Rajasthan Government Announces Major Industrial Land Concessions Through RIICO
In a landmark decision aimed at revitalizing the state's industrial landscape, the Rajasthan government, under the leadership of Chief Minister Bhajan Lal Sharma, has unveiled a comprehensive package of incentives through the Rajasthan State Industrial Development and Investment Corporation (RIICO). The centerpiece of this initiative is a substantial reduction in land acquisition costs for entrepreneurs seeking to establish operations in designated industrial zones.
Substantial Cost Reduction for Industrial Plots
RIICO will now permit entrepreneurs to acquire plots in 30 specifically designated industrial areas at a significantly discounted rate of 60% of the prevailing market prices. This concession applies to lease agreements spanning 33 years, making land ownership far more accessible for small and medium enterprises. This strategic move is projected to dramatically lower the initial capital expenditure required for setting up industries, thereby fostering a more conducive environment for business startups and expansions across Rajasthan.
Extended Payment Terms and Reduced Fees
Complementing the reduced land rates, the corporation has introduced more flexible financial arrangements under its direct allotment scheme. The payment period for land acquisitions has been extended from three years to five years, allowing investors to manage their cash flow more effectively through 19 manageable quarterly installments. This extension is designed to alleviate the financial burden on new industrial ventures during their initial setup and operational phases.
Furthermore, RIICO has implemented cuts in various procedural fees to streamline industrial transactions. The transfer charge levied on the sale of plots after production commencement has been halved, reduced from 1% to a mere 0.5%. Additionally, the activity conversion fee for weighbridge operations has been adjusted to three-quarters of the existing rate. These reductions provide tangible financial relief and simplify administrative processes for entrepreneurs.
Introduction of Plug-and-Play Facilities and Rental Options
To accelerate industrial activity and reduce setup timelines, RIICO will introduce plug-and-play facilities in these zones. Moreover, the corporation will offer land for fixed use at an exceptionally competitive annual rent of just 5% of the prevailing rate, with lease terms ranging between 20 and 25 years. This option is particularly attractive for businesses seeking operational flexibility without the commitment of outright purchase, encouraging faster deployment of industrial projects.
Policy Expansion and Infrastructure Development
In a significant policy shift, RIICO will expand its term loan offerings beyond traditional industrial projects to include real estate ventures. This expansion is expected to boost infrastructure development, stimulate ancillary industries, and create new employment opportunities across the state. RIICO Managing Director Shivangi Swarnkar emphasized that special focus is being placed on enhancing basic infrastructure in industrial areas, including robust road networks and reliable power supply systems.
Swarnkar announced that development works worth Rs 400 crore have been sanctioned for over 25 new industrial zones. In a parallel initiative to ensure industrial safety, administrative and financial approval of Rs 25.70 crore has been issued for the establishment of 12 new fire stations and the procurement of 37 modern fire tenders. These measures collectively aim to create a secure, efficient, and attractive ecosystem for industrial investment in Rajasthan.
