Introduction

A land of rich heritage, vibrant art and culture, abundant natural resources, highly skilled human resources and entrepreneurship, Rajasthan is fast emerging as a key industrial destination in India. The industrial contribution (27.8%) to States economy is growing continuously. Our unique advantages and strengths are as follows:

Map1.1. Strategic location

1.1.1. India’s largest State by area, 3.42 Lakh sq. km.

1.1.2. Covers around 25% of the National Capital Region (NCR).

1.1.3. 2nd largest national highways network.

1.1.4. About 60% of Delhi Mumbai Industrial Corridor (DMIC) influence zone and 38% of Dedicated Freight Corridor (DFC) passes from the state.

1.1.5. Unique locational advantage enabling easy access to around 40% market of the country.

1.1.6. Well connected to India’s largest proposed corridors such as Bharatmala, East-West corridor, North-South corridor and Delhi Mumbai Expressway.

Also Read- Rajasthan Investment Promotion Scheme- 2019

1.2. Strong Industrial Infrastructure

1.2.1. 347 RIICO Industrial Areas with 48,399 acres of developed Industrial land.

1.2.2. More than 40,000 units in production. 1.2.3. Land bank of 20,000+ acres.

1.2.4. Theme based parks for Agro processing, Spices, Gems & Jewellery, Stones and Minerals.

1.2.5. 3 SEZ’s, 8 Inland Container Depots and 1 Air Cargo Complex.

1.2.6. 9 MMTPA refinery with petrochemical complex in construction at Balotra, Barmer.

1.2.7. CETPs at major industrial locations

1.3. Rich Resource Base

1.3.1. Highest potential for solar energy in the country with current installed capacity of 2.2 Gigawatt

1.3.2. Largest producer of Zinc, Lead and Silver

1.3.3. Largest producer of Marble,Flaggy Limestone and Sandstone in India.

1.3.4. Largest reserves of Potash in country.

1.3.5. Largest producer of Blended fabric & Wool in the country.

1.3.6. Largest producer of Mustard, Pearl Millet & Coriander.

1.3.7. Largest producer of Isabgol and Hina in country

1.3.8. 2nd largest producer of Copper in India

1.3.9. 2nd largest Crude Oil producer in the country.

1.3.10. 2nd Largest geological reserves of Lignite

1.3.11. 2nd largest producer of Oilseeds, Coarse Cereals and Spices.

1.3.12. 2nd largest producer of Cumin and Garlic. 1.3.13. 2nd largest producer of Milk.

1.3.14. 3rd Largest onshore producer of Natural Gas

1.3.15. 10 Agro climatic zones across the State.

1.4. Growing Exports

1.4.1. Total exports in 2018 at about INR 46000 Crores, registering growth of 15% over previous year.

1.4.2. Export Promotion Industrial Parks (EPIP) in NCR, Jaipur and Jodhpur

1.4.3. Top export items include Textiles & Apparels, Precious & Semiprecious Stones, Base Metal & Articles of Base Metal (Zinc, Lead, Copper etc.), Furniture, Plastering Material, Engineering Goods, Chemical & Allied products and Handicrafts.

1.5. Strong Base of MSMEs

1.5.1. More than 26 lakh MSMEs in the state

1.5.2. MSMEs in Rajasthan provide employment to about 46.33.lakh people.

1.5.3. Strong base of MSMEs in Gems and Jewelry, Handicrafts, Food Processing, Auto-Components, Textiles, Leather and Dimensional Stones.

1.6. Abundant Skilled Manpower

1.6.1. Around 1/3rd of India’s total Chartered Accountants, Cost Accountants and Company Secretaries are from Rajasthan.

1.6.2. Maximum number of Universities in the country (83).

1.6.3. 2nd Largest number of ITI’s (1909) with 369,206 seats and customized programs.

1.6.4. 117 Engineering colleges and 77 MBA Colleges

1.6.5. 2 dedicated Skill Universities – Rajasthan ILD Skills University and Bharatiya Skills Development University.

1.6.6. State has received National award for Skilling Initiatives on several occasions.

1.6.7. Presence of premier National Institutes such as IIT, IIM, AIIMS, NIFT, NLU etc.

1.6.8. Large pool of traditional artisans producing some of the most exquisite handicrafts.

1.7.  Effective Governance

1.7.1. Rajasthan among top States in India in ‘Ease of Doing Business’ Reforms, 2018.

1.7.2. The Micro, Small and Medium Enterprises (MSME) Facilitation of Establishment and Operation Ordinance 2019, to exempt all inspections for permission, NoC, clearance, consent, approvals, registration, license etc. required under any State law in connection with establishment or operation of enterprise for a period of 3 years.

1.7.3. All requisite business clearances being granted online in time bound manner.

1.7.4. Peaceful industrial environment throughout the State.

02 Title and Commencement

2.1. This policy shall be known as the Rajasthan Industrial Development Policy, 2019 (hereinafter referred as ‘Policy’) and shall come into force from 1 July, 2019.

2.2. The Rajasthan Investment Promotion Scheme, 2019 ((hereinafter referred as ‘incentive scheme’) and various Government orders/circulars for implementation of this policy are being notified simultaneously.

2.3. The Industrial and Investment Promotion Policy-2010 shall be substituted

03 Vision & Mission

3.1. Vision

To make Rajasthan as the most preferred investment destination in India with the most conducive eco-system for inclusive, balanced and sustainable industrial development.

3.2.  Mission

3.2.1. To develop and maintain industrial infrastructure

3.2.2. To offer competitive fiscal incentives

3.2.3. Maximize potential of human capital of the State

3.2.4. Most efficient utilization of natural resources

3.2.5. Special focus on ‘Backward’ and ‘Most Backward’ areas

3.2.6. To foster entrepreneurship & innovation

3.2.7. To promote industrial symbiosis and environmentally sustainable industrial development

3.2.8. To support technological up gradation of Industry

3.2.9. To usher in the new era of Industry 4.0

3.2.10. To rationalize regulations and inspections

3.2.11. To instil pro-industry outlook

3.2.12. To strengthen the thrust sectors of the State

04 Conducive industrial infrastructure

4.1. Industrial infrastructure development

4.1.1. Development of new industrial parks/ estates including theme based/sector specific parks.

4.1.2. Development of industrial parks on Public Private Partnership (PPP) mode including both models of ‘Private land-RIICO investment’ and ‘RIICO land-Private investment’.

4.1.3. Flexible and speedy land acquisitions through models of direct purchase/ land pooling/ land aggregation.

4.1.4. An incentive/facilitation scheme shall be formulated for development of private industrial parks

4.1.5. A mechanism for property title verification shall be introduced to facilitate land purchase for industry.

4.1.6. Promotion of plug & play facilities/flatted factories.

4.1.7. Simplification and streamlining of rules regarding land allotment and various charges/penalties.

4.1.8. Provision for allotment of industrial land on short term lease basis.

4.1.9. Provision for developing social infrastructure such as Schools/Crèche’s, Hospitals and Entertainment facilities shall be made in industrial areas as per requirement.

4.1.10. Barren land in backward area shall be allotted at concessional rate for the establishment of industry.

4.1.11. Provision to permit Khatedari land up to certain limit for mix land use-Industrial, Commercial and Residential purpose without conversion and conversion charges

4.1.12. No requirement of conversion for use of agricultural land up to 10 acres for industrial purposes..

4.1.13. A new scheme for systematic development of industrial housing and dormitory / sheds for labourers and employees in RIICO industrial areas / clusters shall be initiated

4.1.14. Industrial Township near oil refinery for petrochemical industry shall be developed.

4.2. Power

4.2.1. Dynamic power tariffs shall be introduced.

4.2.2. Simplification and reduction of wheeling charges.

4.2.3. Additional surcharge and cross subsidy surcharge on open access shall be waived off / reviewed to ensure competitiveness of domestic industries

4.2.4. Special category/package of power tariffs especially for steel and textiles industry shall be introduced

4.2.5. Special incentives for units engaged in manufacturing of Photovoltaic (PV) and battery modules.

4.2.6. Industry shall incentivised for installing renewable power projects, either at the site of operations or at any other location in Rajasthan, with rebate in transmission charges.

4.2.7. Electricity duty on electricity produced through Captive power plant shall be exempted till the limit of self-consumption.

