Section 9 in Rajasthan Investment Promotion Scheme, 2014
9. Benefits to Manufacturing Enterprises in Thrust Sectors.
- 9.1. Notwithstanding anything contained in the Scheme, the State Government may grant a special package of incentives and exemptions, which may be over and above the incentives and exemptions under Clauses 4 to 7 to a manufacturing enterprise in a thrust sector in addition to the thrust sectors mentioned in sub-clause 9.3 to 9.189.2Manufacturing enterprises in the sectors mentioned hereunder shall be allowed benefits as mentioned in the relevant sector, in addition to benefits related to tax exemptions mentioned at (iii) to (viii) of clause 4 and benefits mentioned in clauses 6 and 7, if applicable.Provided that an enterprise of power loom sector and textile sector may opt for benefits provided in clause 4 to 7, if applicable, in lieu of the benefits mentioned in this clause.9.3Ceramic and Glass sector. - Enterprises making a minimum investment of five crore rupees in the ceramic and glass sector shall be granted the following benefits:(a)Investment Subsidy of 50% of VAT and CST which have become due and have been deposited by the enterprise for ten years; and(b)Employment Generation Subsidy up to 10% of VAT and CST which have become due and have been deposited by the enterprise, for ten yearsProvided that for enterprises making a minimum investment of fifty lakh rupees in the ceramic and glass sector in a ceramic hub, as notified by the Industries Department and having at least ten enterprises with a minimum investment of fifty lakh rupees each, the quantum of investment subsidy shall be 65% of VAT and CST which have become due and have been deposited by the enterprise for ten years.9.4Dairy sector. - Enterprises making a minimum investment of twenty five crore rupees in the dairy sector shall, be granted the following benefits:(a)Investment Subsidy of 50% of VAT and CST which have become due and have been deposited by the enterprise for ten years;(b)Employment Generation Subsidy up to 10% of VAT and CST which have become due and have been deposited by the enterprise, for ten years; and(c)50% exemption from payment of Entry Tax on capital goods, for setting up of plant for new unit or for expansion of existing enterprise or for revival of sick industrial enterprise, brought into the local areas before the date of commencement of commercial production/operation.9.5ESDM sector. - 9.5.1 Enterprises, making an investment equal to or above twenty five lakh rupees but below two hundred fifty crore in the ESDM sector, shall be granted the following benefits:(a)Investment Subsidy of 75% for first four years, 60% for next three years and 50% for last three years, of VAT and CST which have become due and have been deposited by the enterprise;(b)Employment Generation Subsidy up to 10% of VAT and CST which have become due and have been deposited by the enterprise, for ten years; and(c)50% exemption from payment of Entry Tax on capital goods, for setting up of plant for new unit or for expansion of existing enterprise or for revival of sick industrial enterprise, brought into the local area before the date of commencement of commercial production/operation.9.5.2Enterprises, making an investment equal to or above two hundred fifty crore but below five hundred crore rupees in the ESDM sector, shall be granted the following benefits:(a)Investment Subsidy of 90% of VAT and CST which have become due and have been deposited by the enterprise, for seven years;(b)Employment Generation Subsidy up to 10% of VAT and CST which have become due and have been deposited by the enterprise, for seven years; and(c)50% exemption from payment of Entry Tax on capital goods, for setting up of plant for new unit or for expansion of existing enterprises or for revival of sick industrial enterprises, brought into the local area before the date of commencement of commercial production/operation.9.5.3Enterprises, making an investment equal to or above five hundred crore rupees in the ESDM sector, shall be granted the following benefits:(a)Investment Subsidy of 90% of VAT and CST which have become due and have been deposited by the enterprise, for ten years;(b)Employment Generation Subsidy up to 10% of VAT and CST which have become due and have been deposited by the enterprise, for ten years; and(c)50% exemption from payment of Entry Tax on capital goods, for setting up of plant for new unit or for expansion of existing enterprises or for revival of sick industrial enterprises, brought into the local area before the date of commencement of commercial production/operation."9.5.4Notwithstanding anything contained in clause 9.5.1 to 9.5.3 above, for enterprise, making an investment equal to or above twenty five lac rupees but below fifty crore rupees in the ESDM sector, during the period 01.10.2015, to 31.03.2017, and commences commercial production up to 31.03.2017, shall be granted the following benefits:(a)Investment subsidy of 