The Union cabinet, chaired by Prime Minister Narendra Modi, on Friday approved a new Rs 3,030-crore scheme to establish three dedicated chemical parks across India, according to a government announcement reported by Business Today. The Bharat Audyogik Vikas Yojana Rasayan (BHAVYA Rasayan) scheme, first announced in the Union Budget for 2026-27, is designed to strengthen the chemicals sector through world-class infrastructure, attract investments, and boost domestic manufacturing, Union information and broadcasting minister Ashwini Vaishnaw said at a cabinet briefing.
Scheme Details and Financial Outlay
Under the scheme, 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 total financial outlay is Rs 3,030 crore, of which Rs 3,000 crore is allocated for creating common infrastructure facilities and basic utilities within the parks, while Rs 30 crore is earmarked for administrative expenses. The scheme will be implemented over five years, from FY 2026-27 to FY 2030-31.
| Component | Amount (Rs crore) |
|---|---|
| Common infrastructure | 3,000 |
| Administrative expenses | 30 |
| Total | 3,030 |
Vaishnaw noted that the Centre's financial support is only for shared infrastructure, and the overall investment in the three parks would be significantly higher. "The chemicals sector, like semiconductors, is a foundational industry for the economy. That is why it was important to adopt a fresh approach for its development," he said.
Infrastructure and State Partnership
The three chemical parks will be developed by state governments through a challenge route. Each park must have a minimum of 8 square kilometres (2,000 acres) of contiguous, encumbrance-free land. They will offer plug-and-play infrastructure tailored for the chemical industry, 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 stated that the shared infrastructure is expected to reduce costs, improve operational efficiency, and enhance the global competitiveness of India's chemical industry.
Strategic Goals and Industry Impact
The scheme aims to develop the entire chemical value chain—upstream, downstream, and ancillary industries—while improving resource utilisation and lowering logistics costs. It is designed to help the Indian chemical industry integrate better with global value chains, increase exports, reduce imports, and attract both domestic and foreign investments. Additionally, the initiative promotes environmentally sustainable industrial development through centralised waste treatment and hazardous waste management infrastructure, ensuring better compliance with environmental regulations.
Recognising that chemicals and petrochemicals serve as critical inputs for sectors such as agriculture, textiles, pharmaceuticals, nutraceuticals, construction, automobiles, and electronics, the government expects the scheme to generate employment, strengthen domestic production, and contribute toward the goal of Viksit Bharat 2047.
Sources:
