Key Decisions Taken in Rajasthan Cabinet Meeting

Jaipur, December 2025 : In the Cabinet meeting held on Tuesday at the Chief Minister’s Office under the chairmanship of Chief Minister Shri Bhajanlal Sharma, several important decisions were taken related to environmental protection, promotion of green and sustainable development, governance, industry, education, and employee welfare. New policies were approved to promote responsible, ethical and secure use of Artificial Intelligence and Machine Learning in various sectors.

Vehicles to be scrapped in a scientific, safe and eco-friendly manner:
Deputy Chief Minister Dr. Premchand Bairwa, Parliamentary Affairs Minister Shri Jogaram Patel and Public Health Engineering Minister Shri Kanhaiya Lal informed in a press briefing that, in compliance with the Budget 2025–26 announcement, 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. Registered Vehicle Scrapping Facilities (RVSFs) will be promoted, ensuring transparent, digital and traceable scrapping integrated with the VAHAN portal.

Tax rebate on purchase of new vehicles:
Vehicles over 15 years old, unregistered or unfit vehicles, accident-damaged vehicles, auctioned scrap vehicles and voluntarily surrendered vehicles can be scrapped. Vehicle owners will receive a Certificate of Deposit (CoD) and Certificate of Vehicle Scrapping (CVS). On the basis of CoD, up to 50% rebate (maximum ₹1 lakh) in motor vehicle tax will be available on purchase of a new vehicle.

Special incentives for registered scrapping units:
The policy provides capital subsidy, tax exemptions, interest subsidy, and concessions in stamp duty and electricity charges to attract investment. Recycling and scrapping startups will also receive support under the Rajasthan Startup Policy.

Approval of Rajasthan AI & ML Policy–2026:
The Cabinet approved the Rajasthan AI & ML Policy–2026 to develop the state as a centre for investment and innovation. The policy focuses on transparent, accountable and secure AI systems, data protection, cyber security and establishment of an AI Centre of Excellence. AI education will be promoted in schools, ITIs, polytechnics and colleges, along with training for youth, teachers and government employees.

Green Credit Voucher Initiative–2025 approved:
To promote green and circular economy, the Cabinet approved the Green Credit Voucher Initiative–2025. Enterprises and urban local bodies will receive tradable and redeemable green credits for investments in renewable energy, waste management, water conservation, pollution control and sustainable infrastructure.

Revised cost of Rajasthan Refinery:
The revised cost of the Rajasthan Refinery project at Pachpadra has been approved at ₹79,459 crore. The debt-equity ratio will remain 2:1, with the state government’s equity share at 26%.

Other approvals:
The Cabinet approved the Rajasthan Revenue Accounts Service Rules–2025, amendments to Rajasthan Legislative Assembly Secretariat Service Rules, increase of special allowance for Special Security Wing personnel from 15% to 25%, and approval of the interim report of the Seventh State Finance Commission.