Rajasthan EFCI Captive Power Investment
Department of Industries and Commerce, Government of Rajasthan · Central government
RIPS 2024 lets Rajasthan manufacturers count all group captive power investment in their EFCI to claim asset creation incentives.
Open, rolling. Applications are accepted continuously — there is no deadline.
Key facts
- Subsidy amount
- Not specified
- Instrument
- Subsidy
- Deadline
- Rolling
About this scheme
Under section 3.1.3.3.1.2 of the Rajasthan Investment Promotion Scheme (RIPS) 2024, manufacturing enterprises that put money into sustainable energy solutions — group captive power agreements in particular — may count the entire amount towards their Eligible Fixed Capital Investment (EFCI).
EFCI is the yardstick the state government uses to work out the incentives, tax benefits and subsidies it extends to industries. Counting the full investment towards it therefore carries a sizeable financial advantage.
The provision does two things at once: it backs the shift to green energy, and it enlarges the asset base on which further benefits under the wider RIPS 2024 framework can be claimed. For local manufacturing units, the result is lower running costs and a stronger competitive position.
Group captive power agreements run for 12 years or more, which points to a long-term commitment to energy that is both sustainable and self-sufficient.
Who can apply
- Eligible business forms
- Private limited company, Limited liability partnership, One person company, Partnership firm, Sole proprietorship
- Udyam registration
- Not specified
- MSME registration
- Not specified
- DPIIT startup recognition
- Not specified
- GST registration
- Not specified
- Where the business may be based
- Rajasthan
- Manufacturing enterprises that qualify - Have signed group captive power agreements lasting 12 years or longer
How to apply
This incentive is usually applied for within the wider application framework of the Rajasthan Investment Promotion Scheme (RIPS) 2024. Enterprises ought to refer to the comprehensive RIPS 2024 guidelines and the application form issued through the Government of Rajasthan's official channels, most probably the Department of Industries or Finance. As a rule, the process calls for filing a detailed project report, evidence of investment made under group captive power agreements, and any other statutory documents the scheme prescribes. Once submitted, applications are examined to confirm eligibility and establish the investment amount, after which approval is granted and the relevant asset creation incentives are disbursed.
How applications are assessed
Under this incentive, the process is one of verification rather than competitive selection. The concerned state authority examines applications from manufacturing enterprises to establish that each qualifies as an 'Eligible Manufacturing Enterprise' and that its group captive power agreement runs for the required tenure of 12 years or more. Investment particulars are then scrutinised to confirm 100% inclusion in EFCI, after which the Asset Creation Incentives payable are fixed according to the pre-defined slabs set out in the RIPS 2024 policy.
Frequently asked questions
What is the primary benefit of this program?
Under RIPS 2024, the main advantage is that the full amount you invest in group captive power agreements may be counted towards your Eligible Fixed Capital Investment (EFCI), which in turn makes your enterprise eligible for Asset Creation Incentives.
Which types of enterprises are eligible?
Group captive power agreements are available to Eligible Manufacturing Enterprises, as defined under the wider Rajasthan Investment Promotion Scheme 2024.
What is the minimum tenure for the group captive power agreements?
Eligibility requires the group captive power agreement to run for at least 12 years.
Are there any specific financial limits to the incentive?
Under RIPS 2024, the Asset Creation Incentive is determined by the slabs applicable to the enterprise's EFCI; the specific financial limits and percentages are set out in the wider policy document.
How does this incentive support green energy initiatives?
The scheme offers financial incentives for group captive power investments, which usually involve renewable or efficient energy sources. This indirectly encourages Rajasthan's manufacturing sector to adopt cleaner energy practices and become more energy self-sufficient.
Is this a standalone program or part of a larger scheme?
Incentive 13 is one of the benefits available under Rajasthan Investment Promotion Scheme (RIPS) 2024, which forms part of the state's wider industrial policy framework.
Sectors
- Manufacturing Industrial
- Manufacturing
- Power
- Captive Power
- Renewable Energy
- Asset Creation
- Incentive
- Rajasthan
Details last verified on 16 September 2026. Source: the issuer's published information.