Cabinet Approves BHAVYA Rasayan Scheme for Chemical Parks Development
The Union Cabinet chaired by Prime Minister Narendra Modi has approved the Bharat Audyogik Vikas Yojana Rasayan (BHAVYA Rasayan) scheme for establishing three dedicated Chemical Parks in the country. This scheme was originally announced in the Union Budget of FY 2026–27 and represents a significant infrastructure development initiative for the chemical sector.
The scheme has a total financial outlay of ₹3,030 crore, with ₹3,000 crore allocated towards establishing Common Infrastructure Facilities and Basic Utilities inside the parks, and ₹30 crore designated for administrative expenditure. The program will run for a five-year period from FY 2026-27 to FY 2030-31.
Under the scheme's structure, the Central government will provide grants of up to ₹1,000 crore per park, subject to a minimum contribution of ₹500 crore from the concerned State Government. The parks will be developed by State Governments under a Challenge Route mechanism, with each park requiring a minimum contiguous area of 8 sq. km. (approximately 2,000 acres) of encumbrance-free land.
The chemical parks will provide comprehensive plug-and-play infrastructure including Common Effluent Treatment Plant (CETP), Treatment, Storage, and Disposal Facility (TSDF), water supply and distribution systems, solvent recovery and distillation facilities, steam generation and distribution network, interconnected pipeline network, and logistics and warehousing facilities.
The scheme is designed to promote development of the chemical industry along entire value chains including upstream, downstream and ancillary industries, promoting efficient resource utilization and lower logistics costs. It aims to enhance cost competitiveness through shared infrastructure, making the Indian chemical industry globally competitive and better integrated into Global Value Chains, leading to greater exports and higher import substitution.
The initiative emphasizes sustainable development by creating an environment-friendly ecosystem with centralized facilities for hazardous waste management and ensuring better compliance with environmental regulations. The chemical sector produces inputs for various downstream industries including Agriculture, Textiles, Pharmaceuticals, Nutraceuticals, Construction, Automobile, and Electronics, and the scheme is expected to facilitate sector development by attracting domestic and foreign investments, enhancing domestic production capacity, and generating employment, thereby supporting the goal of Viksit Bharat @ 2047.