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वशेषांक

RAJASTHAN GAZETTE

Extraordinary

साͬ धकार Ĥकाͧ शत

Published by Authority

आषाढ़ 12, शĐवारु, शाके 1948- जलाईु 03, 2026

Asadha 12, Friday, Saka 1948- July 03, 2026

भाग-1(ख)

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Industries and Commerce (Group-1) Department

Notification

Jaipur, March 12, 2026

Rajasthan Aerospace and Defence Policy 2026

No F5 (64)/Industries/Gr-1/2025 :-

1. Preamble

In pursuit of India’s vision of self-reliance in aerospace and defence, the Government of

Rajasthan recognises the strategic and economic signiﬁcance of this sector in enhancing

national security, advancing indigenous capabilities, and generating high-value

employment. Rajasthan’s unique geographic advantage, robust infrastructure, defence

presence, and progressive governance position it as a natural choice for aerospace and

defence investments.

The Rajasthan Aerospace and Defence Policy 2026 is a forward-looking framework aimed

at creating a globally competitive ecosystem for manufacturing, innovation, MRO, R&D,

and allied services. This policy is designed to attract Original Equipment Manufacturers

(OEMs), system integrators, MSMEs, startups, and skilling institutions into the aerospace

and defence value chain.

Through this policy, the State commits to providing ﬁscal and non-ﬁscal incentives, plug-

and-play infrastructure, land availability, skilling support, and a streamlined governance

framework. It also aligns with national missions such as Atmnirbhar Bharat, Make in

India, iDEX, and Defence Production & Export Promotion Policy (DPEPP), thereby

creating a cohesive and future-ready industrial environment.

This policy sets forth Rajasthan’s vision to emerge as a preferred destination for aerospace

and defence manufacturing in India, strengthen dual-use innovation, and contribute

meaningfully to India’s strategic autonomy and global competitiveness.

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2. Introduction

The Aerospace and Defence sector in India is poised at a transformational juncture, driven

by a potent blend of strategic policy initiatives, robust market dynamics, and accelerating

indigenous capabilities. The Indian Aerospace and Defence market, currently valued

signiﬁcantly, is underpinned by ambitious modernization programs, burgeoning private

sector participation, and sustained governmental support aimed at positioning India as a

global hub for aerospace and defence manufacturing.

India’s commitment to bolstering its defence infrastructure is underscored by a substantial

allocation in its recent budgets. For instance, in the Interim Budget of 2024, the Ministry

of Defence (MoD) was allocated INR 6,21,540 crores, the highest amongst all ministries,

making up approximately 13% of the total national budget. Notably, capital expenditure

key to modernisation received INR 1,72,000 crores, a 5.78% increase compared to the

previous ﬁscal year. A signiﬁcant portion, amounting to INR 40,778 crores, was

speciﬁcally earmarked for indigenous development of aircraft and aero engines,

emphasizing India's commitment to self- reliance in defence technology. Furthermore, an

additional INR 23,800 crores were allocated towards naval ﬂeet modernization and INR

41,838 crores towards heavy and medium vehicles, indicating diversiﬁed investments

across defence platforms.

India’s aerospace sector has demonstrated signiﬁcant prowess, manufacturing over 4,000

aircraft domestically, including major platforms like the LCA Tejas, ALH Dhruv, and

Sukhoi 30. The strategic emphasis on 'Make in India' has led to robust collaborations

between global aerospace giants and Indian entities, fostering a sophisticated ecosystem

comprising Tier 1, 2, and 3 suppliers. These developments are backed by substantial

policy support, including a streamlined Defence Procurement Procedure and ease of doing

business reforms that have propelled India's ranking signiﬁcantly upwards in the World

Bank’s Ease of Doing Business index.

The Indian space sector, integral to the broader aerospace market, is experiencing

exponential growth. Driven by the government's vision for inclusive growth, India's space

economy is set to signiﬁcantly expand from USD 9.6 billion in 2020 to an estimated USD

12.8 billion by 2026. The Indian Space Research Organisation (ISRO) is increasingly

engaging private players, enabling the growth of spacetech startups, which saw

investments surge by 196% year-on-year in 2021 alone. Strategic developments, including

the deployment of small satellites, advancements in launch vehicle technology, and

increasing demand for satellite-based services, underpin a buoyant outlook for the sector.

The private sector's growing involvement is particularly evident in India’s rapidly

maturing defence space segment, reﬂecting a paradigm shift from exclusive government-

run operations to robust public-private partnerships. This transition aligns with global

trends where commercial participation, innovation, and advanced manufacturing

technologies are driving the aerospace and defence sectors' future trajectories.

As part of broader national strategic goals, India is actively fostering innovation

ecosystems via initiatives like Innovations for Defence Excellence (iDEX) and the

Defence Corridors projects which are designed to stimulate regional economic

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development, enhance local manufacturing capabilities, and position India as a global

defence manufacturing hub.

Rajasthan: A Strategic Investment Destination for India's Aerospace and Defence

Sector

Rajasthan, with its strategic geographic position, robust infrastructure, and supportive

governmental policies, presents an unparalleled opportunity for investment in the

Aerospace and Defence sector. Its central location within India provides access to

approximately 40% of the nation's market, positioning it strategically along vital industrial

corridors, most notably the Delhi-Mumbai Industrial Corridor (DMIC). About 39% of the

DMIC, a key artery for industrial logistics and commerce, passes through Rajasthan,

offering potential investors prime access to major national and international markets.

Rajasthan’s robust infrastructure further underscores its suitability for aerospace and

defence investments. The state has extensive road networks with 10,477 km of national

highways, the third largest in India, and a substantial rail network of 9,190 km, the second

largest nationally. Rajasthan’s aviation infrastructure includes seven domestic airports, one

international airport, and an air-cargo facility, signiﬁcantly bolstering logistics capabilities.

RIICO (Rajasthan State Industrial Development and Investment Corporation), with over

54 years of industrial infrastructure experience, manages 425 industrial parks and sector-

speciﬁc zones, thereby providing an organized industrial ecosystem.

2.1

Strong Economic Environment

Rajasthan's robust economic growth and favorable business climate are indicative of

its industrial potential. The state’s Gross State Domestic Product (GSDP) reached

USD 197 billion in FY2024, with a consistent compound annual growth rate

(CAGR) of 10% over the past decade. This economic stability provides a reassuring

backdrop for investors, ensuring long- term investment security and sustained

industrial growth.

Additionally, Rajasthan’s export growth has been robust, with a CAGR of 11% over

the past ﬁve years. The state's targeted annual growth rate of 15% in both

manufacturing and service sectors reﬂects a strong commitment to economic

development, job creation, and industry expansion.

The government’s proactive economic policies, coupled with incentives designed to

attract investment and support industrial activity, further enhance Rajasthan’s appeal

as an optimal investment destination in the aerospace and defence sectors. This

conducive economic environment supports sustained industrial growth and long-

term proﬁtability for investors.

2.2

Established Defence Presence

Rajasthan's established defence presence includes strategic military installations and

research facilities, signiﬁcantly bolstering its defence readiness and operational

capabilities.

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

The Southwestern Command, headquartered in Jaipur, is a pivotal operational

command of the Indian Army responsible for border security and rapid

deployment of forces. This command manages critical tactical operations and

maintains a state of heightened preparedness due to its proximity to the

international border.



The Defence Research and Development Organisation’s (DRDO) Defence

Lab in Jodhpur specialises in crucial strategic research, including advanced

material sciences, camouﬂage technologies, and life estimation of weapons

systems under harsh desert conditions. This facility not only supports national

defence objectives but also facilitates innovative research and technological

advancements essential for modern warfare.



Further strengthening Rajasthan’s defence capabilities is the Mahajan Field

Firing Range (MFFR), India’s largest desert training facility. The MFFR

offers extensive terrain ideal for comprehensive training exercises, simulating

realistic battleﬁeld conditions. The vastness and harshness of this training area

make it an unparalleled location for military exercises and training programs,

enhancing combat readiness and tactical proﬁciency of the armed forces.

2.3

Robust Supporting Industries

Rajasthan’s robust industrial ecosystem provides critical support to the Aerospace

and Defence manufacturing sectors, leveraging its existing industrial strengths.



The state's Metal Machining Sector, which includes specialised steel, copper,

and brass units, is crucial for manufacturing ammunition and other defence

components. These industries provide essential raw materials and components,

ensuring seamless integration into the A&D manufacturing supply chain.



The well-established Automotive Industry Ecosystem in Rajasthan further

enhances the state's attractiveness. Over 100 companies operate across various

segments such as engines, transmissions, electronic components, and

automotive parts. These industries offer substantial synergies for defence

equipment manufacturing, including mechanical and electronic gadgetry,

critical for various defence applications.



The state also hosts a signiﬁcant Maintenance, Repair, and Overhaul (MRO)

facility operated by Bharat Electronics Limited (BEL) in Jodhpur. This facility

provides strategic equipment maintenance, tool-room capabilities, and

specialised research and development, all vital for sustained operational

readiness and long-term equipment reliability in defence applications.

2.4

Flexible Land Availability

Rajasthan offers abundant land resources that are strategically positioned and highly

suitable for aerospace and defence manufacturing and testing operations. The state

has substantial government-owned land parcels, as well as privately held land,

available for development into manufacturing units, testing sites, and research

facilities.

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The government’s proactive approach facilitates ﬂexible public-private partnerships,

signiﬁcantly easing land acquisition and aggregation processes. This approach

reduces entry barriers and accelerates the setup process for industries, fostering

rapid industrial growth. The availability of economic, undeveloped lands in remote

desert areas and abandoned airstrips further provides ideal conditions for specialised

activities such as explosive manufacturing, testing of air weaponry, and advanced

R&D centres.

2.5

Skilled Workforce Availability

Rajasthan’s educational infrastructure creates a steady and sustainable ﬂow of

skilled manpower, essential for the A&D industry’s growth. The state boasts over

100 engineering colleges that produce thousands of qualiﬁed engineers annually,

providing a strong technical workforce base.

