Cabinet Approves ₹3,030 Crore BHAVYA Rasayan Scheme
New Delhi: The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the BHAVYA Rasayan scheme.
This strategic manufacturing program carries a total financial outlay of ₹3,030 crore. Furthermore, the state funding will establish three dedicated chemical parks across the country over five years. By building these mega industrial hubs, India intends to strengthen domestic chemical manufacturing, attract foreign investments, and reduce import dependencies.
├──▶ Common Infrastructure & Utilities: ₹3,000 Crore (₹1,000 Cr Per Park) └──▶ Administrative Expenses: ₹30 Crore
Challenge-Based Selection and State Funding Model
First announced in the Union Budget 2026–27, the scheme will run from FY 2026–27 to FY 2030–31. Under this framework, the Centre will provide financial assistance up to ₹1,000 crore for each park.
However, participating state governments must contribute a minimum matching share of ₹500 crore. Additionally, state authorities will select project locations through a competitive, challenge-based bidding process. Each chosen site requires at least 2,000 acres of contiguous, encumbrance-free land.
Core Park Selection and Land Criteria:
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Central Capital Grant: Up to ₹1,000 crore per chemical park.
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Minimum State Contribution: ₹500 crore per approved project.
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Land Area Requirement: Minimum 2,000 acres (8 sq. km.) of contiguous land.
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Execution Window: Five-year rollout through FY 2030–31.
Advanced Plug-and-Play Infrastructure
Crucially, the scheme addresses structural supply chain bottlenecks across upstream, downstream, and ancillary chemical units. The parks will feature state-of-the-art plug-and-play infrastructure tailored to heavy manufacturing requirements.
──▶ CETP & TSDF Treatment ──▶ Reduced Logistics Costs │ Downstream & Ancillary Factories ◀─────────────────────────────────┘ Key Shared Infrastructure Features: -
Waste Management: Common Effluent Treatment Plants (CETPs) and Treatment, Storage, and Disposal Facilities (TSDFs).
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Industrial Utilities: Dedicated water distribution networks, solvent recovery systems, and steam generation facilities.
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Logistics Networks: Interconnected pipeline corridors, heavy warehousing, and centralized freight loading zones.
Consequently, shared infrastructure will lower production costs for domestic manufacturers and enhance resource efficiency.
Supporting Key Downstream Industries
Significantly, chemical and petrochemical products serve as fundamental raw inputs across vital economic sectors. These include agriculture, textiles, pharmaceuticals, nutraceuticals, construction, automobiles, and consumer electronics.
By centralising hazardous waste management and compliance infrastructure, the scheme enables factories to meet strict environmental standards easily. Ultimately, these integrated industrial parks will accelerate manufacturing capacity, generate skilled employment, and support the vision of Viksit Bharat 2047.
BHAVYA Rasayan Scheme Breakdown Scheme Parameter / Metric Approved Policy Value Core Operational Focus Strategic Industrial Impact Total Scheme Outlay ₹3,030 Crore Direct central infrastructure grants. Accelerates domestic chemical production. Central Grant Per Park Up to ₹1,000 Crore Covers basic utilities and CETP plants. Cuts initial capital expenses for states. Minimum Land Area 2,000 Acres (8 sq. km.) Contiguous, encumbrance-free parcels. Allows large-scale industrial clustering. Implementation Horizon FY 2026–27 to FY 2030–31 Five-year phased development plan. Provides long-term policy predictability. Environmental Control Central CETPs & TSDFs Shared waste management units. Ensures strict environmental compliance.
