The Union Cabinet, led by Prime Minister Narendra Modi, has given the green light to the Bharat Audyogik Vikas Yojana Rasayan (BHAVYA – Rasayan) Scheme. This initiative aims to establish three specialized Chemical Parks in India, backed by an investment of Rs 3,030 crore. The scheme, introduced in the Union Budget of FY 2026–27, allocates Rs 3,000 crore for setting up common infrastructure facilities and basic utilities within the parks, with an additional Rs 30 crore earmarked for administrative expenses.
The BHAVYA – Rasayan Scheme is set to operate over a five-year period, spanning from FY 2026–27 to FY 2030–31, as outlined in an official statement post the Cabinet meeting. Each park under the scheme is eligible for a grant of up to Rs 1,000 crore from the Centre, contingent upon a minimum contribution of Rs 500 crore from the respective State Government. These parks, developed by State Governments under the Challenge Route, will encompass a minimum contiguous area of 8 sq. km. (at least 2,000 acres) of unencumbered land, providing essential plug-and-play infrastructure for the chemical industry.
The initiative is anticipated to foster sustainable growth in the Indian chemical sector by establishing an eco-friendly ecosystem. Centralized facilities like common effluent treatment plants, storage and disposal facilities, and hazardous waste management infrastructure will be pivotal in ensuring compliance with environmental regulations and promoting eco-friendly industrial expansion. By enhancing resource efficiency and reducing logistics costs, the BHAVYA – Rasayan Scheme is poised to boost the entire value chain of the chemical industry, including upstream, downstream, and ancillary sectors.