Furthermore, the presence of 1,600 Industrial Training Institutes (ITIs) and

numerous dedicated skill universities ensures a continuous supply of trained

technicians and specialists. These institutions offer specialized training programs

tailored to meet industry-speciﬁc requirements, ensuring that graduates are well-

equipped with practical skills and technical knowledge pertinent to aerospace and

defence manufacturing.

The state government’s initiatives towards skill development and continuous

improvement in technical education further enhance workforce capabilities, making

Rajasthan an attractive destination for investors looking for competent and industry-

ready personnel.

3. Scope of Policy

The scope of the Rajasthan Aerospace and Defence Policy 2026 encompasses the

promotion of manufacturing, research, testing, and services across the aerospace and

defence value chain. It applies to new units engaged in aircraft, UAVs, missiles, avionics,

defence electronics, MRO, and precision engineering. Eligible entities include OEMs,

MSMEs, startups, R&D centres, and training institutes. The policy supports both civilian

and defence applications, across greenﬁeld projects. It aims to attract investments, foster

innovation, and integrate Rajasthan into global supply chains by leveraging its industrial

parks, defence infrastructure, and skilled manpower. All activities must align with national

security and regulatory frameworks.

3.1

Vision

The vision of the Rajasthan Aerospace and Defence Policy 2026 is to position the

state as a premier destination for aerospace and defence manufacturing, innovation,

and services. The policy aims to build a globally competitive ecosystem that attracts

leading OEMs, empowers MSMEs and startups, and fosters self-reliance through

indigenous production. By leveraging Rajasthan’s strategic location, robust

infrastructure, and skilled talent pool, the policy envisions contributing signiﬁcantly

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to national defence preparedness and integrating the state into global aerospace and

defence value chains.

3.2

Applicability

3.2.1

New and existing manufacturing and service enterprises investing in and

establishing new units.

3.2.2

Existing enterprises investing in expansions as deﬁned in Clause 4.14.

3.2.3

Enterprises acquiring an asset under liquidation or resolution proceedings

by the order of NCLT under The Insolvency and Bankruptcy Code, 2016

shall be eligible if they make a minimum additional investment equivalent

to 25% of the acquisition cost of such asset, provided the unit undergoing

liquidation or resolution (as the case may be) had not obtained any beneﬁts

of any past RIPS.

3.2.4

Only investments made, and employment generated by an enterprise in

Rajasthan will be considered eligible investment & employment for

applicable incentives and boosters under this Policy.

3.2.5

Unless speciﬁed otherwise, the Enterprise must commence commercial

production or operation during the operative period of the Policy or as

approved by the Appropriate Sanctioning Committee.

3.3

Eligibility

3.3.1

Aerospace and Defence Manufacturing Enterprises:

a. The minimum investment required will be INR 50 crores.

b. For existing Large/ Mega/ Ultra Mega enterprises making expansion

investments, the minimum investment should be such that it meets the

expansion criteria as deﬁned in Clause 4.14 (beneﬁts to be offered as per

EFCI in expansion).

c. For MSMEs registered with Government of India, the minimum

investment required to avail incentives under this package shall be INR

25 crores (Investments between INR 25-50 crores to be treated under

large category).

3.3.2

Aerospace and Defence Service Enterprises:

a. For projects to be eligible under the Services Standard Package,

minimum EFCI required will be INR 25 Cr.

3.4

Policy Period

The Rajasthan Aerospace & Defence Policy 2026 shall come into force on the date

of its notiﬁcation and shall remain in force for a period of ﬁve (5) years from that

date, or until a new or revised policy is notiﬁed by the Government, whichever is

earlier.

3.5

Nodal Department

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The ofﬁce of the Commissioner of Industries and Commerce, Government of

Rajasthan, shall be the nodal department for the implementation of the Rajasthan

Aerospace & Defence Policy 2026. It shall be responsible for processing

applications for incentives, as prescribed under the policy, and for coordinating with

relevant State Government departments and agencies to facilitate the extension of

other beneﬁts envisaged herein. RIICO will be the supporting agency for

implementation of this policy.

3.6

Aerospace & Defence - Focus Sub Sectors

The policy supports eligible enterprises across aircraft, UAVs, defence

manufacturing and services, avionics, MRO, space systems, propulsion, robotics,

and strategic electronics. This list is indicative, and any aerospace or defence-linked

entity meeting the eligibility criteria may apply under the policy.

3.6.1

Manufacturing Focus Sub Sectors

a. Aircraft, Helicopter, and UAV Manufacturing: Design, assembly, and

testing for commercial, civil, and defence applications.

b. Avionics and Aerospace Electronics: Navigation, radar, communication,

control systems for aerospace and defence platforms.

c. Space Systems and Subsystems: Launch vehicle components, satellite

buses, antenna systems, and propulsion modules.

d. Satellite Applications and Payloads: Remote sensing, communication,

navigation, weather, and military payloads.

e. Defence Manufacturing: Arms, ammunition, armoured vehicles, radar,

missile systems, and tactical gear.

f. Precision Engineering and Components: High-accuracy parts, CNC-

machined components, aerospace-grade fasteners and assemblies.

g. Propulsion Systems: Jet engines, rocket engines, hybrid propulsion, and

fuel systems.

h. Tooling, Fixtures, and Ground Handling Equipment: Custom jigs,

ﬁxtures, MRO equipment, trolleys, and Ground Support Equipment

(GSE).

i. Strategic

Electronics

and

Embedded

Systems:

Defence-grade

microelectronics, real-time control systems, and embedded ﬁrmware.

j. Robotics and Autonomous Systems: Drones, guided vehicles,

exoskeletons, battleﬁeld automation platforms.

3.6.2

Service Focus Sub Sectors

a. Maintenance, Repair, and Overhaul (MRO): Services for aircraft,

rotorcraft, and UAVs across domestic and international ﬂeets.

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b. Aviation and Defence Training & Simulation: Pilot training academies,

ﬂight simulators, defence combat simulators, UAV operator training

centres, and skill development institutes for technical and ground staff.

c. Design, Testing, and Certiﬁcation Services: Aerostructure design,

airworthiness certiﬁcation, prototype testing, software validation, and

component testing facilities accredited by DGCA, CEMILAC, or

equivalent authorities.

d. Aerospace R&D and Engineering Services: Centres focusing on

research, innovation, and product engineering in propulsion, materials,

avionics, and advanced manufacturing technologies.

e. Logistics, Supply Chain, and Warehousing: Specialised logistics for

aerospace and defence equipment, bonded warehousing, temperature/

humidity-controlled storage, and secure logistics corridors.

f. Defence IT, Cybersecurity, and Systems Integration: Secure software,

data protection systems, command & control integration, simulation

models, and cyber-defence solutions.

g. Calibration, Testing, and Quality Assurance: NABL/ ISO-certiﬁed

testing and calibration facilities for aerospace components, fuels,

materials, and electronics.

h. Consultancy, Certiﬁcation, and Compliance Services: Advisory and

certiﬁcation support for ISO, AS9100, DO-178C, MIL-STD, and

defence offset compliance.

i. Aftermarket Support and Lifecycle Management: Asset tracking,

component refurbishment, upgrade programs, and performance-based

logistics for aircraft and defence systems.

j. Space Operations and Satellite Services: Ground stations, data

processing centres, satellite communication hubs, launch integration

services, and mission management.

3.7

Policy Objectives

The policy aims to promote indigenous manufacturing, attract global investment,

empower MSMEs and startups, and develop advanced infrastructure. It seeks to

enhance skill development, foster innovation and R&D, support dual-use

technologies, and boost exports. These objectives position Rajasthan as a

competitive hub in the global aerospace and defence ecosystem. The key objectives

include:

3.7.1

Promote Indigenous Manufacturing and Service

Foster self-reliance by encouraging domestic production and servicing of

aerospace and defence platforms, components, and systems.

3.7.2

Attract Investment and Technology

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Position Rajasthan as an investment hub for global OEMs and suppliers by

offering a conducive policy and infrastructure environment.

3.7.3

Enable MSME and Startup Growth

Strengthen local enterprises and startups through targeted incentives, vendor

development, and integration into global value chains.

3.7.4

Develop World-Class Infrastructure

Establish sector-speciﬁc industrial zones, MRO hubs, and testing facilities

aligned with aerospace and defence requirements.

3.7.5

Enhance Skilling and Employment

Create a skilled workforce through dedicated training centres, industry-

academia partnerships, and on-the-job skilling programs.

3.7.6

Boost Research, Design, and Innovation

Encourage R&D, IP creation, and product design capabilities in

collaboration with academic and private research institutions.

3.7.7

Support Dual-Use Technologies

Facilitate innovation in technologies with both civil and military

applications like AI, robotics, advanced materials, and embedded systems.

3.7.8

Promote Exports and Global Linkages

Support the development of globally competitive products and integrate

Rajasthan into international aerospace and defence supply chains.

4. Deﬁnitions

The underlying deﬁnitions will provide the clarity and understanding to all the stakeholder

and set uniformity, for proper interpretation and implementation.

General Deﬁnitions

4.1

The definitions provided under Points 4.1 to 4.5, for the purpose of this Policy, shall

be governed by Section 9.1.1 (General Definitions) of RIPS 2024, or by the

corresponding provisions of the prevailing RIPS, as applicable. The definitions in

effect at the time of publication of this Policy are as follows: Ancillaries

Ancillaries means an enterprise which uses products and its byproducts in

manufacturing of distinct and different commodities other than products of the

mother unit, is located within 50 km radius of the mother unit and supplies greater

than 50% of their total production to the mother unit annually.

4.2

Enterprise

Enterprise means an industrial undertaking or a business concern or any other

establishment by whatever name called, engaged in manufacturing of goods, in any

manner, or engaged in providing or rendering of service or services.

4.3

Existing Enterprise

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Existing Enterprise means a manufacturing or service enterprise that is engaged in

commercial production or operation before or during the operative period of the

Policy.

