The Union Cabinet has approved the ₹3,030-crore BHAVYA-Rasayan scheme to establish three mega chemical parks over five years, with up to ₹1,000 crore in Central support for each project.
The parks will feature plug-and-play infrastructure, including common effluent treatment plants, hazardous waste management systems, logistics facilities and utility networks to lower manufacturing costs and improve operational efficiency.
The initiative aims to strengthen India's chemicals ecosystem by attracting domestic and foreign investment, boosting exports, encouraging import substitution and integrating the country more deeply into global value chains.
The Union Cabinet, chaired by Prime Minister Narendra Modi, on Friday approved the Bharat Audyogik Vikas Yojana Rasayan (BHAVYA-Rasayan) scheme, a ₹3,030-crore initiative aimed at establishing three world-class chemical parks across the country.
The scheme, announced in the Union Budget for FY27, will be implemented over five years until 2030-31 and seeks to strengthen India's chemicals ecosystem by creating modern industrial clusters with common infrastructure and shared manufacturing facilities, Moneycontrol reported.
4 July 2026
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₹3,000 crore earmarked for common infrastructure
Of the total outlay, ₹3,000 crore has been allocated for developing shared infrastructure within the chemical parks, while the remaining ₹30 crore will be used for administrative expenses.
The Centre will provide financial assistance of up to ₹1,000 crore per park, provided the respective state government contributes at least ₹500 crore towards the project, according to an official statement cited by Moneycontrol.
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Addressing the media after the Cabinet meeting, Information and Broadcasting Minister Ashwini Vaishnaw said the Centre's allocation is intended only for common infrastructure, while the overall investment required to develop the parks will be substantially higher.
"There are many sectors in the economy that are foundational and the chemical sector is one of them, as it provides basic raw materials for many other industries," Vaishnaw said.
States to compete for project allocation
The three chemical parks will be selected through a challenge-based competitive process, with state governments bidding to host them.
To qualify, each project must be developed on a minimum contiguous land parcel of 8 square kilometres (around 2,000 acres) that is free from encumbrances.
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The competitive model is intended to encourage states to offer investment-ready land and supporting infrastructure while accelerating project implementation.
Plug-and-play industrial infrastructure planned
The proposed parks will feature integrated, plug-and-play infrastructure designed to reduce project costs for manufacturers and improve operational efficiency.
Key common facilities will include a Common Effluent Treatment Plants (CETPs), Treatment, Storage and Disposal Facilities (TSDFs), Water supply and distribution systems, Solvent recovery and distillation units, Steam generation and distribution networks, Interconnected pipeline systems, Logistics and warehousing infrastructure
The government said centralised hazardous waste management systems will improve environmental compliance while promoting sustainable industrial development.
According to the official statement, shared infrastructure is expected to lower logistics costs, improve resource utilisation and enhance the global competitiveness of Indian chemical manufacturers across upstream, downstream and ancillary segments.
Supporting multiple sectors and boosting exports
The chemicals and petrochemicals industry forms the backbone of several manufacturing sectors, supplying essential raw materials to industries such as agriculture, pharmaceuticals, nutraceuticals, textiles, construction, automobiles and electronics.
Through BHAVYA-Rasayan, the government aims to deepen India's integration into global value chains, expand exports, encourage import substitution and attract both domestic and foreign investment into the sector.
Officials said the scheme is expected to expand manufacturing capacity, create employment opportunities, stimulate downstream industries and contribute to the broader Viksit Bharat @2047 vision by strengthening India's industrial base.
