Rajasthan Logistics Policy 2025

Rajasthan is the largest state in India by area at 3.43 lakh km², shares borders with Punjab, Haryana, Uttar Pradesh, Madhya Pradesh and Gujarat, and provides access to roughly 40% of India's market. Growing at a CAGR of over 8.85% across the last five years, the state economy reached INR 15.28 lakh crore at current prices in 2023-24, making it the 7th largest in India. The state carries a road network of about 3,01,810 km including 10,790 km of National Highways and 17,348 km of State Highways, the second largest railway network in the country at approximately 6,100 km of routes, 7 airports, 8 Inland Container Depots and 2 air cargo complexes at Jaipur.

3.1 Policy Period

The Rajasthan Logistics Policy 2025 comes into force from the date of its notification and remains valid until March 31, 2029, or until a new or revised policy is notified, whichever is earlier.

3.2 Nodal Department

The Industries and Commerce Department is the nodal department for processing applications for incentives under the policy and for coordinating with the various State Departments and agencies that deliver the other benefits extended under it.

3.3 Focus Infrastructure

Only the following categories of infrastructure are within scope. Each carries its own qualifying definition at Clause 4.2, and an asset that does not meet that definition is outside the policy regardless of how it is described commercially.

3.4 Policy Objectives

• •Mapping of logistics infrastructure — map logistics facilities across the state to identify areas requiring improvement, assessing existing and proposed transport networks and current capacity against future need at those networks and production hubs.
• •Investment — attract private investment for developing and augmenting logistics facilities, stimulating private capacity creation including through the PPP model.
• •Employment generation — generate employment opportunities in the logistics sector.
• •Skill development — introduce sector-specific skilling programmes and courses to build manpower capacity as advanced technologies and specialised procedures raise demand for skilled workers.
• •Governance — create an institutional governance mechanism enhancing ease of doing business through Single Window Clearance and a Single Point of Reference for all logistics matters.
• •Technology — incentivise modern technology in material handling and cargo transportation, decongest cargo traffic at logistics facilities, and foster innovation by incentivising the development of technology solutions.
• •Environment sustainability — support green logistics through captive RE plants, rainwater harvesting, solid and liquid waste management, ETPs and STPs, and support compliance with Green Norms, GRIHA norms and other sustainable development standards.
• •City logistics — improve city logistics and the urban freight movement transport ecosystem.

4.2 Minimum Criteria By Sub-Segment

Each focus infrastructure carries a minimum approach road width and, in most cases, a minimum Eligible Fixed Capital Investment. Both are qualifying conditions, not preferences — an asset that misses either is not eligible for incentives under this policy.

4.3 – 4.6 Who Can Apply

An enterprise means an industrial undertaking, business concern or any other establishment engaged in manufacturing goods in any manner, or in providing or rendering a service. An existing enterprise is one already in commercial production or operation before or during the operative period of the policy. A logistics park developer is one establishing a greenfield Multi-Modal or Integrated Logistics Park and eligible under the Rajasthan Private Industrial Park Scheme 2025.

• •Any legal entity registered as a Proprietorship, Limited Liability Partnership, Registered Partnership Firm, Company or Registered Society — independently, or through a Joint Venture or Consortium.
• •An Alternative Investment Fund (AIF) as defined under Regulation 2(1)(b) of the SEBI (Alternative Investment Funds) Regulations, 2012, as amended.
• •A Foreign Investment Fund (FIF) that is a pooled investment vehicle or investment fund, registered or recognised with a securities market or banking regulator of a foreign jurisdiction that is a signatory to IOSCO's MMOU or to a bilateral MoU with SEBI, and that is not identified in the FATF public statement as a jurisdiction with strategic AML/CFT deficiencies to which counter measures apply, or one that has not made sufficient progress or committed to an FATF action plan.

4.7 Eligible Fixed Capital Investment (EFCI)

EFCI means investment made by an enterprise in fixed assets up to the date of commencement of commercial production, under the following heads.