4.4

Exporter

Exporter means the unit bearing Import - Export Code & RCMC with the concerned

EPC/ Board/ Authority/ Organisation.

4.5

New Unit

New Unit means a new manufacturing or service enterprise and includes a unit set

up by an existing enterprise for manufacturing products or providing services,

having separately identiﬁable books of accounts and depositing the taxes and duties

leviable under any State Act including Provident Fund separately.

4.6

Policy

Policy means Rajasthan Aerospace & Defence Policy 2026.

4.7

RIICO

RIICO means ‘Rajasthan State Industrial Development & Investment Corporation

Ltd’.

4.8

Government/ State

The Government or the State means the Government of Rajasthan.

4.9

Year

Year means ﬁnancial year (From 1st April to 31st March).

Incentives Related Deﬁnitions

The definitions provided under Points 4.10 to 4.21, for the purpose of this Policy, shall be

governed by Section 9.1.2 (Incentive Related Definitions) of RIPS 2024, or by the

corresponding provisions of the prevailing RIPS, as applicable. The definitions in effect at

the time of publication of this Policy are as follows:

4.10 Anchor Investors

The ﬁrst 3 eligible enterprises making a mega or ultra-mega project category

investment in each of the Aerospace and Defence Parks as mentioned in Clause

5.1.1 and 5.1.2.

4.11 MSME

The deﬁnition of Micro, Small & Medium Enterprises (MSMEs) as deﬁned by

Government of India (as amended from time to time), will be considered for

applicability of MSME-related beneﬁts under this policy.

Classiﬁcation

Description

Micro

Investment in Plant and Machinery or Equipment:

Not more than INR 2.5 crore and Annual Turnover not more than INR

10 crore

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Small

Investment in Plant and Machinery or Equipment:

Not more than INR 25 crore and Annual Turnover not more than INR

100 crore

Medium

Investment in Plant and Machinery or Equipment:

Not more than INR 125 crore and Annual Turnover not more than INR

500 crore

4.12 Commencement of Commercial Production/ Operation

4.12.1 For a new enterprise, the date on which the enterprise issues the ﬁrst bill of

supply/ invoice/ tax invoice of the goods manufactured and/or of services

rendered related to the investment made under the Policy.

4.12.2 For an existing enterprise making investment for expansion, the date on

which the enterprise issues the ﬁrst bill of supply/ invoice/ tax invoice of the

goods manufactured and/ or of services rendered after completion of

expansion.

4.13 Employment

Employment means employees are on the permanent payroll of the respective

enterprises, i.e., receive wages or salary directly from the enterprise and which will

include contract labour engaged for at least 6 months of the year. The percentage of

contract labour engaged should not exceed 40% of total labour force.

4.14 Expansion

Expansion means the creation of additional capacity for production of goods or

operational capacity for services, either in the same line of production/operation or

through a new product line or a new line of services, by an existing enterprise at the

same or a different site, involving additional investment.

Such expansion shall involve a minimum investment of INR 50 crore for

Manufacturing Enterprises and INR 25 crore for Service Enterprises and shall

further constitute at least 25% of the existing investment of the enterprise while

resulting in an incremental capacity of not less than 20%.

4.15 Environmental Projects

Environmental projects shall mean:

4.15.1 Environmental Infrastructure Facilities

a. Efﬂuent Treatment Plant & Common Efﬂuent Treatment Plant

b. Establishing "Reuse and Recycling of Industrial Waste, electronic waste

& plastic waste Plant"

c. Augmentation and technology upgradation of existing ETPs & CETPs

d. Common spray dryer, common multiple effect evaporator

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e. Implementation of cleaner production technology in place of existing

process such as substitution & optimization of raw material, reduction

in water consumption or energy consumption or waste generation

f. For environment management project with use of clean, Efﬁcient and

Innovative Pollution Control Equipment

g. Installation of online Continuous Stack Emission Monitoring Systems

(CEMS)

h. Setting Up of Environment Management System including setting up of

Environment Management Laboratory

i. Purchase of new equipment/ system related to safety, occupational

health or for environment compliances for common use of enterprise

located in cluster

j. Development of Green Estate & Green Buildings for set up/ relocation/

retroﬁtting of existing polluting industrial units into Green Industrial

Estates

k. Green Buildings which obtain green rating under the Indian Green

Building Council (IGBC/ LEED Certiﬁcation)

4.15.2 Zero Liquid Discharge

Zero Liquid Discharge Based Treatment Plant means an efﬂuent treatment

plant in which the efﬂuent water is either used or fully evaporated, and no

efﬂuent is discharged out of factory premises, as certiﬁed by the Rajasthan

State Pollution Control Board.

4.15.3 Air Pollution Control Measures

Air Pollution Control Measures will be applicable for those green

interventions which the State deems ﬁt.

4.15.4 Water Conservation Solutions

a. Wastewater treatment and recycling systems using technologies such as

Activated Sludge Process (ASP), Membrane Bioreactors (MBR),

Reverse Osmosis (RO), etc. to increase supply and use of treated water.

b. Smart Solutions/IoT for Water and Wastewater to reduce dependency on

manpower, enhance business continuity and remote operations using

smart meters/ pumps/ sensors, data analytics, and cloud solutions.

c. Adopting rainwater harvesting; restoring water bodies by de-silting

defunct water bodies within the premises.

d. Zero Liquid Discharge Solutions.

4.15.5 Energy Efﬁciency Solutions

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Energy Efﬁciency Solutions means industries falling under the Rajasthan

Green Rating system by meeting the eligibility criteria deﬁned in the Green

Rating of Industries in Rajasthan Policy.

4.15.6 Air Quality/ Emission Reduction Measures

Air Quality/ Emission Reduction Measures will be applicable for those

green interventions which the State deems ﬁt.

4.16 Eligible Fixed Capital Investment (EFCI)

Investment or Eligible Fixed Capital Investment (EFCI) means investment made by

an enterprise in ﬁxed assets, in the following, up to the date of commencement of

commercial production:

4.16.1 Price paid for the land

4.16.2 Cost of new factory sheds and other new industrial buildings

4.16.3 Price paid for new plant and machinery

4.16.4 Other investment made in new ﬁxed assets essential for the production of

the unit as approved by the appropriate Sanctioning Committee

4.16.5 In case of eligible Service Enterprises the price paid for new air

conditioning, servers, computers, printers, IT infrastructure, essential

furniture & ﬁxtures, equipment, ofﬁce equipment and audio-visual

equipment; and other investment made in new ﬁxed assets essential for the

rendering of services as approved by the appropriate Sanctioning

Committee.

Provided that investment made in:

4.16.6 Land in excess of 30% of the total investment/EFCI made; and

4.16.7 Purchase of existing factory sheds, industrial buildings; and

4.16.8 Old plant and machinery; and

4.16.9 Plant and machinery transferred from other locations by the Enterprise shall

not be included in investment/ EFCI; and

4.16.10 Provided further that eligible investment made, in purchase of unit / assets

under liquidation or resolution proceedings by the order of NCLT under The

Insolvency and Bankruptcy Code, 2016, or a manufacturing enterprise

which has been taken over before the commencement or during the

operative period of this Policy and sold during the operative period of the

Policy by RIICO/ RFC/ Central Financial Institutions/ Banks shall be

allowed for computation of EFCI (basis the eligibility criteria deﬁned in the

policy).

4.17 Ineligible Expenses

Appropriate Sanctioning Committee shall retain the discretion to exclude certain

non- productive expenses from incentive eligibility.

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4.18 Net Sales Turnover

4.18.1 Manufacturing Enterprise

Net Sales Turnover means the aggregate value of the realisation of amount

made from the sale of manufactured goods by the enterprise during a

ﬁnancial year. Income from other sources (non-operating activities) like

interest received, grants or subsidies, trading activity, resale of products I

goods will not be counted under turnover.

4.18.2 Service Enterprise

Net Sales Turnover for Services means operating revenue generated in

return for completing a service. It includes any service that the business

provides, whether or not the customer makes payment. Revenue from

shipment of goods or interest or other non-operating sources such as

dividend income, investments, foreign exchange write-offs or any write-

downs from business assets will not be eligible for calculating net sales

turnover for turnover linked incentives for service enterprises.

4.19 Present Value

Present Value means the current value of a future sum of money or stream of cash

ﬂows given a speciﬁed discount rate.

4.20 State Tax due and deposited

State Tax due and deposited means:

4.20.1 The amount of State Tax (SGST) paid through debit in the electronic cash

ledger account maintained by the enterprise in terms of sub-section (1) of

section 49 of the Rajasthan Goods and Service Tax Act, 2017 (Act No. 9 of

2017) after utilisation of the available amount of input tax credit of the State

tax (SGST) and Integrated tax (IGST); and/or

4.20.2 The amount of VAT and CST which have become due and have been

deposited by the enterprise, as applicable, related to the period for which

beneﬁts under the Policy has been claimed.

4.21 Term Loan

Term Loan means term loan taken by enterprise from Financial Institutions or State

Financial Institutions or Banks recognised by Reserve Bank of India.

4.22 Cluster

A cluster for this policy is deﬁned as a group of at least 20 enterprises located within

a district and engaged in the manufacturing, design, integration, testing, MRO, or

assembly of products and systems related to aerospace, defence, or dual-use

technologies. The cluster shall consist of units operating in the same or similar

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product value chains, utilising similar production processes, core technologies, or

workforce skills.

4.22.1 All member enterprises must be involved in related activities along the

aerospace and defence value chain—including, but not limited to, aircraft

systems, UAVs, satellite components, defence electronics, avionics,

propulsion, and advanced materials— sharing similar technology platforms,

skill sets, or production methods.

4.22.2 Enterprises must demonstrate interconnected manufacturing processes,

defence- grade production inputs, or mutual consumption of intermediate

components or subsystems, highlighting operational and value chain

synergy.

4.22.3 Units must collectively propose the development and/ or utilisation of

shared infrastructure such as prototyping labs, wind tunnels, electronics

testing facilities, or composite material shops—and/or apply for incentives

through a registered Special Purpose Vehicle (SPV) or any other recognised

institutional entity.

