Rajasthan Electricity Duty Exemption — 100% Waiver for 7 Years — Frequently Asked Questions

It is not a fixed rupee amount. The incentive removes 100% of the electricity duty a qualifying services enterprise would otherwise pay, for a continuous period of 7 years. The value therefore varies from business to business, depending on how much electricity duty that enterprise incurs. A duty-heavy operation gets more out of it than a light one.

Neither. It is a subsidy delivered as an exemption from a government levy, so there is nothing to repay and no interest is charged. The state simply does not collect the electricity duty you would otherwise owe, which reduces your operating expenses directly.

No. There is no equity or ownership component here — this is a waiver of electricity duty, not an investment into your company, so no stake is transferred to the government. Your cap table stays exactly as it is.

The exemption is open to Services Enterprises as defined under the Rajasthan Investment Promotion Scheme 2024. Your business must be operating in Rajasthan or planning to establish operations there, and it is expected to comply with applicable state and central government regulations.

The eligibility conditions stated for this incentive do not mention DPIIT recognition or MSME registration as requirements. What matters is that your business qualifies as a Services Enterprise under the RIPS 2024 definition, operates or will operate in Rajasthan, and complies with statutory and regulatory norms. Since the detailed guidelines govern in practice, it is worth confirming the exact documentation with the nodal agency before you file.

No. This is a rolling incentive with no fixed closing date — applications are accepted on an ongoing basis. That said, the seven-year benefit period runs from the date the benefit is claimed, so delaying the application only delays the start of your savings.

Eligible enterprises receive the 100% electricity duty exemption for a continuous period of 7 years. The clock starts from the date the benefit is claimed, not from the date the application is submitted.

The usual set includes proof of enterprise registration, a business plan or project report, and other compliance certificates. The detailed guidelines of RIPS 2024 carry the precise instructions and the full list of required enclosures, so check those before you assemble your file.

Applications, along with the supporting documents, are typically submitted through a designated online portal or to the relevant department of the Government of Rajasthan, such as the Bureau of Investment Promotion (BIP). The state's investment portal at rajnivesh.rajasthan.gov.in is the starting point. Once submitted, the application goes through a preliminary screening for completeness and basic requirements, followed by verification.

It is offered by the Department of Industries and Commerce, Government of Rajasthan, as an incentive under the Rajasthan Investment Promotion Scheme 2024. Reviews and approvals are handled by the nodal agency, typically the Bureau of Investment Promotion (BIP) or a similar state department.

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.

Apply directly through the official application link on this page. Review the eligibility criteria and prepare your startup documents before you begin.