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The government has committed to enact a fiscal responsibility and budget management legislation, to improve government's fiscal position. This will enable it to make larger investment in developing physical infrastructure in the state.

The government shall also review the existing sector specific policies of the state (particularly the ones for IT sector and mining sector), to provide better incentives and concessions to the industry, to enhance Rajasthan's competitive position vis-ŕ-vis other business destinations within India.

Rajasthan aims to increase its NSDP by 5.5 times by 2025.The proposed economic agenda of Rajasthan focuses on the following four sectors, contributing over two-thirds to the state's economic output:

  • Agriculture and animal husbandry

  • Manufacturing

  • Mining

  • Tourism

The key strategic thrust areas for each of these sectors are:

Agriculture and animal husbandry
  • Increase in productivity

  • Shift in cropping pattern

  • Develop animal husbandry potential

  • Further development of select existing industries

  • Revitalization of other poor performing industries

  • New industries - attracting MNCs

  • Focus on high value minerals

  • Strengthening mining infrastructure

  • Focus on exports

  • Domestic tourism

  • Increased spending

Based on the above strategic framework, Rajasthan has identified immediate and long-term actions necessary to achieve the target set for economic growth.

Rajasthan government has initiated steps aimed at streamlining the approval processes, promote export and knowledge intensive industries and provide better quality infrastructure. The main objective of these initiatives is to improve the investment and business climate in the state. The Economic Policy and Reforms Council acts as the think-tank on key economic and business matters. The council provides strategic inputs to the state government for increasing private sector participation, creating resources, capabilities, infrastructure and systems so that economic activities could flourish in the state. The council comprises members from the fields of business and economics, with CEO of Shell India, Vice Chairman of HSBC in India and Chairmen of ITC, HDFC, NIIT Ltd and Gujarat Ambuja Cement.

Government of Rajasthan has established the Board of Infrastructure Development and Investment (BIDI),

Rajasthan: Recent initiatives on improving investment & business climate

  • Establishment of Economic Policy & Reforms Council
  • Establishment of Board for Infrastructure Development and Investment
  • Further strengthening and deepening of electricity sector reforms
  • Approval of SEZ policy
  • Establishment of a venture capital fund for promoting technology and knowledge intensive businesses
  • Establishment of Investment Commissioner office in New Delhi, to facilitate better interface with industry & business

with an objective to accelerate private investment in industry and related infrastructure. BIDI is responsible for the formulation of perspective plans for different regions, inter-sector co-ordination and effective monitoring for timely provision of facilities in industrial areas. As a part of the single-window clearance process in the state, BIDI is responsible for granting approvals to projects with investment above US$ 25 million.

Power Policy

Rajasthan has been one of the most successful states in implementing wide-ranging reforms in the electricity sector. With support from the World Bank, the state has made significant improvements in the performance of its electricity utilities.

Rajasthan is the first state in the country to introduce "open access" in its electricity markets. With this provision, any consumer with over 15 MVA load can select its supply company. The state is set to introduce private participation in the electricity sector. Towards this end, the government has recently proposed a new enabling legislation.

Salient Features

  • 100 per cent exemption on the stamp duty for execution of deed related to land
  • At least 50 per cent of the energy generated in a year from the project under the policy shall be sold/used within Rajasthan.
  • Co-operation in identification and commitment of water availability for power plants.
  • Concessions and assistance provided under this policy will be available for the power plant to be set up by entrepreneurs on their own or as joint ventures with generating / distribution companies of the state government.
  • Distribution companies of the state government will purchase electricity at the rates determined through competitive bidding process and approved by Rajasthan
  • Electricity Regulatory Commission or Central Electricity Regulatory Commission, as the case may be.
  • Document and lease document provided the capital cost of the project exceeds $167 million.
  • Exemption/ remission as the case may be from payment of tax by whatever names called on entry into local area, from any place outside that local area, of all capital goods, plants and machinery and spare parts except fuel for the purpose of the project during construction.
  • Government will acquire land and allot it to the entrepreneur at the cost of acquisition. If land is acquired by the entrepreneur/ joint venture, then no conversion charges will be levied.
  • Proposals under this policy would be given required approvals/ clearances by the Board of Infrastructure Development & Investment Promotion
  • Purchase of power by the distribution companies of the state government will be supported by the state government guarantee.

