The Union Cabinet, chaired by Prime Minister Narendra Modi, on Friday approved the Bharat Audyogik Vikas Yojana Rasayan (BHAVYA Rasayan) scheme for the establishment of three dedicated chemical parks across the country, aiming to strengthen India’s chemical manufacturing ecosystem, attract investments and enhance global competitiveness.
The scheme, announced in the Union Budget for 2026-27, has a total financial outlay of ₹3,030 crore, including ₹3,000 crore for developing common infrastructure facilities and basic utilities within the parks and ₹30 crore towards administrative expenses. The scheme will be implemented over five years, from FY 2026-27 to FY 2030-31.
Under the scheme, the Centre will provide financial assistance of up to ₹1,000 crore for each chemical park, subject to a minimum contribution of ₹500 crore by the respective state government.
The chemical parks will be developed by state governments through a challenge-based selection process, with each park requiring at least 2,000 acres (8 sq. km.) of contiguous, encumbrance-free land.
According to the government, the scheme is designed to promote the development of the chemical industry across the entire value chain, including upstream, downstream and ancillary industries, while improving resource efficiency and reducing logistics costs.
The parks will feature plug-and-play infrastructure tailored to the needs of the chemical sector, including Common Effluent Treatment Plants (CETPs), Treatment, Storage and Disposal Facilities (TSDFs), water supply and distribution systems, solvent recovery and distillation facilities, steam generation and distribution networks, interconnected pipeline systems, and logistics and warehousing infrastructure.
The government said shared infrastructure would improve cost competitiveness for domestic manufacturers, helping the Indian chemical industry integrate more effectively into global value chains, increase exports and reduce import dependence.
The scheme also aims to promote environmentally sustainable industrial development through centralised waste treatment, hazardous waste management and compliance infrastructure, enabling industries to meet environmental regulations more efficiently.
Recognising the importance of chemicals and petrochemicals as key inputs for sectors such as agriculture, textiles, pharmaceuticals, nutraceuticals, construction, automobiles and electronics, the government said the BHAVYA Rasayan scheme is expected to attract both domestic and foreign investments, expand manufacturing capacity and generate employment.
The government said the initiative would strengthen India’s chemical manufacturing ecosystem, promote self-reliance, and contribute to the vision of Viksit Bharat 2047 by supporting industrial growth and creating opportunities across downstream sectors of the economy.
