Cabinet approves ₹3030 crore BHAVYA Rasayan scheme to establish three chemical parks
The five-year scheme will support the development of three integrated chemical parks with plug-and-play infrastructure, aiming to boost manufacturing, exports, investment and employment in the chemical sector.
Under the scheme, the Centre will provide financial assistance of up to ₹1,000 crore for each chemical park, subject to a minimum contribution of ₹500 crore from the respective State Government.
NEW DELHI: The Union Cabinet on Friday approved the Bharat Audyogik Vikas Yojana Rasayan (BHAVYA Rasayan) scheme with a financial outlay of ₹3,030 crore to establish three dedicated chemical parks across the country, a move aimed at strengthening India’s chemical manufacturing ecosystem and enhancing global competitiveness.
The scheme, announced in the Union Budget 2026-27, will be implemented over five years from FY 2026-27 to FY 2030-31. Of the total outlay, ₹3,000 crore has been earmarked for creating common infrastructure and basic utilities within the parks, while ₹30 crore will be used for administrative expenditure.
Under the scheme, the Centre will provide financial assistance of up to ₹1,000 crore for each chemical park, subject to a minimum contribution of ₹500 crore from the respective State Government.
The three parks will be developed by State Governments through a challenge-based selection process. Each park must have at least 2,000 acres (approximately 8 sq. km.) of contiguous, encumbrance-free land and will offer plug-and-play infrastructure to attract domestic and global investments.
The proposed parks will include common facilities such as effluent treatment plants, hazardous waste management systems, water supply and distribution networks, solvent recovery units, steam generation and distribution systems, interconnected pipeline networks, and logistics and warehousing infrastructure.
According to the government, the scheme is expected to strengthen the entire chemical value chain by supporting upstream, downstream and ancillary industries, reducing logistics costs and improving resource efficiency through shared infrastructure.
The initiative is also intended to improve the sector’s integration with global value chains, enhance exports, promote import substitution and create an environmentally sustainable manufacturing ecosystem through centralised waste treatment and pollution control facilities.
The government said the scheme would benefit downstream sectors including agriculture, textiles, pharmaceuticals, nutraceuticals, construction, automobiles and electronics by expanding domestic production capacity and generating employment, while supporting the goal of making India self-reliant in the chemical sector.
