BHAVYA Rasayan Scheme 2026: ₹3,030 Crore for Three Chemical Parks in India
BHAVYA Rasayan Scheme 2026: The Government of India has approved a major industrial development initiative to establish three dedicated Chemical Parks across the country. The scheme, known as Bharat Audyogik Vikas Yojana Rasayan (BHAVYA-Rasayan), aims to strengthen India's domestic chemical and petrochemical manufacturing ecosystem.
The Union Cabinet approved the scheme on July 24, 2026, with a total financial outlay of ₹3,030 crore. Under this initiative, state governments will be supported in developing modern Chemical Parks through a challenge-based selection process.
The proposed parks will provide shared infrastructure, common utilities, waste treatment facilities, water distribution systems, logistics and warehousing facilities for chemical manufacturers.
What is the BHAVYA Rasayan Scheme?
BHAVYA-Rasayan is an industrial development scheme designed to strengthen India's Chemical and Petrochemical sector. It aims to establish three dedicated Chemical Parks using a cluster-based and plug-and-play infrastructure model.
Under this model, participating industrial units can access common infrastructure and essential utilities within an integrated industrial location. This can reduce the need for individual companies to independently develop all supporting infrastructure.
The scheme aims to increase domestic production capacity, reduce import dependence, encourage investment, improve export competitiveness and support the development of chemical manufacturing value chains.
BHAVYA Rasayan Scheme 2026 – Key Highlights
| Particular | Details |
|---|---|
| Scheme Name | BHAVYA-Rasayan Scheme |
| Full Name | Bharat Audyogik Vikas Yojana Rasayan |
| Cabinet Approval | July 24, 2026 |
| Approved By | Union Cabinet |
| Total Financial Outlay | ₹3,030 crore |
| Number of Chemical Parks | 3 |
| Implementation Period | FY 2026-27 to FY 2030-31 |
| Central Grant | Up to ₹1,000 crore per park |
| Minimum State Contribution | ₹500 crore per park |
| Selection Method | Challenge-Based Selection |
| Target Sector | Chemical and Petrochemical Industry |
How Will the ₹3,030 Crore Budget Be Used?
The total financial outlay of the BHAVYA-Rasayan Scheme is ₹3,030 crore. The funding is primarily intended to support the development of common infrastructure facilities and basic utilities inside the proposed Chemical Parks.
| Budget Component | Allocation |
|---|---|
| Common Infrastructure Facilities and Basic Utilities | ₹3,000 crore |
| Administrative Expenditure | ₹30 crore |
| Total Financial Outlay | ₹3,030 crore |
Important: ₹3,030 crore represents the total financial outlay of the scheme. It is not the amount allocated to each park or a single-year expenditure figure.
Where Will the Three Chemical Parks Be Established?
The scheme will support the development of three dedicated Chemical Parks by state governments through a challenge-based selection mechanism. States will be required to submit proposals according to the prescribed guidelines.
Each proposed park must have a minimum contiguous and encumbrance-free land area of 8 square kilometres, equivalent to approximately 2,000 acres.
As of October 2, 2026, the final locations of all three parks are to be determined through the official selection process. Therefore, no particular state or city should be treated as a confirmed location unless officially selected and announced.
How Much Funding Will the Central and State Governments Provide?
The BHAVYA-Rasayan Scheme follows a Centre-State funding model. The Central Government will provide a grant of up to ₹1,000 crore for each Chemical Park, subject to a minimum contribution of ₹500 crore from the concerned state government.
- Central Government: Grant of up to ₹1,000 crore per park.
- State Government: Minimum contribution of ₹500 crore per park.
- Selection: Challenge-based proposal evaluation.
The funding is intended to support common infrastructure and basic utilities. It should not be interpreted as direct financial assistance to individual companies, farmers or citizens.
What Facilities Will Be Available in the Chemical Parks?
The proposed Chemical Parks will be developed as modern plug-and-play industrial ecosystems. They will include shared facilities designed to meet the operational requirements of chemical manufacturers.
1. Common Effluent Treatment Plant (CETP)
Common Effluent Treatment Plants will support the treatment of industrial wastewater generated by participating units. These facilities can help improve environmental management and compliance.
2. Treatment, Storage and Disposal Facility (TSDF)
Dedicated facilities will support the treatment, storage and safe disposal of industrial and hazardous waste.
3. Water Supply and Distribution Systems
Integrated water supply and distribution infrastructure will be developed to meet the operational requirements of industries within the parks.
