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Rajasthan has introduced a policy allowing businesses to acquire idle and semi-developed industrial land at reduced rates based on basic cost plus minimal charges rather than through auctions. This is seen as a strategy to activate neglected zones and streamline industrial expansion. While business groups appreciate the cost relief and ease of access, they voice concern over potential bias in allotment decisions due to limited transparency. Earlier incentives under RIPS like interest rate rebates, tax exemptions, and sector-specific assistance have already laid a foundation for industrial growth in the state.
Rajasthan has permitted the sale of undeveloped and semi-developed industrial land at rates calculated on the land's base value (DLC), plus development and administrative charges skipping the premium auction model that often drives prices higher. This move covers not just remote or under-used sectors, but all industrial zones, including urban ones . Advertisement
The Industries Minister explained that the aim was twofold: to monetise land that has lay vacant for too long and to help industries access land affordably. Industry representatives largely welcomed the easing of cost barriers, with one leader stressing that this would help a wide range of businesses, especially those unable to compete in noisy auction scenarios.
That said, apprehensions remain. The all-important allotment decisions will be made by RIICO's Infrastructure Development Committee, which largely consists of internal officials. Some stakeholders expressed concerns that, without an impartial mechanism like auctions, subjective or biased decisions might creep in. They suggested that auctions, while not perfect, offer a level of transparency that's hard to match.
This isn't the first time RIICO has reduced land costs to attract investment. Several years ago, it offered discounts of around 35-40 percent in new industrial areas to make its pricing more competitive with neighbouring states and incentivise growth in sluggish markets.
In recent years, the state has also introduced a targeted direct land allotment mechanism to support MSMEs. Under this, half of all saleable plots in new industrial zones can go to MSMEs that signed MoUs during the Rising Rajasthan Global Investment Summit allocated via online e-lottery and judged on criteria like investment size, employment potential, and expansion clarity.
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