Investing in Agri Warehouses in Rajasthan: Subsidies & Benefits

The Agri Warehousing sector in India is expanding rapidly due to increasing agricultural output and the need for scientific storage solutions. As one of the largest global producers of grains, India faces significant challenges in minimizing post-harvest losses and ensuring food security. Modern agri warehouses play a vital role by maintaining crop quality, reducing wastage, and supporting farmers with better pricing opportunities.

Investment Opportunities & Policy Support in Rajasthan

Rajasthan has introduced the Rajasthan Investment Promotion Scheme (RIPS) 2024 to attract private and institutional investments in agri warehousing and logistics infrastructure. The scheme offers financial incentives, tax exemptions, and interest subsidies, reducing upfront costs and enhancing project viability. Valid from October 8, 2024, to March 31, 2029, it applies specifically to warehouse projects within Rajasthan.

Under RIPS 2024, a warehouse is defined as a building for storage, handling, and distribution of agricultural goods, forming a key part of the supply chain. By promoting modern storage facilities, the scheme aims to improve food security, reduce post-harvest losses, and strengthen Rajasthan’s agriculture and logistics ecosystem.

Key Financial Incentives under RIPS 2024

Investors setting up new warehouses in Rajasthan can choose between two major options:

Capital Subsidy – 25% of the Eligible Fixed Capital Investment (EFCI), up to ₹15 Crore, released annually over 10 years.
Interest Subvention – 7% interest subsidy on term loans for up to 7 years, capped at ₹3.5 Crore.

Additional state-level benefits include:

100% Electricity Duty Exemption (7 years)
75% Stamp Duty Exemption with reimbursement of the remaining 25%
100% Mandi Fee Refund for 7 years
75% Conversion Charge Exemption

Central Government Support Schemes

Investors can also combine state incentives with Central Government schemes like the Agriculture Infrastructure Fund (AIF) and NABARD Subsidy for Agri Godowns:

AIF (Agriculture Infrastructure Fund):
- 3% Interest Subvention on loans up to ₹2 crore for 7 years
- Applicable for up to 25 projects across multiple locations
- Credit Guarantee under CGTMSE for loans up to ₹2 crore
NABARD Subsidy:
- Up to 25% capital cost subsidy (33.33% for FPOs/SC/ST entrepreneurs)
- Applicable for projects up to 5,000 MT capacity
- Maximum subsidy per district: ₹75 lakhs
Income Tax Benefit (Section 35AD):
- 100% deduction on capital expenditure for new agri storage businesses

Who Benefits from Warehousing Policy?

Farmers & FPOs building storage for self-use or leasing
Agri Traders & Grain Merchants storing goods for price optimization
Food Processing & Agro Units (e.g., rice mills, dal mills)
Logistics & 3PL Companies expanding into storage infrastructure
Real Estate Developers building warehouses for rental income
E-commerce & Fulfillment Centers establishing storage hubs

General Compliance and Eligibility Criteria

To qualify for RIPS 2024 incentives, investors must meet the following:
- Minimum Eligible Fixed Capital Investment (EFCI): ₹2 Crore
- Must be a registered business entity (Pvt. Ltd., Partnership, or Proprietorship)
- Registration with Warehousing Development and Regulatory Authority (WDRA)
- Submission of a Detailed Business Plan & Financial Viability Report

How KIP Can Help You

KIP simplifies access to government subsidies for Agri Warehousing, Logistics, and Infrastructure projects across India.

Our Support Includes:

Subsidy Viability Report (SVR): Identifies all eligible state & central incentives.
Business Modeling & Registration: Helps select the right structure (MSME, Pvt. Ltd., FPO) to maximize benefits.
Detailed Project Report (DPR): Prepares bank- and subsidy-compliant feasibility reports.
Bank Financing Assistance: Guides loan documentation and ensures credit-linked subsidies.
Subsidy Application & Processing: End-to-end support for RIPS 2024, AIF, NABARD, CGTMSE.
Compliance & Claim Support: Ensures timely claims and renewals for recurring incentives.

Frequently Asked Questions (FAQs)

Q1: What fiscal incentives are offered under RIPS 2024 for new warehouses?

Enterprises can choose either a 25% Capital Subsidy on EFCI (max ₹15 Cr) or 7% Interest Subvention on term loans (max ₹3.5 Cr over 7 years).

Q2: What are the minimum investment and compliance requirements?

Minimum EFCI of ₹2 Cr, registration as a business entity, and WDRA registration are mandatory.

Q3: What is the operative period of RIPS 2024?

The scheme is active from October 8, 2024, to March 31, 2029, unless a new policy is announced.

Q4: Which tax and fee exemptions are available?

Eligible units get 100% electricity duty exemption, 100% mandi fee refund, 75% stamp duty & conversion charge exemption with reimbursement of remaining 25%.

Q5: Are there subsidy limits under NABARD schemes?

Yes, for godowns up to 5,000 MT, subsidy ceiling is ₹75 lakh per district for eligible beneficiaries.

Q6: Who can benefit from warehousing incentives?

Beneficiaries include Agri Traders, Food Processing Units, Real Estate Developers, 3PL/Logistics companies, and Fulfillment Centers.