4.2.8. Provision of providing electricity at residential rate to apparel, handloom and certain handicrafts with certain norms shall be introduced

4.3. Water

4.3.1. To promote recycling of water, a scheme shall be formulated for providing financial assistance to industrial associations/SPV for establishing Common Effluent Treatment Plant (CETP) and/or Zero Liquid Discharge (ZLD) and effluent/treated water networks.

4.3.2. Provision for industrial water supply from major water project/dams shall be made.

4.3.3. Industries shall be encouraged to use treated water/recycled water instead of fresh water

4.3.4. Government shall implement new water supply schemes and projects for augmenting of existing water supply schemes to cater to water supply to industrial areas and parks in the State

4.4. Gas

4.4.1. Government shall give impetus for Gas distribution infrastructure in existing as well as new industrial area/ industrial cluster.

4.4.2. Efforts for equipping new Industrial area for ceramic industry with Gas distribution system shall be made.

4.4.3. Government shall facilitate and motivate industries involved in Gas distribution in urban areas.

4.5. Logistics

4.5.1. Assistance shall be provided for developing Multimode Logistics Hubs (MMLH), Logistics Parks, Cold Chains and Inland Container Depot (ICDs) shall be provided to strengthen the logistics infrastructure.

4.5.2. Seasonal industry status shall be given to Cold Storage units

4.5.3. To reduce vehicular congestion and strengthen parking facilities, the vacant plot(s) shall be permitted in residential / commercial / industrial / institutional / agriculture areas for parking, at predetermined rates, without the need of conversion and conversion charges.

4.5.4. Requisite land shall be provided near consumption zones in all divisions for development of logistics and warehousing facilities.

4.5.5. Existing warehouses shall be incentivized for upgrading to modern technology based logistics centres.

4.5.6. A grant shall be provided for custom cost recovery for strengthening of ICDs under RSIC.

05 Competitive fiscal incentives

5.1. Enhanced package of incentives for manufacturing and services enterprises comprising of investment support on SGST, employment subsidy, electricity duty exemption , rebate in power tariff, stamp duty exemption, mandi fee exemption, rebate in land conversion charges and support for water conservation/green measures are envisaged under the incentive scheme.

5.2. Additional incentives shall be provided to strengthen the thrust sectors.

5.3. Industries setting up in backward and most backward areas shall be further incentivised.

5.4. Exemption from State tax for new industry in tribal, hilly and desert area shall be provided for first 3 year.

5.5.  Attractive fiscal incentives shall be provided to anchor units setting up their base in any industrial area.

5.6. Benefits shall be granted to developers of industrial parks, advanced testing labs, labour housing & dormitories and logistics facilities such as MMLH, Logistics Parks, Warehouses and Cold Chains.

5.7. Assistance to MSMEs shall be provided for capital investments, technology acquisition/up gradation, credit guarantee, quality certification, R&D, branding & promotion and Intellectual Property Rights (IPR).

5.8. A special scheme for financial assistance to entrepreneurs belonging to SC, ST, women entrepreneurs, cottage industries, street vendors and Self Help Group (SHG) shall be formulated.

06 Skilled human resources

6.1. New skilling programme shall be introduced in emerging sectors such as logistics, ESDM, and Automobile (Electric Vehicle segment) etc.

6.2. Industry shall be encouraged to set up skilling institutions in collaboration with leading Universities, Government Approved/ Affiliated/ Recognized Educational Institutions and ITIs.

6.3. Dynamic database of unemployed youth and potential opportunities shall be created.

07 Balanced regional industrial development

7.1. District level industrial plan to map the industrial potential based on competitive advantage of every district shall be prepared.

7.2. Supply chain linkages of MSMEs with large industries shall be encouraged by developing database and business profiling of existing MSMEs & large industries for each district.

7.3. Business Facilitation Centres (BFCs) shall be set up at each district in District Industries Centre towards investment promotion, employment generation, ease of doing business, promotion of existing & upcoming MSME schemes of GoI/GoR, export related information and services, cluster development, training program/ orientation/entrepreneurship development program and other MSME business services.

7.4. For enhancing exports, an Export Promotion cell shall be constituted within the Department of Industries to provide wide ranging export services for exploring new markets, identifying new exportable commodities etc.

08 Entrepreneurship and innovation

8.1. A new ‘Start-up policy’ shall be formulated with focus on breeding innovation and developing a positive eco-system in the State.