• •Land — up to 30% of the total investment, or as stated in the prevailing RIPS. Alternatively, on approval of the Project Approval Committee for selected projects, the sub-segment basis in the table below applies.
• •Building — any structure or part thereof meant to be used for the requirements of Storage Facilities, Dry Ports, Cargo Terminals and Trucker's Park.
• •Plant and Machinery — new indigenous or imported plant, machinery and equipment used for providing those services, as set out in the DPR and approved by the PAC. Includes miscellaneous fixed assets such as diesel generator sets, ETP equipment and testing equipment, where the ETP and DG set meet Central Pollution Control Board and Rajasthan Pollution Control Board / NGT norms.
• •Group captive power plant — 51% of investment in a captive renewable power plant may be included in EFCI, or 100% of the investment where the enterprise enters a group captive power agreement of 12 years or more, in each case on PAC approval for selected projects.
• •Rail siding — the cost of constructing rail siding used for providing logistics services adjoining logistics infrastructure.
• •Any other investment in new fixed assets essential to the operation of the logistics infrastructure, as approved by the PAC.

Land Component Caps By Sub-Segment (Clause 4.7.1)

4.8 Ineligible Expenditure

• •Goodwill fees, royalty, brokerage, commission or consultancy fee paid to purchase land, building, equipment or plant & machinery.
• •Commissioning fees, technical fees, consultancy fees or installation fees for setting up equipment or plant & machinery.
• •Preliminary and pre-operative expenses.
• •Interest capitalised.
• •Transportation of equipment, plant & machinery and vehicles.
• •Working capital.
• •Consumables, spares and store.
• •Computer and allied office furniture.
• •All types of service charges, carriage and freight charges.
• •Stationery items.
• •Any expense not specifically expressed as eligible investment, and any other expense not approved by the Project Approval Committee.

4.9 – 4.10 Investment Period and Commencement

• •An enterprise establishing Storage Facilities, Dry Ports, Cargo Terminals or a Trucker's Park must commence commercial production or operation during the operative period of the policy, unless otherwise specified in the policy or approved by the PAC.
• •For a new enterprise, commencement is the date on which it issues the first bill of supply, invoice, tax invoice or job work invoice for the goods manufactured or processed and/or services rendered relating to the investment made under this policy.
• •For an existing enterprise expanding or diversifying, commencement is the date on which it issues the first bill of supply, invoice or tax invoice for goods manufactured after completion of the expansion or diversification.
• •For Multi-Modal and Integrated Logistics Parks, norms under the Rajasthan Private Industrial Park Scheme 2025 apply to both the eligible investment period and the commencement date.

4.12 Who Counts As An Employee

An employee means a worker directly hired for providing services of Storage Facilities, Dry Ports, Cargo Terminals or Trucker's Park, including contractual workers hired by a principal employer through a contractor. All of the following must be satisfied.

• •The worker must have been employed with the employer or principal employer for at least nine months in a financial year.
• •The worker must have a valid Aadhaar.
• •The worker must be enrolled in EPF/ESI.
• •Salary must be paid by direct bank transfer into the worker's bank account.
• •Support staff such as drivers, security guards, sweepers and peons are not counted towards employee strength for any employee-related incentive.

4.13 Eligible Term Loan

An eligible term loan is a loan disbursed to meet the EFCI requirement and taken from State Financial Institutions, Financial Institutions or Banks recognised by the Reserve Bank of India, or RBI-recognised non-resident entities holding a Loan Registration Number (LRN).

These incentives apply to eligible logistics projects as provided under the prevailing Rajasthan Investment Promotion Scheme (RIPS), in accordance with the provisions and procedures of that scheme. The rates below reproduce the key provisions of RIPS 2024 as set out in the Logistics Policy.

5.1.1 Exemptions and Reimbursements (RIPS 2024 Section 3.6.2.1)

5.1.2 Capital Subsidy (RIPS 2024 Section 3.6.2.1)

Capital subsidy of 25% of the EFCI, disbursed annually over 10 years, subject to the following annual ceiling.

5.1.3 Interest Subsidy (RIPS 2024 Section 3.6.2.1)

• •7% interest subsidy on a term loan taken for a period of 7 years from Financial Institutions, State Financial Institutions or Banks recognised by the Reserve Bank of India, to make an investment in logistics infrastructure — subject to an annual ceiling of INR 50 Lacs for Storage Facilities, Dry Ports, Cargo Terminal and Trucker's Park.
• •Enterprises have the option to choose between availing either the capital subsidy or the interest subvention.
• •For Integrated Logistics Parks and Multi-Modal Logistics Parks, interest subsidy norms under the Rajasthan Private Industrial Park Scheme 2025 apply instead.

5.1.4 Skilling and Training Incentive (RIPS 2024 Section 4.3.1)

Reimbursement of 50% of the total cost of employee training, up to a maximum of INR 4,000 per worker per month, for a maximum of 6 months, as a one-time incentive.

