Rajasthan has the largest area of 52 hectares of cultivable waste land in the country. With a view to convert Desert and other areas into prosperous green belt, the State Government has formulated policy, rules and procedures for setting up large agro-based industrial projects on the waste land by private entrepreneurs. Any private entrepreneur can be allotted the waste land for establishing value added agro-industrial project with captive farming, plantation and horticulture. The preference will be given to export-oriented projects.

The State Government have announced new Policy under Notification No.F.6(18)REV/Gr.6/94/2 dated 14.3.1996. The salient features of the Notification are given as below :

1. "Agro based export-oriented produce purpose" shall include establishment of integrated agro-industrial complexes or estates comprising plantation and agro-processing industrial units, composite high technology agricultural projects in the areas of horticulture including floriculture, medicinal plants and herbs , spices and condiment, mushroom culture, hybrid seed production, micro-propagation through tissue culture etc. and research and development activities including training.

2. "High Technology agricultural projects" shall include use of green houses, advanced water conservation devices like sprinklers, drips, pulsators, emitters etc. and computerised farm management practices and devices.

Vacant Government wasteland including gair mumkin and ravine land and other Government land which has never been tilled in last one decade & unfit for cultivation by ordinary means, but excluding forest land, shall be available for allotment. It shall be necessary that such land have the potential for agriculture. Land investment is needed to develop wastelands.

Following two Committees have been constituted:

1. District Level Committee headed by the concerned District Collector to recommend the proposal to the State Level Committee.

2. State Level Committee headed by the Chief Secretary to allot the land.

The maximum area of land to be allotted under these rules shall not exceed 500 hectares. In special cases for which criteria shall be laid down separately, the extent of allotment can be raised upto 1000 hectares. Where the area of the land proposed for allotment for public purpose exceeds the ceiling area, exemption may be considered by the State Government.

At the time of allotment , an amount of Rs.400/- per hectare shall be paid by the applicant.

The allotment made under these rules shall be on lease-hold basis for an initial period of 30 years and subject to the renewal of further 20 years. Beyond this period, the State Government may consider for renewal based on merit of each case .

The annual lease rent for the land allotted shall be charged from second year onwards. The amount varies from Rs.125/- to 400/- in tenth year .

These rates of lease rent shall be applicable to allotment made within a period for five years from the date of commencement of these rules where after allotment shall be made on the lease rent as specified by the State Government from time to time

Allotment of wasteland will be based on following guidelines in addition to those specified in the Notification:

1. RIICO will be the Nodal Agency for receiving all the proposals from the private entrepreneurs/applicants.

2. The over-riding preference would be accorded to the composite units comprising farming./plantation/horticulture-cum-processing.

3. Private entrepreneur/applicant will at first identify the waste land and the location of the project.

4. Entrepreneurs/applicants are requested to apply for the composite project by providing details like:

• Project and Product(s) details (on captive farming basis) with installed capacity.
• Project cost including cost of agriculture farming, industrial units, social infrastructure etc.
• Promoter's profile, experience in the line with balance sheets of past three years the company.
• Promoter's capabilities and capacity to undertake such a project etc.

5. RIICO will undertake evaluating techno-economic feasibility/viability of composite units after the receipt of the project report.

6. For evaluating the composite project, a fee of Rs.0.25% of the project cost would be charged by RIICO. The proposal is to be submitted in the prescribed term loan application form of RIICO.

7. For the assessment and evaluation of the agricultural part of the project like assessment of the land requirement based on the yield of each crop etc., assistance/service of Revenue Department, Government of Rajasthan/ NABARD/Agriculture Finance Corporation Ltd. The Entrepreneurs/Applicants can also approach directly Agriculture Finance Corporation Ltd/ NABARD/Bank for financial assistance of the composite project.

8. A refundable security deposit of Rs.1.00 lac for the land upto 200 hectares and the multiplication of every 200 hectares of land applied for would be taken by RIICO. This amount would be refunded without interest to the applicant company/society after the commissioning of the composite project. In case the project is abandoned after taking the possession of the full/part of wasteland, the security amount will be forfeited besides the resumption of land with Government.

For more details, contact :

Rajasthan State Industrial Development & Investment Corporation Ltd.

Udyog Bhawan, Tilak Marg, Jaipur 302 005

Rajasthan, India

Phone : 91-0141-5113222 (D), 2227751