Interest Subvention (Sunrise) Rajasthan — 5% for Plant & Machinery — Frequently Asked Questions
Answers to the questions founders most often ask about Interest Subvention (Sunrise) Rajasthan — 5% for Plant & Machinery — who qualifies, the funding amount, required documents and how the application works.
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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