8.2. Government shall explore opportunities for developing Start-up arena in proximity to major cities. The arena shall consist of incubators, co-working spaces, specialized incubators, fabrication labs, offices of angel investors & their associations and venture capitalists & their associations.

8.3. Development of Incubators/Accelerators and co-working spaces by private sector shall be encouraged through various fiscal and non-fiscal incentives.

8.4. Government shall collaborate with international institutions and companies to develop and promote Start-up ecosystem in the State.

8.5. A facilitating framework shall be formed to encourage Start-ups from outside Rajasthan to set up and grow in the State.

8.6.With advent of new business models like aggregators and specialized service providers, Government shall actively collaborate with such agencies for employment opportunities.

8.7. Annual innovation awards shall be introduced by the government to encourage Innovation across all sectors.

09 Environment protection and sustainable industrial development

9.1. To encourage reuse and recycling of industrial waste, adequate land on annual lease basis, incentives and necessary regulatory support shall be provided to units.

9.2. Government shall explore new methodologies and technologies for effective waste management for industrial parks.

9.3. Government shall provide support for green building and eco-friendly industries.

9.4. Adoption of Water/Energy conservation and waste management methodology and technologies shall be encouraged and regular awareness programme shall be organised for the same.

9.5. Formation of Special Purpose Vehicle (SPV) with participation of stakeholders of industrial areas shall be encouraged especially for waste management and recycling.

9.6. Rain Water Harvesting shall be encouraged with necessary support from the government.

10 Technological upgradation of Industry

10.1. New Technology Development Centres/ Common facility centres with advanced technology shall be established in existing clusters.

10.2. Assistance to R&D centres, testing and certification labs shall be provided.

10.3. Support shall be provided to educational institutes to promote entrepreneurship by providing access of labs and state of the art machinery.

11 Industry 4.0

11.1. Incentives for technology acquisition, skill development and R&D shall be provided to industries engaged in development of product for Industry 4.0.

11.2. R&D centres focussing on Industry 4.0 shall be established in the State for bringing together researchers, industry and academia.

11.3. To promote “smart factory” concept though Industry 4.0, special fiscal and infrastructure support to units using automation and data exchange in manufacturing technologies shall be provided.

11.4. Support shall be provided to State incubators for upgrading facilities with new age technologies such as Internet of Things (IoT), FinTech, Clean Energy, Climate Engineering, Clean Transportation, Social Media, Mobility, Analytics, Cloud Computing, Robotics, Artificial Intelligence as well as in Pharmaceutical and Healthcare sectors.

12 Rationalizing regulations and inspections

12.1. Timelines for statutory approvals for starting, operating & expanding businesses shall be reduced by minimum 50% through process reengineering by Departments.

12.2. Total number of inspections shall be reduced and the inspection process shall be rationalized across Departments concerned with industrial operations.

12.3. The existing acts, rules & concerned statutory processes shall be pro-actively evaluated and requisite amendments shall be undertaken.

13 EoDB & pro-industry outlook

13.1. All industry related services shall be provided through an easy and smart ‘One Stop Shop’ IT application

13.2. Land conversion in urban limits shall be simplified and implemented in a time bound manner for land parcels designated for agro food processing, warehousing and cold storage units in master plans

13.3. Conversion charges in peripheral villages shall be at par with conversion rates for rural areas for non-agriculture land use.

13.4. All Departments at Central (Jaipur) and District levels shall work with a common goal of attracting industry, easing compliance processes, giving services in time bound manner and providing support throughout investment life cycle.

13.5. Bureau of Investment Promotion (BIP) shall be equipped with a forward looking mandate and resources for showcasing Rajasthan as an investment destination to national and international investors. The mandate of BIP shall be:

13.5.1. ‘One Stop Shop’ for all investment related matters such as business information to investor, investor queries, expediting regulatory approvals; participating in investment events, facilitating meetings with relevant Government and corporates, hand-holding support for matters related to fiscal incentives and investors’ feedback.

13.5.2. Focused and planned inbound and outbound investment promotion activities for thrust sectors and target countries.

13.5.3. An outreach centre shall be set up at New Delhi for targeted countries for enhanced collaborations, connects, marketing and branding.

