s.


Other Policies and Scheme

Various other Policies for promoting investments in the State are:

  • Rajasthan Investment Promotion Scheme-2014​
  • Policy for Promotion of Private Sector Investment for setting up of Power Generation projects in the State of Rajasthan 2005.
  • Policy for Promoting Generation of Electricity through Non Conventional Sources 2004 
  • Rajasthan Social Sector Viability Gap Funding Scheme 
  • Scheme for establishing Technical Institutes in lagging areas
  • Udyog Sansthan Sahabhagita Yojana for private parties to run second shifts in existing government ITIs Scheme for establishing engineering college under PPP mode in districts where facility of engineering college is not available
  • Rajasthan Special Economic Zone Policy, 2003 ​


For More Details Visit: Invest Rajasthan​