Union Cabinet Approves Rs. 3,030 Crore BHAVYA Rasayan Scheme to Establish Three Dedicated Chemical Parks in India.
New Delhi:
The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the Bharat Audyogik Vikas Yojana Rasayan (BHAVYA Rasayan) Scheme for establishing three dedicated chemical parks across the country. The initiative, announced in the Union Budget for FY 2026-27, aims to strengthen India’s chemical sector, attract investments, enhance domestic production capacity and promote global competitiveness.
The scheme has been approved with a total financial outlay of Rs. 3,030 crore, including Rs. 3,000 crore for developing common infrastructure facilities and basic utilities within the chemical parks and Rs. 30 crore towards administrative expenditure. The scheme will be implemented over a period of five years from FY 2026-27 to FY 2030-31.
Under the BHAVYA Rasayan Scheme, the Central Government will provide financial assistance of up to Rs. 1,000 crore per chemical park, subject to a minimum contribution of Rs. 500 crore by the concerned State Government.
The three chemical parks will be developed by State Governments through a challenge route. Each park will require a minimum contiguous area of 8 square kilometres (2,000 acres) of encumbrance-free land and will provide modern plug-and-play infrastructure to support chemical industries.
The parks will include common facilities and utilities designed specifically for the requirements of the chemical sector, including:
Common Effluent Treatment Plants (CETPs)
Treatment, Storage and Disposal Facilities (TSDFs)
Water supply and distribution systems
Solvent recovery and distillation facilities
Steam generation and distribution networks
Interconnected pipeline networks
Logistics and warehousing facilities
The government expects the scheme to promote the growth of the chemical industry across the entire value chain, including upstream, downstream and ancillary industries. By creating shared infrastructure, the initiative is aimed at reducing logistics costs, improving resource efficiency and enhancing the cost competitiveness of Indian chemical manufacturers.
The development of dedicated chemical parks is also expected to help Indian industries integrate more effectively with global value chains, increase exports and reduce dependence on imports.
The scheme places significant emphasis on sustainable industrial development by creating environment-friendly ecosystems with centralised waste management facilities. The inclusion of advanced infrastructure such as effluent treatment plants, hazardous waste management systems and disposal facilities will support better compliance with environmental regulations and encourage responsible industrial growth.
The government stated that the expansion of the chemical sector will have a multiplier effect on several downstream industries, including agriculture, textiles, pharmaceuticals, nutraceuticals, construction, automobiles and electronics. The initiative is expected to generate employment opportunities, encourage domestic and foreign investments and contribute towards the vision of Viksit Bharat @ 2047.
By strengthening domestic manufacturing capabilities and improving global competitiveness, the BHAVYA Rasayan Scheme is expected to play an important role in promoting Atmanirbharta (self-reliance) in India’s chemical and petrochemical sectors.
