Cabinet Approves BHAVYA Rasayan Scheme for Chemical Parks

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Key takeaways

The Union Cabinet approved the BHAVYA Rasayan Scheme with a total outlay of Rs. 3,030 crore to establish 3 dedicated Chemical Parks across India.
Under the scheme, the Central Government will provide up to Rs. 1,000 crore per park, while State Governments must contribute a minimum of Rs. 500 crore.
The scheme will run for 5 years from FY 2026-27 to FY 2030-31, requiring each park to possess at least 8 sq. km. or 2,000 acres of contiguous land.
Announced in the Union Budget 2026-27, the initiative aims to boost chemical sector exports and support the targets of Atmanirbhar Bharat and Viksit Bharat @ 2047.

The Union Cabinet chaired by the Prime Minister has approved the Bharat Audyogik Vikas Yojana Rasayan (BHAVYA Rasayan) Scheme to build 3 dedicated Chemical Parks across India.

First announced in the Union Budget 2026-27, the BHAVYA Rasayan scheme sets up chemical parks with shared infrastructure for chemical, petrochemical, downstream, and ancillary industries.
The scheme carries a total financial allocation of Rs. 3,030 crore, which includes Rs. 3,000 crore for common infrastructure and utilities along with Rs. 30 crore for administrative costs.
The Central Government will offer up to Rs. 1,000 crore for each park, while the respective State Government must contribute at least Rs. 500 crore.
Implementation will span 5 years from FY 2026-27 to FY 2030-31, with State Governments competing to develop these parks through the Challenge Route.

Every chemical park requires a single continuous block of dispute-free land spanning at least 8 sq. km. or 2,000 acres.
The parks will offer ready-to-use plug-and-play facilities, including effluent treatment plants, hazardous waste management systems, water supply, solvent recovery units, steam networks, pipelines, logistics, and warehousing.

Setting up these parks will lower logistics and production costs, boost resource efficiency, attract local and international investments, increase exports, support import substitution, and integrate India into global supply chains.
Modern sustainable infrastructure coupled with strict environmental rules will generate employment, strengthen downstream businesses, and help fulfill the vision of Atmanirbhar Bharat and Viksit Bharat @ 2047.