Mumbai, Oct. 30 -- Insolation Energy has received an Entitlement Certificate from the Government of Rajasthan for turnover-linked incentive under the Rajasthan Investment Promotion Scheme 2022, covering its solar module manufacturing plant at Sawarda, Jaipur. The disclosure dated 28 October 2026 said the certificate was issued by the Office of the Commissioner of Industries. The plant is operated by Insolation Green Energy, a wholly owned subsidiary.
The certificate dated 26 October 2026 recognises eligible fixed capital investment of Rs. 1.79 bn, as approved by the State Level Screening Committee. It provides for a turnover-linked incentive of 1.98 per cent, including applicable boosters. During the first phase of expansion, the maximum incentive claimable is up to 125 per cent of eligible fixed capital investment, taking the potential entitlement to about Rs. 2.24 bn.
The incentive will be claimed against eligible turnover generated in each applicable year and is expected to be realised over about nine years. The actual benefit will depend on eligible turnover, the remaining entitlement, applicable ceilings and compliance with the scheme's requirements. Insolation Energy is also entitled to a 100 per cent exemption from electricity duty for the project.
Based on current electricity bills, the annualised benefit from the exemption is estimated to exceed Rs. 10 mn. The exemption is expected to generate recurring savings in electricity-related operating costs and support operating efficiency and cash flows, subject to eligible consumption and the applicable exemption period.
The company is pursuing subsidy and incentive benefits of about Rs. 1.85 bn for the second phase of expansion and has submitted the required documents to the relevant government department. Approval remains subject to review by the competent authority. Insolation Energy said it would disclose material developments and account for the incentives in accordance with applicable accounting standards and regulatory requirements.
Published by HT Digital Content Services with permission from Construction World.