LexThe rajasthan state aid to industries act, 1961
Rajasthan · state statute
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THE RAJASTHAN STATE AID TO INDUSTRIES ACT, 1961
(Act No. 25 of 1961)
(Received the assent of the Governor on the 16th day of October, 1961)
An Act to regulate the giving of aid by the State Government to Industries in the State of
Rajasthan.
Be it enacted by the Rajasthan State Legislature in the Twelvth Year of the Republic
of India as follows:—
1. Short title, extent and commencement.—(1) This Act may be called the Rajasthan
State Aid to Industries Act, 1961.
(2) It extends to the whole of the State of Rajasthan.
(3) It shall come into force at once.
2. Definitions.—In this Act, unless the context otherwise requires,—
(1) “Company” means a company incorporated under the Companies Act, 1956
(Central Act 1 of 1956); and
(2) “Industry” means any industrial business or enterprise undertaken or conducted
by any person or body of persons 1[and includes a Co -operative Society as also an
Association or a Federation of Industries.]
3. Aid to industries.—No aid shall be given by the State Government to any industry
except in accordance with the provisions of this Act.
4. Industries to be aided.—(1) An industry to which aid may be given under this Act
shall be such as has an important bearing on the economic development of the State and
such industry may be—
(a) a new or nascent industry, or
(b) an industry to be newly introduced into areas where such industry is undeveloped
or under developed, or
(c) a cottage or village industry or a small scale industry, or
(d) an old or established industry:
Provided that no aid shall be given to an old or established industry unless the State
Government is satisfied that special reasons exist for giving such aid:
1 Added by section 2 of Rajasthan Act No. 10 of 1969, published in Rajasthan Gazette, Part IV -A,
Extraordinary, dated 1-5-1969.
2
Provided further that no aid shall be given to a company unless it—
(i) is registered in India on a rupee capital,
(ii) conforms to such rules as may be made by the State Government from time to
time, and
(iii) has, on its Board or Management, such number of citizens of India as may be
prescribed or such number of directors as the State Government may specify.
Explanation:—
(i) “Cottage Industry” means an industry carried on in any premises to which the
Factories Act, 1948 (Central Act 63 of 1948) does not apply and includes dairy
farming, beekeeping and keeping of poultry farm.
(ii) “Small scale industry” means—
2[(a) an industry with a capital investment of not more than Rupees 7.5 lakhs or such
amount as may be notified by the State Government from time to time in plant
and machinery only irrespective of the number of persons employed therein, or
(b) an industry with capital investment not exceeding Rs. 10 lakhs, or such amount
as may be notified by the State Government from time to time in plant and
machinery and manufacturing ancillary and components of such industry as may
be specified in this behalf by the Development Commissioner, Small Scale
Industries.]
(iii) “Village industry” means any industry which forms a normal occupation, whether
whole-time or part-time, of any class of the rural population of the State.
(2) The decision of the State Government as to whether the conditions of this section
are fulfilled shall be final and shall not be called in question in any court of law.
5. Methods of giving aid. —The State Government or any prescribed officer,
authority or person may, subject to such conditions and in such manner as may be
prescribed, give aid to an industry in one or more of the following ways, namely:—
(a) by grant of loan,
(b) by guaranteeing a cash credit, over draft or fixed advance with a bank, or
providing any other credit facility,
(c) by paying a subsidy for the purchase of implements, tools or machinery in order
to conduct research,
(d) by underwriting or subscribing for shares or debentures,
(e) by guaranteeing a minimum return on the capital of a company,
(f) by providing at concessional rates, supply of raw material, fire-wood or water,
2 Substituted by section 3 of Rajasthan Act No. 10 of 1969, published in Rajasthan Gazette, Part IV-A,
Extraordinary, dated 1-5-1969.
