• As per the report published by DIPP the FDI inflows in Rajasthan for the year 2016-17(April’16 – December’16 )( In US$ Millions) is 157 and the percentage of total inflows is 0.5.
• Rajasthan is the largest state in India contributing around 30% of the total value of minor minerals being produced in the country.
• 8,380 sq km of Rajasthan falls in the National Capital Region (NCR).
• It provides access to wider market as the state shares its border with Punjab, Haryana, Uttar Pradesh, Madhya Pradesh and Gujarat.
• Converting land for industrial use comes at a lower cost.
• It has the second largest network of National Highways in the country with a total road length exceeding 7,310 km.
• The state has well connected railway routes of approximate length 5,822.28 km to other major cities as well as ports such as Mumbai, Kandla and Mundra in Gujarat.
• As per latest updates given by the Ministry of Micro, Small and Medium Enterprises, the Foreign Direct and NRI Investment will continue to be welcome in high technology areas and infrastructure. The special measures envisaged to facilitate Foreign Direct and NRI investments will include:-
  • 15 Transport policies, rules and procedures regulating investments.
  • Priority in allotment of residential houses in new schemes to NRIs by Rajasthan Housing Board, Jaipur Development Authority and Urban Improvement Trusts, in case they set up industrial projects in the State.
  • Priority for land allotment in industrial areas.
  • The Bureau of Industrial Promotion will appoint for every FDI/NRI project, a Nodal Officer to ensure speedy approvals and provide escort service.

Rajasthan State Industrial Development and Investment Corporation (RIICO)

RIICO established for development of industrial areas in the state also acts as a financial institution providing assistance for large and medium scale industrial projects. RIICO has developed land banks and has so far established 321 Industrial Areas by acquiring about 59,000 acres of land.

Bureau of Investment Promotion (BIP)

The Bureau of Investment Promotion (BIP) is the nodal agency charged for investment promotion, development of investment policies and single window clearances. Services provided by BIP to investors and entrepreneurs include:

Special Economic Zone
Rajasthan special economic zone is a nontaxable territory in the state, which is exempted from all kinds of state taxes, duties, levies, and local taxes such as stamp duty, VAT on raw materials, electricity duty, entry tax, luxury and entertainment tax.
Rajasthan Special Economic Zone is being set up with an objective to initiate infrastructural development and a hassle-free environment best suited for export trade from the state with a primary focus in the fields of gems and jewelry, woolen carpets, handicrafts, and so on.
40% of the proposed Delhi-Mumbai freight corridor will pass through Rajasthan throwing up enormous possibilities for development of industrial belts such as special economic zones along the corridor.
Six SEZs with an expected investment of 165.15 billion have already been notified. These are:
Mahindra World City (Jaipur) Ltd., Jaipur
Somani Worsted Ltd., Khushkeda, Bhiwadi, Alwar
Genpact Infrastructure (Jaipur) Pvt. Ltd., Jaipur
Vatika Jaipur SEZ Developers Ltd., Jaipur
Mansarovar Industrial Development Corporation, Jodhpur
RNB Infrastructure Private Limited, Bikaner (270 crore)

National Manufacturing and Investment Zone
NIMZ will be set up in the Delhi Mumbai Industrial Corridor (DMIC) region to attract investments and provide quality infrastructure and support. It will be setup in Khushkhera-Bhiwadi-Neemrana (Rajasthan) 150 sq km and Jodhpur-Pali-Marwar Region in Rajasthan.

Miscellaneous
The Government of Rajasthan has 2 Special Jems & Jewellery Economic Zones in the Sitapur area of Jaipur.
Rajasthan Government has also launched a new IT scheme in 2015 and new IT parks at Jaipur, Kota, Jodhpur and Udaipur.
Rajasthan offers huge potential for agro-based industries. There are many Agro-food parks run by RIICO in districts like Kota, Sriganganagar, Alwar, etc. Concessions in these food parks are provided in areas like tax, electricity, stamp duty, etc.
RIICO is considering developing state-of-art Bio Tech Parks at Jaipur, Jodhpur and Bhiwadi (Alwar). The infrastructure in terms of developed plots, continuous power, high speed data connectivity facility, roads, common testing facility etc. are being developed in Bio Tech Parks.

Rajasthan Enterprise Single Window Enabling and Clearance Act, 2011

Rajasthan Enterprise Single Window Enabling and Clearance Act, 2011 enables single window clearance system which includes 86 forms of 11 departments including RIICO, Revenue, factories & boilers, tourism, commercial taxes, Medical & health, Agriculture, Technical education, Jaipur Development Authority (JDA), labor, energy (Jaipur, Vidhyut Vitran Nigam).

Allotment of land from RIICO 30 days
Allotment of land from Revenue Deptt. 30 to 60 days
Conversion of land from Revenue Deptt. 30 days
Allotment of Land from Urban Development & Housing (UDH) (JDA/Urban Improvement Trust (UIT)) 60 days
NOC to Establish Technical Institute – 30days (from the receipt date of AICTE application
Conversion of land from UDH(JDA/UIT) – 60 to 90 days
Electricity Connection 30 to 60 days
Fertilizer- Permissions / Authorization/ Manufacturing Certificate 30 to 45 days
Medical Drug License 15 days
Project Approval for Tourism Department 45 Days
Factories and Boilers Department (License of factory) 45 days
Factories and Boilers Department (approval of plant layout) 30 days
Commercial Taxes Department (registration under VAT/CST) 24 hours
Single Window System is mandatory for all projects involving investment above US$149856.70. It provides a single point of contact for all permissions for starting a business, it also provides for the provision of making an appeal in case of default by the authorities.
State Pollution Control Board (PCB) is a nodal authority for environmental clearances in the state and acts as an enforcing authority .The government has computerized the whole process which resulted in implementation of Computerized Application Management Systems for environment related clearance under single window system.
Land-use certificate approval from the local development authority.
Construction permits from the local urban development authority.
Approval for building plans-RIICO.

• Rajasthan Investment Promotion Scheme, 2014 for promoting investment and generating employment opportunities.
• Rajasthan Land Revenue (Industrial Area Land Allotment) Rules, 1959 for allotment, acquisition and development of land for industrial use carried out by RIICO and whole process takes around 90 days.
• Conversion of a land from agricultural land to industrial land can be done through single window clearance mechanism with the help of RIICO and the Bureau of Investment Promotion (BIP) underRajasthan Land Revenue (Conversion of agricultural land for non-agricultural purposes in rural areas) Rules, 2007.
• State has amended three labour legislations the Industrial Disputes Act, 1947, Contract Labour Act, 1970 and the Factories Act, 1947 to allow companies employing up to 300 staffers to lay off workers or close down without taking the government’s prior approval. There is single window mechanism for registration under factories act.
• Rajasthan Agro-Processing and Agri-Marketing Promotion Policy – 2015 is a step in the direction of utmost priority to and attention for development of agro-food parks by Govt. of Rajasthan. They have given concessions w.r.t. Land and building tax, Stamp duty, Electricity duty, Entry tax, Mandi tax etc. The following types of incentives are available:
  • Patent & Design registration: Up to a maximum of US$29971.34 per beneficiary per year.
  • Quality certification: Up to US$29971.34 to each enterprise for each certification per year.
  • Sending agri-products for test marketing abroad: 40% of the actual cost subject to a maximum of US$749.28 per beneficiary for one sample of one commodity to one country.