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With a view to provide an attractive opportunity to investors to invest in the State of Rajasthan, a scheme namely : “The Rajasthan Investment Promotion Scheme 2003 (RajInvest-2003),” hereinafter referred to as the Scheme, has been introduced.

The Scheme has come into operation with  effect from 1^st July, 2003  and shall remain in force upto 31st March 2008.

APPLICABILITY OF THE SCHEME

The Scheme shall be applicable to all new investments and investments made by existing units and enterprises for Modernization/Expansion/Diversification, subject to the condition that such units shall commence commercial production / operations owing  to such investment during the operative period of the Scheme

ELIGIBILITY:

The subsidy under this Scheme shall be available to all units, other than those covered in the list of ineligible units, subject to the fulfillment of the following conditions: 

 (i) the term loan sanctioned by the State / Central financial institution(s) and / or Scheduled Commercial Bank(s) including co-operative Bank(s), has been sanctioned and utilized during the operative period of the Scheme;

(ii) the unit shall have a minimum borrowing for investment  of Rs. 50 lacs or having an investment of at least Rs. 25 lacs in land and building calculated on the basis of DLC/RIICO rate for land, and Rs. 3228/- per sq. metre (Rs. 300/- per sq. ft.) for building , during the operative period;

(iii) to claim wage / employment subsidy the unit shall provide:

(a) direct employment to at least ten persons in case of a new unit; and 

(b) twenty five percent additional direct employment subject to a minimum of ten persons in case of  diversification, modernization or expansion.   

(iv) the unit shall be eligible for Interest Subsidy and/or Wage/Employment Subsidy only if it commences first commercial production/operation during the operative period of the Scheme; and

there has been no default in repayment of dues against term loan of the concerned financial institution(s) and / or Bank(s).

AUTHORITY TO GRANT BENEFITS UNDER THE SCHEME:

The prescribed authority for determining  the eligibility under this Scheme shall be the following Screening Committees, whose decisions, subject to other provisions of the Scheme,  shall be final: :

SUBSIDIES: 

(i)  (a) In case of new investments made, the sum total of interest subsidy  and wage/employment subsidy would be subject to a maximum limit of fifty  percent of the tax payable and deposited under the Rajasthan Sales Tax Act, 1994, the Central Sales Tax Act, 1956 and Value Added Tax Act as and when introduced in the State.  

(a) In case of investment made in Modernization / Expansion / Diversification, the amount of subsidy shall be subject to a maximum of fifty percent of the additional amount of Rajasthan Sales Tax and the Central Sales Tax or VAT payable or deposited by the unit over and above the highest tax payable or deposited whichever is higher, in any of the three immediately preceding years. 

(ii) Subject to clause (i), interest subsidy shall be equal to five percent of the documented interest rate, however, an additional interest subsidy of one percent shall be available to the Schedule Caste / Schedule Tribe entrepreneurs. In case the documented rate of interest is less than 5% or less than 6% in case of SC/ST entrepreneurs, the entitlement of the interest subsidy will be limited to the documented rate of interest and the amount actually    paid as interest but shall not include penal interest.

(iii) The  Subsidy shall be available to the investors for seven years from the date of first repayment of interest in case of Interest Subsidy, and first payment of wages/employment in case of wage employment subsidy. In case of Expansion / Modernization / Diversification, the unit shall be eligible for subsidy under the scheme from the date of payment of sales tax over and above the highest sales tax paid in the immediately preceding three years before such Expansion / Modernization / Diversification,

(iv)  Where a unit has claimed and/or is availing benefit of the Interest Subsidy, the Wage/Employment Subsidy shall be available to the extent of twenty five percent of wages/salary paid by the investors to workers for whom the employee and employers are both contributing in the approved provident funds. However, in case of the unit is not claiming or availing Interest Subsidy, the amount of wage / employment subsidy shall be thirty percent of the wages/salary paid to the workers for whom the employee and employer are contributing for the approved provident funds, 

(iv) For Interest Subsidy the interest actually being paid on the additional capital borrowed shall be the only basis for the computation of subsidy. In case of Wage/Employment Subsidy the wages/salary paid for the additional employment generated shall be the basis for the computation of Wage/Employment Subsidy.

EXEMPTIONS: 

In addition to the subsidies available mentioned above, the eligible beneficiary shall be entitled to claim the following exemption, if applicable:

(i)  100% exemption of luxury tax for seven years;

(ii) 50% exemption of entertainment tax for seven years;

(iii) 50% exemption of electricity duty for seven years;

(iv) 50% exemption from stamp duty

(v) 50% exemption from conversion charge; and / or

(vi)  50% exemption from mandi tax for seven years. .

These exemptions shall be granted by the prescribed authority under the scheme and shall be indicated in the entitlement certificate.

TERMS & CONDITIONS:

The Interest Subsidy and/or Wage/Employment Subsidy sanctioned and paid under the Scheme and the exemption of luxury tax, electricity duty, mandi tax, entertainment tax, stamp duty, conversion charges and other benefits availed under the Scheme shall be subject to the following conditions. Breach of any of these conditions shall make the subsidy/exemption amount liable to be recovered as tax or  arrears of land revenue/alongwith interest @ 12% per annum from the date from which the subsidy was provided.

(a) The unit availing Interest and/or Wage/Employment Subsidy and availing exemption of luxury tax, electricity duty, mandi tax, entertainment tax, stamp duty, conversion charges and other benefits under the Scheme shall comply with all statutory laws and regulations. Non-compliance may result in cancellation/ withdrawal of the benefits under the Scheme.

(b)  The unit availing Interest and/or Wage/Employment Subsidy and availing exemption of luxury tax, electricity duty, mandi tax, entertainment tax stamp duty, conversion charges and other benefits under the Scheme shall be subject to the conditions, procedures, instructions, clarifications, or amendments issued from time to time under the Scheme.

(c) If any subsidy under any other scheme of Government of India or Government of Rajasthan is received by the unit in respect of interest payment, or as a wage/employment subsidy then the total subsidy payable under the scheme shall be reduced to the extent of subsidy so received. 

   Note:   Interest @ 5 percent per annum would be payable to investor in case the payment of subsidy is delayed for a period of more than 30 days once the subsidy release order is issued.

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