3
(g) by supply of implements and machinery on hire purchase system or by
guaranteeing such purchases,
(h) by supplying at concessional rates, electrical energy from a source which is owned
by the State Government, by granting rebate on the rate payable by any industry for supply
of electricity to it, or providing subsidy to the Rajasthan State Electricity Board for supply
of power to any industry at the rates specified by the State Government or by providing
built-in power houses,
(i) by granting, free of charge or on favourable terms, the services of officers and
experts in the service of the State Government for starting or advising an industry,
(j) by undertaking establishment of industrial estates,
(k) by granting concessions in, or exemptions from State or local taxes and duties
where the law relating thereto authorises such concessions or exemptions,
(l) by running common facility centres or cluster -type training centres or by
providing industrial or technical institutions which may be beneficial for the development
of industry,
(m) by opening emporia or other demonstration centres or providing facilities for
marketing of products,
(n) by giving preference in the purchase of products of an industry,
(o) by providing credit facility to industrial cooperatives,
3(oa) by grant of subsidy to Associations/Federation of Industries,
(ob) by grant of subsidy on Managerial Technical staff engaged by Industrial Co-
operatives,
(oc) by grant of subsidy on the construction of new worksheds in rural areas,
(od) by grant of subsidy on purchase of new tools and equipments by Industries in rural
areas,
(oe) by grant of subsidy on purchase of raw material or sale of finished products,
(of) by grant of subsidy on export of finished products outside India,
(og) by providing training to artisans and Technicians, and]
(p) by grant of any assistance in any other form which, in the opinion of the State
Government, may be conducive for the promotion or development of industries in the State.
6. Power of inspection.—(1) The State Government or any officer authorised by it
in this behalf may, by order, require any person in charge of the industry to which aid under
the provisions of this Act has been given to furnish such information or to produce such
books or accounts and other documents for inspecting at such time and place as may be
3 Inserted by section 4 of Rajasthan Act No. 10 of 1969, published in Rajasthan Gazette, Part IV -A,
Extraordinary, dated 1-5-1969.
4
specified in the order and such person shall comply with such order.
(2) The St ate Government or such officer may inspect such books of accounts or
documents produced and take extract therefrom.
(3) The State Government or the officer making the inspection or any person working
under his order shall not communicate or allow to be communicated to any person not
legally entitled thereto any information relating to the affairs of such industry.
(4) 4If any person- (a) fails, without sufficient cause, to comply with an order issued
under sub-section (1); or
(b) knowingly discloses or allows to be disclosed any information in
contravention of sub-section (3), he shall be liable to monetary penalty which may be
extend to fifty thousand rupees, as may be imposed by the competent authority
authorised by the State Government:
Provided that no such penalty shall be imposed without giving the person
concerned a reasonable opportunity of being heard.
7. Fees.—The State Government may charge from an industry in respect of any
applications, inquiries, inspection and audit, such fees as may be prescribed.
8. Power to make rules.—(1) The State Government may from time to time make
rules, consistent with this Act, for the purpose of carring out generally the provisions
thereof and regulating any particular matter thereunder which require to be prescribed or
in respect of which rules are required to be, or may be, made.
(2) All rules made under this Act shall be laid, as soon as, may be after they are so
made, before the House of the State Legislature, while it is in session, for a period of not
less than fourteen days which ma y be comprised in one session or in two successive
sessions and, if, before the expiry of the session in which they are to be laid or of the session
immediately following, the House of the State Legislature makes any modification in any
of such rules or re solves that any such rule shall not be made, such rule shall thereafter
have effect only in such modified form or be of no effect, as the case may be, so however
that any such modification or annulment shall be without prejudice to the validity of
anything previously done thereunder.
59. Act to be in addition to any other law. — The Provisions of this act shall be in
addition to, and not in derogation of, the provisions of any other la w for the time being in
force.
4 Substituted by Rajasthan Jan Vishwas (amendment of provisions) ordinance, 2025 notification dated
December 12, 2025.
5 Inserted by section 4 of Rajasthan Act No. 10 of 1969, published in Rajasthan Gazette, Part IV -A,
Extraordinary, dated 1-5-1969.