Centre clears Rs 3,030 crore Bhavya-Rasayan scheme for chemical parks
New Delhi, July 24
The Union Cabinet, chaired by Prime Minister Narendra Modi, on Friday approved the Bharat Audyogik Vikas Yojana Rasayan or BHAVYA - Rasayan Scheme for establishing three dedicated Chemical Parks in the country with an investment of Rs 3,030 crore.
The scheme, announced in the Union Budget of FY 2026-27, has an allocation of Rs 3,000 crore towards meeting the cost of establishing common infrastructure facilities and basic utilities inside the parks, while the remaining Rs 30 crore is earmarked for administrative expenditure. The scheme will run for five years from FY 2026-27 to FY 2030-31, according to an official statement issued after the Cabinet meeting.
The Centre will provide a grant of up to Rs 1,000 crore per park under the scheme, subject to a minimum contribution of Rs 500 crore by the concerned State Government.
Under the scheme, the Centre will facilitate development of three dedicated Chemical Parks by the State Governments under the Challenge Route. Each park will have a minimum contiguous area of 8 sq. km. (minimum 2,000 acres) of encumbrance‑free land. These parks will provide plug‑and‑play infrastructure in the form of common facilities and basic utilities for the chemical industry.
The scheme is expected to promote the development of the Indian chemical industry in a sustainable way by creating an environment‑friendly ecosystem consisting of centralised facilities such as common effluent treatment plants, treatment, storage and disposal facilities, and hazardous waste management infrastructure. It will also ensure better compliance with environmental regulations, thereby promoting eco‑friendly industrial growth.
The BHAVYA Rasayan Scheme is expected to accelerate growth across the entire value chain of the chemical industry, including upstream, downstream and ancillary industries, by promoting efficient resource utilisation and lowering logistics costs.
Shared infrastructure and utilities will enhance cost competitiveness and make the Indian industry globally competitive. It will also help the chemical sector integrate better into global value chains, leading to greater exports and higher import substitution.
Development of the chemical sector will have a cascading effect through enhanced growth of downstream sectors of the economy, thereby generating employment and contributing to the goal of Viksit Bharat @ 2047.
Recognising that this sector produces chemicals and petrochemicals used in agriculture, textiles, pharmaceuticals, nutraceuticals, construction, automobile and electronics, the scheme aims to attract domestic and foreign investments, enhance production capacity and generate employment.
— IANS
Reader Comments
Interesting move, but I wonder about the location selection. The 'challenge route' sounds competitive, but will states with weaker industrial infrastructure be able to compete? We need to ensure these parks don't just end up in already developed states, but also benefit backward regions. 🤔
This is excellent for 'Make in India' - reducing logistics costs and integrating with global value chains will make our chemical exports more competitive. The pharmaceutical industry will benefit hugely from quality inputs. But we must ensure strict environmental monitoring; chemical parks can be dangerous without proper oversight.
Promising scheme but Rs 30 crore for administrative expenses on a Rs 3,030 crore scheme seems high. Also, 8 sq km per park means significant land acquisition - hope the state governments handle this transparently and compensate farmers fairly. We don't want another land acquisition controversy. 🧐
Good to see the government investing in chemical parks that will boost downstream sectors like textiles, construction, and electronics. The plug-and-play infrastructure is a smart move - it reduces setup time for companies. But I hope the environmental impact assessments are rigorous; we've seen what Bhopal taught us. Stay safe, stay sustainable! 🌿
A well-planned initiative. Centralizing hazardous waste management and effluent treatment is a best practice we see in Singapore and Europe. India's chemical industry needs this upgrade to compete globally. The Rs 1,000 crore per park is generous, but states need to demonstrate strong commitment to environmental standards.
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