Interest, tax and training support for MSMEs and larger units in Rajasthan
Rajasthan Investment Promotion Scheme 2024 (RIPS 2024)
RIPS 2024 was issued by the Finance Department on 8 October 2024 and runs until 31 March 2029, or until a new policy is notified, whichever is earlier. We read the Finance Department's own consolidated copy, updated on 16 May 2025, and its order of 11 March 2026, which added a payroll subsidy for textile units and an interest subvention for services units and left the MSME package as below. The 16 May 2025 update dropped the scheme's own MSME size limits in favour of the Government of India definition. The state's Industrial Development Policy 2026 still names RIPS 2024 as its incentive scheme.
New and expanding units in Rajasthan, with a separate MSME package for micro, small and medium units as the Government of India defines them (investment in plant and machinery up to ₹2.5 crore, ₹25 crore and ₹125 crore)
- Investment subsidy of 75 per cent of the State tax due and deposited, for ten years from the start of commercial production
- Interest subvention for 7 years: 6 per cent on loans up to ₹5 crore, 4 per cent on ₹5 crore to ₹10 crore, and 3 per cent on ₹10 crore to ₹50 crore
- 50 per cent of the employer's EPF and ESI contribution for 7 years
- Training: 50 per cent of the cost for 6 months, up to ₹20,000 a month for micro, ₹30,000 for small and ₹40,000 for medium units
- First-time MSME exporters: 25 per cent of freight to ship through state container depots or the air cargo complex, up to ₹25 lakh a unit a year
- 100 per cent electricity duty and mandi fee exemption for 7 years
- All incentives for an MSME are capped at ₹5 crore a year
- A new investment made after the scheme was launched
- Commercial production or operation within the scheme period, or within 2 years of the Entitlement Certificate if that is later
- A unit outside the list of ineligible industries in the scheme
Through the state's investor portals listed on the Rising Rajasthan site (Raj Udyog Mitra for MSMEs, and Raj Nivesh); check there which one takes your application.