5.1.5 Technology Upgradation Incentive (RIPS 2024 Section 3.6.2.1)

5.1.6 Green Solution Incentive (RIPS 2024 Section 4.3.1)

A one-time reimbursement of 50% of the cost of environmental sustainability projects, up to a maximum of INR 12.5 crores. Qualifying projects include the following.

• •Environmental infrastructure facilities such as ETPs and waste management projects; Effluent Treatment Plant and Common Effluent Treatment Plant.
• •Establishing a reuse and recycling plant for industrial waste, electronic waste and plastic waste.
• •Common spray dryer, common multiple effect evaporator, and Common Boiler Project by SPV.
• •Implementation of cleaner production technology in place of existing processes — substitution and optimisation of raw material, reduction in water or energy consumption, or reduction in waste generation.
• •Environment management projects using clean and efficient pollution control equipment; installation of online Continuous Stack Emission Monitoring Systems (CEMS).
• •Setting up an Environment Management System, including an Environment Management Laboratory.
• •Purchase of new equipment or systems related to safety, occupational health or environmental compliance for the common use of enterprises located in a cluster.
• •Development of Green Estate and Green Buildings, and green buildings obtaining a green rating under the Indian Green Building Council (IGBC / LEED certification).
• •Obtaining a Zero Defect Zero Effect rating, certification or approval granted by the Quality Council of India under the ZED Certification Policy of the Government of India.
• •Zero Liquid Discharge based treatment plant in which the effluent water is either used or fully evaporated with no effluent discharged out of the premises, as certified by the Rajasthan State Pollution Control Board.
• •Water conservation solutions including wastewater treatment and recycling using Activated Sludge Process (ASP), Membrane Bioreactors (MBR) or Reverse Osmosis (RO).
• •Smart solutions and IoT for water and wastewater — smart meters, pumps, sensors, data analytics and cloud solutions.
• •Rainwater harvesting, and restoring water bodies by de-silting defunct water bodies within the premises.
• •Energy efficiency solutions falling under the Rajasthan Green Rating system by meeting the eligibility criteria defined in the Green Rating of Industries in Rajasthan Policy.
• •Air quality and emission reduction measures, for those green interventions the State deems fit, and water conservation measures.

5.2 Incentives for Multi-Modal and Integrated Logistics Park Developers

A private Multi-Modal Logistics Park or Integrated Logistics Park developer is eligible for all the benefits and incentives set out in the Rajasthan Private Industrial Park Scheme 2025.

5.3.1 Reservation of Land

RIICO will reserve 10 acres or 10% of the saleable land area, whichever is less, for logistics facilities in its identified upcoming industrial areas.

5.3.2 Land Procurement

• •Any land parcel, developed or undeveloped, owned by the government or any of its agencies or corporations, that can be contributed as equity in a Special Purpose Vehicle for developing logistics focus infrastructure under the PPP model, shall be considered by the state.
• •Any such land parcel that can be allotted to a developer for the development of a logistics park shall be considered by the state.
• •Where investors require the state to acquire land parcels outside government ownership for developing a logistics park in PPP mode or through direct investment, the state shall consider acquiring the necessary land through land aggregation in accordance with prevailing rules, laws and guidelines.
• •Where a government-owned land parcel is required to make up a uniform spread or shape of the proposed logistics park and falls inside or on its periphery, the state shall consider allotting it to the developer on lease, subject to a maximum of 20% of the total land area of the proposed park.
• •Where 80% of the private land has been acquired by the developer and there is an obstacle in obtaining the remainder, the state shall consider acquiring that remaining land through land aggregation, subject to a maximum of 20% of the total land area of the proposed park.

5.3.3 Labour Laws

• •Permitted to operate 24×7 in three shifts, subject to specifying a weekly holiday for each employee.
• •Permitted to offer part-time employment, subject to the minimum per-hour wage rate under the Minimum Wages Act.
• •Women employees permitted to work in all shifts, provided the employer ensures occupational health, safety, equal opportunity and transportation from the company premises to their residence.

5.3.4 – 5.3.6 Building Norms and Industry Status

• •Fire exit travel distance — increase in the travel distance and width of fire exits, subject to respective setback and fire safety regulations.
• •Ground coverage — up to 60% allowed for Storage Facilities, Dry Ports, Cargo Terminals and Logistics Parks, subject to respective setback and fire safety regulations.
• •Industry status — the state will extend Industry Status to the logistics infrastructure listed at Clause 3.3.

