Union Cabinet Approves BHAVYA Rasayan Scheme for Chemical Parks

Union Cabinet Approves BHAVYA Rasayan Scheme for Chemical Parks

¨     Union Cabinet approved the Bharat Audyogik Vikas Yojana Rasayan (BHAVYA Rasayan) scheme on 24 July 2026.

¨     The scheme aims to strengthen India's chemical manufacturing sector through the development of three dedicated chemical parks.

¨     BHAVYA stands for Bharat Audyogik Vikas Yojana Rasayan.

¨     The scheme has a total outlay of ₹3,030 crore and will be implemented from FY 2026–27 to FY 2030–31.

¨     Of the total allocation, ₹3,000 crore is earmarked for the development of common infrastructure within the chemical parks.

¨     The remaining ₹30 crore is allocated for administrative expenses.

¨     The scheme will support the creation of common infrastructure facilities, basic utilities, and other essential services required for chemical industries.

¨     Each chemical park will be developed by a State Government through a challenge-based selection process.

¨     Every park must have at least 2,000 acres (approximately 8 sq. km.) of contiguous and encumbrance-free land.

¨     The Central Government will provide financial assistance of up to ₹1,000 crore for each chemical park.

¨     To qualify for Central assistance, the concerned State Government must contribute a minimum of ₹500 crore.

¨     The scheme is expected to enhance domestic chemical production, industrial infrastructure, investment, employment generation, and India's global competitiveness in the chemical sector.