75% for first four years, 60% for next three years and 50% for last three years, of VAT and CST which have become due and have been deposited by the enterprise;(b)Employment Generation subsidy up to 10% of VAT and CST which have become due and have been deposited by the enterprise, for ten years and(c)50% exemption from payment of Entry tax on capital goods for setting up of plant for new unit or for expansion of existing enterprise or for revival of sick industrial enterprise, brought into local area before the date of commencement of commercial production.9.5.5Notwithstanding anything contained in clause 9.5.1 to 9.5.3 above, for enterprise, making an investment equal to or above fifty crore in the ESDM sector and providing direct employment to at least one thousand persons, during the period 01.10.2015, to 31.03.2017, and commences commercial production up to 31.03.2017, shall be granted the following benefits:(a)Investment Subsidy of 100% of VAT and CST, which have become due and have been deposited by the enterprise, for 10 years. This subsidy shall be allowed without any limit or linkage with Eligible Fixed Capital Investment.(b)5% Interest subsidy for 10 years, subject to maximum Rs. 50 lacs per annum.(c)50% Additional exemption from payment of Stamp Duty on purchase or lease of land and construction or improvement on such land.(d)Exemption from payment of 50% of Electricity Duty for additional three years.(e)75% exemption from payment of Entry Tax, on Capital goods for setting up of plant for new unit, brought into the local areas before the date of commencement of commercial production.Explanation. - For the purpose of this clause the expression "Direct Employment" shall mean the employment to any person other than the directors, promoters, owners and partners of the enterprise, who get his/her salary / wages directly from the enterprise, i.e. he is on roll employee of the enterprise.9.6Industrial Gases sector. - Enterprises making a minimum investment of fifty crore rupees in the industrial gases sector shall, be granted the following benefits:(a)Investment Subsidy of 60% of VAT and CST which have become due and have been deposited by the enterprise for seven years; and(b)Employment Generation Subsidy up to 10% of VAT and CST which have become due and have been deposited by the enterprise, for seven years.9.7MSME sector. - Manufacturing enterprises in the MSME sector shall, in addition to benefits mentioned in clause 4, if applicable, be granted the following benefits:(a)For micro and small enterprises in rural areas 75% exemption from payment of electricity duty in place of 50% exemption from payment of electricity duty under sub-clause (ii) of clause 4, as provided in notification number F.12(99)FD/Tax/07-56 of 05.10.2009, as amended from time to time;(b)Reduced CST of 1%, against C form, on sale of goods for a period of ten years, for micro and small enterprises as provided in notification number F.12(99)FD/Tax/07-66 of 14.02.2008 as amended from time to time;(c)50% exemption from payment of Entry Tax on raw and processing materials and packaging materials excluding fuel as provided in notification number F.12(99)FD/Tax/07-65 of 14.02.2008 as amended from time to time; and(d)Reduced stamp duty of Rs 100 per document in case of loan agreements and deposit of title deed and lease contract and Rs 500 per document in case of simple mortgage with or without transfer of possession of property executed for taking loan for setting up of micro, small or medium enterprises or enhancing credit facilities or transfer of loan account from one bank to another by MSME as provided in notification number F.2 (97)FD/Tax/2010-11 of 25.04.2011.9.8Pharmaceutical sector. - Enterprises making a minimum investment of fifty crore rupees in the pharmaceutical sector and providing a minimum employment of 200 persons shall be granted the following benefits:(a)Investment Subsidy of 50% of VAT and CST which have become due and have been deposited by the enterprise for seven years;(b)Employment Generation Subsidy up to 10% of VAT and CST which have become due and have been deposited by the enterprise, for seven years; and(c)50% exemption from payment of Entry Tax on capital goods, for setting up of plant for new unit or for expansion of existing enterprise or for revival of sick industrial enterprise, brought into the local areas before the date of commencement of commercial production/operation.9.9Plastic to Oil Manufacturing sector. - Enterprises making a minimum investment of one crore rupees in the plastic to petrol manufacturing sector shall be granted the following benefits:(a)Investment Subsidy of 60% of VAT and CST which have become due and have been deposited by the enterprise for ten years;(b)Employment Generation Subsidy up to 10% of VAT and CST which have become due and have been deposited by the enterprise, for ten years; and(c)50% exemption from payment of Entry Tax on capital goods, for setting up of plant