Rajasthan Electricity Duty Exemption (Startups)
By Department of Industries and Commerce, Government of Rajasthan
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Quick Answer
This scheme offers 100% exemption from Electricity Duty for a period of 7 years to eligible startups in Rajasthan, reducing operational costs.
About this subsidy
The Electricity Duty Exemption for Startups is a key incentive offered under the broader Rajasthan Investment Promotion Scheme 2024. This program is specifically designed to provide significant financial relief to new and emerging businesses by granting a 100% exemption from Electricity Duty for a period of seven years. This initiative by the Government of Rajasthan aims to create a highly supportive and competitive environment for startups, encouraging innovation, industrial growth, and job creation within the state. By alleviating a substantial recurring operational cost, startups can redirect their valuable capital towards critical areas such as product development, market expansion, hiring talent, and research and development. This long-term financial support is crucial for the early-stage survival and sustainable growth of startups, contributing to the overall economic development of Rajasthan. The policy reflects the state's commitment to nurturing a vibrant startup ecosystem, making it an attractive destination for entrepreneurs.
Eligibility
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Full eligibility criteria — entity type, stage, sector, founder profile and registration requirements — plus your fit for this program. Sign up to view.
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 startups in Rajasthan can receive a 100% exemption on Electricity Duty for a substantial period of 7 years. This incentive directly reduces operational expenses related to power consumption, which can be a significant cost for many businesses. By eliminating this duty, startups gain crucial financial headroom, enabling them to reinvest the saved capital into core business activities, accelerate product development, expand market reach, and strengthen their team. This direct financial advantage aims to enhance the competitiveness and long-term viability of new enterprises in Rajasthan, fostering innovation and economic growth.
- Disbursement
- Reimbursement
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
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 Electricity Duty Exemption for Startups?
It is an incentive under the Rajasthan Investment Promotion Scheme 2024, offering 100% exemption from Electricity Duty for eligible startups over a period of seven years.
Who is eligible for this exemption?
Startups, as defined under the Rajasthan Investment Promotion Scheme 2024, are eligible to claim this exemption. Typically, this refers to enterprises focused on innovation, development, or commercialization of new products or services, registered within the state.
What is the duration of the exemption?
The exemption on Electricity Duty is provided for a continuous period of 7 years from the date of claiming the incentive, offering long-term cost relief.
Is there any cap on the exemption amount?
While this specific exemption covers 100% of the Electricity Duty for 7 years, it is important to note that it is part of a broader policy where all incentives for startups are collectively capped annually at INR 5 crores across all applicable benefits received under the RIPS 2024.
How does this exemption benefit my startup?
This exemption significantly reduces your operational expenses related to electricity consumption, freeing up capital that can be reinvested into product development, market expansion, or other growth initiatives, thereby enhancing your startup's financial stability and growth potential.
How can I apply for this exemption?
This incentive is claimed under the application process defined by the Rajasthan Investment Promotion Scheme 2024. Specific application details and required documentation would be available through the relevant state authorities, such as the Finance Department of Rajasthan, or detailed official policy guidelines.
Is DPIIT recognition mandatory for this scheme?
The policy document specifies 'Startups' as eligible. While DPIIT recognition is commonly used for startup definitions, this specific policy document does not explicitly state it as a mandatory requirement for claiming the Electricity Duty exemption.
Sources
Data on this page is compiled from official program and provider references.
