Rajasthan Industrial Policy 2021
Updated on May 18, 2022, 1:07 p.m.
Rajasthan is the largest state located in the North Western part of India and it is a land of rich cultural heritage and having abundant natural and man made resources. Furthermore this state also is having the amazing quantities of the unexplored agriculture and the mineral resources giving details about the value addition to the economic growth and development by preventing imports and enhancing the exports.
Rajasthan started Industrial growth after 1950 and many large medium and small scale industrial centres were established in Jodhpur, Kota, Jaipur and Bhilwara. Furthermore the main industries in the state consist of Industries, Pharmaceuticals, Textiles, Glass and Ceramics, Automobile, Cotton, Rugs, Wooden Goods, Vegetable Oil and Dyes.
The state of Rajasthan is making tremendous name not only in the field of Tourism but Industrial growth and development is also going on a war footing in the state. Rajasthan is placed in the sixth position in the Industrial segment and since the inception of the 7th five year plan many companies have established their establishments in the state. Hindi and English is the mode of communication in the state.
The smooth law and order situation coupled with the availability of skilled and talented workforces makes this an ideal hub for undertaking Industrial development. Many private industries have been established consisting of Glassware, Steel, Cements, Bricks, Electric, Salt, Leather and Footwear in the state.
The Government of Rajasthan led by Shri. Ashok Gehlot introduced the Rajasthan Industrial Policy 2021 to boost the Small, Medium and Large scale industries in the state to entice the economic growth and development.
OBJECTIVES OF THE RAJASTHAN INDUSTRIAL POLICY 2021
- To encourage the development of the Technological, Commercial and Economic infrastructure leading to growth and development.
- Eliminate the menace of Poverty and Unemployment in Rajasthan and give opportunities for all the individuals.
VISION OF THE RAJASTHAN INDUSTRIAL POLICY 2021
To promote the economic development in the state coupled with amazing infrastructure and development of Industrial parks, Special Economic Zones for balanced and justifiable Industrial Development.
MISSION OF THE RAJASTHAN INDUSTRIAL POLICY 2021
- Maximise the huge potential for the growth of human resources in the state of Rajasthan.
- Undertake the effective usage of the natural resources to achieve the desired goals.
- Special attention to the backward and very backward areas of Rajasthan and bring it at par with the developed areas of the state.
COVERAGE
The Rajasthan Industrial Policy 2021 introduced by the Government of Rajasthan covers the Business, Commercial and the Industrial establishments that started working on or after 1st April 2018.
FEATURES OF THE RAJASTHAN INDUSTRIAL POLICY 2021
The features of the Rajasthan Industrial Policy 2021 are given below as follows:
- This policy was launched in 2021 and is active till 31 March 2026.
- This scheme stressed on the creation of new industrial parks and estates including the Sector Specific Parks (SSP).
- Creation of Schools, Colleges, Hospitals, Malls, Hotels, Apartments and the Entertainment facilities in the state around the industrial parks.
- Encourage the expansion of the Road, Airways and Railway facilities in the state.
- Using the barren land areas in the state to develop new industries on a large scale.
- Providing the exception from the state tax for setting up industries in Tribal, Desert and Border areas for the next 3 years.
- Creation of new incentives to develop many small and medium scale industries in the state.
- New power tariff and packages introduced to benefit lot of Iron and Steel Industries in Rajasthan.
- Creation of new Industrial parks/complexes in the backward regions to encourage the employment.
- Providing recycling of water from Industrial establishments to undertake effective treatment of water using Centralised Effluent Treatment Plants (CETP) and other water networks.
- Assistance given for developing of Multipurpose Logistics Hubs MLH, Cold chains and Inland Container Depots to enhance the logistics infrastructure.
- New Skilling Programmes is introduced in segments like the Logistics, Automobile, Electronics, IT and Electric Vehicles segments.
- Special financial scheme for the financial assistance to entrepreneurs from SC, ST, Women Entrepreneurs willing to create new companies, Cottage Industries, and other Self Help Groups will be encouraged.
BENEFITS GIVEN TO INDUSTRIES UNDER THE RAJASTHAN INDUSTRIAL POLICY 2021
There are various benefits offered to the companies established under the Rajasthan Industrial Policy of 2021 given below as follows:
- The Investment subsidies of 75% will be granted by the state government for 7 years.
- Benefits of the government are given to Manufacturing and Service Industries in Rajasthan.
- The payment of electricity duty for 7 years is given 100%
- The payment of the land tax for 7 years is given 100% exemption
- Market fees (Mandi Fees) for 7 years is given 100% exemption.
- Stamp duty is given 100% exemption for the next 7 years.
- Conversion charges given 100% exemption for the next 7 years.
- 25% of additional employment creation subsidies in the state is offered to IT and BT segments.
- 75% Employment generation subsidies towards the ESI (Employee Sate Insurance) and EPF (Employee Provident Fund) for the next 7 years.
