Rajasthan PNG VAT Reimbursement for Power-Intensive Sunrise Units
Department of Industries and Commerce, Government of Rajasthan · Central government
Power-intensive sunrise enterprises receive a 5%-point VAT refund on PNG for 7 years.
Open, rolling. Applications are accepted continuously — there is no deadline.
Key facts
- Subsidy amount
- Not specified
- Instrument
- Subsidy
- Deadline
- Rolling
- Disbursement
- Reimbursed after spend
- Scheme duration
- 85 months
About this scheme
The Rajasthan VAT Reimbursement for PNG scheme forms part of the Rajasthan Investment Promotion Scheme (RIPS) 2024. It extends a VAT reimbursement on Piped Natural Gas (PNG) to enterprises in the state, with the objective of easing energy-related operating costs and supporting industrial activity in sectors where energy spending is high.
The scheme is open to 'Sunrise Enterprises' in the designated power-intensive sectors — businesses that have either been set up recently or are undertaking substantial expansion. For these units, the reimbursement lowers energy expenditure and frees up funds that can be directed towards innovation, expansion or human resources.
By making energy more affordable for manufacturing and industrial units dependent on PNG, the policy seeks to draw fresh investment and hold on to existing businesses within Rajasthan. Relief under the scheme runs for seven years, giving recipients a longer horizon over which to plan their finances and growth.
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
- The applicant must qualify as a Sunrise Enterprise. - The enterprise must operate in power intensive sectors.
How to apply
Applications for the Additional VAT Reimbursement for Power-Intensive Sectors are generally handled under the wider Rajasthan Investment Promotion Scheme (RIPS) 2024. Enterprises seeking this benefit should:
- Consult the official RIPS 2024 guidelines, which are published on the Rajasthan Finance Department's website. - Assemble the required documentation, which typically comprises proof of enterprise registration, particulars of operations within a power-intensive sector, PNG consumption records, and VAT payment receipts. - File the application via the designated online portal or through the office of the state's industries or finance department. - Track the application status and furnish any additional information or clarification sought by the authorities. - After approval, reimbursement claims may be submitted periodically in accordance with the procedure laid down under the scheme.
How applications are assessed
Under the Rajasthan Investment Promotion Scheme (RIPS) 2024, the application and its supporting documents are examined in detail by the concerned authorities. Evaluation centres on three checks: whether the enterprise qualifies as a 'Sunrise Enterprise', whether it operates in a recognised power-intensive sector, and whether its PNG consumption and corresponding VAT payments can be validated. Approval depends on meeting every condition laid down in the RIPS 2024 policy document.
Frequently asked questions
What is the primary benefit of this program?
Eligible power-intensive enterprises in Rajasthan can claim a reimbursement of 5 percentage points on the Value Added Tax (VAT) they pay for Piped Natural Gas (PNG).
For how long can an enterprise avail this reimbursement?
Eligible enterprises may claim the VAT reimbursement for seven years starting from the date they become eligible.
Who is eligible to claim this incentive?
The incentive applies to Sunrise Enterprises in Rajasthan's power-intensive sectors, as defined in the Rajasthan Investment Promotion Scheme (RIPS) 2024 policy document.
Is this a grant or a loan?
It is a reimbursement-based subsidy, so the money is non-repayable and covers part of your operational costs; it is not a grant or a loan in the usual sense.
How does an enterprise apply for this reimbursement?
Under RIPS 2024, this incentive is claimed through the same application and claim process as the wider scheme: enterprises apply via the designated state industrial or finance department portal and file the documentation covering their PNG consumption and VAT payments.
Are there any equity requirements for this program?
No. This is a government incentive aimed at lowering operational costs, and applicants are not required to dilute any equity.
Sectors
- Vat Reimbursement
- Power Intensive
- Sunrise Enterprises
- Rajasthan
- Energy Costs
Details last verified on 18 September 2026. Source: the issuer's published information.