#### Major Cabinet Decisions for Rajasthan
Rajasthan Vehicle Scrapping Policy–2025 approved for unregistered, unfit and scrap vehicles
Rajasthan to emerge as a hub for investment and innovation in Artificial Intelligence
Green Credit Voucher Scheme approved for enterprises and urban local bodies
Revised cost of Rajasthan Refinery fixed at ₹79,459 crore
Jaipur, In a cabinet meeting chaired by Chief Minister Bhajanlal Sharma at the Chief Minister’s Office on Tuesday, several important decisions were taken to promote environmental protection, green and sustainable development, good governance, industry, education and employee welfare. The cabinet approved new policies to encourage the responsible, ethical and secure use of Artificial Intelligence (AI) and Machine Learning (ML) across various sectors.
Rajasthan Vehicle Scrapping Policy–2025 Approved
Deputy Chief Minister Dr. Premchand Bairwa, Parliamentary Affairs Minister Jogaram Patel, and PHED Minister Kanhaiya Lal informed in a press briefing that, in line with the Budget 2025–26 announcements, the Rajasthan Vehicle Scrapping Policy–2025 has been approved. The policy aims to phase out unfit and polluting vehicles and ensure their scientific, safe and environmentally compliant disposal.
The policy will promote the establishment of Registered Vehicle Scrapping Facilities (RVSFs) across the state. All scrapping processes will be transparent, digital and traceable, integrated with the national vehicle portal, eliminating the possibility of unauthorised reuse of scrap vehicles.
Tax Rebate on Purchase of New Vehicles
Vehicles eligible for scrapping include government vehicles older than 15 years, unregistered or unfit vehicles, accident-damaged vehicles, auctioned scrap vehicles and voluntarily surrendered vehicles. Vehicle owners will receive a Certificate of Deposit (CoD) and a Certificate of Vehicle Scrapping (CVS), which will also be uploaded digitally.
Based on the CoD, buyers will be eligible for up to 50% rebate on motor vehicle tax, subject to a maximum of ₹1 lakh, on the purchase of a new vehicle.
Boost to Circular Economy
Scrapped vehicle chassis numbers will be kept in safe custody for two years. The policy will strengthen the circular economy, enabling reuse of steel, aluminium, plastic, rubber and other materials, benefiting the automobile, steel and manufacturing sectors with affordable raw materials.
Special incentives including capital subsidy, tax exemptions, interest subsidy, and concessions in stamp duty and electricity charges will be provided to registered scrapping units. Startups in recycling and scrapping will also receive support under the Rajasthan Startup Policy.
Rajasthan AI & ML Policy–2026 Approved
The cabinet approved the Rajasthan AI & ML Policy–2026, aimed at positioning Rajasthan as an emerging hub for AI-driven investment and innovation. The policy focuses on improving public service delivery through ethical, secure and transparent use of AI, enhancing administrative efficiency and promoting innovation-led economic growth.
Special emphasis has been laid on data protection, cyber security, bias reduction and accountability in AI systems. An Artificial Intelligence Centre of Excellence will also be established in the state.
AI education will be promoted in schools, ITIs, polytechnics and colleges, along with training programmes for youth, teachers and government employees. Industries, MSMEs, startups and research institutions will receive additional incentives for AI initiatives.
Green Credit Voucher Initiative–2025
The cabinet approved the Green Credit Voucher Initiative–2025 to encourage sustainable and environment-friendly projects. Enterprises and urban local bodies will receive tradable and redeemable green credit vouchers for investments in renewable energy, energy efficiency, waste management, water conservation, pollution control and sustainable infrastructure.
Green vouchers will be valued at 5% for investments up to ₹1 crore and 10% for investments above ₹10 crore, with a maximum cap of ₹2.5 crore.
Progress in Rajasthan Refinery Project
Parliamentary Affairs Minister Jogaram Patel stated that the 9 MMTPA Rajasthan Refinery-cum-Petrochemical Complex at Pachpadra is progressing steadily and nearing completion. The revised project cost has now been approved at ₹79,459 crore, with the debt-equity ratio maintained at 2:1. The state government’s equity share remains at 26%.
Service Rules and Employee Welfare Decisions
The cabinet approved:
Rajasthan Revenue Accounts Service Rules–2025, ensuring structured promotion opportunities.
Amendments to Rajasthan Legislative Assembly Secretariat Rules, 1992, allowing deputation of military and paramilitary officers for Marshal and related 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 2025–26, to be presented in the upcoming Assembly session.
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