Rajasthan Electricity Duty Exemption — 100% Waiver for 7 Years
A Rajasthan Investment Promotion Scheme 2024 incentive that removes 100% of electricity duty for seven years for manufacturers in the state, cutting recurring power costs. Applications stay open through the year.
- 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
Manufacturing units in Rajasthan can have their electricity duty bill wiped out for seven years. The relief comes through the Rajasthan Investment Promotion Scheme 2024 (RIPS 2024), and the Department of Industries and Commerce, Government of Rajasthan, is the body that administers it. Section 3.1.3.4 of the scheme is where this particular incentive sits.
Electricity duty is one of the recurring charges on an industrial power connection, so removing it for seven years reshapes a plant's cost base rather than handing over a one-time cheque. The state positions the incentive as a way to draw fresh investment, keep existing manufacturers competitive, and encourage industrial development along with employment generation.
There is no fixed rupee figure attached to the benefit. What a unit actually saves depends on its own consumption across the exemption window. Applications are accepted on a rolling basis, with no closing date.
Highlights
- 100% waiver of electricity duty for manufacturing enterprises
- Exemption runs for 7 years from the date it is claimed
- Meant for manufacturing units operating in Rajasthan
- Delivered under the Rajasthan Investment Promotion Scheme 2024 (Section 3.1.3.4)
- Administered by the Department of Industries and Commerce, Government of Rajasthan
- Rolling applications — no fixed closing date
Who can apply
To claim this exemption, a business has to be a manufacturing enterprise operating in Rajasthan. That is the core test — the benefit is defined inside the Rajasthan Investment Promotion Scheme 2024, and the scheme's own definitions decide whether a unit qualifies.
- Sector: manufacturing enterprises. Activity outside manufacturing is not covered by this particular incentive.
- Location: the unit must be in Rajasthan.
- Framework: the applicant must fall within the Rajasthan Investment Promotion Scheme 2024.
Anything beyond these points is governed by the RIPS 2024 guidelines, including Section 3.1.3.4, which deals specifically with this incentive.
Rajasthan Electricity Duty Exemption — 100% Waiver for 7 Years 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
Rajasthan Electricity Duty Exemption — 100% Waiver for 7 Years 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
This is a cost waiver rather than a cash grant. A qualifying unit pays no electricity duty at all for seven years — a 100% exemption — which strips the duty component out of its power bills for the entire exemption window.
Because duty is levied on consumption, the rupee value of the relief scales with how much power a plant actually draws, so the amount is variable rather than a fixed sum. The saving lands straight in operating costs, improving margins and making the unit more competitive on price.
The waiver runs for 7 years from the point the incentive is claimed. It is a state subsidy: no equity is issued and nothing has to be repaid.
About the provider
Rajasthan Electricity Duty Exemption — 100% Waiver for 7 Years 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
Applications move through a defined state process:
- 1. Read the scheme rules — go through the Rajasthan Investment Promotion Scheme 2024 guidelines, including Section 3.1.3.4, which covers this electricity duty incentive.
- 2. Assemble documentation — prepare the company and project paperwork the scheme asks for.
- 3. Submit — file the application through the official Rajasthan Investment Promotion Scheme portal or with the designated department.
- 4. Screening and verification — state authorities examine and verify what you have submitted.
- 5. Approval and grant — once verification clears and approval is given, the electricity duty exemption is granted for the stipulated period.
Documents you’ll need
Before you apply to Rajasthan Electricity Duty Exemption — 100% Waiver for 7 Years, 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 exactly does this Rajasthan program give a manufacturer?
It waives electricity duty completely. A manufacturing enterprise that qualifies pays 100% less electricity duty for seven years. It is not a cash transfer — the value reaches you as a reduction in what the unit owes on its power bills.
How much is the benefit worth in rupees?
No fixed amount is published; the benefit is variable. Since the incentive removes 100% of the duty for seven years, the actual saving depends on your own electricity consumption during that window, so a heavier power user saves more.
Who is eligible to claim this exemption?
Manufacturing enterprises operating in Rajasthan, as defined under the Rajasthan Investment Promotion Scheme 2024. The scheme's own definitions determine whether a particular unit qualifies.
Is there an application deadline?
No. Applications are rolling and always open, so you can apply through the scheme process at any point, subject to the rules of the Rajasthan Investment Promotion Scheme 2024.
Does the government take equity or expect the money back?
Neither. This is a subsidy in the form of an exemption from a state duty, so no equity shares are issued to the government and nothing has to be repaid.
How long does the exemption last, and when does it begin?
Seven years, starting from the date the incentive is claimed.
How and where do I apply?
Apply through the official Rajasthan Investment Promotion Scheme process — the portal at https://rajnivesh.rajasthan.gov.in/ or the designated department. First review the RIPS 2024 guidelines (Section 3.1.3.4), then prepare the documentation the scheme specifies and submit your application.
What documents do I need to provide?
The scheme sets out its own list of company and project documentation that applicants must supply. The specifics are given in the Rajasthan Investment Promotion Scheme 2024 guidelines, so check those before filing to avoid delays.
What happens after I submit the application?
State authorities screen and verify the application. Once verification is complete and approval is granted, the electricity duty exemption is issued for the stipulated seven-year period.
Which government body runs this incentive?
The Department of Industries and Commerce, Government of Rajasthan, administers it as part of the Rajasthan Investment Promotion Scheme 2024.
Is DPIIT recognition required for Rajasthan Electricity Duty Exemption — 100% Waiver for 7 Years?
No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for Rajasthan Electricity Duty Exemption — 100% Waiver for 7 Years, though having it can strengthen your application and unlock other benefits.
Who offers Rajasthan Electricity Duty Exemption — 100% Waiver for 7 Years?
Rajasthan Electricity Duty Exemption — 100% Waiver for 7 Years is offered by Department of Industries and Commerce, Government of Rajasthan, a government body. It is provided as non-dilutive funding.
How do I apply for Rajasthan Electricity Duty Exemption — 100% Waiver for 7 Years?
Apply directly through the official application link on this page. Review the eligibility criteria and prepare your startup documents before you begin.
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