BHAVYA Rasayan Scheme

Why in News?

The Union Cabinet approved the Bharat Audyogik Vikas Yojana Rasayan (BHAVYA Rasayan) Scheme on 24 July 2026 to develop dedicated chemical manufacturing infrastructure in India.

The scheme has a total outlay of ₹3,030 crore and will be implemented from FY 2026-27 to FY 2030-31. It provides for the development of three dedicated chemical parks with modern common infrastructure and plug-and-play facilities.

What is the BHAVYA Rasayan Scheme?

BHAVYA Rasayan stands for Bharat Audyogik Vikas Yojana Rasayan. It aims to create integrated industrial ecosystems for India’s chemical sector.

Of the total ₹3,030 crore allocation:

• ₹3,000 crore is earmarked for infrastructure development.
• ₹30 crore is allocated for administrative expenditure.
• Central assistance of up to ₹1,000 crore per chemical park will be provided.

The scheme seeks to improve manufacturing efficiency by providing shared infrastructure to chemical industries within dedicated clusters.

How Will Chemical Parks Be Developed?

The three chemical parks will be selected through a challenge-based selection process, under which states will compete based on specified eligibility and project criteria.

Each selected park must have:

• At least 2,000 acres or 8 sq. km. of land.
• Land must be contiguous and encumbrance-free.
• Minimum ₹500 crore contribution by the concerned state government.
• Central financial assistance of up to ₹1,000 crore per park.

Plug-and-Play Infrastructure

The parks will follow a plug-and-play model, providing industries with ready access to essential infrastructure.

Key facilities will include:

• Common Effluent Treatment Plants (CETPs) for treatment of industrial wastewater.
• Treatment, Storage and Disposal Facilities (TSDFs) for hazardous waste.
• Common water and power infrastructure.
• Internal roads and logistics facilities.
• Other shared industrial utilities.

Significance for India’s Chemical Industry

The chemical industry is a major component of India’s manufacturing sector. It includes bulk chemicals, speciality chemicals, petrochemicals, dyes and other chemical products.

Integrated chemical parks can reduce infrastructure costs, improve environmental compliance and create economies of scale. They can also attract domestic and foreign investment by providing ready industrial infrastructure.

Important Facts for Exams

• BHAVYA: Bharat Audyogik Vikas Yojana Rasayan.
• Approved: 24 July 2026.
• Total Outlay: ₹3,030 crore.
• Implementation: FY 2026-27 to FY 2030-31.
• Number of Chemical Parks: 3.
• Central assistance: Up to ₹1,000 crore per park.
• Minimum state contribution: ₹500 crore per park.
• Minimum land requirement: 2,000 acres or 8 sq. km.
• CETP: Common Effluent Treatment Plant.
• TSDF: Treatment, Storage and Disposal Facility.
• Parks will follow a plug-and-play industrial model.
• States will be selected through a challenge-based selection process.