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New Delhi: 24 July: Prime Minister Narendra Modi and the Union Cabinet approved a new industrial plan called the BHAVYA Rasayan Scheme. The government previously announced this project in the Union Budget for the financial year 2026-27. Under this plan, India will construct three large, dedicated chemical parks across the country. The government aims to organise the chemical industry, lower production costs, and make Indian companies more competitive in the global market. 
Cabinet Approves Rs 3,030 Crore BHAVYA Rasayan Scheme for 3 Chemical Parks

Budget and Financial Details

The government will spend a total of 3,030 crore rupees on this project. Officials will use 3,000 crore rupees to build shared infrastructure and basic utilities inside the three parks. They will allocate the remaining 30 crore rupees to cover administrative costs. The scheme will operate for a five-year period, starting in the financial year 2026-27 and ending in 2030-31.
The central government and the state governments will share the financial responsibilities. The central government will provide a grant of up to 1,000 crore rupees for each chemical park. To receive these funds, a state government must also invest a minimum of 500 crore rupees into the park.

Land and Infrastructure Requirements

The central government will select the locations through a competitive process among the states, known as the challenge route. To qualify, each state must provide a minimum of 2,000 acres, or eight square kilometers, of clear and connected land.
The government will design these chemical parks with ready-to-use facilities so companies can start their operations quickly. The parks will include common effluent treatment plants and waste disposal systems to handle dangerous materials safely. The parks will also provide reliable water distribution systems, steam generation networks, solvent recovery tools, and connected pipelines. Furthermore, the sites will feature modern storage and logistics areas to help companies move their products efficiently.

Economic and Environmental Impact

The BHAVYA Rasayan Scheme will bring several benefits to the Indian economy. By sharing basic utilities, companies will reduce their logistics and production costs. Centralized waste management systems will also ensure that companies follow environmental laws and manufacture chemicals safely.
Many other sectors depend heavily on the chemical industry. Agriculture, textiles, medicines, construction, and electronics all require chemicals and petrochemicals to manufacture their goods. As the chemical industry expands, these related industries will also grow. This overall industrial growth will attract investments from both domestic and foreign businesses. Ultimately, the scheme will create new jobs, increase the country's manufacturing capacity, and reduce the need to import chemicals from other nations.