Rajasthan Electricity Duty Exemption for R&D Centres, GCCs and Labs
By Department of Industries and Commerce, Government of Rajasthan
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Quick Answer
For R&D centres, Global Capability Centres and test labs: 100% exemption from electricity duty for 7 years under RIPS 2024.
About this subsidy
The Rajasthan Electricity Duty Exemption, an incentive under the Rajasthan Investment Promotion Scheme (RIPS) 2024, is designed to significantly reduce operational costs for specific high-value enterprises. This program provides a 100% exemption on Electricity Duty for a period of seven years, targeting enterprises that establish Research & Development (R&D) centres, Global Capability Centres (GCCs), and Test labs within the state. By offering such a substantial financial benefit, the Government of Rajasthan aims to foster an attractive investment environment, encouraging innovation, technological advancement, and the growth of specialized service and manufacturing capabilities.
This incentive is crucial for enterprises engaged in intensive research, development, and testing activities, where electricity consumption can be a significant operational expense. The long-term exemption helps these businesses achieve greater financial stability and enables them to reinvest savings into further expansion, talent acquisition, and technological upgrades. It also positions Rajasthan as a competitive destination for companies looking to establish or expand their R&D, GCC, and testing footprints, thereby contributing to the state's economic diversification and job creation.
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
Enterprises establishing R&D centres, Global Capability Centres (GCCs), and Test labs in Rajasthan are eligible for a 100% exemption on Electricity Duty for a period of 7 years. This significant financial relief helps reduce operational costs, making Rajasthan a more attractive destination for high-value research and development, IT services, and quality assurance facilities. The benefit directly contributes to the enterprise's bottom line, freeing up capital for further investment in innovation and growth.
- Disbursement
- Reimbursement
- Duration
- 85 months
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
Applications for the Electricity Duty exemption are typically assessed based on compliance with the specific criteria defined within the Rajasthan Investment Promotion Scheme 2024. The designated state department or authority, usually involved in industry or finance, will conduct a thorough review of all submitted documents. This verification process aims to confirm that the enterprise is genuinely establishing and operating an eligible R&D centre, Global Capability Centre (GCC), or Test lab in Rajasthan. Approval for the exemption is granted upon successful verification of eligibility and adherence to all policy stipulations.
Application Process
- 1
Submit Application
Applicant submits required forms and documents to the relevant state authority under RIPS 2024.
You - 2
- 3
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 is the benefit provided by this program?
It offers a 100% exemption on Electricity Duty for eligible enterprises for a period of 7 years, significantly reducing their operational expenses.
Who is eligible for this exemption?
Enterprises that are setting up Research & Development (R&D) centres, Global Capability Centres (GCCs), or Test labs within the state of Rajasthan are eligible.
Which policy does this incentive fall under?
This exemption is a specific incentive detailed under the broader Rajasthan Investment Promotion Scheme (RIPS) 2024.
Is there a maximum limit to the exemption amount?
No, the exemption is 100% of the Electricity Duty, meaning there is no cap on the duty exempted; the financial benefit scales directly with the enterprise's electricity consumption.
How long is the Electricity Duty exemption valid?
The exemption is valid for a continuous period of 7 years from the date of the enterprise's eligibility for this incentive.
Does this scheme provide direct cash grants?
While not a direct cash grant, the 100% exemption on Electricity Duty provides a substantial indirect financial benefit by eliminating a significant operational cost, akin to a subsidy.
Sources
Data on this page is compiled from official program and provider references.










