Cabinet Approves BHAVYA Rasayan Scheme to Establish Three Mega Chemical Parks

· The Union Cabinet has approved the Bharat Audyogik Vikas Yojana Rasayan (BHAVYA Rasayan) scheme to establish three dedicated Chemical Parks across India.

· The scheme was announced in the Union Budget 2026–27 and will be implemented over five years (FY 2026–27 to FY 2030–31).

· Total financial outlay: ₹3,030 crore, including:

o ₹3,000 crore for common infrastructure and utilities.

o ₹30 crore for administrative expenses.

· The Central Government will provide up to ₹1,000 crore per Chemical Park, while the State Government must contribute at least ₹500 crore.

· Parks will be selected through a Challenge Route and each must have at least 2,000 acres (8 sq. km.) of contiguous, encumbrance-free land.

· The parks will offer plug-and-play infrastructure, including:

o Common Effluent Treatment Plant (CETP)

o Hazardous waste management (TSDF)

o Water supply systems

o Solvent recovery facilities

o Steam distribution network

o Pipeline network

o Logistics and warehousing facilities

· The scheme aims to strengthen the entire chemical value chain, including upstream, downstream, and ancillary industries.

· It is expected to reduce logistics costs, improve global competitiveness, increase exports, promote import substitution, and attract domestic and foreign investment.

· The initiative will support environmentally sustainable industrial development through centralized waste treatment and pollution-control infrastructure.

· The scheme is expected to generate employment, boost downstream sectors such as agriculture, textiles, pharmaceuticals, construction, automobiles, and electronics, and contribute to the Viksit Bharat @ 2047 vision.

[ABS News Service/25.07.2026]

The Union Cabinet chaired by the Prime Minister Narendra Modi has approved Bharat Audyogik Vikas Yojana Rasayan or BHAVYA - Rasayan Scheme for establishing three dedicated Chemical Parks in the country. The Scheme was announced in the Union Budget of FY 2026–27.

The Scheme will have a total financial outlay of Rs.3,030 crore, with Rs.3,000 crore towards meeting the cost of establishing the Common Infrastructure Facilities and Basic Utilities inside the park and Rs. 30 Crores as administrative expenditure. The scheme would run for a period of 5 years from FY 2026-27 to FY 2030-31.

In terms of the said scheme, the Centre would provide a grant of up to Rs.1,000 crore per park. This will be subject to minimum contribution of Rs.500 crore by the concerned State Government.

BHAVYA Rasayan Scheme is expected to bring the following benefits to the economy:

· It will promote development of the Chemical industry along the whole value chains including upstream, downstream and ancillary industries promoting efficient utilization of resources, leading to lower logistics cost.

· Through shared Common Infrastructure Facilities and Basic Utilities, keeping the needs of chemicals industry in mind, it will lead to enhanced cost competitiveness and will make the Indian Industry globally competitive.

· It will help the Indian Chemical industry better integrate in Global Value Chains leading to greater exports and higher import substitution.

· It will promote development of Indian Chemical industry in a sustainable way by creating an environment friendly ecosystem which will consist of centralized facilities such as Common Effluent Treatment Plant, Treatment, Storage, and Disposal Facility, and Hazardous Waste Management infrastructure. It will ensure better compliance management with environmental regulations, thereby promoting development of industry in eco-friendly manner.

· Development of Chemical sector will lead to a cascading effect through enhanced development of downstream sectors of the economy as well, thereby leading to higher employment generation and greater development of the economy, helping achieve the goal of Viksit Bharat @ 2047.

Recognising that this sector produces Chemicals and Petrochemicals which are used in various downstream industries such as Agriculture, Textiles, Pharmaceuticals, Nutraceuticals, Construction, Automobile, Electronics, introducing BHAVYA Rasayan Scheme shall facilitate development of the sector by attracting domestic and foreign investments, enhancing domestic production capacity and generating employment. It will boost the global competitiveness of the sector thereby, promoting Atmanirbharta.

In terms of the said Scheme, the Centre will facilitate development of three dedicated Chemical Parks by the State Governments under Challenge Route. Each such park will have a minimum contiguous area of 8 sq. km. (minimum 2,000 acres) of encumbrance-free land. These parks will provide plug-and-play infrastructure, in the form of Common Infrastructure Facilities and Basic Utilities for the chemical industry such as:

· 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,

· Logistics and warehousing facilities.