Rajasthan Electricity Duty Exemption for R&D Centres, GCCs and Labs

The Rajasthan Electricity Duty Exemption falls under the Rajasthan Investment Promotion Scheme (RIPS) 2024. It offers a 100% waiver of Electricity Duty for seven years to enterprises that set up Research & Development (R&D) centres, Global Capability Centres (GCCs), and Test labs in the state. Through this incentive, the Government of Rajasthan seeks to draw investment and support innovation, technological advancement, and the growth of specialised service and manufacturing capabilities.

Enterprises whose work involves intensive research, development, and testing stand to gain the most, since electricity consumption forms a sizeable share of their operating costs. A seven-year exemption gives such businesses room to stabilise their finances and channel the savings into expansion, hiring skilled talent, and upgrading technology.

The scheme also strengthens Rajasthan's position as a location for companies planning to set up or widen their R&D, GCC, and testing operations. This, in turn, supports the state's economic diversification and generates employment.

Applications for this Electricity Duty exemption are made through the process set out under the Rajasthan Investment Promotion Scheme (RIPS) 2024. In practice, this means filing a formal application with the concerned state authority and attaching full documentation on the establishment and operational status of the R&D centre, GCC, or Test lab. Applicants must show that they meet both the general and the specific conditions laid down in the RIPS 2024 policy. The state's industry or finance department portals ordinarily carry the detailed guidelines, prescribed forms, and list of supporting documents, so that verification and approval follow a defined route.

Under the Rajasthan Investment Promotion Scheme 2024, an application for Electricity Duty exemption is assessed against the criteria laid down in that scheme. The state department or authority concerned — generally the industry or finance department — scrutinises every document submitted, verifying that the enterprise is actually setting up and running an eligible R&D centre, Global Capability Centre (GCC), or Test lab in Rajasthan. The exemption is approved once eligibility and compliance with all policy conditions are confirmed.