4.23 SPV

A Special Purpose Vehicle (SPV) for this policy shall be a non-proﬁt entity,

registered as a company under Section 8 of the Companies Act, 2013, formed

exclusively for the development, operation, and management of a Common Facility

Centre (CFC) or other shared infrastructure. The SPV shall comprise a minimum of

20 aerospace and defence enterprises, with no upper limit on participating units.

4.23.1 The SPV shall operate on a mutual beneﬁt model to support productivity,

compliance, innovation, and market access for its members.

4.23.2 All participating enterprises must be ﬁnancially and managerially

independent, with no single member holding more than 5% equity (or

equivalent capital contribution) in the SPV.

4.23.3 The SPV shall bear exclusive responsibility for establishing and managing

sector- speciﬁc infrastructure such as calibration labs, ﬂight-testing zones,

qualiﬁcation facilities, or R&D centres, deemed admissible under the

scheme.

4.23.4 The SPV shall submit a legal agreement and governance framework that

clearly articulates the rights, responsibilities, ﬁnancial contributions, and

voting powers of all member enterprises.

4.24 Common Facility Centre (CFC)

A Common Facility Centre (CFC) in the A&D cluster context refers to a shared

infrastructure asset that provides specialised services and facilities required for the

high-precision, capital- intensive, and quality-sensitive nature of aerospace and

defence manufacturing. These facilities cater to the collective needs of MSMEs and

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OEM suppliers that cannot individually invest in such resources. Admissible CFC

components may include:

4.24.1 Common Processing Facilities e.g. metal forming shops, CNC-based

fabrication centres, and composite curing facilities.

4.24.2 Specialised Testing Infrastructure e.g., EMI/EMC labs, vibration testing,

environmental chambers, or wind tunnels.

4.24.3 Product Design and Incubation Centres for prototyping, simulation, and

CAD/ CAM support.

4.24.4 Quality Certiﬁcation and Standards Facilities NABL-accredited labs,

AS9100/ ISO- certiﬁed testing centres.

4.24.5 Packaging and Dispatch Infrastructure for sensitive and export-bound

aerospace components.

4.24.6 Skilling and Training Infrastructure that includes advanced training centres

for CNC programming, avionics assembly, drone repair, and aerospace

welding.

4.24.7 R&D and Innovation Labs as jointly maintained facilities to support

advanced materials, electronics miniaturisation, or propulsion technologies.

4.24.8 Common Logistics and Warehousing for inventory storage, bonded

warehousing for export-ready defence products.

4.24.9 Raw Material and Components Bank for bulk procurement of titanium

alloys, defence electronics, composites, etc.

4.24.10 Backward/ Forward Linkage Facilities including subassembly shops and

ﬁnal integration centres.

4.24.11 Export Enablement Infrastructure providing facilities such as certiﬁcation,

documentation, and packing support for global supply chains.

4.24.12 Any other facility as approved by the Appropriate Sanctioning Committee

that enhances competitiveness, innovation, or export-readiness of the A&D

cluster.

Aerospace & Defence Sector Deﬁnitions

4.25 Aerospace and Defence Sector Enterprise

For the purpose of this Policy, an Aerospace and Defence (A&D) Enterprise means

any industrial or service enterprise, including a startup, MSME, or large unit

operating within the aerospace, defence, space, or internal security manufacturing

and service value chains, engaged in one or more eligible activities listed herein, and

satisfying the eligibility criteria and approval of the Appropriate Sanctioning

Committee.

Such enterprises may be involved in the design, development, prototyping,

assembly, integration, manufacturing, testing, servicing, repair, R&D, training,

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simulation, or operation of products, systems, or services for civil, commercial, or

defence applications, directly or through supply chain linkages with Government or

private A&D entities.

4.26 Categories of Aerospace & Defence Sector Enterprises

A&D Enterprises shall include both Manufacturing and Service units, as detailed

below:

4.26.1 Manufacturing Enterprises

Units engaged in one or more of the following:

a. Design,

engineering,

manufacture,

assembly

materials,

components, sub- assemblies, systems, tooling, ground support

equipment, software/ﬁrmware, or integrated platforms for aerospace,

space, defence, or internal security applications.

b. Production of aircraft, rotorcraft, UAVs, satellites, propulsion systems,

or related launch infrastructure.

c. Manufacturing of arms, ammunition, missiles, armoured vehicles, radar,

optronics, or communication systems.

d. Production of defence-grade electronics, avionics, navigation, and

surveillance systems.

e. Precision engineering, additive manufacturing, and advanced material

components (lightweight alloys, composites, ceramics).

f. Specialised infrastructure construction for A&D facilities such as

hangars, test bays, blast-proof storage, clean rooms, or EMI/ EMC and

NDT labs.

g. Green and sustainable aviation technologies including sustainable

aviation fuels (SAF), hydrogen propulsion, or low-emission aerospace

systems.

4.26.2 Service Enterprises

Units engaged in one or more of the following:

a. Maintenance, Repair and Overhaul (MRO) services for aircraft, engines,

UAVs, avionics, or defence platforms.

b. Aviation and Defence Training & Simulation centres, including pilot

training academies, combat simulators, UAV operator training, and

skill development institutes.

c. Design, testing, certiﬁcation, calibration, and quality assurance facilities

accredited by competent authorities (DGCA, DGAQA, CEMILAC,

DRDO, or equivalent).

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d. Aerospace R&D, engineering services, and innovation hubs working on

propulsion,

materials,

avionics,

advanced

manufacturing

technologies.

e. Logistics, warehousing, and secure supply chain operations for A&D

equipment, including bonded or temperature-controlled facilities.

f. Defence IT, cybersecurity, and systems integration — including digital

twins, C4ISR systems, or secure software solutions.

g. Aftermarket support, lifecycle management, and performance-based

logistics for A&D products.

h. Consultancy, certiﬁcation, and compliance services related to ISO,

AS9100, DO- 178C, MIL-STD, and defence offset regulations.

i. Space operations and satellite services including ground stations,

mission control, and data processing centres.

4.26.3 Tiered Supply Chain and Value Chain Linkages

Enterprises that supply components, sub-assemblies, test equipment,

software, or services to:

a. Indian or foreign OEMs, Tier-1, Tier-2, or Tier-3 vendors engaged in

A&D production.

b. Government defence PSUs (e.g. HAL, BEL, BDL, BEML), DRDO,

ISRO, InSpace, NSIL, or equivalent private defence integrators.

c. The Indian Armed Forces (Army, Navy, Air Force), Coast Guard,

Central Armed Police Forces (CAPFs), and internal security agencies;

d. Airport/ ATM operators, air navigation service providers, and certiﬁed

MRO operators supporting A&D systems.

4.26.4 Strategic, Licensing, and Compliance Criteria

a. An enterprise shall be recognised as an A&D Enterprise if it meets any

of the following criteria or evidence:

b. Holds valid aerospace/ defence certiﬁcations such as AS9100,

NADCAP, AQAP, or equivalent international standards.

c. Holds industrial licences under the Arms Act or is listed under DPIIT’s

Defence Licensing List.

d. Is a registered vendor or approved supplier with DPSUs, Armed Forces,

ISRO, or other authorised government entities.

e. Holds valid purchase orders, contracts, or long-term agreements with

OEMs, Tiered suppliers, or defence/ space agencies.

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f. Has undertaken offset-eligible work, Make-I/ II projects, or iDEX

participation under the Defence Acquisition Procedure (DAP) or

equivalent frameworks.

g. Operates facilities licensed or cleared for restricted processes,

explosives, bonded storage, or secure data management relevant to

A&D.

h. Has received R&D or manufacturing grants/ contracts from central or

state defence/ space agencies or under public–private partnership

programs.

4.26.5 Emerging and Dual-Use Enterprises

Enterprises developing or supplying dual-use goods, technologies, or

systems with veriﬁed or potential military, space, or internal security

applications shall qualify as A&D Enterprises, provided that they conform

to A&D program standards or supply to a recognised A&D bill of materials.

4.26.6 Exclusions and Integration

a. Purely generic commercial enterprises without demonstrable aerospace,

defence, space, or security linkages or those not conforming to relevant

programme standards, certiﬁcations, or supply frameworks shall be

excluded from recognition under this category.

b. For avoidance of doubt, any enterprise engaged in any of the above

manufacturing or service activities and meeting two or more objective

evidence of compliance shall be deemed an Aerospace & Defence

(A&D) Enterprise, eligible for consideration under this Policy, subject

to approval by the Appropriate Sanctioning Committee.

5. Incentives

5.1

Eligibility

5.1.1

RIICO Designated Aerospace and Defence (A&D) Parks

In a strategic move to catalyse the growth of the Aerospace and Defence

(A&D) manufacturing ecosystem in Rajasthan, RIICO (Rajasthan State

Industrial Development and Investment Corporation) is poised to establish

dedicated Aerospace and Defence Parks at select locations, which will be

notiﬁed or designated by it from time to time. These specialised parks will

offer a secure, innovation-driven, and infrastructure-ready environment,

tailored to the operational, technological, and regulatory needs of Aerospace

and Defence (A&D) Manufacturing Enterprise, including OEMs, Tier-1 and

Tier-2 suppliers, component manufacturers, MROs, and precision

engineering units.

5.1.2

Private Aerospace and Defence (A&D) Parks

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In addition to RIICO-developed parks, the Rajasthan Industrial Park

Promotion Policy 2026 also enables the development of Aerospace and

Defence-focused private industrial parks. These parks may be developed

either independently by private developers or in partnership with RIICO

under Public-Private Partnership (PPP) mode.

5.1.3

Eligible Enterprise

The Aerospace and Defence Manufacturing Package speciﬁed herein shall

be applicable to all Aerospace and Defence (A&D) Manufacturing

Enterprises as deﬁned in clauses 4.25 and 4.26 establishing their units in the

RIICO designated A&D Parks and Private A&D Parks as mentioned in

Clause 5.1.1 and 5.1.2. and meeting the following eligibility criteria.

a. The minimum investment required will be INR 50 crores for

manufacturing enterprises.

b. The minimum investment required will be INR 25 crores for service

enterprises.