Infrastructure Policy

Project Development Corporation Ltd (PDCOR) is a partnership between Government of Rajasthan and HDFC/ILFS. The mandate of PDCOR is to facilitate private sector investment in infrastructure related activities in Rajasthan.

PDCOR provides institutional support to the government in order to successfully structure and implement infrastructure projects on a public-private partnership basis. It also advises the government for policy and institutional changes.

PDCOR has developed a 25-year vision for infrastructure development in the state. This vision outlines the projects and investment requirements in sectors such as energy, transportation, water and sewerage and tourism infrastructure.

The projects currently under implementation through PDCOR include:

  • Development of “Jal Mahal Palace" in Jaipur
  • Development of bus terminals across different cities in Rajasthan
  • Industrial area development project in Bhiwadi
  • Integrated parking infrastructure project for Jaipur

Special Economic Zone (SEZ) Policy

The Government of Rajasthan has adopted the SEZ policy for developing Special Economic Zones in the state. The SEZs, earmarked as duty-free enclaves, will have a relaxed and business friendly policy regime, aimed at promoting rapid industrial development and employment generation. The approved policy regime includes:

  • Exemption from stamp duty and registration fees
  • Exemption of all state and local taxes and levies for transactions with the SEZ and for supply from domestic tariff areas to the SEZ
  • Expeditious process for land acquisition to set up SEZs
  • Grant of labour and environment related permits and approvals through a dedicated single window mechanism
  • Permission to generate electricity for own consumption

Tourism Policy

  • Increase employment opportunities, especially for unemployed rural youth
  • Optimum utilisation of rich tourist resources of the State in order to attract the maximum number of domestic and international tourists.
  • Preservation of rich natural habitat and bio-diversity, historical, architectural and cultural heritage of Rajasthan; special emphasis on conservation of historical monuments in Rajasthan.
  • To facilitate the growth of tourism in the State and to further involve the private sector in the development of tourism in Rajasthan.
  • To make tourism a "People's Industry" in the state.

Hotel Policy

  • Ensuring easy availability of suitable land for development of Hotel/Accommodation infrastructure
  • Property tax to be charged as per industrial rates.
  • Provide Higher Floor Area Ratio (FAR) for new hotel projects
  • Water supply charges as per industrial rates

IT Policy

Rajasthan has taken steps to spread adoption of information technology in various aspects of governance. The state has one of the largest non-telecom fibre-optic networks covering 407 villages and providing Internet, cable television and e-governance services.

The state has introduced "Lokmitra" and "Janmitra", two web enabled payment services for electricity, water and phone bills. A computerised registration system for property transactions has been introduced.

The state has taken lead in computerizing land records in the state. The programme has already covered 226 of the 241 land record units in the state.

The transport department has introduced online vehicle registrations, licenses and other certificates in Jaipur, Jodhpur and Sikar. These cities also have online facilities for issue of birth and death certificates.

The Government of Rajasthan, in association with private investors, has established the Rajasthan Venture Capital Fund (RVCF), with the objective of promoting companies in IT, bio-technology and other technology driven businesses. The fund is looking for projects offering potential for an attractive growth and earnings located in and around Rajasthan. RVCF would undertake individual investment upto US$ 1 million.

Salient Features

  • An escort service will be started with one Government official becoming the single point of contact for approvals and clearances.
  • Exemption from certain provisions related to working on declared holidays, opening and closing hours and running 3-shift operations.
  • Fiscal incentives would be, as given in the Rajasthan Investment Promotion Policy, 2003.
  • Inspection by Labour department waived off.
  • IT and ITES units declared as Public Utility Services under the provisions of the Industrial Disputes Act, 1947
  • Mega Projects shall be entitled to a special package of incentives
  • Rebate in cost of Government land or land made available by the RIICO.
  • Self certification allowed for IT & ITES companies for several compliances.
  • Software units would be permitted to be set up in residential areas.
  • The FAR applicable shall be up to double of what is applicable for commercial buildings
  • VAT on all products has been rationalised at minimum floor rate of four per cent.

Healthcare Policy

  • To develop Complementary and Alternative Medicine Centres
  • To develop Super Specialty Health Care Institutions
  • To ensure delivery of quality health care at reasonable costs
  • To promote development of Centers of Excellence for Medical Care
  • To promote private sector investment in medical & health care Institutions, medical & dental Colleges and support units, such as diagnostic centres, blood banks and paramedical training Institutes
  • To promote public-private participation in Medical & Health sector.
  • To promote Rajasthan as a medical tourism destination

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