The Union Cabinet has approved the ₹3,030 crore BHAVYA Rasayan Scheme to establish three world-class Chemical Parks across India. The initiative aims to boost domestic manufacturing, attract investments, strengthen global competitiveness, generate employment and support the vision of Atmanirbhar Bharat and Viksit Bharat 2047.
Key Highlights
- Cabinet approves ₹3,030 crore BHAVYA Rasayan Scheme for three Chemical Parks.
- Centre to provide up to ₹1,000 crore grant for each park.
- Parks will feature plug-and-play infrastructure and common industrial utilities.
- Scheme aims to boost chemical manufacturing, exports, employment and investment.
New Delhi, July 25: The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the Bharat Audyogik Vikas Yojana Rasayan (BHAVYA Rasayan) Scheme to establish three dedicated Chemical Parks across the country. Announced in the Union Budget 2026-27, the scheme seeks to transform India’s chemical manufacturing ecosystem by creating world-class industrial infrastructure and enhancing the sector’s global competitiveness.
The BHAVYA Rasayan Scheme has a total financial outlay of ₹3,030 crore, including ₹3,000 crore for developing Common Infrastructure Facilities and Basic Utilities and ₹30 crore for administrative expenses. The scheme will be implemented over five years, from FY2026-27 to FY2030-31. Under the programme, the Central Government will provide grants of up to ₹1,000 crore per Chemical Park, while the respective State Government must contribute at least ₹500 crore.
The three Chemical Parks will be selected through a Challenge Route and developed by State Governments. Each park will require a minimum contiguous area of 2,000 acres (8 sq. km.) of encumbrance-free land. The parks will offer plug-and-play industrial infrastructure, enabling faster project implementation and lower investment costs for chemical manufacturers.
Each Chemical Park will include Common Effluent Treatment Plants (CETPs), Treatment, Storage and Disposal Facilities (TSDFs), water supply systems, solvent recovery units, steam generation and distribution networks, interconnected pipelines, logistics hubs and warehousing facilities. These shared utilities are expected to reduce production costs, improve operational efficiency and ensure better environmental compliance.
The government said the scheme will strengthen the entire chemical value chain, including upstream, downstream and ancillary industries, while helping India integrate more effectively into global value chains. It is expected to increase exports, reduce import dependence, attract domestic and foreign investments and create large-scale employment opportunities, supporting the goals of Atmanirbhar Bharat and Viksit Bharat @ 2047.
The chemical and petrochemical sector supplies critical raw materials to industries such as agriculture, pharmaceuticals, nutraceuticals, textiles, construction, automobiles and electronics. By creating modern industrial ecosystems with sustainable infrastructure, the BHAVYA Rasayan Scheme is expected to accelerate industrial growth while promoting environmentally responsible manufacturing across India.
The BHAVYA Rasayan Scheme marks a significant step towards building a globally competitive chemical manufacturing ecosystem by combining modern infrastructure, sustainable industrial practices and investment-friendly policies to drive long-term economic growth.