4. Solvent Recovery and Distillation Facilities
Shared solvent recovery and distillation facilities will support chemical manufacturing processes and resource utilisation.
5. Steam Generation and Distribution Network
Industrial units will have access to shared steam generation and distribution infrastructure for manufacturing operations.
6. Interconnected Pipeline Network
An interconnected pipeline network will help connect different industrial units and supporting facilities within the parks.
7. Logistics and Warehousing
Integrated logistics and warehousing facilities will support the storage, handling and movement of raw materials and finished products.
Main Objectives of the BHAVYA Rasayan Scheme
- Strengthen domestic chemical and petrochemical manufacturing.
- Reduce dependence on imported chemical products.
- Attract domestic and foreign investment.
- Improve manufacturing cost competitiveness.
- Connect Indian manufacturers with global value chains.
- Promote chemical and petrochemical exports.
- Develop shared environmental and waste-management infrastructure.
- Support industrial development and employment generation.
Which Industries Can Benefit from the Chemical Parks?
The scheme is primarily designed for businesses operating in the Chemical and Petrochemical sector and related industrial value chains. Shared facilities can support multiple types of manufacturing units within a common industrial cluster.
Potentially connected downstream sectors include:
- Agriculture and agrochemicals
- Pharmaceuticals and drug manufacturing
- Textiles and textile processing
- Automobiles and auto components
- Electronics and electrical manufacturing
- Paints, coatings and specialty chemicals
- Construction materials and industrial products
How Can State Governments Apply?
State governments interested in developing a Chemical Park must submit proposals through the prescribed challenge-based process. This is not an individual registration or direct subsidy application scheme for citizens.
According to the Department of Chemicals and Petrochemicals, proposals must be submitted in the prescribed format along with supporting documents. The department has specified November 30, 2026 as the proposal submission deadline.
States should refer to the official scheme guidelines for eligibility conditions, documentation requirements and submission procedures.
Can Farmers or Individual Citizens Apply?
No. BHAVYA-Rasayan is not a direct cash-benefit scheme for farmers, students or individual citizens. It is an industrial infrastructure development programme implemented through state governments.
Its potential indirect economic impact may come through increased industrial investment, manufacturing capacity, supporting businesses and employment opportunities.
Why Is the BHAVYA Rasayan Scheme Important?
Chemicals and petrochemicals are important inputs for several industries, including agriculture, pharmaceuticals, textiles, construction, electronics and automobiles. Strengthening domestic manufacturing can support the supply chains of these sectors.
Developing three dedicated Chemical Parks with shared infrastructure may help reduce the time and cost required by industries to establish supporting facilities. Centralised environmental infrastructure can also support more coordinated waste management and regulatory compliance.
Conclusion
BHAVYA-Rasayan Scheme 2026 is an important industrial initiative aimed at strengthening India's Chemical and Petrochemical manufacturing ecosystem. The Union Cabinet has approved a total financial outlay of ₹3,030 crore to support the establishment of three dedicated Chemical Parks.
Under the scheme, the Central Government will provide grants of up to ₹1,000 crore per park, subject to a minimum state contribution of ₹500 crore. The initiative aims to improve domestic production, reduce import dependence, attract investment, support exports and develop modern industrial infrastructure.
FAQs – BHAVYA Rasayan Scheme 2026
What is the BHAVYA-Rasayan Scheme?
It is a Government of India scheme to support the development of three dedicated Chemical Parks across the country.
What is the full form of BHAVYA?
BHAVYA stands for Bharat Audyogik Vikas Yojana Rasayan.
When was the BHAVYA-Rasayan Scheme approved?
The Union Cabinet approved the scheme on July 24, 2026.
What is the total budget of the scheme?
The scheme has a total financial outlay of ₹3,030 crore, including ₹3,000 crore for infrastructure and ₹30 crore for administrative expenditure.
Where will the three Chemical Parks be established?
The locations will be determined through the official challenge-based selection process. The final locations should be confirmed through government announcements.
How much central assistance will each park receive?
The Central Government can provide a grant of up to ₹1,000 crore per park, subject to a minimum contribution of ₹500 crore from the concerned state government.
Can farmers apply for the BHAVYA-Rasayan Scheme?
No. It is an industrial infrastructure scheme and not a direct farmer subsidy or cash-benefit programme.
What is the implementation period?
The scheme is scheduled to run from FY 2026-27 to FY 2030-31.
