Indian Economy News

Cabinet Approves BHAVYA Rasayan Scheme for Chemical Parks

The Union Cabinet, chaired by Prime Minister Mr. Narendra Modi, has approved the Bharat Audyogik Vikas Yojana Rasayan (BHAVYA Rasayan) scheme to establish three dedicated Chemical Parks across the country, strengthening India's chemical manufacturing ecosystem and global competitiveness. Announced in the Union Budget FY27, the scheme has a total financial outlay of Rs. 3,030 crore (US$ 322.34 million), comprising Rs. 3,000 crore (US$ 319.15 million) for developing common infrastructure and basic utilities and Rs. 30 crore (US$ 3.19 million) for administrative expenditure. The scheme will be implemented over five years (FY27-FY31), with the Central Government providing grants of up to Rs. 1,000 crore (US$ 106.38 million) per park, subject to a minimum contribution of Rs. 500 crore (US$ 53.19 million) from the respective state government. The parks will be developed through a competitive challenge-based approach on a minimum 2,000-acre contiguous land parcel.

The dedicated Chemical Parks will provide plug-and-play infrastructure, including Common Effluent Treatment Plants, Treatment, Storage and Disposal Facilities, water supply systems, solvent recovery units, steam generation networks, interconnected pipelines and logistics infrastructure, creating an integrated ecosystem for chemical manufacturing. The initiative is expected to strengthen the entire chemical value chain, including upstream, downstream and ancillary industries, while reducing logistics costs and improving operational efficiency. It will also enhance India's integration into global value chains, promote exports, encourage import substitution and support sustainable industrial development through advanced environmental management infrastructure. By attracting domestic and foreign investments, expanding production capacity and generating employment across sectors such as agriculture, textiles, pharmaceuticals, nutraceuticals, construction, automobiles and electronics, the scheme is expected to reinforce Atmanirbhar Bharat and contribute significantly towards the vision of Viksit Bharat 2047.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.