BHAVYA Rasayan Scheme: Transforming India's Chemical and Petrochemical Manufacturing Ecosystem

BHAVYA Rasayan Scheme: Transforming India's Chemical and Petrochemical Manufacturing Ecosystem

The Union Cabinet has approved the Bharat Industrial Development Scheme for Chemicals (BHAVYA Rasayan) with the objective of strengthening India's chemical and petrochemical sector through the establishment of three world-class Chemical Parks equipped with modern shared infrastructure. The scheme aims to enhance domestic manufacturing, attract investments, reduce import dependence, and position India as a major global hub for chemicals and petrochemicals.

Bharat Audyogik Vikas Yojana Rasayan (BHAVYA Rasayan) Scheme

¨     Announced in: Union Budget 2026–27 as a Central Sector Scheme.

¨     Implementing Period: FY 2026–27 to FY 2030–31 (5 years).

¨     Total Financial Outlay:₹3,030 crore

¨     ₹3,000 crore for developing common infrastructure and basic utilities.

¨     ₹30 crore for administrative expenditure.

¨     Objective: To establish three dedicated Chemical Parks with plug-and-play common infrastructure and basic utilities for promoting investment, domestic manufacturing and competitiveness of India’s chemical industry.

Financial Assistance:

¨     Central grant of up to ₹1,000 crore per Chemical Park.

¨     Subject to a minimum contribution of ₹500 crore by the respective State Government.

¨     Selection of Parks: Through a Challenge Route among States.

Land Requirement:

¨     Minimum 8 sq. km. (2,000 acres) of contiguous, encumbrance-free land for each park.

¨     Parks may be Greenfield or Brownfield, depending on the proposal of the State Government.

¨     Estimated Investment: Each park is expected to attract ₹20,000–50,000 crore of investments, while the Central assistance is limited to common infrastructure.

Common Infrastructure Facilities:

¨     Common Effluent Treatment Plant (CETP).

¨     Treatment, Storage and Disposal Facility (TSDF).

¨     Hazardous Waste Management infrastructure.

¨     Water supply and distribution systems.

¨     Solvent recovery and distillation facilities.

¨     Steam generation and distribution network.

¨     Interconnected pipeline network.

¨     Logistics and warehousing facilities.

.Benefits of the Scheme

¨     Strengthens the Chemical Industry Ecosystem: Promotes the development of upstream, downstream and ancillary industries, enabling efficient resource utilisation and reducing logistics costs.

¨     Enhances Global Competitiveness and Self-Reliance: Shared common infrastructure improves cost competitiveness, strengthens India’s integration into Global Value Chains (GVCs), boosts exports, supports import substitution, and promotes Atmanirbhar Bharat by enhancing domestic production capacity.

¨     Attracts Investments and Generates Employment: Encourages domestic and foreign investments, creates large-scale direct and indirect employment, and stimulates growth in downstream industries.

¨     Promotes Sustainable Industrial Development: Establishes a centralized environmental infrastructure—including Common Effluent Treatment Plants (CETP), Treatment, Storage and Disposal Facilities (TSDF), and hazardous waste management systems—to ensure better environmental compliance.

¨     Creates a Multiplier Effect Across the Economy: Strengthens key sectors such as agriculture, textiles, pharmaceuticals, nutraceuticals, construction, automobiles and electronics, contributing to the vision of Viksit Bharat @2047.