for new unit or for expansion of existing enterprise or for revival of sick industrial enterprise, brought into the local areas before the date of commencement of commercial production/operation.9.10Power loom sector. - Enterprises making a minimum investment of twenty five lakh rupees in the power loom sector and giving employment to minimum ten persons in an area specified by an order for this purpose by the Industries Department in the districts of Jodhpur, Pali and Barmer shall be granted the same benefits as provided to the textile sector. Such enterprise shall get 30% additional reimbursement of VAT on purchase of yarn for seven years in addition to the reimbursement of VAT under clause 9.11(e).9.11Textile sector. - Enterprises making a minimum investment of twenty five lakh rupees in the textile sector shall be granted the following benefits for the period as mentioned in clause 10.7 of the Scheme:(a)5% interest subsidy;(b)additional 1% interest subsidy for enterprises making investment more than Rs.25 crore;(c)7% interest subsidy for Technical Textile Sector;(d)Capital Subsidy on zero liquid discharge based effluent treatment plant equivalent to 20% of amount paid to the suppliers for the plant excluding civil work, subject to a maximum of Rs.1crore;(e)50% reimbursement of VAT on purchase of yarn, fiber, recycled fiber yarn, cotton and pet bottles for use in manufacture of goods within the State, for sale by him; and(f)50% exemption from payment of Entry Tax on capital goods, for setting up of plant for new unit or for expansion of existing enterprise or for revival of sick industrial enterprise, brought into the local areas before the date of commencement of commercial production/operation.9.12Tourism Sector. - 9.12.1 Enterprises of the tourism sector covered under sub-clause (a), (b) and (bb) of clause 2 (xxxviii) of the Scheme shall be granted the following benefits:(a)Investment Subsidy of 50% of VAT and CST which have become due and have been deposited by the enterprise for seven years;(b)Employment Generation Subsidy up to 10% of VAT and CST which have become due and have been deposited by the enterprise, for seven years;(c)Reimbursement of 25% of amount of VAT paid on purchase of plant and machinery or equipment for a period up to seven years from the date of issuance of the entitlement certificate;(d)Exemption from payment of 50% of Entertainment Tax for seven years;(e)Exemption from payment of 100% of Luxury Tax for seven years;(f)Land allotment in urban and rural areas at DLC rates;(g)25% additional exemption from payment of stamp duty chargeable on the instrument of purchase or lease of more than 100 years old heritage property in the State, for the purpose of hotel development under the Scheme declared by the Tourism Department as provided in notification no. F.12 (20) FD/ Tax / 2005- 219 of 24.03.2005(h)50% additional exemption from payment of conversion charges; and(i)100% exemption from payment of development charges shall be provided in accordance with the notifications/ circulars/ orders issued by the concerned departments for implementation of Tourism Policy of the State Government.9.12.2Notwithstanding anything contained in the Scheme, an enterprise making investment in the tourism sub-sector defined under sub-clause (c) of clause 2 (xxxviii) of the Scheme shall be granted the benefits, as may be provided to it by the State Empowered Committee.9.13Kota stone, Marble and Granite Sector. - Enterprises making a minimum investment of twenty five lakh rupees in the sector shall be granted the following benefits:(i)Investment Subsidy of 55% of VAT and CST which have become due and have been deposited by the enterprise for seven years; and(ii)Employment Generation Subsidy up to 10% of VAT and CST which have become due and have been deposited by the enterprise, for seven years.9.14Defense sector. - 9.14.1 Enterprises, making an investment equal to or above one hundred crore rupees but below five hundred crore rupees in the defense sector shall be granted the following benefits:(a)Investment Subsidy of 50% of VAT and CST which have become due and have been deposited by the enterprise, for seven years;(b)Employment Generation Subsidy up to 10% of VAT and CST which have become due and have been deposited by the enterprise, for seven years; and(c)50% exemption from payment of Entry Tax on capital goods, for setting up of plant for new unit or for expansion of existing enterprise or for revival of sick industrial enterprise, brought into the local area before the date of commencement of commercial production.9.14.2Enterprises making an investment equal to or above five hundred crore rupees in the defense sector shall be granted the following benefits:(a)Investment Subsidy of 65% of VAT and CST which have become due and have been deposited by the enterprise, for ten years;(b)Employment Generation Subsidy up to 10% of VAT and CST which have become due and have been deposited by the enterprise, for