5.2

Project Category for Aerospace and Defence Enterprise

An Aerospace and Defence (A&D) Enterprise as deﬁned in subject to veriﬁcation of

compliance with the criteria speciﬁed therein. The project categories shall be

determined in accordance with Section 3.1.2.1 of RIPS 2024 for Manufacturing

Projects and Section 3.2.2.1 of RIPS 2024 for Services Projects, or by the

corresponding provisions of the prevailing RIPS, as applicable. The categories in

effect at the time of publication of this Policy are as follows:

Project

Category

Manufacturing Enterprise

Service Enterprise

Large

An enterprise with an:

EFCI of INR 50 Cr. to < INR 300 Cr.

Employment Generation of 100 with

minimum EFCI of INR 50 Cr.

An enterprise with an:

EFCI of INR 25 Cr. to < INR 100 Cr.

Employment Generation of 500 with

minimum EFCI of INR 25 Cr.

Mega

EFCI of INR 300 Cr. to < INR 1,000

Cr.

Employment Generation of 250 with

minimum EFCI of INR 150 Cr.

EFCI of INR 100 Cr. to < INR 250

Cr.

Employment Generation of 2,000

with minimum EFCI of INR 75 Cr.

Ultra Mega

EFCI of more than INR 1,000 Cr.+

Employment Generation of 750 with

minimum EFCI of INR 500 Cr.

EFCI of more than INR 250 Cr.+ Or

Employment Generation of 4,000

with

minimum EFCI of INR 150 Cr.

Projects pertaining to the Aerospace and Defence sector shall be eligible to avail

benefits under Section 3.3 (Sunrise Package) of RIPS 2024, or under the

भाग 1(ख) राजè थान राज-पğ, जलाई ु03, 2026 3514

corresponding clauses of the prevailing RIPS, as applicable. For the purpose of

incentive calculation for projects approved under this Policy, Area Category 3 shall

be deemed applicable, irrespective of the original area categorisation assigned to the

tehsil in which the project is located. The applicable incentives as per Section 3.3 of

RIPS 2024, effective at the time of publication of this Policy, are as follows:

Incentives for projects in the Aerospace and Defence Sector

5.3

Asset Creation Incentive

The options stated below are mutually exclusive and an eligible enterprise must

make a one- time, irreversible choice while applying for seeking Asset Creation

Incentive. Eligible Enterprises can avail either of –

 Investment Subsidy

 Capital Subsidy

 Turnover Linked Incentive

5.3.1

Investment Subsidy

A reimbursement of 75% of State tax due and deposited for a period of 7

years with subject to the following annual ceiling:

Year

Manufacturing Enterprise

Service Enterprise

Year 1 to 3

Up to INR 50 Cr.

Up to INR 10 Cr.

Year 4 to 7

Up to INR 65 Cr.

Up to INR 15 Cr.

5.3.2

Capital Subsidy

Eligible Enterprises can avail Capital Subsidy based on the project category

as outlined in the table below as a ﬁxed percentage of EFCI in annual

instalments of 10 years post commencement of commercial production:

Project Category

Manufacturing Enterprise

Service Enterprise

Large

20% of EFCI

14% of EFCI

Mega

23% of EFCI

16% of EFCI

Ultra Mega

28% of EFCI

20% of EFCI

Capital Subsidy shall be subject to the annual ceiling as follows:

Year

Manufacturing Enterprise

Service Enterprise

Year 1 to 3

Up to INR 50 Cr.

Up to INR 10 Cr.

Year 4 to 7

Up to INR 65 Cr.

Up to INR 15 Cr.

Year 8 to 10

Up to INR 80 Cr.

Up to INR 20 Cr.

5.3.3

Turnover Linked Incentive

Eligible Enterprises can avail Turnover Linked Incentive based on the

project category as outlined in the table below as a ﬁxed percentage of Net

3515 राजè थान राज-पğ, जलाईु 03, 2026 भाग 1(ख)

Sales Turnover in annual instalments of 10 years post commencement of

commercial production:

Project Category

Manufacturing Enterprise

Service Enterprise

Large

1.65% of Net Sales Turnover

1.2% of Net Sales Turnover

Mega

1.85% of Net Sales Turnover

1.3% of Net Sales Turnover

Ultra Mega

2.00% of Net Sales Turnover

1.4% of Net Sales Turnover

Turnover Linked Incentive shall be subject to the annual ceiling as follows:

Year

Manufacturing Enterprise

Service Enterprise

Year 1 to 3

Up to INR 50 Cr.

Up to INR 10 Cr.

Year 4 to 7

Up to INR 65 Cr.

Up to INR 15 Cr.

Year 8 to 10

Up to INR 80 Cr.

Up to INR 20 Cr.

5.4

Asset Creation Incentive: Top-Ups

Eligible Enterprises can avail following Asset Creation Incentive Top-ups as a

percentage of the Asset Creation Incentive amount subject to the annual ceilings

mentioned in clause 5.3 with respect to speciﬁc Asset Creation Incentives are

inclusive of additional top up beneﬁts.

a. Employment Booster and;

b. Sunrise Booster or Anchor Booster or Thrust Booster or Interest Subvention.

5.4.1

Employment Booster

Enterprises generating employment greater than the minimum employment

threshold stipulated in clause 5.2 for a given Project Category shall be

eligible for an Employment Booster over the Asset Creation Incentive

amount basis the table outlined below:

Particulars

Slab 1

Slab 2

Slab 3

Employment Slabs (Multiple of

minimum employment

threshold)

1.5x - <2x

2x - <2.5x

Greater than or

equal to 2.5x

Booster % on Asset Creation

Incentive (ACI) amount

10%

12.5%

15%

5.4.2

Sunrise Booster

The ﬁrst three units categorised as mega or ultra mega projects (as per the

Manufacturing/ Services project category slabs) will be eligible for a 25%

Sunrise Booster on the selected Asset Creation Incentives (Capital Subsidy,

Turnover Linked Incentive, or Investment Subsidy).

5.4.3

Thrust Booster

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Subsequent eligible enterprises after the ﬁrst three enterprises that

have availed the Sunrise Booster will be eligible for Thrust Booster of

10% over the Asset Creation Incentive amount.

5.4.4

Anchor Booster

a. Eligible Anchor Investor shall be eligible for an Anchor Booster of

20% over the Asset Creation Incentive amount subject to the ceiling

of 20% over chosen Asset Creation Incentive amount OR 20% over

annual ceilings prescribed for respective Asset Creation Incentive

chosen by such Enterprise (whichever is lower).

b. Additionally, 100% banking, wheeling and transmission charges shall be

waived off/ reimbursed (for a period corresponding to the disbursal

period for chosen Asset Creation Incentive) for captive power plants

set up, provided energy generated is used for captive consumption

only and no third-party sale will be allowed:

There shall be a ceiling of 200% on the size of the captive power

plant

ii.

100% Banking allowed with no restrictions on withdrawals during

peak hours.

iii. For 'behind the meter' RE plants, there should be no ceiling on the

maximum capacity of RE generation and ED exemptions should

be applicable on perpetuity, provided they do not inject any

power to the grid during off-peak hours.

5.5

Special Incentives

5.5.1

Banking, Wheeling & Transmission Charges

100% Banking, Wheeling and Transmission charges shall be waived

off/ reimbursed (for a period corresponding to the disbursal period of

the chosen Asset Creation Incentive) for captive power plants set up by

the ﬁrst 3 Aerospace and Defence Sector Enterprises, provided the

energy generated is used for captive consumption only and no third-

party sales are made.

a. There shall be a ceiling of 200% on the size of the captive power plant.

b. 100% Banking allowed with no restrictions on withdrawals during peak

hours.

c. For 'behind the meter' RE plants, there should be no ceiling on the

maximum capacity of RE generation and ED exemptions should be

applicable on perpetuity, provided they do not inject any power to the

grid during off-peak hours.

5.5.2

Flexible Land Payment Model

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Eligible Manufacturing Enterprises that fall under the Mega or Ultra-

mega project category shall be eligible to avail land basis the outlined

payment schedule:

Particulars

Payment Schedule

25% of land cost + Bank Guarantee of an amount

equivalent to 75% of the land cost for 3 years

Upfront

75% of land cost

Distributed equally over 10 annual

instalments at an interest rate of 8%

Land cost support shall only be available:

a. Once per eligible Manufacturing Enterprise making a new investment; and

b. Only on land leased from RIICO; and

c. Only if the land is purchased speciﬁcally for the purpose of establishing the

A&D manufacturing project in respect of which the enterprise is seeking

incentives under this Policy.

5.5.3

Ofﬁce-Space Lease Rental Subsidy

A 25% subsidy on lease rentals shall be provided for a period of 5 years,

with a maximum limit of INR 1 crore per annum. The Ofﬁce Space Lease

Rental Subsidy shall be granted once per Aerospace and Defence Sector

Enterprise making a new investment.

Note: Enterprises may avail either the Flexible Land Payment Model or Ofﬁce

Space Lease Rental Subsidy.

5.5.4

Factors of Production (Inclusion of Investments in Captive Power

Plants / Group Captive Power Plants in EFCI)

Enterprises investing in captive renewable power plants will be eligible to

Include 51% of the said investment in their EFCI. Asset Creation Incentive

basis their respective slabs will be applicable on the EFCI.

Enterprises entering into group captive power agreements (12+ years) shall

be eligible to include 100% of their said investment in their EFCI. Asset

Creation Incentive basis their respective slabs shall be applicable on the

EFCI.

5.6

Mother-Ancillary Ecosystem Incentives

5.6.1

A group of Enterprises qualifying as an ‘ecosystem’ shall be eligible to

receive ﬁnancial incentives for the combined group investment, provided

that the combined group investment is greater than INR 500 crores.

5.6.2

To be considered an ‘ecosystem’ under this Policy, ancillary units must be

located within 50 km of the mother unit and supply more than 50% of their

total production to the mother unit annually.

