₹3,030 crore scheme to set up three world-class Chemical Parks with plug-and-play infrastructure, aiming to boost manufacturing, exports, jobs and attract investments.
Highlights
- Cabinet approves BHAVYA Rasayan scheme for three Chemical Parks.
- Total financial outlay of ₹3,030 crore over five years.
- Centre to provide up to ₹1,000 crore grant per park.
- States must contribute at least ₹500 crore and provide 2,000-acre land.
- Parks will offer shared infrastructure to lower costs and improve competitiveness.
- Scheme aims to boost exports, employment and strengthen India’s chemical manufacturing ecosystem.
The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the Bharat Audyogik Vikas Yojana Rasayan (BHAVYA Rasayan) scheme to establish three dedicated Chemical Parks across India. Announced in the Union Budget 2026-27, the initiative is designed to strengthen India’s chemical manufacturing ecosystem and position the country as a global chemicals production hub.
The scheme has a total financial outlay of ₹3,030 crore, including ₹3,000 crore for creating common infrastructure and ₹30 crore for administrative expenses. It will be implemented over five years, from FY2026-27 to FY2030-31.
Under the scheme, the Central Government will provide up to ₹1,000 crore for each Chemical Park, while the respective state government must contribute a minimum of ₹500 crore. States will also be required to provide at least 2,000 acres (8 sq. km.) of contiguous, encumbrance-free land through a competitive challenge-based selection process.
The proposed parks will feature plug-and-play infrastructure, allowing chemical manufacturers to set up operations more quickly and at lower cost. Shared facilities will include Common Effluent Treatment Plants (CETP), hazardous waste treatment and disposal systems, water supply networks, steam generation facilities, solvent recovery units, interconnected pipelines, and logistics and warehousing infrastructure.
The government expects the scheme to reduce logistics and production costs by enabling industries to share essential infrastructure. This is expected to improve the global competitiveness of Indian chemical manufacturers while encouraging greater domestic and foreign investment.
The initiative is also expected to strengthen India’s participation in global value chains by increasing exports and reducing dependence on imported chemicals. The chemical sector supplies critical raw materials to industries such as pharmaceuticals, agriculture, textiles, automobiles, construction, electronics and nutraceuticals, making it a key pillar of India’s manufacturing economy.
In addition, BHAVYA Rasayan places strong emphasis on sustainable industrial development through centralized environmental infrastructure, ensuring better compliance with environmental regulations and responsible waste management.
The government believes the development of these Chemical Parks will create significant employment opportunities, support downstream industries, enhance manufacturing capacity and contribute to the vision of Viksit Bharat 2047 through greater industrial growth and self-reliance.
