Rajasthan Captive Power Charges Waiver
By Department of Industries and Commerce, Government of Rajasthan
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Quick Answer
Manufacturing enterprises in Rajasthan can receive 100% waiver or reimbursement of banking, wheeling, and transmission charges for captive power plants, tied to Asset Creation Incentive disbursal.
About this subsidy
The Rajasthan Investment Promotion Scheme (RIPS) 2024 aims to accelerate industrial development and attract significant investments into the state. As part of this comprehensive policy, the scheme offers various incentives to encourage manufacturing growth, sustainability, and competitive advantages for businesses operating within Rajasthan. This specific incentive, detailed under Section 3.1.3.2.3 of the RIPS 2024 policy document, focuses on supporting manufacturing enterprises that establish captive power plants.
By waiving or reimbursing 100% of banking, wheeling, and transmission charges, the Government of Rajasthan seeks to reduce operational costs for industries and promote energy self-sufficiency. This measure is particularly beneficial for promoting renewable energy adoption, as it includes specific provisions for 'behind the meter' Renewable Energy (RE) plants, offering perpetual electricity duty (ED) exemptions. The initiative encourages enterprises to invest in their own power generation capabilities, ensuring a stable and cost-effective power supply, which is crucial for sustained industrial growth and competitiveness.
Eligibility
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Subsidy providers
The Industries & Commerce Department is a Government of Rajasthan department based in Jaipur. It runs the Vishwakarma Yuva Udyami Protsahan Yojana, a continuous subsidy for enterprises owned by young entrepreneurs, and it sets out further MSME subsidies and incentives in the…
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What You Get
Eligible manufacturing enterprises that establish captive power plants will receive a 100% waiver or reimbursement of banking, wheeling, and transmission charges. This financial benefit is provided for a period corresponding to the disbursal period of their chosen Asset Creation Incentive under RIPS 2024. Furthermore, for 'behind the meter' Renewable Energy (RE) plants, Electricity Duty (ED) exemptions are applicable in perpetuity, offering a significant long-term cost advantage. This comprehensive support helps reduce operational expenses, promotes energy independence, and incentivizes the adoption of sustainable power solutions within the manufacturing sector in Rajasthan.
- Disbursement
- Reimbursement
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
Applications for incentives under the Rajasthan Investment Promotion Scheme (RIPS) are generally evaluated by a committee comprising officials from the relevant government departments, such as the Department of Industries and Commerce, Finance Department, and other technical experts. The selection process involves a thorough review of the submitted documentation to ensure compliance with all eligibility criteria, including the applicant's status as a Regional or Sectoral Anchor, the nature and capacity of the captive power plant, and adherence to the 'captive consumption only' clause. Technical feasibility and economic viability of the project may also be assessed. Approval is typically granted based on the project's alignment with the policy objectives and the completeness and accuracy of the application.
Application Process
- 1
Review Policy
Understand the full RIPS 2024 policy and specific incentive guidelines.
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How to apply
Four steps from draft to disbursement — one action each.
- 1
See the questions before you start
Download every question this programme's application form asks, so you can prepare your answers offline before opening the portal.
- 2
Line up your documents
Keep every document from the checklist ready in one folder. Missing docs are the #1 reason applications get bounced.
- 3
Submit on the official portal
Use the official application link and verify all details before final submission.
- 4
Follow up
Reach out 5–7 days after submitting to confirm receipt and ask about the review timeline.
Program templates & documents
Files the program publishes for applicants — download these and apply in the prescribed format.
Frequently Asked Questions
What kind of charges are waived or reimbursed?
This incentive covers 100% of banking, wheeling, and transmission charges for captive power plants established by eligible manufacturing enterprises.
Who is eligible to claim this incentive?
Regional Anchors and Sectoral Anchors (Manufacturing Enterprises) that set up captive power plants in Rajasthan are eligible.
Is there a limit on the size of the captive power plant?
Yes, there is a ceiling of 200% on the size of the captive power plant relative to the unit's connected load. However, for 'behind the meter' RE plants, there is no ceiling on maximum RE generation capacity.
What is the duration of the waiver/reimbursement?
The waiver/reimbursement is provided for a period corresponding to the disbursal period of the chosen Asset Creation Incentive under the RIPS 2024 policy.
Are there any benefits for renewable energy plants?
Yes, 'behind the meter' Renewable Energy plants are eligible for Electricity Duty (ED) exemptions in perpetuity, provided no power is injected into the grid during off-peak hours.
Can the energy be sold to third parties?
No, the energy generated from the captive power plant must be used exclusively for captive consumption, and no third-party sale is allowed.
Sources
Data on this page is compiled from official program and provider references.