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5.6.3

The ecosystem shall be required to present a legal agreement with details

explaining that the Manufacturing Enterprises are applying as a part of a

single ecosystem. The State may require submission of additional proof(s)

to evidence the existence of an ecosystem, through an order/ notiﬁcation, or

through any other means deemed appropriate.

5.7

Exemptions & Reimbursements

5.7.1

Exemption from payment of 100% electricity duty for 7 years.

5.7.2

Reimbursement of 100% mandi fee/ market fee for 7 years.

5.7.3

Exemption from payment of 75% stamp duty and reimbursement of 25%

stamp duty.

5.7.4

Exemption from payment of 75% conversion charge and reimbursement of

25% conversion charge.

Add-On Incentives Driven by State Priorities

The Add-On Incentives driven by State priorities shall be provided to promote sustainable

growth, competitiveness, and innovation by offering targeted beneﬁts for green initiatives,

freight support, skill development, and intellectual property creation, thereby encouraging

enterprises to align operations with environmental goals, export growth, workforce

upskilling, and value-added innovation.

5.8

Add-On Green Incentives

Eligible Enterprises availing Asset Creation Incentive can avail the following up to a

maximum of INR 12.5 crores for Environmental Projects as deﬁned in clause 4.15:

5.8.1

Reimbursement of 50% of the cost of Environmental Projects.

5.8.2

100% electricity duty exemption for captive renewable energy generation

for 7 years.

5.8.3

50% consent fee waiver for industries under the Rajasthan Green Rating

System.

5.9

Add-On Skill and Training Incentives

Eligible Enterprises shall be eligible for reimbursement of 50% of the total cost of

employee training, up to a maximum of INR 4,000 per worker per month, for a

maximum of 6 months, as a one-time incentive.

Reimbursement of 50% of the total cost of employee training, up to a maximum of

INR 1,00,000 per employee per annum, for a maximum of 20 employees per

Enterprise, as a one-time incentive.

5.10 Add-On IP Creation Incentive

An Intellectual Property (IP) creation incentive of 50% of the expenditure incurred

towards obtaining patents, copyrights, trademarks, and registration of geographical

3519 राजè थान राज-पğ, जलाईु 03, 2026 भाग 1(ख)

indications shall be provided, subject to an overall ceiling of INR 1 crore. This

incentive shall be applicable only for granted patents and can be availed within 3

years of the commencement of business.

5.11 Incentives for MSMEs

The eligibility criteria, deﬁnitions, applicable incentives, and ceilings thereof for

Micro, Small and Medium Enterprises (MSMEs) shall be as prescribed under the

relevant provisions of the Rajasthan MSME Policy 2024, as amended from time to

time.

Capacity Building Incentives

The State shall incentivise Capacity Building initiatives in the Aerospace and Defence

sector by supporting training centres, skill academies, and knowledge hubs developed by

private developers, industry associations, SPVs, or consortiums, in collaboration with

defence agencies, PSUs, or research institutions, fostering skilled manpower and sectoral

excellence in Rajasthan.

5.12 Common Facility Centres

To promote shared infrastructure and reduce the cost burden on individual

enterprises, the State shall incentivise the development of Common Facility Centres

(CFCs) equipped with specialised machinery, testing facilities, calibration labs,

simulation systems, design and prototyping tools, and other sector-speciﬁc

resources.

A Capital Subsidy of 50% of the EFCI, subject to a maximum ceiling of INR 10

crore, payable in 10 equal annual instalments shall be provided for developing CFCs

projects with a minimum EFCI of INR 10 crore.

5.13 Quality Certiﬁcation Incentive

To enhance operational excellence, sustainability, and global competitiveness of

Aerospace and Defence (A&D) units, the State shall reimburse 50% of costs for

obtaining approved quality, safety, environmental, and compliance certiﬁcations, up

to a cumulative ceiling of INR 75 lakhs per unit within ﬁve years of commercial

operations.

Eligible certiﬁcations may include and not limited to internationally/ nationally

recognised standards such as AS9100, ISO 9001, ISO 14001, ISO 45001, ISO/IEC

27001, NADCAP, and equivalent certiﬁcations covering quality, safety,

environmental management, cybersecurity, supply chain security, risk management,

and ethical compliance. Certiﬁcations must be issued by accredited national/

international bodies, ensuring adherence to global benchmarks across production,

testing, and operational processes.

5.14 Employment Generation Incentive

The Employment Generation Subsidy in the form of reimbursement of 50% of

employers’ contribution towards EPF and ESI shall be granted for a period of 3

years with annual incentive ceiling of INR 2 Cr:

भाग 1(ख) राजè थान राज-पğ, जलाई ु03, 2026 3520

5.14.1 For women employees, employees belonging to Scheduled Caste (SC),

Scheduled Tribe (ST), Person with disability (PwD); and

5.14.2 For all employees if the Enterprise is providing more than 75% direct

employment to persons domiciled in Rajasthan.

Provided further that the Employment Generation Subsidy shall not be granted for

those employees for which employer is receiving reimbursement under any other

Policy of Government of India or Government of Rajasthan. This shall only be

granted to applicable categories as laid out in the policy.

Customised Incentive Package for Units

Enterprises eligible under the Silver, Gold, or Platinum categories shall be governed as per

the provisions outlined under Tier-3: Customised Incentive Packages of the Rajasthan

Investment Promotion Scheme (RIPS) 2024, and any amendments made thereto from time

to time.

Incentives for Aerospace and Defence Parks

5.15 Aerospace and Defence Park

The development, eligibility, and incentivisation of Aerospace and Defence Parks in

Rajasthan shall be governed by the provisions of the Rajasthan Industrial Park

Promotion Policy 2026 or any subsequent revisions thereof. All such parks whether

developed by private developers, or through Public Private Partnership (PPP) shall

be treated at par with industrial parks under the said policy for the purpose of:

 Incentive eligibility (capital subsidy, land support, interest reimbursement, etc.),

 Compliance with minimum infrastructure and investment criteria,

 Governance and operational conditions, and

 Approval and monitoring mechanisms.

6. Administration

The State shall formulate and notify the necessary procedural guidelines to facilitate the

effective implementation of the Rajasthan Aerospace & Defence Policy 2026 across all

relevant departments, agencies, and institutional mechanisms.

6.1

Implementation and Interpretation Authority

All the related Departments shall implement the policy. The Department of

Industries and Commerce shall act as the nodal coordinating, monitoring, and

implementing department. Any matter pertaining to interpretation of any clause/

section of the policy shall be referred to Department of Industries and Commerce,

Government of Rajasthan. The decision of the Department of Industries and

Commerce in such matters shall be ﬁnal.

6.2

Review or Modiﬁcation of the Policy

The State Government reserves the right to review or modify the Policy as and when

needed in public interest. However, Forms released as part of the Policy may be

modiﬁed, changed, added, or deleted by the Department of Industries and

3521 राजè थान राज-पğ, जलाईु 03, 2026 भाग 1(ख)

Commerce as and when needed for the sake of convenience in implementation of

the Policy.

6.3

Revision of the Policy by the State Government

The Government may revise the Policy, in full or in part, prospectively or

retrospectively, to keep harmony with the provisions of the State Goods and

Services Tax Act and Rules made there under.

6.4

Application Process for Incentives and Beneﬁts

The RajNivesh portal, managed by the Bureau of Investment Promotion (BIP), shall

serve as the single-point digital interface for facilitating all investment-related

applications under this Policy. The portal enables end-to-end, time-bound processing

of clearances, approvals, and submissions, ensuring transparency, efﬁciency, and

ease of doing business.

6.5

Institutional Mechanism

The following institutional framework outlines the mechanism for effective

implementation of the Rajasthan Aerospace & Defence Policy 2026 across all

concerned stakeholders

6.5.1

State Level Sanctioning Committee

The State Level Sanctioning Committee (SLSC) shall have jurisdiction over

all Enterprises investing more than INR 25 crores and Enterprise(s) making

investments in more than one district. In cases requiring review by the State

Level Sanctioning Committee, the decision of the State Level Sanctioning

Committee shall be ﬁnal. Detailed guidelines regarding this provision to be

separately notiﬁed. The constitution of State Level Sanctioning Committee

(SLSC) shall be as follows:

State Level Sanctioning Committee (SLSC)

Secretary-in-charge

Department of Industries and Commerce

Chairman

Secretary-in-charge

Finance (Revenue) or nominee of Finance Department not below the rank

of Joint Secretary

Member

Commissioner

Commercial Taxes Department

Member

Managing Director

RIICO

Member

Commissioner

Investments and NRIs (BIP)

Member

Commissioner

Department of Industries and Commerce

Member

Secretary

6.5.2

District Level Sanctioning Committee

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The District Level Sanctioning Committee (DLSC) shall have jurisdiction

over enterprises investing less than INR 25 crores and over all Micro, Small

and Medium Enterprises (MSME). The constitution of District Level

Sanctioning Committee (DLSC), shall be as follows:

District Level Sanctioning Committee (DLSC)

District Collector

Chairman

Nominee Member from Finance Department

Member

Nominee Member from the Department of Industries and

Commerce

Member

General Manager (DIC)

Member

Secretary

6.5.3

State Empowered Committee (SEC)

State Empowered Committee (SEC) is authorised, to consider and approve

customised incentive packages for eligible enterprises.

State Empowered Committee

Chief Secretary

Chairman

Additional Chief Secretary

(Finance) or an ofﬁcer nominated by them, not below the rank of Secretary

Member

Member

Secretary-in-charge

Environment and Forest Department Member

Member

Secretary-in-charge

Urban Development and Housing Department Member

Member

Secretary-in-charge

Department of Industries and Commerce

Member

Commissioner

Department of Industries and Commerce

Member

Secretary-in-charge

Labour and Employment Department

Member

Secretary-in-charge

Mines and Petroleum Department

Member

Additional Chief Secretary

Principal Secretary to Chief Minister

Member

Secretary-in-charge

Revenue Department

Member

Managing Director

RIICO

Member

Secretary-in-charge

Energy Department

Member

Secretary-in-charge

Tourism Department

Member

3523 राजè थान राज-पğ, जलाईु 03, 2026 भाग 1(ख)

State Empowered Committee

Commissioner

Investments and NRIs (BIP)

Member

Secretary

7. Terms and Conditions

This policy clearly sets out the provisions, terms, and conditions to be followed, and

outlines the rights, responsibilities, and limitations of all parties involved.

