Rajasthan Conversion Charge Exemption Scheme

The Rajasthan Conversion Charge Exemption and Reimbursement Scheme operates as an incentive under the Rajasthan Investment Promotion Scheme (RIPS) 2024. It applies to enterprises setting up Research and Development (R&D) centres, Global Capability Centres (GCCs), and Test labs in Rajasthan. The scheme addresses the cost of converting land use, a regulatory step ordinarily required before industrial and commercial facilities can be established.

Local authorities levy conversion charges when the designated use of land changes, for instance from agricultural to industrial or commercial. For businesses needing large land parcels or specialised facilities such as R&D labs, these charges form a sizeable upfront expense. By exempting and reimbursing them, the scheme lowers initial capital outlays.

The Government of Rajasthan positions the scheme as a means of drawing investment into high-value activities, with expected gains in job creation, technological advancement, and economic diversification. It extends to both domestic and international enterprises establishing specialised operational hubs, and aligns with the national 'Make in India' and 'Digital India' goals.

- Consult Section 3.7.2.3 of the Rajasthan Investment Promotion Scheme (RIPS) 2024 document for the detailed guidelines. - Put together an application that sets out your enterprise's particulars, the type of your R&D centre, GCC or Test lab, and the papers concerning the conversion charges already paid or yet to be paid. - File the application with the department or authority named in the RIPS 2024 policy document. - The concerned state government department will scrutinise the application to confirm eligibility and the genuineness of the claim. - Once approved, the enterprise is given the 75% exemption straight away, or is reimbursed the 25% conversion charge, in line with the policy terms.

Under the Rajasthan Investment Promotion Scheme 2024, the Government of Rajasthan's Department of Finance or Industries will assign a committee or designated authority to review each Conversion Charge Exemption and Reimbursement application. Assessment centres on confirming that the applicant enterprise has set up an R&D centre, GCC, or Test lab within the state, and on examining land conversion documents and related charges for conformity with policy guidelines. Approval rests on whether the stipulated terms and conditions of the scheme have been met.