Rajasthan Captive Power Charges Waiver: 100% Relief for Manufacturers

RIPS 2024 — the Rajasthan Investment Promotion Scheme — is the state government's umbrella policy for pulling industrial investment into Rajasthan. This incentive sits inside it as clause 3.1.3.2.3, and it is aimed at manufacturers that generate their own electricity. The administering body is the Department of Industries and Commerce, Government of Rajasthan, and the support is delivered as a subsidy rather than as project funding.

What the incentive does is remove a recurring cost: moving and banking power. A qualifying manufacturer running a captive power plant gets 100% of transmission, wheeling and banking charges either waived or reimbursed. The relief lasts exactly as long as the enterprise's chosen Asset Creation Incentive under RIPS 2024 is being disbursed, which ties the two benefits to one timeline.

Two policy goals run through the design — energy independence for industry, and a tilt towards cleaner generation. Output from the plant must serve the promoter's own operations; selling it onward is ruled out. Capacity may reach up to 200% of the connected load of the unit, and full banking is allowed, so surplus units can be parked and drawn down later with no bar on peak-hour withdrawals.

Renewable plants placed behind the meter come out ahead. There is no ceiling on their maximum generation capacity, and Electricity Duty exemptions continue in perpetuity, as long as nothing is exported to the grid in off-peak hours.

There is no closing date to watch. The incentive is a standing provision of the policy rather than a round-based call, so it is treated as rolling / always open, and the value varies with the charges each enterprise actually incurs.

• Full waiver or reimbursement of transmission, wheeling and banking charges
• Open to Regional and Sectoral Anchors in manufacturing in Rajasthan
• Applies to captive power plants; no third-party sale of power allowed
• Plant size capped at 200% of the unit's connected load
• Benefit period matches the Asset Creation Incentive disbursal period
• Behind-the-meter RE plants get perpetual ED exemption and no capacity ceiling

Two things decide whether an enterprise can use this incentive: its standing under RIPS 2024, and the way the generated power is consumed.

• The applicant must be a Regional Anchor or Sectoral Anchor in the manufacturing sector.
• The captive power plant has to be set up by that manufacturing enterprise itself.
• Everything generated must go towards captive consumption. Third-party sale is not allowed.
• Plant capacity is capped at 200% of the connected load of the unit.
• Full banking is permitted, and withdrawals are not restricted during peak hours.

For 'behind the meter' Renewable Energy plants, two relaxations apply:

• There is no ceiling on maximum generation capacity.
• Electricity Duty (ED) exemptions apply in perpetuity, provided nothing is exported to the grid in off-peak hours.

Rajasthan Captive Power Charges Waiver: 100% Relief for Manufacturers is open to startups at any stage. It is open to startups registered anywhere in India.

Rajasthan Captive Power Charges Waiver: 100% Relief for Manufacturers 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.

This is a cost relief rather than a fixed-size cheque, which is why the amount is described as varying. It arrives as a subsidy — a waiver or a reimbursement — so it is non-dilutive and no equity or stake is taken in the enterprise.

• 100% of transmission, wheeling and banking charges are waived or reimbursed for the captive power plant.
• The relief runs for a period matching the disbursal period of the enterprise's chosen Asset Creation Incentive under RIPS 2024.
• 'Behind the meter' Renewable Energy plants also receive Electricity Duty (ED) exemptions in perpetuity, provided no power is exported to the grid in off-peak hours.

Taken together, these advantages cut day-to-day running costs, reduce dependence on purchased power, and make sustainable self-generation an easier case to build inside a Rajasthan manufacturing unit.

Rajasthan Captive Power Charges Waiver: 100% Relief for Manufacturers 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.

Decisions are not taken at a single desk. A committee drawn from the relevant government departments — among them the Department of Industries and Commerce, the Finance Department and technical experts — reviews what the applicant has submitted.

• The first test is compliance: whether the applicant genuinely holds Regional or Sectoral Anchor status.
• The nature and capacity of the captive power plant are examined, including adherence to the 'captive consumption only' condition.
• Technical feasibility and economic viability of the project may also be assessed.
• Approval rests on how well the proposal fits the objectives of RIPS 2024, and on how complete and accurate the application is.

Before you apply to Rajasthan Captive Power Charges Waiver: 100% Relief for Manufacturers, 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.