- Automobile, Electronics, Petroleum, Petrochemicals and Medical segments above 5 Crores Investments will get 5% interest subsidies for loan taken from financial institution and banks for 5 years’ time provided the company is taking INR 25 Lakhs per year.
- Purchase of government land and leased land encouraged for creating the enterprise in Manufacturing, IT and Apparel Segments.
INCENTIVES OFFERED TO INDUSTRIES UNDER THE RAJASTHAN INDUSTRIAL POLICY 2021
There are many mouth-watering incentives offered to the companies established under the Rajasthan Industrial Policy of 2021 given below as follows:
- 5% Interest subsidies on the loan taken by the companies from RBI, Banks, and state financial institutions like SIDBI for 5 years.
- Handicrafts and Handloom segment will be offered 7% subsidy of the term loans taken by the financial institutions.
- Capital subsidies up till 25% of the investment done in Plant and Machinery up till INR 40 Lakhs.
- The Agro Units in Rajasthan will be offered 7% Interest subsidy on the term loan taken from Banks, Financial Institutions for investment in machineries and other components.
- One time financial support on raising the funds through the MSME and SME up till 50% of the investment made for raising the capital subject to the minimum amount of INR 5 Lakhs.
- Ceramic and Glass, Electric Vehicles, Diary and Bio technological enterprises in Rajasthan will be offered 25% subsidy on the state taxes and 5% interest subsidies on the term loans taken.
- In the case of MSME, 50% of the total cost incurred on supplies, Civil Engineering Work, Water Treatments, Green Measures, and Recycling industrial waste will be reimbursed.
- Leather, Footwear and Accessories, Gems and Jewellery will be offered 5% interest subsidies of the term loan taken by the establishment from various financial institutions. 25% subsidies on the state taxes.
- Medical Device and Industrial Gases segment will be offered 5% interest subsidies on terms loans and 25% subsidies on state tax due for 7 years.
ELIGIBILITY REQUIREMENTS FOR APPLYING FOR RAJASTHAN INDUSTRIAL POLICY 2021
The eligibility requirements for getting registered under the Rajasthan Industrial Policy of 2021 are given below as follows:
- An enterprise set up on or after 1st April 2018 is qualified.
- Income and Expenditure statement of the company.
- The sales deed must be in the name of the enterprise.
- Enterprise must be a local company set up in Rajasthan.
- The details of Mergers, Acquisitions and Incorporations.
- Copy of the statements of EPF and ESI of the employees.
- More than 70% of the workforce must be from Rajasthan.
- Project report of the establishment signed by the founder.
- Complete details of the founder and the Board of Directors.
- The Machinery and factory institution should not be on lease.
- Information about the additional ventures and the line of business.
- Proof of land tax, Property documents, Market Fees, Electricity bills.
- The certificate showing the management changes in the past 3 years.
- The data on Warehouses, Canteens, and Electricity zone, Servers, Water Treatment, Industrial Waste Disposal, Employee welfare schemes, Transportation facilities in the area.
- Enterprise must be inspected by authorities designated by the Government of Rajasthan.
- Info about breakdown in functioning and production history of the enterprises.
PROCEDURE FOR APPLYING FOR RAJASTHAN INDUSTRIAL POLICY 2021
The procedures for applying towards the Rajasthan Industrial Policy 2021 are given below as follows:
- The enterprise willing to set up company in the state must fill the FORM A.
- The applicant must fill the FORM B in order to get the Entitlement Certificate valid for 2 years.
- The applicant must fill in all the basic information and submit it to the State Level Committee.
- The State Level Screening Committee (SLSC) headed by the Principal Secretary Chairman will analyse the application.
- This Committee consists of the Secretary, Assistant Secretary, Commissioner of Industries and Director of RIDC (Rajasthan Industrial Development Corporation).
- The members will examine the forms and choose the correct scheme for the concerned applicant depending upon the segment.
- The request is accepted and company is allowed to get all benefits under this scheme.
FUTURE PLANS OF THE GOVERNMENT UNDER RAJASTHAN INDUSTRIAL POLICY 2021
Some of the future plans of the Government of Rajasthan to develop industries are given below as follows:
- Amending the existing laws and making it more investor friendly.
- Setting up the Bureau of Investment Promotions to showcase Rajasthan as an Investment destination.
- Arranging conferences for various segments in Rajasthan to enhance the development of various sectors.
- Undertaking lot of skill development and encouraging Research and Development for various industries in Rajasthan.
- Encouraging the Single Window Clearance under this scheme.
- Promoting the growth of infrastructure development in the state.
- Creating Research and Development centres to bring academics and industries in the state.
- Orientation training for government officials of Industrial Department for enhancing investments and development.
- Land conversion in rural and urban areas will be simplified.
- Providing complete support to developing the new technologies like Artificial Intelligence, Machine Learning, Cloud Computing, Robotics, Internet of Things (IOT) in Rajasthan.
The Government of Rajasthan has initiated the industrial policy to stimulate the economic development under the Make in India initiative of the Central Government to make their presence in all segments.
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