New Delhi, July 27 (APAC Media): The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the BHAVYA Rasayan Scheme with a financial outlay of Rs 3,030 crore to establish three dedicated chemical parks across the country.
The initiative is aimed at boosting domestic chemical manufacturing, attracting investments, generating employment and strengthening India’s position in the global chemicals market.
The scheme, officially known as Bharat Audyogik Vikas Yojana Rasayan (BHAVYA Rasayan), was announced in the Union Budget 2026-27 and will be implemented over a five-year period from FY 2026-27 to FY 2030-31.
What is the BHAVYA Rasayan Scheme?
The BHAVYA Rasayan Scheme has been designed to develop three integrated chemical parks equipped with world-class common infrastructure and utilities.
Rs 3,030 Crore Allocated
The total outlay for the scheme stands at ₹3,030 crore, of which:
- Rs 3,000 crore has been earmarked for developing common infrastructure and utilities.
- Rs 30 crore has been allocated for administrative expenses.
The scheme will remain operational until FY 2030-31.
Centre to Provide Up to Rs 1,000 Crore Per Park
The Central Government will provide financial assistance of up to ₹1,000 crore for each chemical park. State governments, however, will be required to contribute a minimum of ₹500 crore towards the project.
The parks will be selected through a Challenge Route, with state governments competing for approval.
Minimum 2,000 Acres Required
Each proposed chemical park must be developed on at least 2,000 acres (8 square kilometres) of contiguous, encumbrance-free land.
The parks will offer plug-and-play facilities that reduce the need for individual companies to invest in basic infrastructure.
Key facilities proposed include:
- Common Effluent Treatment Plants (CETP)
- Treatment, Storage and Disposal Facilities (TSDF)
- Water supply and distribution systems
- Solvent recovery and distillation units
- Steam generation and distribution networks
- Interconnected pipeline systems
- Logistics and warehousing infrastructure
These shared facilities are expected to improve operational efficiency while reducing infrastructure and logistics costs.
Boost to Manufacturing and Exports
The chemical and petrochemical sector plays a vital role in supporting industries such as pharmaceuticals, agriculture, textiles, automobiles, construction, nutraceuticals and electronics.
Through the BHAVYA Rasayan Scheme, the government aims to attract domestic and foreign investment, expand manufacturing capacity, create employment opportunities and enhance India’s competitiveness in global chemical markets.
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