All related departments implement the policy. The Industries & Commerce Department, Government of Rajasthan acts as the nodal department for implementation, coordination and monitoring. Any matter of interpretation is referred to the Project Approval Committee, whose decision is final. The State Government reserves the right to review, revise or modify the policy in full or in part, prospectively, as and when needed in public interest.

6.4.1 State Level Logistics Committee

A 6-member committee acting as the “Rajasthan Logistics, Warehousing and Logistics Park Monitoring Committee”, which periodically reviews implementation of the policy and assesses its impact.

6.4.2 City Logistics Co-ordination Committee

An 8-member committee working on the formulation of a City Logistics Plan covering demand and land planning, technology adoption, optimisation of vehicular usage, and on-ground development of logistics infrastructure in the respective regions.

6.4.3 Project Evaluation Committee (PEC)

A 10-member committee that evaluates proposals received physically or through the RajNivesh portal applying for benefits under this policy.

6.4.4 Project Approval Committee (PAC)

A 5-member committee with jurisdiction to approve or reject the applications of all enterprises applying for benefits under this scheme. The decision of the PAC is final. Detailed guidelines regarding this provision are to be separately notified.

6.5 Application Process

The RajNivesh portal, managed by the Bureau of Investment Promotion, is the single-point digital interface facilitating time-bound clearances for investment-related processes, and will facilitate all applications under this policy.

1. 1Application submission — the applicant applies by physical submission or through the RajNivesh Portal for clearances and approvals for benefits and incentives under this policy.
2. 2Application evaluation — the Project Evaluation Committee evaluates the DPR and other requisite documents and submits its recommendations to the Project Approval Committee within 60 days from the date of receipt of the application. The PEC may ask the applicant to appear before it to resolve queries.
3. 3Application approval — the Project Approval Committee evaluates the project based on the PEC's recommendations and the DPR, and approves or rejects the application within 60 days from the date of receiving those recommendations. The PAC may also ask the applicant to appear before it.
4. 4Letter of Approval — on approval, the PAC issues a Letter of Approval stating the approved project cost based on approved eligible expenses, the approximate quantum of incentives under various heads, and the expected timeline for completion of the project.

Modalities of execution — provisions, procedures and guidelines — of the Rajasthan Investment Promotion Scheme 2024 apply to the extent that any of them pertain to RIPS 2024, and to that extent are not governed by Section 7 of this policy.

7.1 Transfer of Business

Where ownership of a benefiting unit is fully transferred, the remaining benefits transfer to the new owner upon fulfilment of any statutory obligations.

• •The transferee enterprise must apply in the prescribed forms to the Member Secretary of the PAC, with proof of ownership transfer and the original LoA issued to the transferor, within ninety days of the transfer.
• •The Member Secretary registers the application and presents it to the PAC within forty-five days of receipt, unless an extension is granted for documented reasons. An application filed after ninety days may have the delay condoned if the PAC is satisfied with the reason.
• •On approval, the Member Secretary amends the LoA with an endorsement recording the transfer and the period for which the transferee is entitled to benefits, and forwards it to all relevant parties within fifteen days of the PAC's decision, unless an extension is granted.
• •On rejection, the PAC provides the enterprise an opportunity to be heard, documents the reasons, and the Member Secretary communicates the decision to the enterprise and all relevant parties within thirty days after the committee's meeting.

7.2 Brownfield Unit, Expansion and Diversification

• •Exemptions from stamp duty and land conversion charges are provided on the additional stamp duty and conversion charges payable for additional land purchased or leased for the expansion or diversification, for the applicable incentive period.
• •Exemptions are granted on the additional electricity load sanctioned for expansion or diversification related investments, for the applicable incentive period.

7.3 Calculation of EFCI On Pre-Owned Land or Building

Where an enterprise owns land and/or a building before notification of this policy and uses it to set up the logistics unit, that land and/or building is considered part of the EFCI based on a valuation by an Insolvency and Bankruptcy Board of India registered valuer under the 'Land and Building' asset class, and upon PAC approval for selected projects. However, the capital subsidy is paid only on the fresh investment made.

