New Delhi: The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the BHAVYA Rasayan Scheme with an outlay of ₹3,030 crore to develop three dedicated chemical parks in India. The scheme aims to strengthen domestic chemical manufacturing, attract investment, create jobs and make India’s chemical industry more competitive globally. It was announced in the Union Budget 2026-27.
The scheme, officially called Bharat Audyogik Vikas Yojana Rasayan (BHAVYA Rasayan), will run for five years from FY 2026-27 to FY 2030-31.
BHAVYA Rasayan Scheme: Key Details at a Glance
| Detail | Information |
| Scheme | Bharat Audyogik Vikas Yojana Rasayan (BHAVYA Rasayan) |
| Purpose | Development of dedicated chemical parks |
| Number of parks | 3 |
| Total outlay | ₹3,030 crore |
| Infrastructure allocation | ₹3,000 crore |
| Administrative expenditure | ₹30 crore |
| Central grant | Up to ₹1,000 crore per park |
| State contribution | Minimum ₹500 crore |
| Minimum land per park | 2,000 acres / 8 sq km |
| Scheme period | FY 2026-27 to FY 2030-31 |
| Selection model | Challenge Route |
What is the BHAVYA Rasayan Scheme
BHAVYA Rasayan is a Central Government scheme designed to support the development of three large, dedicated chemical parks in the country.
These parks will provide shared infrastructure and basic utilities needed by chemical companies. The government expects this approach to reduce costs, improve efficiency and support the entire chemical value chain.
₹3,030 Crore Outlay for BHAVYA Rasayan Scheme
The government has allocated a total of ₹3,030 crore for the scheme. Out of this, ₹3,000 crore will be used for common infrastructure facilities and basic utilities inside the chemical parks. Another ₹30 crore has been allocated for administrative expenses. The scheme will remain operational from FY 2026-27 to FY 2030-31.
Centre to Provide Up to ₹1,000 Crore Per Chemical Park
Under the BHAVYA Rasayan Scheme, the Central Government can provide a grant of up to ₹1,000 crore for each chemical park. However, the concerned state government will have to make a minimum contribution of ₹500 crore.
The three chemical parks will be developed by state governments through a Challenge Route, according to the government.
Each Chemical Park Will Need at Least 2,000 Acres Under BHAVYA Rasayan Scheme
The government has also set minimum land requirements for the proposed chemical parks. Each park must have at least 8 square kilometres, or a minimum of 2,000 acres, of contiguous encumbrance-free land.
The large size is intended to create an integrated industrial ecosystem where chemical manufacturers and related businesses can operate with shared facilities.
What Facilities Will the New Chemical Parks Have
The proposed parks will offer plug-and-play infrastructure, meaning companies will be able to access important common facilities instead of developing everything individually. According to the government, key facilities are expected to include:
- Common Effluent Treatment Plant (CETP)
- Treatment, Storage and Disposal Facility (TSDF)
- Water supply and distribution systems
- Solvent recovery and distillation facilities
- Steam generation and distribution network
- Interconnected pipeline network
- Logistics and warehousing facilities
These common facilities could help companies lower infrastructure and logistics costs while improving resource use.
Why is the BHAVYA Rasayan Scheme Important
India’s chemical and petrochemical sector supplies materials to several major industries, including agriculture, textiles, pharmaceuticals, nutraceuticals, construction, automobiles and electronics.
The government expects BHAVYA Rasayan to attract both domestic and foreign investment, increase domestic manufacturing capacity and generate employment. It is also expected to help Indian chemical companies become more competitive in global markets.
Scheme Could Support Exports and Reduce Import Dependence
One of the government’s key objectives is to integrate India’s chemical industry more deeply into global value chains.
Better infrastructure and lower costs could support higher exports while helping India replace some imported chemical products with domestic production.
This is also expected to support the government’s broader Atmanirbhar Bharat or self-reliant India strategy.
Focus on Environment-Friendly Chemical Manufacturing
Environmental management will be an important part of the proposed chemical parks. Common facilities for effluent treatment, hazardous waste management, storage and disposal are planned to help chemical companies comply with environmental rules more effectively.
The government expects this shared infrastructure model to support more sustainable development of the chemical industry.
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