Rajasthan Electricity Duty Exemption — 100% Off for 7 Years Under RIPS 2024
Enterprises setting up R&D centres, Global Capability Centres or Test labs in Rajasthan get a full Electricity Duty waiver for seven years under RIPS 2024.
- 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
Three kinds of facilities can wipe out one of their biggest recurring bills in Rajasthan: Research & Development (R&D) centres, Global Capability Centres (GCCs) and Test labs. Under the Rajasthan Investment Promotion Scheme (RIPS) 2024, each of them qualifies for a complete waiver of Electricity Duty lasting seven years.
The incentive is run by the Department of Industries and Commerce, Government of Rajasthan. Instead of paying out a grant, the state removes a statutory charge that these facilities would otherwise carry on their power bills for the whole period.
That structure matters for research and testing operations, where consumption tends to stay high right through the year. Because the waiver carries no ceiling, the money saved grows with the scale of the facility — a larger, more energy-intensive unit keeps more.
For a founder comparing locations, this is a long-horizon cost advantage. Seven years of relief can be ploughed back into fresh equipment, specialist hires or expansion, and it makes Rajasthan a more competitive base for building R&D, global capability and quality-assurance footprints.
Highlights
- 100% exemption on Electricity Duty for eligible R&D centres, GCCs and Test labs in Rajasthan
- The relief runs for 7 continuous years
- No cap on the waiver — savings scale with the facility's actual power consumption
- An incentive under the Rajasthan Investment Promotion Scheme (RIPS) 2024, administered by the Department of Industries and Commerce
- Applications are rolling / always open — no fixed deadline
Who can apply
The exemption is open to enterprises that set up a qualifying facility inside Rajasthan. Three categories of facility are named in the scheme:
- Research & Development (R&D) centres
- Global Capability Centres (GCCs)
- Test labs
Alongside the type of facility, the enterprise has to satisfy the general and specific conditions laid down in the Rajasthan Investment Promotion Scheme (RIPS) 2024. Applications are assessed on compliance with those conditions, and the state verifies that the facility is genuinely being established and operated in Rajasthan before granting the benefit.
Rajasthan Electricity Duty Exemption — 100% Off for 7 Years Under RIPS 2024 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% Off for 7 Years 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 funding covers
Qualifying facilities receive a 100% exemption on Electricity Duty for 7 years under RIPS 2024.
- The entire duty amount is waived, with no upper limit — so the rupee value of the benefit rises in step with the facility's actual electricity consumption.
- The relief applies for seven continuous years, counted from the date the enterprise becomes eligible for this incentive.
- It is delivered as the removal of a recurring statutory charge on power rather than as a disbursed grant, so its effect on the balance sheet is comparable to a subsidy.
- The savings stay with the business and can be redirected into expansion, talent acquisition or technology upgrades.
The Department of Industries and Commerce, Government of Rajasthan, is the administering authority, and the incentive is paired with regulatory support under the RIPS framework.
About the provider
Rajasthan Electricity Duty Exemption — 100% Off for 7 Years 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.
How to apply
Applications are submitted on the . Confirm the current deadline and document checklist there before you start.
Selection process
Assessment here is compliance-driven rather than competitive — there are no pitch rounds or shortlists. The question is simply whether the applicant and the facility meet what RIPS 2024 requires.
- Submission — the enterprise files its application with the relevant state authority, attaching documentation on the establishment and operational status of its R&D centre, GCC or Test lab.
- Document review — the designated state department, typically the one handling industry or finance, examines the submitted papers in detail.
- Verification — officials confirm that the enterprise genuinely is setting up and running an eligible facility within Rajasthan, and that all policy stipulations are met.
- Approval — the exemption is granted once eligibility and compliance are successfully verified.
Since the scheme is always open, there is no application window to wait for before filing.
Documents you’ll need
Before you apply to Rajasthan Electricity Duty Exemption — 100% Off for 7 Years 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.
Frequently asked questions
How much is the benefit worth?
The state waives 100% of the Electricity Duty payable by an eligible facility, and it does so for seven years. Because there is no ceiling on the waiver, the rupee value depends entirely on how much power the R&D centre, GCC or Test lab consumes — a heavier consumer saves proportionally more.
Who can apply for this exemption?
Enterprises that set up a Research & Development centre, a Global Capability Centre (GCC) or a Test lab in Rajasthan. The facility has to be located in the state, and the applicant must meet the general and specific conditions attached to RIPS 2024.
Which policy does this incentive sit under, and who runs it?
It is an incentive under the Rajasthan Investment Promotion Scheme (RIPS) 2024 and is administered by the Department of Industries and Commerce, Government of Rajasthan.
Is there a deadline to apply?
No. Applications are described as rolling or always open, so an enterprise can file at any point while the scheme operates.
Is the exemption capped at any amount?
No, there is no maximum limit. The full duty is exempted, so the financial benefit scales directly with the facility's electricity consumption.
For how long does the exemption apply, and when does the clock start?
Seven years, running continuously from the date the enterprise becomes eligible for this incentive.
Does the program pay out cash?
It is not a direct cash grant. The value arrives by eliminating a recurring statutory charge on electricity, which frees up working capital much like a subsidy would, and it is combined with regulatory support under the RIPS framework.
What documents are needed?
The application requires documentation covering the establishment and operational status of the R&D centre, GCC or Test lab, along with evidence that the general and specific conditions of RIPS 2024 are met. The detailed forms and the exact list of supporting papers are published through the state's industry or finance department portals.
How do I apply?
Applications follow the process laid down under RIPS 2024: submit a formal application to the relevant state authority with the required documents. Guidelines, forms and submission details are available on the state's portal at https://rajnivesh.rajasthan.gov.in/.
How will my application be assessed?
A designated state department — usually the one dealing with industry or finance — reviews the documents and verifies that the enterprise really is establishing and operating an eligible facility in Rajasthan. Approval follows once eligibility and compliance with the policy are confirmed. There are no competitive rounds.
Does Rajasthan Electricity Duty Exemption — 100% Off for 7 Years Under RIPS 2024 take equity?
No. Rajasthan Electricity Duty Exemption — 100% Off for 7 Years Under RIPS 2024 is subsidy and is non-dilutive — the provider does not take an equity stake in your startup.
Is DPIIT recognition required for Rajasthan Electricity Duty Exemption — 100% Off for 7 Years Under RIPS 2024?
No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for Rajasthan Electricity Duty Exemption — 100% Off for 7 Years Under RIPS 2024, though having it can strengthen your application and unlock other benefits.
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