Trade Bodies Urge Rajasthan Government to Make Changes in Investment Policies | 22 Mar 2024

Why in News?

Recently, trade bodies in Rajasthan requested the state to change policies like the Rajasthan Investment Promotion Scheme (RIPS) and Mukhyamantri Laghu Udyog Protsahan Yojana (MLUPY) to make the state investor-friendly.

Key Points

  • In the RIPS policy, investors get subsidies on state goods and services tax (SGST), electricity fee, land tax, stamp duty, etc.
  • The MLUPY scheme provides concessional bank loans to facilitate establishment of enterprises in the state and create employment opportunities.
  • A delegation of Associated Chambers of Commerce and Industry of India (Assocham) met Rajasthan’s principal secretary, industries & commerce.
    • In this it is pointed out that interest benefits under RIPS were available on term loans but not on working capital loans.
    • The delegation requested for industry-wide awareness programs about the schemes.
    • It also requested that the warehousing sector be covered under the preview of industries.

Rajasthan Investment Promotion Scheme (RIPS)

  • To promote rapid, sustainable and balanced industrial development in the state, ‘Rajasthan Investment Promotion Scheme-2019’ was implemented from 17th December, 2019.
  • In this, 75% recharge of 7 years SGST, electricity tax stamp duty is also being recharged for new investment in manufacturing and service sector industries.
    • Along with this, concessions like 100% in market fee are being given.

Mukhyamantri Laghu Udyog Protsahan Yojana (MLUPY)

  • This scheme has been launched with the objective of providing subsidized loans through Financial institutions to facilitate the establishment of enterprises in the state and to provide new employment opportunities to all sections of society.
  • Under the scheme, loans will be provided for manufacturing, service and business enterprises through financial institutions like (Nationalized Commercial Bank, Private Sector Scheduled Commercial Bank, Scheduled Small Finance Bank, Regional Rural Bank, Rajasthan Financial Corporation, SIDBI and Urban Cooperative Banks).