Rajasthan Captive Power Charges Waiver

The Rajasthan Investment Promotion Scheme (RIPS) 2024 is intended to speed up industrial growth in the state and draw in substantial investment. Under this policy, a range of incentives is available to support manufacturing expansion, sustainability measures, and the competitive position of enterprises operating in Rajasthan. The incentive set out in Section 3.1.3.2.3 of the RIPS 2024 policy document applies to manufacturing enterprises that set up captive power plants.

Banking, wheeling, and transmission charges are either waived in full or reimbursed at 100% by the Government of Rajasthan. The purpose is to bring down operating costs for industries and to encourage them to meet their own energy needs. Renewable energy adoption is also supported, since the provisions cover 'behind the meter' Renewable Energy (RE) plants and grant perpetual electricity duty (ED) exemptions.

Enterprises are thus encouraged to build their own power generation capacity, which helps secure a steady and economical power supply. This matters for keeping industrial growth and competitiveness on a sustained footing.

Applications for incentives under the Rajasthan Investment Promotion Scheme (RIPS) 2024 are generally routed through a nominated state portal or nodal agency. Manufacturing enterprises with an interest in applying — classified as Regional Anchors or Sectoral Anchors — are required to:

- Go through the full RIPS 2024 policy document so that every eligibility condition and application instruction is understood. - Assemble the required paperwork, which can include company incorporation certificates, project proposals for captive power plants, particulars of the Asset Creation Incentive being claimed, and the technical specifications of the power plant. - File the application form together with all supporting documents with the concerned department of the Government of Rajasthan or its nominated implementing agency. - The application is then taken up for scrutiny and verification by the authorities. - Once approved, the waiver or reimbursement is processed in line with the policy guidelines and is tied to the disbursal of the selected Asset Creation Incentive.

Under the Rajasthan Investment Promotion Scheme (RIPS), applications for incentives are usually assessed by a committee drawn from the concerned government departments, including the Department of Industries and Commerce, the Finance Department, and other technical experts. This assessment entails a detailed examination of the documents submitted, verifying that every eligibility condition is met — the applicant's standing as a Regional or Sectoral Anchor, the type and capacity of the captive power plant, and compliance with the 'captive consumption only' condition. The committee may also evaluate the project's technical feasibility and economic viability.

Approval generally follows where the project matches the policy's objectives and the application is complete and accurate.