New Delhi, EW-NN: The Union Cabinet on Friday approved the Bharat Audyogik Vikas Yojana Rasayan (BHAVYA Rasayan) scheme for establishing three dedicated chemical parks across the country. The scheme, announced in the Union Budget 2026-27, seeks to create world-class industrial infrastructure, attract investments and promote sustainable growth in one of India's key manufacturing sectors.

The Cabinet approved the scheme with a total financial outlay of ₹3,030 crore, including ₹3,000 crore for common infrastructure and basic utilities within the parks and ₹30 crore towards administrative expenditure. The scheme will be implemented over a five-year period from FY 2026-27 to FY 2030-31.

Under the framework, the Centre will provide financial assistance of up to ₹1,000 crore for each chemical park, while the respective state government will be required to contribute at least ₹500 crore. The parks will be selected through a challenge-based competitive process, with states required to provide a minimum of 2,000 acres (8 sq. km.) of contiguous, encumbrance-free land for each project.

The proposed chemical parks are designed to provide plug-and-play industrial infrastructure, enabling manufacturers to commence operations with reduced project implementation time and lower capital costs. Each park will be equipped with shared facilities such as Common Effluent Treatment Plants (CETPs), Treatment, Storage and Disposal Facilities (TSDFs), water supply systems, solvent recovery units, steam generation and distribution networks, interconnected pipelines, logistics hubs and warehousing infrastructure.

The government believes the initiative will address one of the biggest challenges faced by India's chemical industry—the absence of integrated industrial clusters with modern environmental and utility infrastructure. Shared facilities are expected to significantly reduce operational costs, improve resource efficiency and strengthen environmental compliance, particularly for industries handling hazardous chemicals.

The chemical sector occupies a strategic position in India's manufacturing landscape, supplying essential inputs to industries such as agriculture, pharmaceuticals, textiles, nutraceuticals, automobiles, construction and electronics. By creating integrated manufacturing ecosystems, the BHAVYA Rasayan scheme aims to strengthen the entire value chain, from upstream petrochemicals to downstream specialty chemicals and ancillary industries.

According to the government, the development of dedicated chemical parks is expected to enhance India's integration into global value chains by increasing export competitiveness while reducing dependence on imported chemical products. Improved logistics, common infrastructure and lower production costs are also expected to make Indian manufacturers more competitive in international markets.

The scheme places considerable emphasis on sustainable industrial development. Centralised hazardous waste management systems, common effluent treatment facilities and environmentally compliant disposal infrastructure are expected to improve adherence to environmental regulations while reducing compliance costs for individual units. This integrated approach is intended to facilitate industrial expansion without compromising environmental safeguards.

Beyond the chemical industry itself, policymakers expect the initiative to generate significant multiplier effects across the manufacturing sector by stimulating downstream industries, attracting domestic and foreign investment, creating employment opportunities and strengthening regional industrial ecosystems.

The approval of the BHAVYA Rasayan scheme aligns with the government's broader manufacturing strategy under the 'Viksit Bharat @2047' vision and the Atmanirbhar Bharat initiative. By combining large-scale infrastructure investment with state participation and private sector opportunities, the government aims to position India as a globally competitive hub for chemical manufacturing while improving supply chain resilience and expanding domestic production capacity.