New Delhi: The Government of India is advancing plans to develop 100 plug-and-play industrial parks across the country under the Bharat Audyogik Vikas Yojna (BHAVYA), a ₹33,660-crore initiative designed to strengthen India’s manufacturing ecosystem and make it easier for businesses to establish industrial units.
The scheme aims to provide industries with developed land, essential utilities, common facilities and streamlined approval processes, reducing the time and initial investment required to establish manufacturing operations.
On October 14, BHAVYA was approved by the Union Cabinet in March 2026 and notified on April 10, 2026. The initiative is being implemented in partnership with state governments and private developers.
The programme is intended to attract domestic and international investment, support Micro, Small and Medium Enterprises (MSMEs), strengthen supply chains and generate employment across regions.
BHAVYA Scheme: Key Details at a Glance
The scheme provides financial support for developing industrial parks equipped with infrastructure and facilities required by manufacturing enterprises.
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Key features include:
- Total outlay: ₹33,660 crore.
- Target: Development of 100 plug-and-play industrial parks nationwide.
- Financial assistance: Up to ₹1 crore per acre for eligible industrial park development.
- Implementation period: Six years, from FY 2026–27 to FY 2031–32.
- First phase: Up to 50 industrial parks to be selected through two rounds of competitive selection.
- Park size: 25 to 1,000 acres, subject to the scheme’s guidelines.
- External infrastructure: Up to 25% of approved funding may be allocated to eligible external infrastructure.
- Implementation model: Partnerships involving state governments and private developers.
The remaining parks will be selected in subsequent phases to meet the overall target of 100 parks.
What Will the BHAVYA Industrial Parks Offer?
BHAVYA follows a plug-and-play model in which essential infrastructure is developed before industries begin operations. Instead of arranging every basic facility independently, businesses will be able to establish units within industrial parks designed to meet their operational requirements.
The scheme provides financial assistance for core infrastructure, common facilities and selected supporting amenities.
Infrastructure and facilities planned under BHAVYA
Essential industrial infrastructure
The parks will include internal roads, electricity supply, water networks, drainage systems and common effluent treatment facilities.
Underground utility corridors
Underground utility networks are intended to facilitate maintenance and reduce the need for repeated excavation that can disrupt industrial operations.
Ready-to-use industrial spaces
The framework provides for ready-built factory sheds and built-to-suit units, allowing facilities to be adapted to different manufacturing requirements.
Testing and certification facilities
Common testing and certification infrastructure will support industrial operations and product-related requirements.
Warehousing and logistics
Warehousing facilities and external connectivity infrastructure are intended to improve the movement and handling of industrial goods.
Worker welfare and skill development
The scheme also provides for worker housing, healthcare facilities, skill development centres and other social amenities within or around the industrial ecosystem, as envisaged under the scheme.
Digital administration
Information and Communication Technology (ICT)-enabled administration and streamlined approval processes are intended to make industrial park management and investor facilitation more efficient.
How Will the 100 Industrial Parks Be Selected?
The scheme will use a competitive, challenge-based selection process to identify suitable projects.
In the first phase, up to 50 industrial parks will be selected through two rounds. Further selections will follow in subsequent phases, taking the total number of supported parks to 100.
Project selection will consider factors such as:
- Availability and suitability of land.
- Project readiness and implementation capacity.
- Industrial potential of the proposed location.
- Compliance with the scheme’s prescribed requirements.
- The proposed infrastructure and connectivity arrangements.
Projects will be implemented and managed through dedicated Special Purpose Vehicles (SPVs). These entities will oversee development, operations, investor facilitation and long-term maintenance.
The BHAVYA Portal, launched in June 2026, supports project submission, appraisal and evaluation. It is also intended to facilitate a transparent and competitive selection process.
Why Is the Centre Expanding Plug-and-Play Manufacturing Infrastructure?
India’s manufacturing sector contributes approximately 16–17% of the country’s Gross Domestic Product (GDP) and employs more than 27 million workers, according to the PIB release.
The National Manufacturing Mission has set a target of increasing manufacturing’s contribution to GDP to 25% by 2035.
The structure of manufacturing is also changing, with medium- and high-technology industries accounting for 46.3% of manufacturing value addition, according to the government release.
