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

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.

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.

Next Story
Real Estate

Dharavi Rising

Dharavi, Asia’s largest informal settlement, stands on the cusp of a historic transformation. With an ambitious urban renewal project finally taking shape, millions of residents are looking ahead with hope. But delivering a project of this scale brings immense challenges – from land acquisition to rehabilitate ineligible residents outside Dharavi and rehabilitation to infrastructure development. It also requires balancing commercial goals with deep-rooted social impact. At the helm is SVR Srinivas, IAS, CEO & Officer on Special Duty, Dharavi Redevelopment Project (DRP), Government..

Next Story
Real Estate

MLDL Records 20.4% Growth in Pre-Sales

Mahindra Lifespace Developers Limited (MLDL), the real estate and infrastructure development arm of the Mahindra Group, announced its financial results for the quarter ended March 31, 2025. In line with INDAS 115, the company recognises revenues using the completion of contract method. Key highlights FY25: Consolidated sales (Residential and IC&IC) of Rs 32.99 billion. Gross development value (GDV) additions in FY25 were Rs 1.81 trillion compared to Rs 440 billion in FY24 (~4x growth). Residential pre-sales of Rs 28.04 billion in FY25, reflecting 20.4% growth o..

Next Story
Infrastructure Transport

UCSL Delivers India's First Green Cargo Vessel to Norway

In a landmark achievement for Indian shipbuilding and the Atma Nirbhar Bharat initiative, Udupi Cochin Shipyard Limited (UCSL), a subsidiary of Cochin Shipyard Limited (CSL), has delivered the first of six next-generation green cargo vessels to Norway-based Wilson Ship Management AS, Europe’s largest short-sea shipping operator. The 3,800 DWT vessel, named Wilson Eco 1, was handed over during a ceremony at New Mangalore Port. The delivery is part of a Rs 5.06 billion project supported by Norway’s green maritime funding programme, marking India's entry into the European eco-friendly ca..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?