The Union Cabinet, chaired by Prime Minister Narendra Modi, on Thursday approved the Bharat Audyogik Vikas Yojana Rasayan, also known as the BHAVYA-Rasayan Scheme, for the establishment of three dedicated Chemical Parks across the country. The scheme, which was announced in the Union Budget for the financial year 2026-27, aims to strengthen India’s chemical and petrochemical sector and promote self-reliance in line with the vision of Atmanirbharta and Viksit Bharat @ 2047.
The total financial outlay of the scheme stands at ₹3,030 crore. Of this, ₹3,000 crore has been earmarked for creating common infrastructure facilities and basic utilities within the parks, while ₹30 crore will cover administrative expenditure. The scheme will be implemented over a period of five years, from the financial year 2026-27 to 2030-31. Under the scheme, the Central Government will provide a grant of up to ₹1,000 crore for each park, subject to a minimum contribution of ₹500 crore from the concerned State Government.
💠 #Cabinet approves scheme of Chemical Parks “Bharat Audyogik Vikas Yojana Rasayan (BHAVYA Rasayan) for establishing 3⃣ dedicated Chemical Parks in the country
— PIB India (@PIB_India) July 24, 2026
💠 The Scheme was announced in the Union Budget of FY 2026–27
💠 The scheme would run for a period of 5 years from… pic.twitter.com/vJhvXgc0BE
The three Chemical Parks will be developed by State Governments under a challenge route. Each park must have a minimum contiguous area of 8 square kilometres, equivalent to at least 2,000 acres of encumbrance-free land. These parks will offer plug-and-play infrastructure tailored to the needs of the chemical industry. The facilities will include a Common Effluent Treatment Plant, a Treatment, Storage and Disposal Facility for hazardous waste, water supply and distribution systems, solvent recovery and distillation units, a steam generation and distribution network, an interconnected pipeline network, and logistics and warehousing facilities.
The scheme is expected to give a significant boost to the chemical industry by promoting development across the entire value chain, including upstream, downstream and ancillary industries. Shared infrastructure is anticipated to lower logistics costs and enhance the cost competitiveness of Indian manufacturers, enabling them to compete more effectively in global markets. Greater integration into global value chains is likely to drive higher exports and reduce dependence on imports. By creating a centralised and environment-friendly ecosystem for waste management and effluent treatment, the parks will also support sustainable industrial growth and better compliance with environmental regulations.
Chemicals and petrochemicals form the backbone of several key downstream sectors such as agriculture, textiles, pharmaceuticals, nutraceuticals, construction, automobiles and electronics. The BHAVYA-Rasayan Scheme is therefore expected to attract both domestic and foreign investment, expand domestic production capacity and generate substantial employment. The resulting cascading benefits across the economy will contribute to broader industrial and economic development.
