Rajasthan's industry body urges state govt for continuation of RIPS

A Rajasthan-based trade and industry body has urged the state government to expand the scope of incentives under the Rajasthan Investment Promotion Scheme 2022 (RIPS) scheme.  

It said once a new scheme is implemented, there should be no change in it for at least a decade.

RIPS is being introduced continuously. It was first announced in the year 2019, then it was introduced in 2022, and now a plan is being made for 2024.

“We request that once the scheme is made this time, it should be kept effective for at least a decade. Making changes every second year is not good from a practical point of view,” All Rajasthan Trade & Industry Association’s (ARTIA) senior vice-president Kailash Sharma said.

Sharma said that to boost investment in the state, the incentive for setting up research and development centres and the work of setting up agriculture and dairy clusters should be included in the thrust area.

He pointed out that the asset creation incentive in RIPS-2022 for those setting up research and development and global capability centres is 50 per cent of the project cost. Only organisations are eligible for this, and those doing it privately are entitled to only 30 per cent of this incentive.

If any eligible person has a PhD from IIT or an equivalent institute and has more than three years of global research experience, then he should also get a 50 per cent incentive.

Sharma said that its maximum limit is currently fixed at Rs 5 crore, which should be increased to Rs 20 crore in a few years.

There is a provision of Rs 10,000 per month for one year for research and development training, which should be increased to Rs 40,000 soon.

Sharma added that the land cost incentive is currently only Rs 50 lakh. The land cost has increased rapidly in the last three years. Hence, this incentive should also be increased to Rs 2.5 crore, he said.