The union cabinet approved the Bharat Audyogik Vikas Yojana Rasayan (BHAVYA Rasayan) with a total outlay of ₹3,030 crore to establish three world-class chemical parks across India. Announced in the union budget 2026–27, the scheme aims to strengthen domestic chemical manufacturing, attract investments, generate employment, and enhance the global competitiveness of India’s chemical industry. The scheme will be implemented over a five-year period, from FY 2026–27 to FY 2030–31, and is expected to create an integrated ecosystem for the country’s rapidly expanding chemical sector.
Three Integrated Chemical Parks Planned
Under the BHAVYA Rasayan Scheme, the government will support the development of three large, dedicated chemical parks. These parks will provide world-class common infrastructure and essential utilities that chemical manufacturers require to establish and expand their operations. By offering shared facilities, the government intends to reduce infrastructure costs, improve operational efficiency, and strengthen the entire chemical manufacturing value chain. As a result, companies will be able to focus more on production and innovation rather than investing heavily in basic infrastructure.
₹3,030 Crore Budget Allocation
The government has allocated ₹3,030 crore for the scheme.
Of the total allocation:
₹3,000 crore will be utilized for developing common infrastructure and basic utilities within the chemical parks.
₹30 crore has been earmarked for administrative and implementation-related expenses.
The scheme will remain operational until FY 2030–31, ensuring sustained support for the development of these industrial hubs.
Central and State Governments to Share Investment
The BHAVYA Rasayan Scheme follows a collaborative funding model involving both the central and state governments. Under the scheme, the central government can provide grants of up to ₹1,000 crore for each chemical park. However, the respective state government must contribute a minimum of ₹500 crore towards the project’s development. The shared investment model is expected to encourage greater participation from states while ensuring faster execution of infrastructure projects.
Parks to Be Selected Through Challenge Route
The three chemical parks will be selected through a Challenge Route, allowing state governments to compete based on their proposals and readiness. To qualify, each proposed chemical park must have a minimum area of eight square kilometres (approximately 2,000 acres) and contiguous and encumbrance-free land suitable for industrial development. These requirements are intended to facilitate the creation of large-scale integrated chemical manufacturing clusters capable of supporting future industrial expansion.
Plug-and-Play Infrastructure to Reduce Costs
A key feature of the BHAVYA Rasayan Scheme is the development of plug-and-play infrastructure. Instead of building individual utilities and support facilities, companies operating within the parks will have access to shared infrastructure such as roads, power supply, water systems, effluent treatment, logistics, and other essential services. Consequently, businesses can significantly reduce project costs, shorten project timelines, and begin commercial operations more quickly.
Supporting India’s Fast-Growing Chemical Industry
India’s chemical and petrochemical sector serves as the backbone of several key industries, including agriculture, pharmaceuticals, nutraceuticals, textiles, construction, automobiles and electronics. By strengthening manufacturing infrastructure, the government expects the scheme to improve supply chain efficiency and support downstream industries that depend on chemical products.
Driving Investment and Manufacturing and Employment
The government expects the BHAVYA Rasayan Scheme to attract significant domestic and foreign investments into India’s chemical sector. At the same time, the new chemical parks are expected to expand manufacturing capacity, encourage technology adoption, create employment opportunities, and improve India’s position as a global chemical manufacturing destination. As reported by indianmasterminds.com, overall, the scheme represents a major step toward building globally competitive chemical manufacturing hubs while supporting the country’s long-term industrial growth strategy.
