Interest Subvention (Sunrise) Rajasthan — 5% for Plant & Machinery
A RIPS 2024 incentive that gives enterprises in Rajasthan's sunrise sectors a 5% interest subvention on plant & machinery term loans for five years.
- Funding amount
- Varies by program
- Funding type
- Subsidy
- Provider
- Department of Industries and Commerce, Government of Rajasthan (Government)
- Application deadline
- Rolling
- Eligible stage
- Any stage
- Location
- Open to startups registered in India
Overview
Interest Subvention (Sunrise) is one of the incentives offered under the Rajasthan Investment Promotion Scheme (RIPS) 2024, the state's package for attracting and growing industry. It is administered by the Department of Industries and Commerce, Government of Rajasthan. Its scope is narrow but valuable: it brings down the cost of borrowed money for enterprises putting up new plant and machinery in sectors the state has flagged as emerging growth engines.
Capital-heavy projects stand or fall on the cost of debt. By covering part of the interest an enterprise owes on its term loan, the scheme makes such borrowing cheaper and shortens the payback period on new equipment. That is intended to pull businesses towards modernisation, capacity addition and technology upgrades within the sunrise sectors, along with the jobs and industrial diversification that follow.
The scheme runs on a rolling basis, so there is no fixed window to chase. Cases move through the RIPS 2024 framework, and the department or its designated nodal agency examines the loan papers and investment claims before releasing support.
Highlights
- 5% interest subvention on term loans taken for plant & machinery
- Benefit runs for five years from the date of loan sanction
- Overall ceiling of 2.5% of Eligible Fixed Capital Investment, paid in equal parts across five years
- Meant for enterprises operating in Rajasthan's notified sunrise sectors
- Rolling applications processed under the Rajasthan Investment Promotion Scheme (RIPS) 2024
- Administered by the Department of Industries and Commerce, Government of Rajasthan
Who can apply
The scheme is built for enterprises that are setting up or expanding inside a sector notified as a sunrise sector in Rajasthan. Two conditions carry the weight.
- Sector: the enterprise must be operating in one of the state's designated sunrise sectors.
- Loan in place: it must have taken a term loan for plant & machinery from a financial institution recognised by the Reserve Bank of India.
The eligibility test rests on both points together — a sunrise-sector business with no qualifying term loan does not fit, and a business holding the right kind of loan but sitting outside the notified sectors does not either. Support is tied to a genuine fixed capital investment in plant and machinery.
The scheme information available does not spell out permitted entity types, a DPIIT or MSME registration condition, or separate founder criteria. Applicants should confirm those points against the current RIPS 2024 guidelines before filing.
Interest Subvention (Sunrise) Rajasthan — 5% for Plant & Machinery is open to startups at any stage. It is open to startups registered anywhere in India.
- Eligible stage
- Any stage
- Location
- Open to startups registered in India
Deadline & timing
Interest Subvention (Sunrise) Rajasthan — 5% for Plant & Machinery accepts applications on a rolling basis — there is no fixed cut-off date, so eligible startups can apply at any time. Because rolling programmes can pause without notice, confirm the window is still open on the official site before you start.
What the funding covers
The support on offer is a 5% interest subvention on a term loan raised specifically for investment in plant and machinery. It is a subsidy, so nothing is repaid and no ownership changes hands.
- Subvention rate: 5% on the eligible term loan
- Duration: five years, counted from the date the term loan is sanctioned
- Overall ceiling: 2.5% of the Eligible Fixed Capital Investment (EFCI)
- Payout pattern: the capped amount is distributed equally across those five years
In practice this acts as a discount on the interest an enterprise owes its lender. Lower borrowing cost improves the financial viability of capital-intensive projects and makes term lending a more attractive route for funding modernisation and capacity building in the target industries.
About the provider
Interest Subvention (Sunrise) Rajasthan — 5% for Plant & Machinery is offered by Department of Industries and Commerce, Government of Rajasthan, a government body. As a government-backed subsidy, it is publicly funded and open to eligible startups across India.
How to apply
Applications are submitted on the . Confirm the current deadline and document checklist there before you start.
