Rajasthan EFCI Captive Power Incentive under RIPS 2024

Rajasthan's industrial policy gives manufacturers a way to make their power spending count for more. Under the Rajasthan Investment Promotion Scheme (RIPS) 2024, the Department of Industries and Commerce, Government of Rajasthan has provided that money put into group captive power can be counted in full while working out a unit's Eligible Fixed Capital Investment (EFCI).

EFCI is the yardstick the state uses to decide how much support a business can claim across a range of incentives, tax benefits and subsidies. Once the captive power spend sits inside that base, the enterprise's overall asset base eligible under RIPS 2024 grows, which is what brings Asset Creation Incentives within reach.

This provision is Incentive 13 of the RIPS 2024 framework and is set out in Section 3.1.3.3.1.2 of the policy. It is not a scheme with its own separate window — it lives inside the state's wider industrial policy and is claimed through the same application machinery.

Two conditions shape who gains. The applicant must be an Eligible Manufacturing Enterprise as the broader RIPS 2024 framework defines it, and the group captive power agreement must have a tenure of 12 years or more. That long horizon is deliberate: it points to a durable, self-sufficient power arrangement for industrial operations rather than a short-term procurement fix.

Applications run through the standard RIPS 2024 route, and the deadline is rolling — there is no fixed closing date, so a manufacturer can apply once its investment and agreement paperwork is ready.

• 100% of group captive power investment can be counted into EFCI
• The group captive power agreement must run for 12 years or more
• Opens the door to Asset Creation Incentives under RIPS 2024
• Meant for Eligible Manufacturing Enterprises in Rajasthan
• Incentive 13 under the Rajasthan Investment Promotion Scheme 2024
• Rolling applications — no fixed last date

Who can apply

• Eligible Manufacturing Enterprises as defined under the Rajasthan Investment Promotion Scheme (RIPS) 2024.
• Units that have entered into a group captive power agreement with a tenure of 12 years or more.
• Enterprises whose captive power investment is being counted as part of their Eligible Fixed Capital Investment (EFCI).

How the test works

The test has two limbs. The applicant has to qualify as an Eligible Manufacturing Enterprise under the wider RIPS 2024 framework, and the power agreement itself has to clear the minimum tenure bar of 12 years. The detailed definition of an Eligible Manufacturing Enterprise sits in the broader policy document rather than in this specific provision.

Other conditions that apply to applicants flow from the RIPS 2024 framework as a whole.

Rajasthan EFCI Captive Power Incentive under RIPS 2024 is open to startups at any stage. It is open to startups registered anywhere in India.

Rajasthan EFCI Captive Power Incentive under RIPS 2024 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 incentive does

• Lets a manufacturer count 100% of its investment in group captive power agreements — those with a tenure of 12 years or more — inside its Eligible Fixed Capital Investment (EFCI).
• That enlarged EFCI makes the enterprise eligible for Asset Creation Incentives, with the amount worked out against the slabs set out in RIPS 2024.

Why it matters

Captive power is a capital-heavy commitment, and this provision lets that spending pull its weight in the incentive calculation instead of sitting outside it. The practical effect is a lower effective capital cost for setting up captive generation, stronger project economics, and a push towards sustainable energy practices in the state's industrial sector.

Indicative value

No fixed sum is attached to this incentive. Support is delivered as a subsidy-type benefit whose quantum depends on the EFCI slabs defined in the RIPS 2024 policy.

Rajasthan EFCI Captive Power Incentive under RIPS 2024 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.

1. Application through the RIPS 2024 framework

Manufacturers apply as part of the overall RIPS 2024 application process, submitting project and investment documentation through official Government of Rajasthan channels, including the state investment portal at https://rajnivesh.rajasthan.gov.in/.

2. Submission of documents

The application generally includes a detailed project report, proof of investment in the group captive power agreement, and the other statutory documents the scheme requires.

3. Scrutiny and verification

The relevant state authority reviews the application to confirm two things — that the applicant is an Eligible Manufacturing Enterprise and that the group captive power agreement meets the 12-years-or-more tenure requirement.

4. Assessment of the investment

Officials examine the investment details to confirm that 100% inclusion in EFCI is permissible and to establish the correct figure.

5. Determination of the incentive

The applicable Asset Creation Incentive is fixed according to the slabs laid down in the RIPS 2024 policy.

6. Approval and disbursement

Once scrutiny is complete and the quantum is settled, the incentive is approved and disbursed.

Before you apply to Rajasthan EFCI Captive Power Incentive under RIPS 2024, 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.