Union Cabinet Approves ₹3,030 Crore BHAVYA-Rasayan Scheme for Three Chemical Parks
The Union Cabinet has approved the Bharat Audyogik Vikas Yojana Rasayan (BHAVYA-Rasayan Scheme) for setting up three dedicated Chemical Parks in the country. The scheme, first announced in the Union Budget for FY 2026-27, will run for five years, from FY 2026-27 to FY 2030-31.
The scheme carries a total financial outlay of ₹3,030 crore, with ₹3,000 crore earmarked for establishing Common Infrastructure Facilities and Basic Utilities within the parks and ₹30 crore for administrative expenditure. Under the scheme, the Centre will provide a grant of up to ₹1,000 crore per park, subject to a minimum matching contribution of ₹500 crore from the concerned state government.
The three chemical parks will be developed by state governments under a Challenge Route selection process. Each park will require a minimum contiguous, encumbrance-free land area of 8 sq km (at least 2,000 acres) and will offer plug-and-play infrastructure for the chemical industry, including a Common Effluent Treatment Plant, a Treatment, Storage and Disposal Facility, water supply and distribution systems, solvent recovery and distillation facilities, steam generation and distribution networks, an interconnected pipeline network, and logistics and warehousing facilities.
The scheme is intended to promote development across the chemical industry value chain, including upstream, downstream and ancillary industries, while shared common infrastructure is expected to improve cost competitiveness and support integration with global value chains. Centralised facilities for effluent treatment and hazardous waste management are also expected to support more sustainable industry growth, with cascading benefits anticipated for downstream sectors such as agriculture, textiles, pharmaceuticals, construction, automobiles and electronics.