§1Who it is for

  • New MSMEs and expansions in Rajasthan, manufacturing and services (services only as listed in Annexure 9.5)

Useful if

Manufacturing and listed service MSMEs that will pay SGST in Rajasthan

Do not spend time on it if

Sectors in Annexure 9.2 negative list

§2Eligibility

  1. MSME as defined by GoI (RIPS table: micro P&M up to Rs 1 crore & turnover Rs 5 crore; small Rs 10 crore / Rs 50 crore; medium Rs 50 crore / Rs 250 crore)
  2. MSMEs with EFCI above Rs 25 crore may choose MSME or Large-category package
  3. Sectors in Annexure 9.2 excluded
  4. Commercial production within policy period or within 2 years of Entitlement Certificate (whichever later)
  5. FPOs/FPCs with at least 50 farmer members eligible
  6. Only investment and employment in Rajasthan counted
  7. Pollution Control Board CTE/CTO must be valid

§3Benefits

  • Investment subsidy: 75% of State tax due and deposited for 10 years
  • Interest subvention 7 years: 6% (loan up to Rs 5 crore), 4% (Rs 5–10 crore), 3% (Rs 10–50 crore), telescoped; Khadi 10 years; +1% for loans up to Rs 25 lakh to rural tourism beneficiaries and agro-based industries
  • EPF+ESI: 50% of employer contribution for 7 years (domiciled employees)
  • SME platform fund-raising: 50% of cost up to Rs 5 lakh (one time)
  • Electricity duty 100% exempt for 7 years; mandi fee 100% reimbursed for 7 years
  • Stamp duty: 75% exempt + 25% reimbursed (land, or built-up space of at least 2,000 sq ft); conversion charges same

§4Norms — pattern of assistance

  1. Total MSME incentives capped at Rs 5 crore per year
  2. Special capital subsidy: plastic-alternative products 50% of capital investment up to Rs 40 lakh; agro & food processing 50% up to Rs 1.5 crore; +5% for FPOs owned by SC/ST/women or units in Tribal Sub-Plan areas
  3. Cluster: CFC by SPV of at least 20 MSEs (Section 8 company; no member above 5% equity) — land at circle rate and soft loan up to Rs 10 crore at 5%, repaid in 5 annual instalments
  4. Penalty: if no commercial production within 36 months of stamp-duty exemption, 50% of exemption clawed back and 0.98 yearly deflator on all incentives
  5. Wrong/excess benefit recovered with 18% interest

§5Documents

Not published

The guideline does not list the documents. Ask the portal or bank before you apply — we do not make up lists.

§6How to apply

  1. 1

    Apply online via Rajnivesh / RIPS portal for Entitlement Certificate

  2. 2

    MSMEs: District Level Sanctioning Committee (District Collector chair, GM-DIC member secretary); appeal to SLSC within 90 days

§7Pros and cons

Merits

  • Investment subsidy runs 10 years for MSMEs vs 7 for large units (RIPS 3.4.2.1 vs 3.1.3.1.1)
  • Freight, skilling, IP and green add-ons stack on the MSME package (RIPS chapter 4)

Demerits

  • Rs 5 crore per year cap on total MSME incentives (RIPS 3.4.1.2)
  • Clawback and deflator if production is late after stamp-duty exemption (RIPS 8)
  • Reimbursement linked to state tax actually deposited — needs sales first

→Related schemes

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Sources

  1. Rajasthan Investment Promotion Scheme 2024 (notified 8.10.2024) — copy hosted by EPCH
  2. Rajasthan MSME Policy 2024 (iStart Rajasthan)

Checked on 18 October 2026. For information only — confirm with the department or bank. Spotted a mistake? Report it.