RIPS 2024 · Flagship Scheme

RIPS 2024 – The Complete Guide

Complete RIPS 2024 guide: three tiers, 75% SGST reimbursement, capital subsidy 13–28% of EFCI, interest subsidy, MSME relaxations and a worked rupee example.

Last updated: · By CA Nikhil Gupta, EaseValue Advisors LLP

RIPS 2024 (notified 8 October 2024, valid to 31 March 2029) is Rajasthan's flagship investment-incentive scheme. It is a three-tier structure: Tier-1 standard packages, Tier-2 state-priority add-ons, and Tier-3 customised packages for very large investors.

Contents

The three tiers of RIPS 2024

Tier-1 – Standard Incentive Packages: covers Manufacturing, Services, Sunrise sectors, MSMEs, Start-ups, Industrial Infrastructure, and R&D/GCC/Test Labs. This is what most businesses claim.

Tier-2 – Add-on incentives driven by state priorities: Green Growth, Export Promotion, and Capability Development. These stack on Tier-1.

Tier-3 – Customised packages (Silver / Gold / Platinum) negotiated for very large strategic investments.

Who is eligible under RIPS 2024? (At-a-glance)

Eligibility depends on enterprise type, minimum EFCI threshold and the location category. The table below summarises the headline criteria for the most common categories — your actual entitlement is finalised at the application stage based on the project DPR.

Enterprise categoryMinimum EFCIHeadline benefitsNotes
Manufacturing — Standard₹50 croreSGST/Capital subsidy + interest subsidy + EPF/ESI + CGTMSE fee reimbursementOpen to all non-MSME manufacturing units
Manufacturing MSME (Udyam-registered)₹25 croreSame package as standard manufacturing at half the thresholdMust be Udyam-registered with the Government of India
Dedicated MSME packageBelow ₹25 crore (slab-based)Capital subsidy + interest subsidy + CGTMSE fee waiverFor smaller MSMEs that don't meet the manufacturing standard threshold
Service sectorLowered thresholds (sector-defined)SGST reimbursement, capital/lease rental subsidy up to 25% (max ₹1 cr/yr for 5 yrs)Only listed service sub-sectors qualify
Sunrise / Thrust sectorsAs notifiedThrust booster of 10% over asset-creation incentivesIncludes EV, semiconductor, green hydrogen, biotech, etc.
Women-led enterprisesAs per applicable category100% SGST reimbursement for first 2 years + standard package thereafterMajority ownership by women
SC/ST entrepreneursAs per applicable categoryAdditional interest subvention of 0.5–2% over RIPS slab + priority processingUnder MSME Policy 2024 add-on scheme
Youth entrepreneurs (18–45 yrs)Loan up to ₹10 croreAdditional interest subvention + relaxed marginFor new enterprises only
ODOP enterprisesAs per applicable categoryAdditional interest subvention + ODOP-linked supportOne-District-One-Product unit in respective district
R&D / GCC / Test Labs₹5 croreCapital subsidy + interest subsidy + reimbursementsFor setting up research / global capability centres

What's NOT eligible: tobacco, tobacco products and pan masala manufacturing; any activity prohibited by State or Central Government; existing units claiming expansion benefits (allowed only for Large Enterprises). Total incentives for MSMEs are capped at ₹5 crore per annum.

Asset-creation incentive — pick ONE

An eligible manufacturing enterprise makes a one-time, irreversible choice between three options:

OptionWhat you getPeriod / ceiling
Investment Subsidy75% of State tax (SGST) due & deposited7 years; ₹50 Cr/yr (Yr1–3), ₹65 Cr/yr (Yr4–7)
Capital Subsidy13%–28% of EFCI by project & area categoryDisbursed over 10 years
Turnover-Linked IncentiveLinked to incremental turnoverAs notified

On top of the chosen option, every eligible unit can also get: interest subsidy up to 6% p.a. on term loans, 50% EPF/ESI reimbursement for 7 years, and 100% CGTMSE guarantee-fee reimbursement for 7 years.

