: Wednesday, January 28, 2026 5:33 PM
Jaipur,. Under the able leadership of Chief Minister Bhajan Lal Sharma, the state government is working with a multidimensional development policy towards achieving the goal of developed Rajasthan. The state government has taken many important decisions to increase the pace of progress in sectors like agriculture, energy, drinking water, education, infrastructure, medicine, industry. Along with this, with the objective of strengthening the state’s self-reliance in aerospace and defense manufacturing and services and promoting Rajasthan’s contribution to the nation’s aerospace and defense manufacturing achievements, the state government has brought Rajasthan Aerospace and Defense Policy. This policy will be helpful in promoting defense and space technology in the state as well as making Rajasthan an important hub of aerospace and defense manufacturing. Apart from attracting large investments in this sector, this policy focused on development of MSMEs, startups and innovation based ecosystem will also boost economic growth and employment generation. Under this policy, establishment of manufacturing enterprises, equipment and component manufacturers, suppliers, precision engineering units and units related to maintenance, repair and overhauling in the state will be promoted.
Manufacturing projects and service sector will be divided into three categories each.
Under this policy, manufacturing projects will be categorized as large with minimum fixed capital investment of Rs 50 crore to Rs 300 crore, mega with investment of Rs 300 crore to Rs 1,000 crore and ultra mega project with investment of more than Rs 1,000 crore. Whereas, for the service sector, projects with fixed capital investment of Rs 25 crore to Rs 100 crore will be categorized as large, projects with investment of Rs 100 crore to Rs 250 crore as mega and projects with investment of more than Rs 250 crore as ultra mega.
Manufacturing and service sector projects will get various benefits
Under the policy, eligible aerospace and defense manufacturing and service enterprises set up in A&D parks will be given investment subsidy of 75 percent reimbursement of state tax for 7 years in the form of asset creation incentive. Also, facility will be given to choose between 20 to 28 percent capital subsidy for manufacturing enterprises and 14 to 20 percent for service sector distributed over 10 years or 1.2 percent to 2 percent turnover linked incentive payable in annual installments for 10 years.
Apart from this, as a top-up on these incentives, benefits like 10 to 15 percent employment booster, 25 percent sunrise booster for the first three mega or ultra mega units, 10 percent anchor booster, 20 percent thrust booster will also be provided. Mega, Ultra Mega manufacturing enterprises taking land from RIICO will also be given the benefit of flexible land payment for 10 years and 25 percent lease rental subsidy for office space for 5 years.
Provision of special incentives for investors
The policy also provides for special incentives, including waiver of banking, wheeling and transmission charges, flexible land payment model, office-space lease rental subsidy and inclusion of 51 per cent of investment in captive power plants as eligible permanent capital investment. Along with this, to provide long-term relief to the industries, arrangements have also been made for 100% exemption from electricity duty for 7 years, 100% reimbursement of market fee or market fee for 7 years, 75% exemption in stamp duty, conversion fee and 25% reimbursement. Provisions like Green Incentive, Skill and Training Incentive and Intellectual Property Creation Incentive make this policy more attractive.
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