The Rajasthan government and the Rajasthan State Industrial Development and Investment Corporation (RIICO) announced a new investor-friendly industrial land policy in November 2025. The policy freezes future increases in industrial land reserve rates and introduces a graded discount structure based on plot size — with higher discounts (up to 40%) for larger parcels. The initiative is part of Rajasthan's push to compete with Gujarat, Maharashtra, and Tamil Nadu in attracting manufacturing investment, particularly in emerging sectors like semiconductors, data centres, defence corridors, green hydrogen, and electric vehicles — as covered under the 12 new industrial policies being framed by the state. RIICO, established in 1969, is the nodal agency for developing industrial infrastructure in Rajasthan and has developed 446 industrial areas across the state. The policy is expected to accelerate post-RIPS 2024 (Rajasthan Investment Promotion Scheme) investment materialisation.
Rajasthan Unveils Progressive RIICO Land Policy to Attract Industrial Investment
The Rajasthan government and the Rajasthan State Industrial Development and Investment Corporation (RIICO) announced a new investor-friendly industrial land policy in November 2025. The policy freezes future increases in industrial land reserve rates and introduces a graded discount structure based on plot size — with higher discounts (up to 40%) for larger parcels. The initiative is part of Rajasthan's push to compete with Gujarat, Maharashtra, and Tamil Nadu in attracting manufacturing investment, particularly in emerging sectors like semiconductors, data centres, defence corridors, green hydrogen, and electric vehicles — as covered under the 12 new industrial policies being framed by the state. RIICO, established in 1969, is the nodal agency for developing industrial infrastructure in Rajasthan and has developed 446 industrial areas across the state. The policy is expected to accelerate post-RIPS 2024 (Rajasthan Investment Promotion Scheme) investment materialisation.
Key facts
- Rajasthan and RIICO announced a new investor-friendly industrial land policy in November 2025.
- Policy freezes future increases in industrial land reserve rates across the state.
- Graded discount structure introduced — up to 40% discount for larger plot sizes.
- Aims to compete with Gujarat, Maharashtra, and Tamil Nadu in attracting manufacturing investment.
- RIICO, established in 1969, has developed 446 industrial areas across Rajasthan.
- Policy expected to accelerate investment materialisation post-RIPS 2024 announcement.
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What is the maximum graded discount offered on larger industrial plots under the new RIICO land policy?
The new RIICO land policy introduces a graded discount structure based on plot size, with higher discounts of up to 40% for larger parcels.
Source: TaxTMI / The Tribune / Elets eGov / Construction World
Frequently asked questions
What is RIICO and when was it established?
RIICO stands for the Rajasthan State Industrial Development and Investment Corporation. It was established in 1969 and has developed 446 industrial areas across Rajasthan.
What are the key features of the new RIICO industrial land policy announced in November 2025?
The policy freezes future increases in industrial land reserve rates and introduces a graded discount structure based on plot size, offering discounts of up to 40% for larger parcels.
Which sectors does Rajasthan's new RIICO land policy target for investment?
The policy targets emerging sectors including semiconductors, data centres, defence corridors, green hydrogen, and electric vehicles, aiming to position Rajasthan as a competitive manufacturing destination.
Which states is Rajasthan competing with through the RIICO land policy, and what is RIPS 2024?
Rajasthan is competing with Gujarat, Maharashtra, and Tamil Nadu in attracting manufacturing investment. RIPS 2024 refers to the Rajasthan Investment Promotion Scheme 2024, and the new RIICO policy is expected to accelerate investment materialisation post-RIPS 2024.
How does the graded discount structure in the RIICO land policy work?
The discount structure is graded based on the size of the industrial plot — larger plots receive higher discounts, with the maximum discount going up to 40% for the largest parcels, incentivising large-scale industrial investment.
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