7.1

Phasing and Telescoping

7.1.1

Enterprises are permitted to phase their investments, provided that the

minimum investment size for each phase exceeds INR 50 crores with a

maximum of three phases allowed.

7.1.2

For Enterprises making an initial phase (Phase-1) investment as part of their

total investment commitment within the operative period of this Policy,

incentives will be disbursed according to the slabs deﬁned under the

Aerospace and Defence Manufacturing Package.

7.1.3

When the Enterprise proceeds with subsequent investments to fulﬁl the

remaining portion of its total commitment, it shall receive beneﬁts based on

the slab corresponding to the cumulative actual investment, applicable for

the remaining approved period under this policy. If this cumulative

investment results in an upgraded slab, the Enterprise will be entitled to

receive beneﬁts under the upgraded slab. These beneﬁts will accrue to the

investments made prior to meeting the eligibility criteria for the higher slab.

This provision applies to all investments made during the operative period

of this policy.

7.1.4

Any phased investment beyond the operative period of the Policy shall be

eligible for beneﬁts under this policy for an additional 2 years post the

Policy’s operative period. This is provided that at least 50% of the total

investment was made during operative period of this policy or within 2

years from grant of the Entitlement Certiﬁcate.

7.2

Transfer of Beneﬁts in Case of Transfer of Business

7.2.1

When the ownership of a unit of an Enterprise availing beneﬁt of the Policy

is entirely transferred in any manner, then the remaining beneﬁts of such

unit under the Policy, if any, shall be transferred to the transferee Enterprise

on fulﬁlment of any statutory levy.

7.2.2

For availing such remaining beneﬁts, the transferee Enterprise shall submit

a duly completed application as part of the attached forms and manner as

may be prescribed, to the Member Secretary of the appropriate Sanctioning

Committee along with proof of transfer of ownership of unit and original

Entitlement Certiﬁcate(s) issued to the transferor Enterprise, within ninety

days of such transfer.

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7.2.3

The Member Secretary of the appropriate Sanctioning Committee shall

appropriate Sanctioning Committee within forty-ﬁve days from the receipt

of the application unless speciﬁcally extended for reasons to be recorded in

writing.

7.2.4

Where the application has been ﬁled beyond the time period as provided in

clause 7.2.2 the appropriate Sanctioning Committee having been satisﬁed

with the genuineness of cause of delay may condone the delay in ﬁling of

the application from the prescribed date of application.

7.2.5

In case the committee approves the transfer of ownership, the Member

Secretary shall amend the entitlement certiﬁcate(s) by making an

endorsement in the said certiﬁcate(s) as under; “The beneﬁt under this

certiﬁcate is hereby transferred to M/s ……, and the said Enterprise is

entitled to avail the beneﬁts mentioned in this certiﬁcate for a period from

…… to”

7.2.6

After such endorsement, the Member Secretary shall forward it to all

concerned immediately but not later than ﬁfteen days from the date of the

decision taken by the committee in its meeting, unless speciﬁcally extended

for reasons to be recorded in writing.

7.2.7

Where the committee is of the opinion that the transferee Enterprise is not

eligible to avail the remaining beneﬁts of the Policy, it shall provide an

opportunity of being heard to such Enterprise and shall record the reasons of

rejection. The decision of the Committee shall be communicated by the

Member Secretary of the appropriate Sanctioning Committee to the

Enterprise, and all concerned immediately but not later than thirty days

from the date of decision taken by the committee in its meeting, unless

speciﬁcally extended for reasons to be recorded in writing.

7.3

Extent and Period of Beneﬁts

7.3.1

Period of Beneﬁt: The period of beneﬁt wherever applicable, shall be

counted from the date of the issuance of the concerned Entitlement

Certiﬁcate (EC) for that incentive, unless otherwise speciﬁed in the Policy.

The period of validity of that EC will be 10 years in case of Capital Subsidy

and Turnover Linked Incentive and 7 years in case of Investment Subsidy.

7.3.2

Maximum Extent of Exemption: The total extent of exemption from

payment of tax/ fee in any case for any period shall not exceed 100% of

exemption from payment of such tax/ fee. Moreover, the total amount of

reimbursement of Market Fee (Mandi Fee) shall not exceed the Eligible

Fixed Capital Investment.

7.3.3

Extent of Interest Subvention: The Interest Subvention shall be in addition

to any other incentive available under any other Scheme of Government of

India. The Enterprise availing Interest Subvention under any other Scheme/

3525 राजè थान राज-पğ, जलाईु 03, 2026 भाग 1(ख)

package of State Government shall not be eligible for availing beneﬁt under

the Policy.

7.3.4

The Interest Subvention shall be allowed on the term loan taken from State

Financial Institutions/ Financial Institution/ Bank recognised by Reserve

Bank of India for making investment in plant & machinery and/or

equipment or apparatus. Provided that the total beneﬁt availed under Interest

Subvention shall not exceed the total interest liability from such term loan

on the Enterprise.

7.3.5

The Interest Subvention shall be available only for interest levied by the

Financial Institution/ Bank. Penal interest or other charges shall not be

reimbursed.

7.3.6

Interest Subvention shall be granted for the duration speciﬁed in the

eligibility certiﬁcate or until the loan is fully repaid, whichever is earlier. In

the event of the loan being transferred to another State Financial Institution,

Financial Institution, or Bank recognised by the Reserve Bank of India, the

Subvention may continue for the remaining period, subject to the approval

of the appropriate Sanctioning Committee.

7.3.7

In cases of transfer of loan, principal amount needs to remain the same

between one bank recognised by RBI/ FI/ SFI to other.

7.3.8

The Interest Subvention shall be given to the Enterprise which pays regular

instalments and interest to the Financial Institution/Bank. If the Enterprise

becomes a defaulter, it will not get interest subvention for the default

period, and such defaulting period will be deducted from ﬁve years period

as mentioned in the eligibility certiﬁcate.

7.3.9

The Interest Subvention shall be allowed only in a case where the Enterprise

is engaged in manufacturing in which interest subvention is claimed except

where it is engaged in manufacturing of seasonal goods.

7.3.10 In cases where the eligible loan amount for interest subsidy approved by the

appropriate sanctioning committee is less than total term loan disbursed by

the bank(s)/ FI(s), the amount of interest subsidy shall be calculated

proportionately based on repayment of the eligible amount vis-a-vis total

sanctioned loan amount.

7.3.11 An Enterprise availing beneﬁts under this Policy shall comply with all

statutory laws and regulations of the State of Rajasthan applicable to the

Enterprise. Non-compliance may entail cancellation/ withdrawal of the

beneﬁts under the Policy.

7.4

Overall Extent of Subsidy

The total amount of subsidy for the total period of beneﬁt shall not exceed 125%

EFCI or as approved by the appropriate Sanctioning Committee.

7.5

Appeal

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7.5.1

The State Level Sanctioning Committee shall be empowered to hear and

decide appeals against the orders of the District Level Sanctioning

Committee.

7.5.2

The State Empowered Committee constituted under Section 3 of the

Rajasthan Enterprises Single Window Enabling and Clearance Act 2011

shall be empowered to hear and decide appeals against the order of State

Level Sanctioning Committee.

7.5.3

The application for appeal shall be ﬁled within a period of 90 days from the

date of communication of the decision.

7.6

Revision by the State Government:

7.6.1

The Department of Industries and Commerce may suo motu or otherwise

revise an order passed by any Sanctioning Committee if it is found to be

erroneous and prejudicial to the interest of the State, after affording an

opportunity of being heard to the beneﬁciary enterprise.

7.6.2

No order under this Section shall be passed by the State Government after

the expiry of a period of three years after the date by which the beneﬁts

under the Policy are fully availed of.

7.7

Penal Clause

New investments must achieve commercial production within 36 months of availing

stamp duty exemption. In case an entity fails to reach commercial production within

36 months from availing stamp duty exemption, the following actions will apply:

7.7.1

Claw back of 50% of applicable stamp duty exemption.

7.7.2

A deﬂator of 0.98 per year will be applicable for all incentives under the

policy.

7.8

Other Terms and Conditions

7.8.1

All Greenﬁeld Aerospace and Defence (A&D) units shall be eligible for

incentives as per the provisions of the Rajasthan Aerospace & Defence

Policy 2026.

7.8.2

An Enterprise availing beneﬁts under this Policy shall comply with all

statutory laws and regulations of the State of Rajasthan applicable to the

Enterprise. Non-compliance may entail cancellation/withdrawal of the

beneﬁts under the Policy.

7.8.3

An Enterprise availing beneﬁts under the Policy shall be subject to the

conditions, procedures, instructions, clariﬁcations, or amendments issued

from time to time under the Policy.

7.8.4

In case the Enterprise is availing any subsidy:

a. Under any other Scheme or Policy of the Government of Rajasthan; or

3527 राजè थान राज-पğ, जलाईु 03, 2026 भाग 1(ख)

b. Under any Scheme or Policy of any undertaking, corporation, or

Enterprise- owned or controlled by the State Government; or

c. Under any law of the State in respect of investment made in ﬁxed assets,

the total subsidy payable under this Policy shall be reduced to the

extent of the Investment Subsidy so received. The Enterprise availing

any such subsidy shall inform the authority disbursing the subsidy

under the Policy regarding the details of the subsidy so availed.

