RIICO’s New Land Policy: Affordable Industrial Plots to Boost Jaipur Investment

In a surprising yet strategic shift, the Rajasthan State Industrial Development and Investment Corporation (RIICO) has rolled out a land policy enabling investors to acquire undeveloped and semi-developed industrial land at substantially affordable and reduced rates comparatively. This new land policy, effective from July 15, introduces a simplified pricing structure based on the basic land value (DLC), with only administrative and development charges added. The move is a sharp departure from the earlier auction-based model, where competitive bidding often inflated land prices beyond the reach of small and mid-sized enterprises.

A Step Toward Accessibility and Affordability

The reform serves two clear objectives.

1. Monetizing idle land parcels: Large stretches of RIICO Jaipur – controlled land in industrial zones, some in prime urban areas – have remained unused for years due to high auction rates and bureaucratic hurdles.
2. Making industrial land more affordable: Lowering the entry cost is expected to encourage investment from both large corporations and small-scale entrepreneurs, particularly in emerging manufacturing and service sectors.

Industries Minister Rajyavardhan Rathore described the policy as a direct response to longstanding industry demands for a fixed-rate, non-auction-based allotment system. He highlighted that predictable pricing would allow businesses to plan investments better, removing the uncertainty of auctions that often led to overpayment and delayed project kick-offs.

Mixed Reactions from Industry Stakeholders

While many in the business community have welcomed the reform, reactions are not uniformly positive.

• Positive reception: Suresh Agarwal, President of the Federation of Rajasthan Trade and Industry, praised the move as a “significant support for industrial growth” in Rajasthan. He believes the lower cost will particularly benefit startups and first-time industrial land buyers. However, he also stressed the need for faster allotment timelines, warning that delays could dilute the intended benefits.
• Concerns over transparency: Several industry voices are wary of the new process, noting that allotments will now be handled by RIICO’s Infrastructure Development Committee (IDC) Jaipur, which is largely composed of corporation officials. Critics argue that auctions, despite their shortcomings, provided a more transparent method of allocation, open to public scrutiny and competitive fairness.

Why This Matters

• Cost Efficiency: Direct allotment based on DLC value significantly lowers acquisition costs, allowing businesses to invest more in infrastructure and operations rather than land purchase alone.
• Boost to Development: The policy is expected to spur industrial expansion in both remote and urban zones, potentially balancing regional development across Rajasthan.
• Administrative Concerns: Without adequate oversight, the shift from auctions to committee-led allotments could raise questions about impartiality and governance. Transparency will be the key to maintaining investor confidence.

Conclusion

RIICO’s new land policy has the potential to be a game-changer for Jaipur’s industrial landscape. By replacing high-stakes auctions with affordable industrial plots, the Government of Rajasthan is signaling its intent to foster business-friendly conditions and attract diverse investors.

However, for the policy to achieve its full impact, speed and transparency must go hand-in-hand. A streamlined application process, clear eligibility criteria, and periodic public disclosures of allotments could address concerns and ensure fairness. If implemented effectively, this initiative could lead to accelerated industrialization, job creation, and long-term economic stability for Jaipur and beyond.

FAQs

1. What exactly is RIICO offering now?
   RIICO is offering undeveloped and semi-developed industrial land at reduced rates – only the basic DLC value plus development and administrative charges are applied, instead of auction premiums.
2. What motivated this policy change?
   The government aims to monetize idle land assets and make industrial plots more accessible and cost-effective, addressing industry calls for direct allotment instead of costly auctions.
3. Which areas are eligible?
   The policy applies across all RIICO-controlled industrial areas, including both remote regions and urban zones.
4. Who will decide the allotment of land?
   The Infrastructure Development Committee (IDC) of RIICO, mainly composed of corporation officials – will oversee allotments.
5. How is this different from earlier auctions?
   Earlier auctions often led to competitive bidding and higher land prices, while the new policy allows fixed-rate allotments based on DLC value.
6. Will this affect small businesses and startups?
   Yes, positively. Lower costs can enable small enterprises and startups to secure industrial land more easily.
7. Are there concerns about transparency?
   Yes. Some stakeholders believe that without public auctions, the allotment process could be less transparent and more open to bias.
8. When does this policy come into effect?
   It became effective from July 15, as per RIICO’s official order.
9. Can investors from outside Rajasthan apply?
   Yes. RIICO’s policy does not limit applications to Rajasthan-based investors, allowing national and even global industrial players to participate.
10. What’s the expected long-term benefit?
     If implemented effectively, it could accelerate industrialization, create jobs, and enhance Jaipur’s standing as a business hub.