Rajasthan Interest Subvention Scheme
Department of Industries and Commerce, Government of Rajasthan · Central government
Rajasthan Investment Promotion Scheme 2024 gives manufacturing enterprises 5% interest subvention for 5 years on plant and machinery term loans.
Open, rolling. Applications are accepted continuously — there is no deadline.
Key facts
- Subsidy amount
- Not specified
- Instrument
- Subsidy
- Deadline
- Rolling
- Disbursement
- Paid in tranches
- Scheme duration
- 5 years
About this scheme
The Interest Subvention scheme falls under the Rajasthan Investment Promotion Scheme (RIPS) 2024 and functions as an incentive for the state's manufacturing sector. It lowers the cost burden on manufacturing enterprises by granting a subsidy on interest paid against term loans. The scheme is intended to draw fresh investment and support expansion of plant, machinery, equipment and allied apparatus, which in turn supports industrial growth and employment generation in Rajasthan.
By easing the cost of borrowing, the scheme makes capital-intensive projects more feasible for businesses and contributes to the state's economic development. The Government of Rajasthan positions the interest relief as a means of improving the investment climate and sustaining the growth of the industrial base.
The policy sets out separate provisions for general manufacturing enterprises and for those in the Textile, Garments, & Apparel Sector, in recognition of the strategic role these industries play.
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 qualify for interest subvention on term loans taken for plant & machinery, equipment, or plant-related apparatus. - The subvention runs for 5 years. - For general Manufacturing Enterprises, the benefit is capped at 2.5% of the Eligible Fixed Capital Investment (EFCI), spread in equal instalments across 5 years. - Manufacturing Enterprises in the Textile, Garments, & Apparel Sector additionally qualify for 5% Interest Subvention on term loans for 5 years, capped at 2.5% of EFCI per year. - The term loan must be availed from Financial Institutions, State Financial Institutions, or Banks recognised by the Reserve Bank of India.
How to apply
Applications under the Interest Subvention component of the Rajasthan Investment Promotion Scheme 2024 are generally filed via the nominated online portal or the concerned department of the Government of Rajasthan. An applicant is ordinarily required to furnish comprehensive paperwork concerning the manufacturing enterprise, the sanctioned term loan, and evidence of investment in plant and machinery. Such paperwork covers company registration documents, project reports, loan sanction letters issued by financial institutions, and capital expenditure invoices. The procedure entails filing an application, which is thereafter examined by the pertinent state authorities to confirm eligibility and adherence to the scheme's guidelines. Once approved, subvention amounts are released annually or periodically in accordance with the scheme's terms.
How applications are assessed
Applications are examined by the relevant state department, which checks that the manufacturing enterprise qualifies, reviews the term loan's type and value, and verifies the plant and machinery investment figures. The papers submitted are then assessed against the Rajasthan Investment Promotion Scheme 2024 guidelines, and lenders may be approached to corroborate the loan particulars.
Approval is granted only where every prescribed condition is satisfied and funds remain available under the scheme.
Frequently asked questions
What is the primary benefit of the Interest Subvention Scheme?
The scheme offers a 5% interest subvention on term loans that manufacturing enterprises take for investment in plant & machinery, equipment or plant-related apparatus, thereby lowering the cost of borrowing for capital expenditure.
For how long is the interest subvention provided?
Interest subvention applies for five years, counted from the date the term loan is taken.
Are there any caps on the subvention amount?
General manufacturing enterprises can receive subvention of up to 2.5% of the Eligible Fixed Capital Investment (EFCI), spread in equal instalments across 5 years, whereas units in the Textile, Garments, & Apparel Sector are capped at 2.5% of EFCI per year.
Which financial institutions are recognized for term loans under this scheme?
Term loans for this purpose have to be availed from banks, State Financial Institutions, or Financial Institutions that the Reserve Bank of India recognises.
Does this scheme target specific industries?
Manufacturing enterprises of all kinds may apply, though those in the Textile, Garments and Apparel sector can access certain more favourable provisions.
What kind of investments does this subvention support?
It covers spending on plant and machinery, equipment, or plant-related apparatus that forms part of the Eligible Fixed Capital Investment (EFCI).
Sectors
- Manufacturing Industrial
- Manufacturing
- Loan
- Subsidy
- Capital Investment
- Textile
Details last verified on 14 September 2026. Source: the issuer's published information.