The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has approved Bharat Audyogik Vikas Yojana Rasayan or BHAVYA - Rasayan Scheme for establishing three dedicated Chemical Parks in the country. The Scheme was announced in the Union Budget of FY 2026–27.
- The Scheme will have a total financial outlay of Rs.3,030 crore, with Rs.3,000 crore towards meeting the cost of establishing the Common Infrastructure Facilities and Basic Utilities inside the park and Rs.30 Crores as administrative expenditure.
- The scheme would run for a period of 5 years from FY 2026-27 to FY 2030-31.
- The Centre would provide a grant of up to Rs.1,000 crore per park. This will be subject to minimum contribution of Rs.500 crore by the concerned State Government.
BHAVYA Rasayan Scheme is expected to bring the following benefits to the economy:
- It will promote development of the Chemical industry along the whole value chains including upstream, downstream and ancillary industries promoting efficient utilization of resources, leading to lower logistics cost.
- Through shared Common Infrastructure Facilities and Basic Utilities, keeping the needs of chemicals industry in mind, it will lead to enhanced cost competitiveness and will make the Indian Industry globally competitive.
- It will help the Indian Chemical industry better integrate in Global Value Chains leading to greater exports and higher import substitution.
- It will promote development of Indian Chemical industry in a sustainable way by creating an environment friendly ecosystem which will consist of centralized facilities such as Common Effluent Treatment Plant, Treatment, Storage, and Disposal Facility, and Hazardous Waste Management infrastructure. It will ensure better compliance management with environmental regulations, thereby promoting development of industry in eco-friendly manner.
Key Features and Financial Framework:
- Three Dedicated Parks: Under this scheme, three world-class dedicated chemical parks will be established in the country.
- Challenge Route: States will be selected for setting up parks through a transparent and challenge-based competitive process
- Land Requirement: Participating states must provide a minimum of 8 square kilometres (about 2,000 acres) of dispute-free and continuous land per park.
Funding Pattern:
- The central government will provide a maximum grant of ₹1,000 crore for each park.
- This grant will be available only if the concerned state government contributes a minimum of ₹500 crore.
Shared Infrastructure Component:
- Common Effluent Treatment Plants (CETP) and Hazardous Waste Disposal Facilities (TSDF).
- Continuous water supply, steam generation and distribution network.
- Solvent recovery and distillation facilities.
- Integrated and interconnected industrial pipeline networks.
- Advanced logistics and warehousing facilities
Significance:
- Recognising that this sector produces Chemicals and Petrochemicals which are used in various downstream industries such as Agriculture, Textiles, Pharmaceuticals, Nutraceuticals, Construction, Automobile, Electronics, introducing BHAVYA Rasayan Scheme shall facilitate development of the sector by attracting domestic and foreign investments, enhancing domestic production capacity and generating employment.
- It will boost the global competitiveness of the sector thereby, promoting Atmanirbharta.
Chemical Industry: At a Glance
- Contribution to GDP: ~7%
- Share in Manufacturing GVA (FY24): 8.1% (Economic Survey 2025–26)
- Global Rank: 6th largest chemical producer
- Asia Rank: 3rd largest
- Product Range: 80,000+ chemical products
- Major Segments: Bulk chemicals, Specialty chemicals, Petrochemicals, Agrochemicals, Polymers, Fertilisers.
- Key Consumer Industries: Agriculture, Pharmaceuticals, Textiles, Automobiles, Construction
Strategic Importance and Benefits:
- Strengthening the entire value chain: It will reduce freight and handling costs by bringing upstream (raw materials), downstream (final products) and ancillary industries under one roof.
- Reducing import dependence: India currently relies on imports for many high-value chemicals. This scheme will save forex by increasing domestic production.
- Environmental Compliance: Centralized waste management will ensure better and cost-effective compliance with pollution control regulations.
- Multi-sector impact: The chemical industry is the backbone of sectors such as textiles, pharmaceuticals, agriculture (fertilizers), automobiles, and electronics. Strengthening it will benefit all of these sectors.
- Investment and Employment: It will generate large scale employment by attracting domestic and foreign direct investment (FDI).
Previously Government Launched BHAVYA Scheme to develop 100 plug-and-play industrial parks
Bharat Audyogik Vikas Yojna (BHAVYA)
- In April 2026, Union Cabinet approved Bharat Audyogik Vikas Yojna (BHAVYA) to develop 100 plug-and-play industrial parks with an allocation of 33,660 crore rupees.
- Key Highlights of the Scheme
- Nodal Ministry: Ministry of Commerce & Industry.
- Objective: It aims to develop 100 investment-ready plug-and-play industrial parks (100–1000 acres) in and near cities, in partnership with States, Central Public Sector Undertakings and private sector.
- Duration: The scheme will be operational for a period of six (6) years commencing from financial year 2026-27 up to 2031-32, with an outlay of ₹ 33,660 crores.
- Implementation Mechanism: Implemented by National Industrial Corridor Development Corporation (NICDC) under the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry in partnership with States and private sector.
- Mode of Implementation:
- The State/UT government or the Central PSU shall be the sponsoring agency.
- The development of the park shall be carried out by a Special Purpose Vehicle (SPV) formed between National Industrial Corridor Development and Implementation Trust (NICDIT) under DPIIT and the state nodal agency.
- The SPV shall be the owner of assets created under the scheme, and shall be responsible for planning, construction, operation and maintenance of the industrial park to be developed.
- Financial support: Up to ₹1 crore per acre will be available for eligible projects, while parks developed in partnership with private developers will receive support of up to ₹50 lakh per acre or 50% of infrastructure cost, whichever is lower. Financial support is provided for
- Core infrastructure (roads, utilities, drainage, ICT)
- Value-added infrastructure (factory sheds, labs, warehousing)
- Social infrastructure (worker housing, amenities)
- Additional support: Up to 25% of project cost for external infrastructure (connectivity and integration with existing networks)
- Beneficiaries:
- Primary: Manufacturing units, MSMEs, startups, investors
- Secondary: Workers, logistics providers, service sector, local communities
Source: PIB
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