Rajasthan Food Processing Incentives — RIPS 2024 Agro & Food Processing Package: 75% SGST Reimbursement or 13–28% Capital Subsidy or Turnover Incentive, 5% Interest Subsidy, 100% Mandi Fee, Electricity Duty and Stamp Duty Exemption

Under the Rajasthan Investment Promotion Scheme 2024, agro and food processing is a thrust sector with its own incentive menu. A unit that adds value to agricultural produce through machinery — milling wheat into flour, dalia and maida, sorting and grading grain, processing spices, oilseeds, dairy, fruit and vegetables, or making ready-to-eat foods — qualifies. The package has three layers: one asset-creation incentive chosen by the unit, boosters and an interest subsidy on top, and exemptions from state duties and fees.

The asset-creation incentive is a choice of one: reimbursement of 75% of the state GST deposited for seven years; a capital subsidy of 13% to 28% of eligible fixed capital investment paid in annual instalments over ten years (the percentage rises with the investment slab and the backwardness of the area); or a turnover-linked incentive of 1.2% to 2% of net sales turnover paid annually for ten years. On top of the chosen incentive come a 10% thrust-sector booster, an employment booster of 10–15% for units creating jobs above the threshold, a 20% anchor booster for anchor units, a 5% interest subsidy for five years, and a training subsidy of ₹4,000 per worker per month for six months of training delivered in Rajasthan.

The state package works alongside the Ministry of Food Processing Industries' schemes. A micro unit with machinery up to about ₹28 lakh takes the PMFME grant of 35% up to ₹10 lakh; a larger unit applies under PM Kisan SAMPADA — CEFPPC gives 35% (50% for SC/ST and difficult areas) of eligible cost up to ₹5 crore, the Agro Processing Cluster scheme up to ₹10 crore, and integrated cold chain up to ₹10 crore. The rule of thumb is that the same rupee of machinery is not subsidised twice, so the central grant and the state capital subsidy are structured on the project cost before the DPR is written.

• •Micro units: PMFME 35% up to ₹10 lakh + RIPS interest subsidy and SGST reimbursement.
• •Small and medium units: CEFPPC 35%/50% up to ₹5 crore on eligible cost + RIPS capital subsidy on the loan component the grant does not cover + reliefs.
• •Clusters and cold chains: APC / cold chain grants up to ₹10 crore + RIPS operating reliefs.

• •A new unit, or an existing unit expanding or modernising, in agro and food processing in Rajasthan — manufacturing that adds value to agricultural produce.
• •Udyam-registered MSMEs and larger enterprises; proprietorships, partnerships, LLPs, companies, FPOs and cooperatives.
• •Term loan from a bank or financial institution for plant and machinery (the capital and interest subsidies are loan-linked).
• •Application on the RajNivesh portal with the eligibility certificate obtained before benefits are claimed; stamp-duty exemption requires the certificate before registration.
• •Statutory approvals: FSSAI, Pollution Board consent, factory licence as applicable.

1. 1Step 1 — Project structure: machinery list, cost and the central grant (PMFME / CEFPPC) fixed first; the term loan sized on the balance.
2. 2Step 2 — DPR and bank sanction for the plant and machinery loan.
3. 3Step 3 — RajNivesh application for the RIPS 2024 agro and food processing package; eligibility certificate issued.
4. 4Step 4 — Land purchase or lease registered with the 75% stamp-duty exemption certificate; conversion and other approvals.
5. 5Step 5 — Commissioning; entitlement certificate; annual claims for capital subsidy instalments, interest subsidy, SGST reimbursement, turnover and employment incentives for the ten-year period.