Why Invest in Agri Warehousing in Rajasthan?

Subsidy Opportunities for Agri Warehousing in Rajasthan.

Rajasthan is rapidly becoming one of the most promising destinations for agri warehousing and logistics investment in India. Backed by strong government support, the state offers a wide range of subsidies, tax exemptions, and financial assistance to encourage entrepreneurs, farmers, and logistics players to invest in modern storage facilities. Under the State Investment Promotion Scheme (RIPS) 2024, eligible businesses can avail benefits such as Capital Subsidy up to ₹15 Crores, Interest Subvention, and exemptions on electricity duty, mandi fee, and stamp duty. In addition, central schemes like NABARD’s Warehouse Subsidy and the Agriculture Infrastructure Fund (AIF) further strengthen project viability with attractive interest subsidies and credit guarantees.

This blog highlights the major fiscal benefits, eligibility norms, and application requirements for setting up warehousing units in Rajasthan.

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Incentives Under State Investment Promotion Scheme

RIPS 2024 (operative till March 31, 2029) provides two key asset creation options – businesses must choose either Capital Subsidy or Interest Subvention.

Capital Subsidy

25% of Eligible Fixed Capital Investment (EFCI), capped at ₹15 Crores.
Paid annually over a 10-year period.

Interest Subvention

7% Interest Subsidy on term loans for 7 years.
Max ₹0.5 Cr/year, capped at ₹3.5 Crores for a warehouse unit.

Other Exemptions & Reimbursements

Electric Duty: 100% exemption for 7 years.
Stamp Duty: 75% exemption + 25% reimbursement.
Market/Mandi Fee: 100% reimbursement for 7 years.
Conversion Charge: 75% exemption + 25% reimbursement.

Central Support Schemes

Agriculture Infrastructure Fund (AIF)

3% interest subvention on loans up to ₹2 Cr (for 7 years).
Up to 25 projects per applicant across locations.
Credit Guarantee up to ₹2 Cr under CGTMSE, with government covering the fee.

NABARD Subsidy (Agri Godown Scheme)

Storage capacity up to 5,000 MT eligible.
25% subsidy for general beneficiaries.
33.33% subsidy for FPOs, Women, SC/ST entrepreneurs, Panchayats & SHGs.
Ceiling: ₹75 lakh (25% subsidy) or ₹1 Cr (33.33% subsidy).
Term loan from bank required for warehouse construction

Eligibility Snapshot

Minimum Investment (EFCI): ₹2 Cr.
Policy Coverage: Warehousing/logistics projects recognized as part of the Logistics Sector.
Mandatory Registration: With Warehousing Development and Regulatory Authority (WDRA).
Location: Must be in designated industrial areas or approved by Rajasthan’s industrial authorities.

Beneficiaries of Warehousing Incentives

Storage & Logistics

3PL Companies, Fulfillment Centers, Logistics Parks, Supply Chain Managers.

Agricultural Stakeholders

Farmers, Traders, Food Grain Storage units, Food Processing Businesses.

Developers & Finance

Real Estate Agents, Builders, Bankers financing warehouse projects.

Manufacturing & Allied

Packaging Units, Distributors, Primary Processing Units.

Frequently Asked Questions (FAQs)

Q1: What is the maximum Capital Subsidy under RIPS 2024?

The maximum Capital Subsidy is capped at ₹ 15 Crores per unit, calculated at 25% of the Eligible Fixed Capital Investment (EFCI

Q2: Can both Capital Subsidy and Interest Subvention be availed together?

No, enterprises must make a choice between availing either the Capital Subsidy or the Interest Subvention/Subsidy.

Q3: What is the minimum EFCI required for warehousing projects?

Enterprises seeking incentives under the Warehouse sub-segment must be registered with the Warehousing Development and Regulatory Authority (WDRA).

Q4: How long do Electricity Duty and Mandi Fee exemptions last?

Both the exemption from payment of 100% Electricity Duty and the reimbursement of 100% Mandi Fee/Market Fee are provided for a period of 7 years.

Q5: Is WDRA registration mandatory?

Yes, all warehousing projects must be registered with WDRA.

Q6: IHow much loan is eligible for AIF interest subsidy?

The AIF provides an interest subvention of 3% per annum up to a loan limit of ₹ 2 Crore.

Subsidy Opportunities for Agri Warehousing in Rajasthan.