Rajasthan Cabinet Takes Key Decisions on Vehicle Scrapping, AI Policy, Green Credits and Refinery Project

 


Jaipur, December 30:

The Rajasthan Council of Ministers, chaired by Chief Minister Bhajanlal Sharma, on Tuesday approved several important policy decisions aimed at environmental protection, green and sustainable development, promotion of Artificial Intelligence (AI), investment, innovation, and employee welfare.

Rajasthan Vehicle Scrapping Policy–2025 Approved

The Cabinet approved the Rajasthan Vehicle Scrapping Policy–2025 to phase out unregistered, unfit, old and polluting vehicles in a scientific, safe and environmentally compliant manner. Registered Vehicle Scrapping Facilities (RVSFs) will be promoted across the state, ensuring transparent, digital and traceable scrapping processes integrated with the national vehicle portal.

Vehicle owners scrapping eligible vehicles will receive a Certificate of Deposit (CoD) and Certificate of Vehicle Scrapping (CVS), enabling them to avail up to 50% rebate on motor vehicle tax, subject to a maximum of ₹1 lakh, while purchasing a new vehicle.



Chassis number cut-pieces of scrapped vehicles will be kept in safe custody for a total period of two years, strengthening monitoring and preventing misuse. The policy will also promote the circular economy by enabling reuse of steel, aluminium, plastic and rubber.

Special incentives including capital subsidy, tax exemptions, interest subsidies, stamp duty and electricity duty concessions will be provided to registered scrapping units. Recycling and scrapping startups will receive support under the state startup policy.

Rajasthan AI & ML Policy–2026 Gets Cabinet Nod

The Cabinet approved the Rajasthan Artificial Intelligence and Machine Learning Policy–2026, aimed at making Rajasthan a hub for AI-led investment and innovation. The policy focuses on ethical, responsible and secure use of AI to improve governance, public service delivery and administrative efficiency.

Special emphasis has been placed on data protection, cyber security, transparency, fairness and bias reduction in AI systems. An AI Centre of Excellence will be established, and AI education will be promoted in schools, ITIs, polytechnics and colleges. Training programs will be conducted for youth, teachers and government employees, while industries, MSMEs, startups and research institutions will receive additional incentives.

Green Credit Voucher Initiative–2025 Approved

To encourage green and sustainable development, the Cabinet approved the Green Credit Voucher Initiative–2025. Under this scheme, enterprises and urban local bodies will receive tradable and redeemable green credit vouchers for investments in renewable energy, waste management, water conservation, pollution control, sustainable buildings and agriculture.



Green vouchers worth 5% for investments up to ₹1 crore and 10% for investments above ₹10 crore (maximum ₹2.50 crore) will be issued, in addition to incentives under RIPS–2024.

Revised Cost Approved for Rajasthan Refinery Project

The Cabinet approved the second revised cost of the Rajasthan Refinery-cum-Petrochemical Complex at Pachpadra. The project cost has been revised to ₹79,459 crore, an increase of ₹6,522 crore. The debt-equity ratio will remain 2:1, with the state government’s equity share at 26%. An additional equity contribution of ₹565.24 crore will be made by the state government.

The refinery project is progressing rapidly and moving towards completion during the current government’s tenure.

Other Key Decisions

Approval of Rajasthan Revenue Accounts (State & Subordinate) Service Rules–2025, providing structured promotion opportunities for revenue accounting staff.

Amendment to Rajasthan Legislative Assembly Secretariat Rules, 1992, allowing deputation of military and paramilitary officers to marshal posts.

Increase in special allowance for Special Security Wing personnel from 15% to 25%, effective from April 1, 2025.

Approval of the Seventh State Finance Commission’s interim report for the financial year 2025–26.

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