Rajasthan Warehousing Subsidy & Incentives Under RIPS 2024
Dear Businessman/Investors
Warehousing has emerged as one of the fastest-growing sectors in India. With the rapid expansion of highways, expressways, GST reforms, and the boom in e-commerce, the demand for modern warehousing infrastructure is increasing every year.
To promote large-scale investment in this sector, the Government of Rajasthan has introduced attractive incentives under the Rajasthan Investment Promotion Scheme (RIPS) 2024. This policy makes Rajasthan a highly attractive destination for both agriculture-based and commercial warehousing projects.
This Policy is Implemented From 2025-2029
Why Warehousing is a High-Growth Sector in India
India’s logistics ecosystem is undergoing a major transformation. The Government of India aims to reduce logistics and transportation costs to single-digit percentages, which has resulted in:
Development of national highways and expressways
Simplification of GST and removal of inter-state barriers
Rapid growth in e-commerce and online consumption
Increasing demand for fulfillment centers and storage facilities
Warehousing is now a long-term, stable business model that offers fixed monthly rental income once the investment is properly planned and executed.
Warehousing Definition Under RIPS 2024
The Rajasthan government has broadly defined warehousing to ensure maximum project eligibility. The policy covers:
Agriculture Warehouses
Commercial Warehouses
Fulfillment & Distribution Centers
Open and Closed Storage Facilities
Temperature-Controlled Warehouses
Bulk Goods Storage Units
Eligibility Criteria for Warehousing Projects
To avail benefits under RIPS 2024, the following conditions must be fulfilled:
1. Minimum Fixed Capital Investment
Minimum investment required: ₹2 Crore
Projects below ₹2 Crore are not eligible
Eligible Fixed Capital Investment includes:
Land cost
Building and civil construction
Plant & machinery
Other fixed assets related to the project
2. Only New Units are Eligible
Incentives are applicable only for new warehousing projects
The unit must have proper business registration (Private Limited / LLP / Proprietorship)
3. Detailed Project Report (DPR)
A complete DPR must be prepared, covering:
Warehouse location
Size and storage capacity
Investment details
Business and revenue model
4. Statutory Approvals & Registrations
Local authority approvals (Panchayat / Municipal Corporation)
RIICO / Industrial area approvals (if applicable)
WDRA registration after construction
Subsidy & Incentive Benefits Under RIPS 2024
Option 1: Capital Subsidy
25% of Eligible Fixed Capital Investment
Maximum subsidy: ₹15 Crore
Disbursed annually over 10 years
Example:
If total project cost is ₹20 Crore →
25% subsidy = ₹5 Crore
This amount is paid in 10 equal yearly installments.
Option 2: Interest Subsidy
7% Interest Subsidy
Available for 7 consecutive years
Investors can compare both options and choose the one that suits their financing structure.
Additional Incentives for Warehousing Projects
Apart from capital and interest subsidy, RIPS 2024 offers multiple cost-saving benefits:
100% Electricity Duty Exemption for 7 years
75% Stamp Duty Exemption on land registration
Refund of remaining stamp duty as per policy provisions
75% exemption on land conversion charges
Exemption from market fee / mandi fee where applicable
These incentives significantly reduce the project cost, operating expenses, and financial risk.
Conclusion
The Rajasthan Investment Promotion Scheme (RIPS) 2024 makes warehousing one of the most rewarding investment opportunities in the state. With capital subsidy, interest subsidy, tax exemptions, and infrastructure support, investors can substantially improve project viability and profitability.
If you are planning a warehousing project in Rajasthan, aligning your investment with RIPS 2024 can help you maximize returns while minimizing costs.
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