Rajasthan Investment Promotion Scheme (RIPS) 2019–2026: Complete Guide on Eligibility, Applicability, Expansion & Covered Sectors

To generate large-scale employment opportunities and promote rapid, sustainable, and balanced economic growth, the Government of Rajasthan introduced a landmark policy called the Rajasthan Investment Promotion Scheme, 2019 (RIPS-2019). This scheme provides a wide range of incentives and benefits to eligible manufacturing and service sector enterprises setting up or expanding operations in Rajasthan.

Although launched in 2019, RIPS continues to remain highly relevant in 2024, as the operative period of the scheme extends till 31 March 2026.

Overview of Rajasthan Investment Promotion Scheme (RIPS-2019)

The Rajasthan Investment Promotion Scheme (RIPS-2019) is a comprehensive incentive framework aimed at attracting investments, strengthening MSMEs, promoting industrialization, and boosting employment across the state.

Operative Period

• From: 17 December 2019

• To: 31 March 2026

Enterprises commencing commercial production or operations during this period may be eligible for benefits under the scheme.

Applicability of RIPS-2019

The applicability of the scheme is subject to the following conditions:

• The enterprise must commence commercial production or operation during the operative period (17.12.2019 to 31.03.2026).

• The scheme shall not apply to:

  • Units that started commercial production before 17.12.2019, or

  • Units that already received an Entitlement Certificate under RIPS-2003, RIPS-2010, or RIPS-2014.

• If an enterprise is engaged in both manufacturing and service activities, it must opt for benefits under only one category.

• Only investment made and employment generated within Rajasthan shall be considered for benefits.

Meaning of Expansion under RIPS-2019

Expansion is a crucial concept under RIPS-2019 and is defined as the creation of additional production capacity or service capacity by an existing enterprise.

An expansion project qualifies only if both conditions below are fulfilled:

Condition 1: Minimum Additional Investment

Additional investment must be more than:

• 25% of existing investment (gross block at the beginning of the year), OR

• ₹10 crore
  (whichever is lower)

Condition 2: Employment Growth

• There must be at least a 10% increase in employment

Only when both conditions are satisfied, the project is treated as a valid expansion under RIPS-2019.

Manufacturing and Service Enterprises under RIPS-2019

RIPS-2019 provides benefits to both Manufacturing and Service sector enterprises.
This article primarily focuses on overview, eligibility, applicability, and sector coverage, while benefits for manufacturing and service enterprises are addressed separately.

Meaning of Service Enterprises under RIPS-2019

Service enterprises play a critical role in employment generation and economic growth. RIPS-2019 clearly defines and covers a wide range of service sectors.

Below are the key service sectors eligible under RIPS-2019, along with minimum investment requirements.

Service Sectors Covered under RIPS-2019

1. Amusement Park

Includes theme parks, water parks, adventure parks, entertainment parks, biological parks, and desert parks with recreational facilities.

• Minimum land area: 10 acres

• Minimum investment: ₹10 crore

2. Biotechnology Sector

Covers enterprises involved in:

• Drug manufacturing using living systems

• Biotechnology R&D

• Bio-informatics and biotech products

• Minimum investment: ₹1 crore

3. Cold Chain in Pharmaceuticals

Infrastructure for temperature-controlled storage and transportation of pharmaceutical products.

• Minimum investment: ₹2 crore

4. Cold Chain & Preservation Infrastructure (Agro & Allied)

Includes farm-level processing, cold storage, IQF, CA/MA facilities, irradiation units, and reefer transport.

• Minimum investment: ₹5 crore

5. Common Utility Center

Shared infrastructure facilities like processing centers, testing labs, R&D centers, logistics hubs, etc.

• Set up by: Agro cooperative / Producer organization / SPV

• Minimum area: 5000 sq. ft.

• Minimum investment: ₹50 lakh

6. Convention Center

Pillar-less, air-conditioned halls with minimum 5000 sq. ft. carpet area and seating capacity of 500 persons.

• Minimum investment: ₹2 crore

7. Cluster / Electronic Manufacturing Cluster

Group of enterprises producing similar or complementary products/services.

• Minimum investment: ₹5 crore

8. Entertainment Sector

Cinema halls, multiplexes, miniplexes.

• Minimum investment: ₹2 crore

9. Film City

Integrated film studio complexes spread over minimum 10 acres.

• Minimum investment: ₹50 crore

10. Healthcare Sector

Hospitals, dispensaries, diagnostic centers, polyclinics, and halfway homes.

• Minimum investment: ₹5 crore

11. Industrial Park

Developed industrial areas with basic infrastructure facilities.

• Minimum area: 25 acres

• Minimum enterprises: 10

• Minimum investment: ₹25 crore

12. Infrastructure for Value Addition / Preservation of Agricultural Products

Includes backward and forward linkage infrastructure in rural agro-processing.

• Minimum investment: ₹1 crore

13. IT Sector & IT Parks

Includes IT, ITeS, BPO, KPO, AVGC, IoT, Robotics, data centers, IT startups, incubators.

• IT Sector: ₹1 crore

• IT Park: ₹15 crore

14. Logistic Infrastructure

Includes:

• Multi-Modal Logistics Hub – ₹50 crore

• Logistic Park – ₹30 crore

• Warehouse – ₹2 crore (3000 MT capacity)

15. Plug and Play Office Complex

Shared workspaces, co-working offices, IT incubators.

• Minimum investment: ₹10 crore

16. Social Infrastructure

Parking facilities, dormitories, industrial housing, crèches, old age homes, daycare centers.

• Minimum investment: ₹2 crore

17. Start-up Enterprises

Enterprises recognized under the Start-up Policy of the Government.

18. Sub-Market Yard

Developed under Rajasthan Agricultural Produce Markets Act, 1961.

• Minimum investment: ₹2 crore

19. Testing & R&D Laboratories

Accredited testing labs, R&D centers, grading and assaying labs.

• Minimum investment: ₹5 crore

20. Tourism Sector

Hotels, heritage hotels, resorts, wellness centers, and tourism infrastructure.

• Minimum investment: ₹2 crore

Backward & Forward Linkages for Agro-Processing (Rural Areas)

Backward Linkages

Pack houses, cold storage, milk chilling units, meat/fish processing, ripening chambers, reefer vans, MAP, value addition units.

Forward Linkages

Distribution centers with cold storage and ripening facilities (minimum 2 acres).

Benefits to Manufacturing Enterprises under RIPS-2019 (Overview)

Manufacturing enterprises receive general benefits and additional benefits based on thrust sectors, including:

• Industry 4.0 enterprises

• Agro processing

• Biotechnology

• EV & Auto components

• ESDM

• Chemicals & Petrochemicals

• Pharmaceuticals

• Textile & Apparel

• Gems & Jewellery

• Mineral sector

• MSMEs & Start-ups

• Solar & Wind energy equipment

Benefits to Service Enterprises under RIPS-2019 (Overview)

Service enterprises also receive benefits based on:

• General incentives

• Industry 4.0 classification

• Thrust sector categorization

Conclusion

The Rajasthan Investment Promotion Scheme (RIPS-2019) is one of the most comprehensive and investor-friendly policies introduced by the Rajasthan Government. With its wide sector coverage, clear eligibility conditions, long operative period, and strong focus on employment generation, RIPS acts as a powerful catalyst for industrial and service-sector growth in Rajasthan.

For entrepreneurs, investors, MSMEs, and large enterprises planning to invest or expand in Rajasthan, RIPS-2019 offers a structured and rewarding incentive ecosystem till 31 March 2026.