JAIPUR: The finance department has started taking feedback and suggestions from the industry bodies in the state to roll out a new Rajasthan Industrial Promotion Scheme (RIPS)-2022.
In a meeting with the principal secretary (finance) Akhil Arora, the industry bodies sought a slew of changes to encourage investments in various sectors of the economy.
Representatives of Federation of Rajasthan Trade and Industry said that the government needs to attract investments for creating new jobs and expanding the revenue base.
“There should be a policy for giving subsidies to investors from the net SGST. This will make it lucrative for investors to put in money in the state,” said Arun Agarwal, a senior executive representative of FORTI.
Agarwal said that during the Covid pandemic, many hotels and restaurants had to shutter their business. “They should be allowed SGST relief to recover and stand on their feet again,” added Agarwal.
As per existing rules, the manufacturers of electric vehicles are eligible for investment benefits if their total investment is Rs 50 crore. The industry bodies suggested that the cap should be reduced to Rs 20 crore so that more units can come up.
The bar to avail benefits provided under the existing RIPs for food processing and medical and healthcare units has been fixed at Rs 5 crore. The representatives said that the cap should be lowered to Rs 2 crore so that more units can take the benefit, and this will attract more investments as well.
They said that the investors are often unaware of the incentives offered in the RIPS and the government should initiate measures so that the industry can get information and make investments to take the benefits. “The government should launch a website giving details of the incentives to the investors. One click should provide all the information. Without proper information, the investors cannot take decisions. In fact, for the state it’s a huge loss because the investors go to other states,” one of the representatives observed.