MSME & service-sector relaxations

The manufacturing standard package normally needs ₹50 crore minimum investment, but MSMEs registered with the Government of India qualify at ₹25 crore, and there is a dedicated MSME package for smaller units. Service enterprises and tourism units enjoy significantly lowered thresholds, with extra benefit for rural tourism and women entrepreneurs.

Latest RIPS 2024 disbursement status

As per published statements from the Department of Industries & Commerce, Government of Rajasthan, industrial incentive disbursements under RIPS in FY 2024-25 crossed ₹700 crore, with manufacturing, renewable energy and MSME projects accounting for the bulk of approvals. Through FY 2025-26, the pace of approvals on the RajNivesh single-window portal has continued to improve, reducing the typical sanction-to-disbursement lag.

For ongoing claims, beneficiaries can track application status, eligibility certificate (EC) issuance and phased disbursements directly through the SSO portal (sso.rajasthan.gov.in) which is the single sign-on gateway to all Rajasthan government services including RIPS 2024. We recommend cross-checking the latest figures from the official Industries Department circulars before relying on any single number for board or investor presentations.

Worked example 1 — Small manufacturing MSME

A manufacturing MSME invests ₹5 crore EFCI in a backward tehsil and opts for Capital Subsidy at ~17% (illustrative, area-enhanced):

HeadCalculationAmount
Capital subsidy17% of ₹5 Cr, over 10 yrs₹85 lakh
Interest subsidy6% p.a. on ₹3.5 Cr loan, 5 yrs₹~1.05 Cr
EPF/ESI reimbursement50% of employer share, 7 yrsheadcount-linked
Indicative direct support₹1.9 Cr+

Exact slab depends on project category and the tehsil's area category — we compute it free during the DPR stage.

Worked example 2 — Mid-size manufacturer (SGST option)

A textile manufacturer invests ₹25 crore EFCI in a Category 2 tehsil and opts for the Investment Subsidy (SGST reimbursement) route, with an estimated SGST liability of ₹1.2 crore per year:

HeadCalculationIndicative amount
SGST reimbursement75% of ₹1.2 Cr SGST × 7 yrs (capped at ₹50 Cr/yr Yrs 1–3, ₹65 Cr/yr Yrs 4–7)₹~6.3 Cr
Interest subsidy (telescopic)6% on first ₹5 Cr + 4% on next ₹5 Cr of term loan, 7 yrs₹~3.5 Cr
Additional interest subvention (if SC/ST/women/ODOP)2% on first ₹5 Cr + 1% on next ₹5 Cr, 7 yrs₹~1.0 Cr
CGTMSE guarantee fee reimbursement100% of annual fee, 7 yrs (loans up to ₹5 Cr)fee-linked
EPF/ESI reimbursement50% of employer share, 7 yrsheadcount-linked
Indicative direct support₹10–11 Cr+

The SGST route works best when you expect strong sales (and hence SGST) in Rajasthan. For export-heavy or working-capital-light models, the Capital Subsidy route in Example 1 may yield more. This choice is one-time and irreversible — get a CA-led optimisation before filing.

How to claim RIPS 2024

  1. Confirm eligibility & pick the optimal asset-creation option (irreversible — get this right).
  2. Get your Sanstha Aadhaar Number (SAN) if not yet issued — it's the mandatory 16-digit business ID for any Rajasthan enterprise (free, instant via san.rajasthan.gov.in).
  3. Prepare a bank-grade DPR aligned to RIPS definitions of EFCI & employment.
  4. Create / log in to your SSO ID on sso.rajasthan.gov.in, search "RIPS 2024" in the dashboard, and file the application online.
  5. Track sanction, eligibility certificate (EC) issuance & phased disbursement on the same dashboard.

For a step-by-step walkthrough of the RajNivesh filing process, see our companion guide: How to apply for RIPS 2024 (step-by-step). See sector-specific detail on our sector pages or pick your district.

