Rajasthan
Rajasthan has been in the forefront of Economic Reforms. It was the first State in the country to adopt the International Competitive bidding route for setting up power projects. It was also the first in the country to announce a State Road Policy, facilitating the entry of private enterprise in the roads sector. A new, simplified Sales Tax Act has been introduced by the State Government. The Mineral, Marble and Granite policies of 1994 have promoted scientific exploration and exploitation of the State’s rich minerals. The Industrial Policy 1994 has brought about a significant change in its investment climate. The Rural Non Farm Policy of 1995, the first of its kind in the country has helped focus efforts on growth and employment through rural industrialisation. With a series of policy initiatives taken in the last few years, most roadblocks to the private sector’s entry in infrastructure have been removed. The State is poised for significant developments in the Power Sector.
The prospects for development of solar energy are promising. There are indications of a significant oil and natural gas reserve, which could change the face of Western Rajasthan’s economy. Rajasthan is now among the six fastest growing States of the country. Its Eighth Plan Outlay constituted an increase of 283% over that of the Seventh Plan. During the past five years the average growth rate of investment in the large and medium sector has been 33% and in the SSI sector over 15%. Over the same period, exports from the State have grown at an annual average rate of 53%. The experience of implementing the State’s 1994 Industrial Policy has also brought to light certain deficiencies and practical problems, which need to be redressed. There are areas like Infrastructure and Human Resource Development which require even greater attention than has been accorded in the past. The New Industrial Policy of the State is thus an exercise to reflect these developments and to launch new initiatives to take advantage of the emerging opportunities.
Incentives
Investment subsidy of 15% (up to Rs.1,500,000) of fixed capital for small-scale units, NRIs and OCBs
Investment subsidy of 20% (up to Rs.2,000,000) of fixed capital for 100% EOUs
Investment subsidy of 20% (up to Rs.1,500,000) of fixed capital for agro-based industries
Special package of incentives for auto units with investment of Rs.10 crore or more
10-year exemption from payment of octroi for units with investment of Rs.250 crore or more
Sales tax exemption (up to 7 years) of 125% of fixed capital for new small-scale units
Sales tax exemption (up to 7 years) of 100% of fixed capital for new medium-scale units
Sales tax exemption (up to 11 years) of 100% of fixed capital for new electronics units
Objectives
The principal objective of the new Policy is to make Rajasthan the most preferred State for investment in the identified sectors and to ultimately achieve global competitiveness. While governed by this basic goal, the Policy will lay special emphasis on accelerating the overall pace of industrial growth, increasing employment opportunities, improving productivity, ensuring sustainable development and strengthening the SSI, Tiny and Cottage industry sector.