13.5.4. Sectoral focused conferences and mini events shall be organized every quarter.

13.6. A continuous investor feedback exercise shall be undertaken to measure the development and impact in this area.

13.7. Sensitization/orientation training for government officials involved in industrial processes shall be introduced for improving investor experience.

14 Developing thrust sectors

14.1. Textile & Apparel

14.1.1. Special incentive shall be provided to promote Apparel and Technical Textiles segment.

14.1.2. Skill training facilities shall be developed in collaboration with Centre of Excellences (CoEs), Institutes of Excellence and National Research Institutions.

14.1.3. Design and innovation centres in collaboration with premier institutes shall be set up at key centres across State to impart design training as per latest trends to artisans/producers.

14.2. Agro Food Processing

14.2.1. Strengthen infrastructure in the sector by investing in Food Processing clusters to develop strong and robust value chain.

14.2.2. Fiscal support shall be provided to Food Processing units set up in the State with additional support for units set-up by FPOs/Agro Cooperatives.

14.2.3. Assistance shall be provided to developers of new food parks in the State.

14.2.4. Start-ups in agri-business space shall be encouraged.

14.2.5. Establishment of cold chains and new testing and certification labs for food commodities shall be encouraged.

14.2.6. Initiatives to boost Spice processing and Herbal product manufacturing shall be undertaken.

14.2.7. Contract farming with market linkages shall be encouraged.

14.2.8. Efficient forward and backward linkages in rural areas shall be encouraged for perishable commodities through financial support.

14.2.9. The Rajasthan Agricultural Produce Markets Act 1961 and its amendments shall be reviewed to align to present needs of the sector

14.3. Electronic System Design Manufacturing (ESDM)

14.3.1. New clusters shall be set up in the State.

14.3.2. Special incentives shall be provisioned for anchor units setting up in ESDM parks/zones.

14.4. Auto & Auto Components

14.4.1. An Electric Vehicle (EV) Research and Manufacturing Zone shall be established.

14.4.2. Financial assistance shall be provided to encourage EV and their components manufacturing units.

14.4.3. A dedicated policy for Electric Vehicles (EVs) shall be formulated to provide impetus to develop this sector.

14.5. Leather & Footwear

14.5.1. Fiscal support shall be provided for establishment of new units/up gradation of existing units.

14.5.2. The potential of developing new clusters in eastern Rajasthan shall be explored.

14.5.3. A design and innovation centre in Leather manufacturing shall be set up in collaboration with FDDI/other leading institute to impart design training.

14.5.4. Thrust shall be given to branding and promotional activities to sector associations.

14.6. Mines and Minerals

14.6.1. Government shall take measures to attract new investment in both downstream and upstream industries.

14.6.2. The potential of developing a Ceramic hub together with necessary gas infrastructure shall be explored in Ajmer,Bikaner and Barmer.

14.6.3. Requisite transport and infrastructure network shall be developed for necessary linkages with downstream industries.

14.7. Gems & Jewellery:

14.7.1. A Gems Bourse/ Gems Park shall be set up.

14.7.2. New Testing and Certification facilities for Gems & Jewellery shall be established in Jaipur.

14.7.3. A dedicated cluster shall be developed for diamond industry.

14.7.4. Special Notified Zone to be developed in Jaipur for consignment of coloured Gemstones.

14.8. Handicraft/Handloom/Khadi Industries:

14.8.1. An interest subsidy scheme for Handicraft, Handloom and Khadi industries shall be introduced.

14.8.2. Training centres/mobile supply and collection centres shall be set up under concerned DICs to assist the scattered artisans in remote areas

14.8.3. Government shall provide necessary support to manufacturers to secure GI tags for distinctive articles from the State.

14.8.4. Shilpgrams shall be setup in each district and new measures shall be adopted for branding of products from these segments

14.8.5. Provision of common facility centre along with other facilities such as storage, outlets and laboratories in rural and peripheral areas shall be developed to promote khadi, handloom, apparel, handicraft and cottage industry.

14.9. Chemicals including Petrochemicals

14.9.1. Initiatives shall be undertaken to develop an integrated value chain of chemicals and further encourage production in the higher stage of value chain.

14.9.2. Focus shall be laid on attracting new investment in segments such as plastics, chemical intermediaries, pharma intermediaries, dyes, paint, packaging material etc.

