Cabinet approves Rs 3,030 crore BHAVYA Rasayan scheme to set up three chemical parks
New Delhi, July 24
The Union Cabinet on Friday approved the Bharat Audyogik Vikas Yojana Rasayan scheme with a financial outlay of Rs 3,030 crore to establish three dedicated chemical parks across the country, aiming to strengthen domestic manufacturing, attract investments and improve the global competitiveness of India's chemical industry.
Union Minister Ashwini Vaishnaw announced the Cabinet's decision during a media briefing following the Cabinet meeting on Friday.
According to an official Cabinet release, the scheme, which was announced in the Union Budget for FY2026-27, will have a total outlay of Rs 3,030 crore, including Rs 3,000 crore for developing common infrastructure and basic utilities inside the parks and Rs 30 crore towards administrative expenditure. The scheme will be implemented over five years, from FY2026-27 to FY2030-31.
The Cabinet said the Centre will provide a grant of up to Rs 1,000 crore for each chemical park, subject to a minimum contribution of Rs 500 crore by the respective state government.
"The Centre would provide a grant of up to Rs. 1,000 crore per park. This will be subject to a minimum contribution of Rs.500 crore by the concerned State Government," the release said.
The release said the three chemical parks will be developed by state governments through a challenge-based selection process, with each park spread across at least 8 square kilometres (2,000 acres) of contiguous, encumbrance-free land.
The parks will offer plug-and-play industrial infrastructure, including Common Effluent Treatment Plants (CETP), Treatment, Storage and Disposal Facilities (TSDF), water supply systems, solvent recovery and distillation units, steam generation and distribution networks, interconnected pipelines, and logistics and warehousing facilities.
Highlighting the expected impact of the scheme, the Cabinet said it "will promote development of the Chemical industry along the whole value chains including upstream, downstream and ancillary industries promoting efficient utilization of resources, leading to lower logistics cost."
It added that shared infrastructure "will lead to enhanced cost competitiveness and will make the Indian Industry globally competitive."
The government also said the scheme would help integrate India's chemical industry into global supply chains.
"It will help the Indian Chemical industry better integrate in Global Value Chains leading to greater exports and higher import substitution," the release said.
The Cabinet further said the parks would support environmentally sustainable industrial development by creating "an environment friendly ecosystem" with centralised facilities such as CETPs, hazardous waste management infrastructure and treatment, storage and disposal facilities, enabling better compliance with environmental regulations.
According to the release, the scheme is expected to attract both domestic and foreign investment, increase domestic production capacity and generate employment, while supporting downstream industries including agriculture, textiles, pharmaceuticals, nutraceuticals, construction, automobiles and electronics.
"The development of Chemical sector will lead to a cascading effect through enhanced development of downstream sectors of the economy as well, thereby leading to higher employment generation and greater development of the economy, helping achieve the goal of Viksit Bharat @ 2047," the Cabinet said.
— ANI
Reader Comments
This is good news for the chemical sector, but I'm a bit skeptical about the implementation. 2,000 acres of contiguous land? That's not easy in India with all the land acquisition issues. Also, Rs 500 crore from state governments—many states are already cash-strapped. Hope the challenge-based selection picks states like Gujarat, Maharashtra, or Tamil Nadu where chemical industries already exist. Bhai log, let's see how this pans out.
As someone working in the chemical industry in the US, this is a smart move. India has the talent and raw materials to become a global hub. The focus on common treatment facilities and waste management is crucial—we saw how expensive it can be to comply with regulations here. Wishing the scheme success. Hopefully it attracts foreign investment and creates jobs.
Rs 1,000 crore per park is a lot, but I wish they'd also invest in R&D and skill development alongside infrastructure. Without skilled manpower, these parks won't achieve their full potential. Also, what about the small-scale chemical units in places like Ankleshwar and Vapi? They should get some benefits too, not just big players. Still, a step in the right direction. 👏
Interesting to see India pushing chemical manufacturing. I'm from Canada and our chemical sector is heavily regulated. India's lower costs and growing infrastructure could make it a global player. But I hope environmental compliance is taken seriously—CETPs and TSDFs sound good on paper, but need strict monitoring. The auto and pharma downstream benefits are especially promising.
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