Rajasthan Freezes Industrial Land Rates, Offers Up to 40% Discount
In a major boost for industrial growth, the Rajasthan government and RIICO have announced a new land policy that freezes rate hikes and introduces substantial discounts to attract investors.
Key Takeaways
- Land rate increases frozen across Rajasthan industrial areas
- Graded discount system introduced based on plot size
- Policy aims to overcome high land cost barriers for industries
- Expected to boost MSMEs and generate employment
High industrial land costs have been a significant barrier for businesses in Rajasthan. Frequent reserve rate hikes had discouraged new investors and hampered expansion plans in key industrial belts.
Revised Land Rate Structure
RIICO’s new policy introduces a progressive discount system:
- Up to 3,000 sq. m.: Existing rates continue
- 3,000–10,000 sq. m.: 10% discount
- 10,000–40,000 sq. m.: 15% discount
- 40,000 sq. m.–2 lakh sq. m.: 20% discount
- Above 2 lakh sq. m.: 40% discount
Industry Expert Reaction
Gaurav Rungta, Managing Director of Man Structurals, welcomed the move: “This is a long-awaited structural reform that addresses a core issue faced by industries. By stabilizing land prices and rolling out graded discounts, RIICO has paved the way for sustainable industrial expansion across Rajasthan.”
The policy timing aligns strategically with Pravasi Bharatiya Diwas in January, positioning Rajasthan to attract both domestic and NRI investment. Industry observers note the initiative prioritizes long-term industrialization over short-term revenue gains, demonstrating the state’s commitment to sustainable economic development.
The new land policy is expected to encourage new industrial setups, support MSME growth, and drive industrial expansion beyond major urban centers, reinforcing Rajasthan’s position as a preferred investment destination.
