RIICO's land policies attract investors to Rajasthan, draw strong demand

Rajasthan State Industrial Development and Investment Corporation’s (RIICO’s) new investor-friendly policies and simplified regulations have begun to show results, a senior RIICO official said.

 

According to the senior RIICO official, “It can be gauged from the fact that under the ninth phase of the ‘Direct Allotment Scheme-2025’ — initiated by RIICO to provide land plots to investors at a lower cost — 327 applications were received for 213 plots.” 

 

The Direct Allotment Scheme-2025 was launched in January 2025 and is applicable until December 2026.

 

He said these plots cover approximately 216 acres, which is expected to generate revenue of approximately ~417 crore for RIICO.

 

The official pointed out that across the first eight phases of the scheme, allotment and offer letters have already been issued for a total of 1,455 plots.

 

Spanning approximately 393 hectares, these plots hold a total value exceeding ~2,300 crore, he said.

 

“The industrial units to be established on these plots are expected to attract an investment of over ~ 17,000 crore into the state,” the official said.

 

Similarly, to foster greater industrial development and attract increased investment within the state, the state government had recently introduced the ‘Rajasthan Industrial Park Promotion Policy 2026.’

 

Through this policy, industrial parks will be established via private participation and the Public-Private Partnership (PPP) model.

 

The official said that under this policy, industrial parks have been categorised into two categories: Category A and Category D.

 

In Category A, private developers will establish industrial parks on land allocated at locations identified by RIICO.

 

In Category D, industrial parks will be developed under a Joint Venture (JV) model — specifically a PPP framework—wherein RIICO will contribute land as equity within the project’s Special Purpose Vehicle (SPV) or Joint Venture, maintaining a minimum equity stake of 26 percent.

 

Meanwhile, RIICO has decided to extend loans to the real estate sector.

 

“To boost the real estate sector in Rajasthan, RIICO is introducing a loan scheme specifically for real estate projects,” the official said.

 

Under this scheme, financial assistance will be provided for land acquisition, construction costs, and procuring necessary equipment.

 

“Loans covering up to a maximum of 75 per cent of the land cost will be sanctioned, with a repayment tenure of 5 years, inclusive of a one-year moratorium period,” he said.

 

RIICO pioneered the industrialisation of Rajasthan by setting up industrial areas. It also acts as a financial institution by providing loans to large, medium, and small-scale projects.