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The Rajasthan State Industrial Development and Investment Corporation has launched a new policy offering industrial land at a 40% discount on a 33-year lease to boost investments in the state. The scheme covers 30 industrial areas and includes extended payment timelines of up to five years. It also reduces transfer charges and conversion fees while introducing plug-and-play facilities. With added infrastructure spending and support for real estate-linked development, the move aims to make industrial setup more affordable and improve ease of doing business in Rajasthan.
The Rajasthan State Industrial Development and Investment Corporation has rolled out a revised land allotment policy to make industrial land more accessible and cost-effective for investors. Under the new plan, plots in 30 industrial areas will be offered at 60% of the prevailing rates, translating into a 40% discount, with a lease tenure of 33 years. Advertisement
This step is aimed at reducing the initial investment burden for companies looking to set up manufacturing or industrial units. High upfront land costs have been a key challenge for businesses, and the revised pricing structure is expected to improve participation, especially from small and mid-sized enterprises.
To further ease financial pressure, the corporation has extended the payment timeline under its direct allotment scheme. Investors can now pay for land over five years instead of three, through 19 quarterly instalments. This change provides better cash flow management and allows businesses more time to stabilise operations before completing payments.
RIICO has also reduced transaction-related costs to make land dealings smoother. Transfer charges on plot sales after production have been lowered from 1% to 0.5%. In addition, conversion charges for certain industrial activities have been rationalised, which is expected to simplify processes for companies that may need to modify land use over time.
The policy also focuses on improving operational readiness. The corporation is planning to introduce plug-and-play facilities in select industrial areas, allowing businesses to begin operations faster without waiting for full infrastructure development. Alongside this, land for fixed-use purposes may be offered on annual rent, estimated at around 5% of the prevailing rate, for periods ranging between 20 and 25 years.
Another key change is the expansion of financial support. RIICO will now extend term loans not only for industrial projects but also for real estate developments linked to industrial growth, such as warehousing and logistics. This reflects a broader approach where industrial expansion is supported by parallel infrastructure and real estate development.
To support the policy rollout, RIICO has approved infrastructure works worth around INR 400 crore for developing over 25 new industrial areas. Additionally, about INR 25.70 crore has been allocated for fire stations and safety equipment, indicating a focus on basic infrastructure and safety standards within industrial zones.
The move comes at a time when multiple states are offering incentives to attract manufacturing investments. By combining discounted land rates, flexible payments, and infrastructure support, Rajasthan is positioning itself as a more competitive destination for industrial development.
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