ten years; and(c)50% exemption from payment of Entry Tax on capital goods, for setting up of plant for new unit or for expansion of existing enterprises or for revival of sick industrial enterprises, brought into the local area before the date of commencement of commercial production.9.15Desalination Sector. - 9.15.1 Enterprises, making an investment equal to or above four crore rupees in Desalination sector, shall be granted the following benefits:(a)50% exemption from payment of entry tax on capital goods for setting up of desalination plant;(b)50% reimbursement of VAT paid on purchase of plant and machinery or equipment within the State, for setting up of desalination plant; and(c)50% reimbursement of VAT paid on purchase of membrane for use in desalination of water for seven years from the date of commencement of commercial production.9.16IT Sector. - 9.16.1 Enterprises making an investment up to five crore rupees in the IT sector, shall be granted the following benefits:(a)Investment Subsidy of 30% of VAT and CST which have become due and have been deposited by the enterprise, for seven years; and(b)Employment Generation Subsidy up to 20% of VAT and CST which have become due and have been deposited by the enterprise, for seven years.9.16.2Enterprises making an investment above five crore but below twenty five crore rupees in the IT sector, shall be granted the following benefits:(a)Investment Subsidy of 60% of VAT and CST which have become due and have been deposited by the enterprise, for seven years;(b)Employment Generation Subsidy up to 10% of VAT and CST which have become due and have been deposited by the enterprise, for seven years; and(c)50% additional exemption of Stamp Duty on purchase or lease of land and construction or improvement on such land.9.16.3Enterprises making an investment equal to or above twenty five crore rupees in the IT sector, shall be granted the following benefits:(a)Investment Subsidy of 70% of VAT and CST which have become due and have been deposited by the enterprise, for seven years;(b)Employment Generation Subsidy up to 10% of VAT and CST which have become due and have been deposited by the enterprise, for seven years; and(c)50% additional exemption of Stamp Duty on purchase or lease of land and construction or improvement on such land.9.16.4Robotic Enterprises making an investment equal to or above fifty crore rupees shall, in addition to the above, be allowed 5% interest subsidy on the term loan taken from State Financial Institutions/Financial Institution/Bank recognized by Reserve Bank of India, for a period of five years or up to the period of repayment of loan, whichever is earlier, from the date of commencement of commercial production, subject to a maximum of ten lac rupees per annum i.e. twelve calendar months, on the conditions as laid down in clause 10.9 of the Scheme;9.17Agro-processing and Agri-marketing sector. - 9.17.1 Enterprises as mentioned in part A of annexure IV appended to the scheme shall be granted the following benefits:(i)5% interest subsidy;(ii)Exemption from payment of 50% of Entry Tax on Plant & Machinery brought into the local areas before the date of commencement of Commercial Production / Operation.9.17.2Enterprises other than enterprises engaged in manufacturing of cattle feed/ poultry feed/ fish feed, as mentioned in part B of annexure IV appended to the scheme and making an investment up to twenty five lac shall be granted the following benefits:(i)Investment Subsidy of 30% of VAT and CST which have become due and have been deposited by the enterprise, for seven years;(ii)Employment Generation Subsidy up to 20% of VAT and CST which have become due and have been deposited by the enterprise, for seven years.9.17.3Enterprises other than enterprises engaged in manufacturing of cattle feed/ poultry feed/ fish feed, as mentioned in part B of annexure IV appended to the scheme and making investment more than twenty five lac shall be granted the following benefits:(i)Investment Subsidy of 60% of VAT and CST which have become due and have been deposited by the enterprise, for seven years;(ii)Employment Generation Subsidy up to 10% of VAT and CST which have become due and have been deposited by the enterprise, for seven years;(iii)Exemption from payment of 50% of Entry Tax on Plant & Machineries brought into the local areas before the date of commencement of Commercial Production / Operation;(iv)Capital Subsidy on zero liquid discharge based effluent treatment plant equivalent to 20% of amount paid to the suppliers for the plant excluding civil work, subject to a maximum of Rs. twenty five lac.9.17.4Notwithstanding anything contained in clause 9.2 enterprises engaged in manufacturing of cattle feed/ poultry feed/fish feed, [***] [Deleted 'as mentioned in part B of annexure IV appended to the scheme' by Rajasthan Notification No. F. 12(14) FD/Tax/2017-125, dated 8.3.2017 (w.e.f. 8.10.2014).] shall only be granted 5% interest subsidy.
