RIICO unveils direct land allotment rules to boost MSME growth in Rajasthan


In response to industry demands, the Rajasthan State Industrial Development and Investment Corporation (RIICO) has introduced direct land allotment provisions in select industrial areas to expedite the development of industrial projects. The previous auction-based land allocation system, criticized for driving up prices, has been a significant barrier to industrial progress in the state.

According to the proposed draft, RIICO will now make direct allotments of industrial plots at reserved prices in designated industrial areas, excluding saturated zones. Entrepreneurs who signed Memorandums of Understanding (MoUs) with the state government during the Rising Rajasthan investment initiative will be eligible for land allotment at prevailing reserve prices.

The draft outlines an expedited allotment process that evaluates capital investment, employment generation, production timelines, and industry experience. If deemed suitable by RIICO’s evaluation committee, allotments can be completed within three weeks.

A separate lottery-based provision is also included for direct land allotment to MSME entrepreneurs in identified subdivisions and rural areas. MSMEs that signed MoUs during the Rising Rajasthan roadshows will qualify for allotment at the reserve price for their respective industrial zones.

RIICO Chairman and Additional Chief Secretary of Industries, Ajitabh Sharma, stated, "We have eliminated the minimum investment requirement criteria to ensure small industries can also access land through direct allotment for their projects."

The draft stipulates that applications for industrial plots will be accepted online, with allotments made via lottery among technically qualified applicants. RIICO will review project reports, and those meeting technical qualifications will receive land based on merit.

Strict compliance conditions are set for the proposed production timeline, requiring production to commence within three years. Intermediate milestones will also be monitored post-allotment. An additional two-year period will be granted, subject to penalties.

This initiative primarily benefits entrepreneurs who have faced challenges in starting projects due to land availability. Both schemes allow for a payment structure where 25% of the plot price is due at the time of allotment, with the remaining 75% payable in installments over three years.

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