14.9.3. Plastic parks/plastic clusters shall be developed.

14.10. Pharmaceuticals & Medical Devices

14.10.1.Fiscal assistance shall be provided to manufacturers of Active Pharmaceutical Ingredients (APIs) formulations & Medical devices t o promote domestic manufacturing of drugs and devices.

14.10.2. Preference in Government procurement as well as price advantage shall be given to local manufacturers.

14.10.3. Specialized Pharmaceutical and Medical Device Parks shall be developed

14.10.4. State of the art Laboratory for testing of medical devices shall be encouraged

14.10.5. Infrastructure such as warehouses/ temperature controlled facilities shall be strengthened for storing pharmaceutical equipment’s, products etc.

14.10.6. A Pharmaceutical and Medical Device development cell/nodal office shall be set up and pharma related clearances shall be integrated in the ‘One Stop Shop’system.

14.11. Service sector

14.11.1. Specific initiatives shall be undertaken to promote service sectors such as IT/ITeS, Tourism & Hospitality, Medical and Health, Retail, Entertainment, Education and Legal Services.

14.11.2. Service sectors enterprises supplementing manufacturing sector shall be given preference in land allotment in industrial areas.

14.11.3. IT/ITeS/Knowledge, Apparel and Retail sector shall be given permissions to operate 24 by 7 and provision for women to work in the night shift shall be accorded, provided adequate arrangements are made. The relaxation on FAR shall be provided to these sectors to support their growth in due course.

14.11.4. A comprehensive tourism development plan and policy shall be formulated covering new tourism products and expanding existing tourism pockets with an aim to address infrastructure/other related issues.

14.11.5. Knowledge/Industry Parks focussed on IT/ITeS and Logistics/Warehousing Hubs shall be developed with a minimum area of 5 acres near major cities.

14.11.6. A Medical Tourism portal shall be developed in collaboration with healthcare service providers with an aim to promote hospitals, specialized service, test labs, hotels and guest houses services.

14.11.7. Support shall be provided to industries engaged in Desert and Village tourism to encourage balanced regional growth

14.11.8. Special emphasis shall be laid on promoting Film Industry by providing fiscal and non-fiscal incentives to private sector for developing film cities, studios, processing labs.

14.11.9. To boost service export from the State, Department of Industries shall coordinate with nodal departments for the aforementioned segments.

15 Policy Implementation and Monitoring

15.1. Rajasthan Industrial Policy Monitoring Committee

15.1.1. Rajasthan Industrial Policy Monitoring Committee shall be constituted under the Chairmanship of Hon’ble Minister of Industries, Government of Rajasthan to periodically review (at least once in every quarter) implementation and assess impact of the industrial policy.

15.1.2. The Committee will be empowered to take all necessary decisions for the smooth implementation of policy such as:

a. To monitor progress of all institutions involved in the process

b. To assign roles and targets to institutions involved and monitoring of work being performed

c. To interpret and/or relax any provision of the Policy

d. To frame and/or amend any guidelines or schemes under the Policy

e. To review various measures for favourable business environment in the State for industry

15.2. Dispute Resolution Mechanism

15.2.1. For the resolution of issues related to the various departments in respect of functioning of the enterprises, the State Government shall constitute at least Two- Tier Grievance Redressal Mechanism (District Level Grievances Committee, State Level Grievances Committee)

15.2.2. The enterprises shall register and submit their grievance on “One Stop Shop” portal which shall be processed and resolved by the District Level Grievance Committee headed by the District Collector within prescribed timelines.

15.2.3. State level grievance shall be addressed by the State Level Grievance Committee headed by Additional Chief Secretary-Industries, Government of Rajasthan.

15.3. Export Promotion Council

15.3.1. An autonomous body of exporters, Rajasthan Export Promotion Council (REPC), shall be constituted to create mechanism of facilitation across all sectors for providing policy & regulatory inputs, issues & challenges in exports and probable solutions.

15.4 Policy Implementation

15.4.1 The Department of Industries shall be the administrative Department for the implementation of policy. It shall oversee functioning of all important sections/ agencies involved in policy implementation. It shall formulate detailed guidelines regarding policy provisions in consultation with concerned State Government departments.

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