7.8.5

Where on scrutiny or inspection by the ofﬁcers of the Commercial Taxes

Department or the Department of Industries and Commerce, it is found that

the Enterprise, which has availed the beneﬁts under this Policy, is not

eligible for such beneﬁts or, in order to get higher subsidy under the Policy,

is effecting inter-state supply as intra-state supply through its subsidiaries/

intermediary/ marketing network/ dealers or any other middleman, either

directly or indirectly controlled by it, a reference shall be made to the

appropriate

Sanctioning

Committee.

The

appropriate

Sanctioning

Committee shall provide an opportunity of being heard to the Enterprise. On

being satisﬁed that the Enterprise is not entitled to such beneﬁts, the

Sanctioning Committee may, for reasons to be recorded in writing,

withdraw the beneﬁts. The decision of the appropriate Sanctioning

Committee shall be communicated by the Member Secretary of the

appropriate Sanctioning Committee to all concerned. In case of withdrawal

of beneﬁts, the appropriate Sanctioning Committee may direct for recovery

of the beneﬁts already availed with interest @ 18% per annum.

7.8.6

The Enterprise availing the beneﬁt of subsidy may, from the date of

issuance of notiﬁcation by the State Government, maintain the record of

sale, purchase, and inventory of goods on the electronic media in digital

form (online in computer) or in the manner as may be speciﬁed by an order

by the State Government and shall provide online access of such record to

the assessing authority as prescribed in the Rajasthan Goods and Service

Tax Act, 2017 (Act No. 9 of 2017) and Rajasthan Value Added Tax Act,

2003 and the Central Sales Tax Act, 1956 or any rules made thereunder, to

the ofﬁcer authorized by the Commissioner, Commercial Taxes, Rajasthan,

in this behalf.

7.8.7

Beneﬁts under the Policy can only be availed if, and as long as there is, and

for the period/ s, consent to establish and consent to operate, wherever

applicable, from the Central/ Rajasthan State Pollution Control Board is

effective.

7.8.8

In case of breach of any of the conditions mentioned anywhere in the

Policy, the beneﬁts availed under the Policy shall be withdrawn by the

appropriate Sanctioning Committee and, on its recommendation, the

concerned Department shall recover the beneﬁts availed by the Enterprise

भाग 1(ख) राजè थान राज-पğ, जलाई ु03, 2026 3528

along with interest @ 18% per annum from the date from which the beneﬁts

have been availed.

7.8.9

Rectiﬁcation by authority competent to disburse subsidy: Authority

competent to disburse subsidy can claw back any wrongly disbursed

subsidy with an interest of 9% per annum. However, no order for such claw

back shall be passed without providing the Enterprise an opportunity to be

heard. No order for such claw back shall be passed after the completion of 3

years from the end of the entitlement period.

7.8.10 Rectiﬁcation of mistake by State Level Sanctioning Committee or District

Level Sanctioning Committee:

a. With a view to rectify any mistake apparent on record, the State Level

Sanctioning Committee may either suo moto or on an application in

this behalf, rectify any order passed by it or the District Level

Sanctioning Committee.

b. A mistake shall include an order which was valid when it was made and

is subsequently rendered invalid by an amendment of the Policy having

retrospective operation or by a judgment of the Supreme Court, or the

Rajasthan High Court.

c. No application for rectiﬁcation shall be ﬁled under this Section after the

expiry of a period of three years from the date of the order sought to be

rectiﬁed.

d. An application under this Section shall be presented to the Member

Secretary of the State Level Sanctioning Committee. The Member

Secretary shall place such application before the State Level

Sanctioning Committee, and the State Level Sanctioning Committee

shall dispose of such application.

e. No order of rectiﬁcation shall be made after the expiry of four years

from the date of the order.

7.8.11 Entitlement Certiﬁcate for Stamp Duty Exemption will be valid for 2 years

or till the expiry of the Policy's operative period, whichever is earlier.

7.8.12 Provisions for e-governance: To enable electronic delivery of services under

the Policy, notwithstanding anything contrary contained anywhere in the

Policy, the Government Department responsible for the grant of beneﬁt or

issuance of Entitlement Certiﬁcate (EC), requires that an application or any

communication, order, certiﬁcate, or disbursement of payment relating to

beneﬁts under the Policy shall be made or issued in electronic form. Further,

to facilitate e-governance, the Government Department may change the

procedure mentioned in the Policy to such extent that it is not inconsistent

or incompatible with electronic forms of communication and payment, and

such change shall not invalidate any action for the mere reason that it is

repugnant to the procedural provisions of the Policy.

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7.8.13 State Tax Due and Deposited: The term ‘State tax due and deposited’ by an

Enterprise does not include the amount of state tax due and deposited

against the supplies made by it to its extended arms (subsidiaries and/or

marketing wings and/or dealers and/or distributors or any other middleman,

either directly or indirectly controlled by it), where such extended arms are

subsequently making inter-state supplies of goods so received and utilizing

the credit of State Tax suffered on such goods for making payment towards

the output tax under the Integrated Goods and Services Tax Act, 2017, in

terms of sub-section (4) of section 49 of the Rajasthan Goods and Services

Tax Act, 2017.

8. Abbreviations

Abbreviation

Expansion

Brief Context

A&D

Aerospace & Defence

Umbrella sector for eligibility, incentives,

parks, vendor development, and skilling.

Artiﬁcial Intelligence

Dual-use tech focus for R&D/ CoEs, defence

analytics, autonomy, and smart

manufacturing.

API

Application Programming

Interface

Integrations for single-window systems,

MoU/CRM, GIS, and policy dashboards.

AS9100

Quality Management

System for Aerospace

and Defence

Recognized QMS; covered under quality-

certiﬁcation reimbursement for supplier

readiness.

ATMP

Assembly, Testing,

Marking and Packaging

Semiconductor backend; aligns with ESDM/

A&D electronics supply chains and park

tenants.

BEL

Bharat Electronics

Limited

DPSU anchor/buyer; partnerships for sourcing,

testing, CoEs, and vendor development.

BEML

Bharat Earth Movers

Limited

DPSU partner; defence platforms supply chain

and potential offsets/vendor linkages.

BIS

Bureau of Indian

Standards

Standards compliance for products, processes,

and procurement readiness.

CEMILAC

Centre for Military

Airworthiness

& Certiﬁcation

Airworthiness approvals and guidance for

aerospace products and modiﬁcations.

CETP

Common Efﬂuent

Treatment

Plant

Shared green infrastructure in parks; enables

EHS compliance and cluster operations.

CII

Confederation of Indian

Industry

Partner for outreach, consultations, vendor

meets, and policy advocacy.

CoE

Centre of Excellence

State-supported R&D/validation/ skilling hubs

with industry–academia–agency collaboration.

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Abbreviation

Expansion

Brief Context

CRPF

Central Reserve Police

Force

End-user/ security force; creates downstream

demand for defence equipment & services.

DGAQA

Directorate General of

Aeronautical Quality

Assurance

QA oversight for military aviation supplies;

certiﬁcation/ testing pathway.

DGQA

Directorate General of

Quality

Assurance

QA for land/ naval systems; testing and

acceptance standards for defence stores.

DIC

District Industries Centre ^{District-level investor interface for registrations,}

facilitation, and MSME support.

DLI

Design Linked Incentive

GoI scheme for chip design; complements

ESDM design/ startup ecosystem.

DMIC

Delhi–Mumbai Industrial

Corridor

Logistics/ industrial connectivity backbone for

proposed A&D clusters.

DRDO

Defence Research and

Development Organisation

Tech partner for ToT, testing, problem

statements (incl. iDEX), and CoEs.

EFCI

Eligible Fixed Capital

Investment

Base for calculating capital subsidies; typically

excludes land cost.

EoDB

Ease of Doing Business

Reform lens: SLAs, self-certiﬁcation, single-

window, and API-based clearances.

Abbreviatio

Expansion

Brief Context

HAL

Hindustan Aeronautics Limited

OEM/DPSU anchor for sourcing, MRO,

offsets, and CoE partnerships.

iDEX

Innovations for Defence

Excellence

Startup procurement and grants; bridges

user

needs with innovators.

IPR

Intellectual Property Rights

Support

for

patenting

and

commercialization;

ties to R&D/CoE outcomes.

ISRO

Indian Space Research

Organisation

Space ecosystem partner; payloads,

components, testing, and ToT.

ISO 9001

Quality Management Systems

Baseline QMS; stepping-stone to AS9100;

eligible for reimbursement.

JSS

Joint Services Speciﬁcation

Indian defence specs; compliance pathway

for

supplier qualiﬁcation.

MIL

Military Standards (U.S. MIL-

STD)

Accepted benchmarks for design/ testing;

included in certiﬁcation incentive scope.

3531 राजè थान राज-पğ, जलाईु 03, 2026 भाग 1(ख)

NADCAP

National Aerospace and Defense

Contractors

Accreditation

Program

Special-process accreditation (NDT,

heat- treat, etc.); reimbursable

certiﬁcation.

OEM

Original

Equipment

Manufacturer

Anchor investors/buyers; mother–ancillary

ecosystems and offsets.

PnP

Plug-and-Play

Ready-to-use

sheds/

utilities;

capital

subsidy

to speed unit onboarding.

PPP

Public-Private Partnership

Model for parks, testing labs, and shared

infrastructure SPVs.

PSU

Public Sector Undertaking

Buyers/partners (e.g., BEL, HAL); anchor

demand and collaboration.

QoS

Quality of Service

Service metrics for park utilities, digital

connectivity, and SLAs.

R&D

Research and Development

Eligible activity for grants, CoE projects,

and

innovation outcomes.

SLA

Service Level Agreement

Enforced timelines/ metrics for approvals

and

park O&M.

SPV

Special Purpose Vehicle

Entity for park development/O&M or

project-

speciﬁc PPPs.

ToT

Transfer of Technology

Licensing/ offsets collaborations; enables

localisation and scaling.

UAV

Unmanned Aerial Vehicle

Priority A&D sub-sector; manufacturing,

payloads, and testing.

UAS

Unmanned Aircraft System

System-level

term

(airframe,

control,

comms);

certiﬁcation/ compliance.

By the order of the Governor,

Mahipal Kumar,

Deputy Secretary to Government.

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