Big Relief for Entrepreneurs as RIICO Amends Rules, No More Deadline Pressure Over Industrial Plots

Ananya soch: In a major move to boost industrial investment and create a business-friendly environment in Rajasthan, RIICO has introduced key amendments to its rules. The corporation has partially revised Rule 21 and Rule 3(aj) of the RIICO Disposal of Land Rules, 1979, a decision expected to bring relief to thousands of entrepreneurs across the state.

One-Year Extra Time for Plots Lacking Basic Infrastructure

As per the new amendment, if an entrepreneur is allotted a plot in an industrial area where basic infrastructure such as approach roads, internal roads or electricity is not yet available, they will now get relief in the timeline for completing various intermediate stages of the project and starting commercial production, until the area is officially declared developed. This relief will be available for a period of up to one year from the date the industrial area is declared developed.

Understanding the Problem Entrepreneurs Were Facing

Currently, under the e-auction or Direct Allotment Scheme-2025, possession of an allotted plot must be taken within one month. If possession is not taken within this period, it is treated as deemed possession, and the countdown for completing construction and starting commercial production begins automatically. For projects that do not require environmental clearance, the timeline to start commercial production is two years, while for projects requiring environmental clearance, it is three years. The problem arose when essential infrastructure like approach roads and electricity remained unavailable during this period, yet entrepreneurs were still bound by the fixed deadline, with penalty provisions in place for failing to meet intermediate milestones on time.

How the Rule Change Will Benefit Entrepreneurs

Following repeated representations from entrepreneurs highlighting these practical difficulties, RIICO decided to amend the rules. Under the revised provisions, projects that do not require environmental clearance must now start commercial production within two years from the date of allotment, or one year from the date the industrial area is declared developed — whichever is later. Similarly, projects requiring environmental clearance must begin commercial production within three years from allotment, or one year from the development declaration date, whichever is later. Notably, any penalty already imposed for non-compliance with earlier timelines can now be adjusted against future outstanding dues.

Officials said the move will further strengthen ease of doing business in the state, accelerate the execution of industrial projects, ensure effective utilisation of industrial plots, and create more employment opportunities across Rajasthan.