Selection process
Assessment here is a verification exercise rather than a competition. Once an application is filed under the RIPS 2024 framework, the Department of Industries and Commerce, Government of Rajasthan — or the nodal agency designated to implement the scheme — takes it up through the relevant committee and tests it against the scheme's criteria.
Documentation examined at this stage includes:
- the term loan sanction letter
- details of the investment made in plant and machinery
- evidence that the enterprise operates in a defined sunrise sector
The purpose is to make sure that only enterprises which genuinely satisfy the criteria, and which have actually made the stated investment, receive the subvention — keeping the process transparent and even-handed. Once eligibility and the investment particulars are verified, the subvention is disbursed.
Documents you’ll need
Before you apply to Interest Subvention (Sunrise) Rajasthan — 5% for Plant & Machinery, keep the following documents ready:
- A pitch deck or short business plan describing the problem, product and traction
- Company registration documents and PAN
- Founder identification (PAN / Aadhaar) and brief profiles
- Recent financial statements or projections
- Product details — a demo, prototype or working link if available
Exact requirements are confirmed on the official application portal — treat this as a preparation checklist.
Frequently asked questions
What is the Interest Subvention (Sunrise) scheme and who runs it?
This is an incentive under the Rajasthan Investment Promotion Scheme (RIPS) 2024. It is administered by the Department of Industries and Commerce, Government of Rajasthan. The scheme gives enterprises in Rajasthan's sunrise sectors a 5% subvention on the interest they pay on plant and machinery term loans, which effectively lowers what their borrowing costs them.
How much benefit does an enterprise actually receive?
The subvention rate is 5% on the eligible term loan. The total benefit is capped at 2.5% of the Eligible Fixed Capital Investment (EFCI), and that capped sum is released in equal instalments over five years. So the headline rate is 5%, but the ceiling works out to 2.5% of the EFCI.
Who is eligible to apply for this subvention?
Enterprises that operate in a sector notified as a sunrise sector in Rajasthan and that have taken a term loan for plant and machinery from a financial institution recognised by the Reserve Bank of India. Both conditions need to be satisfied — being in a sunrise sector alone, or holding a loan alone, is not enough.
What must the term loan be used for?
The loan has to be for investment in plant and machinery. That is the only purpose the subvention covers, and the loan must come from an RBI-recognised financial institution in India. The support is therefore aimed squarely at fixed capital investment in equipment rather than at working capital or other uses.
Over what period is the subvention paid, and from when does it start?
The subvention is provided for five years, counted from the date the term loan is sanctioned, and it remains subject to the overall cap of 2.5% of the Eligible Fixed Capital Investment. The capped amount is split equally across those five years.
Is there an application deadline?
No. The scheme is rolling and always open, so there is no closing date to beat. Applications are handled under the RIPS 2024 framework on an ongoing basis, and enterprises can apply once their term loan is in place and their investment details are ready.
Does the government take equity or a stake in my business for this support?
No. This is a subsidy in the form of an interest subvention. The money is not repaid, and the state does not receive equity, shares or any ownership in the enterprise in return. The benefit simply reduces the interest burden on the eligible term loan.
What documents will I need to submit?
Expect to provide a detailed project report, proof of the term loan sanction from an RBI-recognised financial institution for plant and machinery, and documentation that establishes the enterprise as a sunrise-sector entity. The RIPS 2024 guidelines should be checked for the exact forms and attachments required at the time of application.
Where and how do I apply?
Applications are routed through the RIPS 2024 process to the Department of Industries and Commerce, Government of Rajasthan, or to the nodal agency designated to implement the scheme. The state's investment portal at https://rajnivesh.rajasthan.gov.in/ is the place to start, and the RIPS 2024 guidelines set out the submission procedure and verification steps.
Is DPIIT or MSME registration required to apply?
The scheme details available do not list DPIIT or MSME registration as a condition. Eligibility turns on operating in a notified sunrise sector and holding a qualifying term loan for plant and machinery, so applicants should confirm the current position in the RIPS 2024 guidelines before filing.
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