Frequently asked questions

Is RIPS 2024 available to MSMEs?

Yes. MSMEs registered with the Government of India qualify for the manufacturing package at a relaxed ₹25 crore threshold, and there is a separate dedicated MSME package for smaller units.

Can I get both capital subsidy and SGST reimbursement?

No — investment subsidy (SGST), capital subsidy and turnover-linked incentive are mutually exclusive; you make a one-time irreversible choice. But interest subsidy, EPF/ESI and CGTMSE reimbursement can be claimed in addition.

How long is RIPS 2024 valid?

It was notified on 8 October 2024 and remains in force up to 31 March 2029. All eligible projects approved on or before this date can claim benefits as per the scheme timelines.

What is the last date to apply under RIPS 2024?

Projects must commence commercial production during the operative period of the scheme — i.e. on or before 31 March 2029. The application itself is filed through the RajNivesh portal once eligibility is established; there is no separate annual cut-off, but the earlier you file, the longer your benefit window.

How is RIPS 2024 different from RIPS 2022?

RIPS 2024 replaces RIPS 2022 with a three-tier structure (standard, priority add-ons, customised packages), a lower minimum investment threshold (₹25 crore for manufacturing MSMEs vs ₹50 crore earlier), higher SGST reimbursement (up to 75% for 7–10 years), and a fully digital filing process via RajNivesh. Importantly, expansion benefits are now available only to Large Enterprises, not MSMEs.

Where do I file the RIPS 2024 application?

All RIPS 2024 applications are filed online through the Rajasthan Single Sign-On (SSO) portal at sso.rajasthan.gov.in — the unified login gateway for all state government services. After logging in with your SSO ID, simply search "RIPS 2024" in your dashboard to open the application form. There is no separate portal — RajNivesh is the back-end single-window investor service that processes the application. The Department of Industries & Commerce is the nodal agency; loans up to ₹10 crore are processed at the District Industries & Commerce Centre (DICC) level, larger projects go to the Commissionerate.

What documents are required to apply for RIPS 2024?

Core documents include: Sanstha Aadhaar Number (SAN) — the mandatory 16-digit Rajasthan business ID (free from san.rajasthan.gov.in), SSO ID (for filing), Udyam (MSME) registration, GST registration, PAN (entity), constitution documents (deed / MOA / partnership deed), a bank-grade Detailed Project Report (DPR), term loan sanction letter and disbursal schedule, proof of land / lease, bank account details, and the prescribed application form (e.g. Form 3B(1) for interest subsidy). A complete checklist is published with each scheme notification.

Do women, SC/ST or youth entrepreneurs get extra benefits under RIPS 2024?

Yes. Women-led enterprises receive 100% SGST reimbursement for the first 2 years. SC/ST and women-owned units, ODOP enterprises, units in Category 3 (backward) areas, and youth entrepreneurs (18–45 years, loans up to ₹10 crore) qualify for an additional interest subvention of 0.5–2% over and above the standard RIPS rates under the Rajasthan MSME Policy 2024 add-on scheme.

Are existing businesses (expansion) eligible under RIPS 2024?

Under RIPS 2024, expansion benefits are restricted to Large Enterprises only. MSMEs that are existing units cannot claim expansion benefits — they must set up a new enterprise (a fresh manufacturing unit at a new location qualifies). Expansion for Large Enterprises requires minimum ₹50 crore investment (manufacturing) or ₹25 crore (services), and at least 20% incremental capacity.

What is Eligible Fixed Capital Investment (EFCI)?

EFCI is the capital investment that counts towards your subsidy slab — typically the cost of new plant, machinery, equipment, technical civil work and certain pre-operative expenses, after excluding land, working capital, second-hand assets and ineligible items as defined in the RIPS 2024 notification. Getting the EFCI calculation right is critical because both your capital subsidy percentage and your area-category bonus are driven by it.

Find Out Exactly How Much Your Business Can Claim

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