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The Union Cabinet has approved the BHAVYA-Rasayan Scheme with a financial outlay of INR 3,030 crore to establish three dedicated chemical parks across India. Announced in the Union Budget for FY2026–27, the scheme aims to strengthen the country's chemical manufacturing ecosystem by creating common infrastructure and utilities. The Centre will provide up to INR 1,000 crore for each park, while the respective state governments will contribute at least INR 500 crore. The initiative is expected to attract significant private investment, improve logistics efficiency, and support the growth of upstream, downstream and ancillary industries.
The Union Cabinet has approved the Bharat Audyogik Vikas Yojana Rasayan (BHAVYA-Rasayan) Scheme with a total outlay of INR 3,030 crore to establish three dedicated chemical parks across the country. The decision was taken at the Cabinet meeting chaired by Prime Minister Narendra Modi, with Union Information and Broadcasting Minister Ashwini Vaishnaw announcing the approval.
The scheme, which was announced in the Union Budget for FY2026–27, is aimed at strengthening India's chemical manufacturing ecosystem by developing integrated industrial parks with common infrastructure and utility facilities. It will be implemented over a five-year period from the current financial year until FY2030–31.
Of the total allocation, INR 3,000 crore has been earmarked for creating common infrastructure and essential utilities within the three parks, while the remaining INR 30 crore has been allocated towards administrative expenses related to the implementation of the scheme.
Ashwini Vaishnaw said the government's financial support is primarily meant for developing common infrastructure within the parks and noted that the total investment required to establish all three chemical parks is expected to be substantially higher than the scheme's allocation, with additional investments likely to come from states and private industry.
He further stated that the chemical sector is one of the country's foundational industries as it supplies essential raw materials to several key sectors, making it an important part of India's manufacturing and industrial value chain.
According to the official statement, the Centre will provide financial assistance of up to INR 1,000 crore for each chemical park. However, this support will be subject to a minimum contribution of INR 500 crore from the respective state government where the park is developed.
The government said the scheme is expected to promote the development of the chemical industry across the entire value chain, including upstream, downstream and ancillary segments. It also aims to improve resource utilisation, create shared industrial infrastructure, reduce logistics costs, and make chemical manufacturing more efficient and globally competitive.
The approval comes as India continues to focus on expanding domestic manufacturing under its industrial development strategy. The chemical sector is among the country's largest manufacturing industries and plays a critical role in supplying inputs to sectors such as pharmaceuticals, agriculture, textiles, automobiles, construction, consumer goods and electronics. The development of dedicated chemical parks is also expected to improve ease of doing business by providing industry-ready infrastructure in a planned industrial environment.
Source PTI
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