As manufacturing becomes more technology-intensive and supply chains diversify, industrial investors increasingly require reliable utilities, transport connectivity and predictable approval procedures.
BHAVYA seeks to address these requirements by bringing infrastructure and common services together at designated industrial locations.
By reducing the need for individual enterprises to establish basic infrastructure from scratch, the scheme aims to lower entry barriers and help businesses move from investment decisions to production more quickly.
From Industrial Estates to Integrated Manufacturing Hubs
India’s industrial development strategy has expanded from conventional industrial estates and Special Economic Zones (SEZs) towards larger, integrated manufacturing hubs.
India had 370 notified SEZs as of February 2026. These zones had attracted investments worth ₹7.82 lakh crore and generated employment for more than 31.7 lakh people.
The government has also expanded the mapping of industrial locations through the India Industrial Land Bank (IILB), which had mapped 4,164 industrial parks as of October 14, 2026.
The National Industrial Corridor Development Programme (NICDP) has supported the development of integrated industrial locations combining manufacturing zones with utilities, logistics and urban services.
Examples highlighted in the release include:
- Dholera Special Investment Region, Gujarat: An integrated industrial development focused on advanced manufacturing.
- Shendra-Bidkin Industrial Area, Maharashtra: Part of the state’s industrial development framework.
- Vikram Udyogpuri, Madhya Pradesh: An integrated industrial development.
- Integrated Industrial Township, Greater Noida, Uttar Pradesh: An industrial township designed to support industrial activity.
BHAVYA builds on this broader approach by seeking to expand infrastructure-ready industrial parks across more locations and sectors.
Dholera Shows the Potential of Integrated Industrial Planning
Dholera Special Investment Region in Gujarat is highlighted in the PIB release as an example of an integrated industrial city with planned roads, utilities, digital networks and urban services.
The region is being developed to support sectors including semiconductors, aerospace and defence, solar manufacturing, green hydrogen, biotechnology and heavy engineering.
Its planned connectivity includes links to ports, airports, expressways and the Dedicated Freight Corridor.
Dholera’s reported development figures include:
- Land allotted: 495 acres across 11 plots.
- Potential investment: ₹97,328 crore.
- Potential employment: More than 6,000 jobs.
The release also identifies land allotments for major projects, including Tata Electronics’ semiconductor facility and ReNew’s solar module manufacturing plant.
These figures represent reported investment and employment potential rather than a guarantee of realised investment or jobs.
BHAVYA Builds on Existing Plug-and-Play Initiatives
The Centre has previously supported the development of industrial parks designed to provide infrastructure before companies begin operations.
India had 260 plug-and-play industrial parks and that ₹2,500 crore was allocated for their development in the Union Budget 2025–26.
The plug-and-play approach has also been extended to sector-specific industrial facilities. The release refers to the government’s July 2026 approval of the BHAVYA-Rasayan Scheme for three chemical parks, which are intended to provide common facilities and environmental safeguards for chemical manufacturing.
BHAVYA’s broader objective is to extend the infrastructure-ready model across 100 industrial parks, with the selection of projects based on readiness, land availability and industrial potential.
MSMEs and Investors Among the Intended Beneficiaries
The scheme is designed to serve manufacturing companies, MSMEs, startups and investors seeking industrial locations with established infrastructure.
Access to common facilities and streamlined approvals could reduce the initial burden of setting up industrial operations, particularly for enterprises that may otherwise need to coordinate multiple infrastructure and service requirements independently.
The initiative also aims to strengthen supply chains by developing industrial locations with supporting utilities, warehousing and transport connectivity.
The extent to which individual businesses benefit will depend on the facilities available at selected parks, the implementation of approval reforms and the requirements of particular industries.
Six-Year Rollout to Expand India’s Industrial Capacity
BHAVYA is scheduled for implementation from FY 2026–27 through FY 2031–32. The first phase will cover the selection of up to 50 parks, with subsequent rounds intended to take the programme to its full target of 100.
State governments and private developers will participate in implementation, while dedicated SPVs will oversee the development and management of individual projects.
Through the scheme, the Centre aims to expand access to investment-ready industrial locations, strengthen manufacturing infrastructure and support a broader range of industrial activities across India.
The programme forms part of the government’s wider effort to increase manufacturing capacity, improve the ease of doing business and strengthen India’s participation in domestic and global supply chains.
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