New Delhi: The Union Cabinet on Friday approved the BHAVYA Rasayan Scheme to establish three dedicated Chemical Parks across the country with a financial outlay of ₹3,030 crore to strengthen India’s chemical manufacturing sector.
Prime Minister Narendra Modi chaired the Cabinet meeting that cleared the scheme, which was announced in the Union Budget 2026-27. The government allocated ₹3,000 crore for common infrastructure and basic utilities inside the parks. In addition, it earmarked ₹30 crore for administrative expenses. The scheme will run from 2026-27 to 2030-31.
Under the scheme, the Centre will provide grants of up to ₹1,000 crore for each park. However, the concerned state government must contribute at least ₹500 crore. The government will select the parks through the challenge route.
BHAVYA Rasayan Scheme to boost chemical manufacturing
Each Chemical Park will cover at least 2,000 acres of encumbrance-free land. Moreover, the parks will offer plug-and-play infrastructure for chemical industries. These facilities will include common effluent treatment plants, hazardous waste management systems, water supply networks, steam distribution, solvent recovery units, interconnected pipelines and logistics infrastructure.
According to the government, the BHAVYA Rasayan Scheme will improve cost competitiveness by providing shared infrastructure and reducing logistics costs. As a result, it will help the chemical industry integrate with global value chains, increase exports and reduce import dependence.
Furthermore, the government said the scheme will support sustainable industrial growth through centralised environmental infrastructure. It also expects the initiative to attract domestic and foreign investment, create jobs and strengthen downstream sectors such as agriculture, textiles, pharmaceuticals, construction, automobiles and electronics. Ultimately, the scheme aims to support the goal of Viksit Bharat by 2047.