7.4 Disbursement of Incentives

• •All incentives are linked to development of the project as a whole, or in respective phases where the project is developed in phases, per the timelines in the DPR approved by the PAC.
• •In case of cost escalation for any reason whatsoever, the quantum of incentives remains as approved and stated in the LoA.
• •A developer availing incentive under this scheme cannot avail incentive of any other state policy or scheme, unless specified otherwise.
• •Subsidies and incentives under this policy are in addition to any other benefits available under a Government of India scheme or policy.
• •Capital subsidy is paid to units in ten equal instalments.
• •Detailed step-by-step guidelines for availing incentives will be issued separately.

7.4.6 Interest Subsidy Conditions

• •Interest subsidy under this policy is in addition to any incentive under a Government of India scheme, subject to the enterprise paying a minimum of 2% of the interest after the GoI interest rate subsidy. An enterprise taking interest rate subsidy under any other scheme or package of the State Government is not eligible for benefits under this policy.
• •The subsidy covers only interest charged on the disbursed amount by the Financial Institution or Bank. Penal interest, outstanding interest and other penal charges are not reimbursed.
• •If the loan is transferred to another State Financial Institution, Financial Institution, RBI-recognised Bank, or RBI-recognised non-resident entity holding an LRN, the subsidy may continue for the remaining period subject to PAC approval.
• •Interest subsidy is available for up to seven years only, even where the loan tenure is longer.
• •Interest subsidy is provided only to enterprises that consistently pay their EMIs. On default the enterprise loses the subsidy henceforth, and it resumes only after the unpaid EMIs have been paid and the loan account is regular.

7.4.7 Other Terms and Conditions

• •Enterprises benefiting from this policy must comply with all statutory laws and regulations of the State of Rajasthan that apply to them. Non-compliance may result in cancellation or withdrawal of these benefits.
• •Where a logistics unit receives a subsidy under another policy or scheme of the Government of Rajasthan, from any undertaking, corporation or instrumentality owned or controlled by the State Government, or under any state law for investments made in fixed assets, the total subsidy payable under this policy is reduced by the amount already received unless allowed otherwise, and the enterprise must inform the disbursing authority of any such subsidy. Incentives specified in this policy may still be availed in addition to those under a Government of India scheme or policy.
• •Where an enterprise is found ineligible or to have misrepresented facts, the matter is referred to the PAC, which provides an opportunity to be heard before withdrawing benefits with written reasons, and may order recovery of benefits already availed with interest at 18% per annum.
• •On breach of any condition outlined in this policy, the PAC withdraws or discontinues the benefits availed, and on its recommendation the concerned Department recovers them with interest at 18% per annum from the date the benefits were first availed.
• •Enterprises receiving subsidies must, from the date of notification by the State Government, maintain records of sales and purchases in digital form or in a manner specified, and provide the PEC/PAC access to those records.
• •Where benefits are wrongly or excessively availed under this policy or under previous policies such as RIPS 2022, those benefits are disallowed and must be repaid by the enterprise along with any other unit or branch, with interest at 18% per annum.
• •Benefits can be availed only if the enterprise holds effective consent to establish and operate from the Central or Rajasthan State Pollution Control Board for the relevant periods, where required by the nature of the enterprise.
• •The PAC may rectify any mistake apparent in its orders, suo moto or on application, including orders valid when issued but later rendered invalid by a retrospective amendment or by a judgment of the Supreme Court or the Rajasthan High Court. Rectification applications must be submitted within three years of the order, and no rectification order may be issued after four years from the date of the original order.
• •The State Empowered Committee constituted under section 3 of the Rajasthan Enterprises Single Window Enabling and Clearance Act, 2011 hears and decides appeals against orders of the Project Approval Committee. Appeals must be filed within 90 days of the decision being communicated.
• •To facilitate electronic service delivery, the Government Department granting benefits or issuing the LoA may require applications, communications, orders, certificates or disbursements to be made or issued electronically, and may adjust the procedures in the policy where consistent with electronic communication and payment.
• •Enterprises availing benefits are subject to the conditions, procedures, instructions, clarifications and amendments issued periodically under this policy.

8. Project Management Unit

The Industries and Commerce Department will appoint a team of professionals as a Project Management Unit to support implementation — disseminating information about the policy through roadshows, seminars and media campaigns; identifying prospective domestic and international investors; coordinating one-to-one with investors and arranging business meetings and visits; assisting the department in inviting, scrutinising and mobilising project proposals and guiding investors on documentation; evaluating and appraising DPRs submitted for project selection; and monitoring project progress through periodic reporting on approved projects.