Cabinet Approves BHAVYA Rasayan Scheme for Three Chemical Parks

The Union Cabinet, led by PM Narendra Modi, gave its nod to the BHAVYA Rasayan (Bharat Audyogik Vikas Yojana Rasayan) Scheme, first flagged in the Union Budget for FY 2026–27. New Delhi was the venue for the approval, and the plan targets setting up three chemical parks across the country over the next five years, from FY 2026-27 to FY 2030-31.

What Is the BHAVYA Rasayan Scheme?

At its core, this is a plug-and-play infrastructure push for India's chemical sector. States will compete under a Challenge Route to host these parks, and each site needs at least 8 sq. km. (around 2,000 acres) of clear, dispute-free land. Once developed, each park will offer the following common facilities to chemical units:

• Common Effluent Treatment Plant (CETP)
• Treatment, Storage, and Disposal Facility (TSDF)
• Water supply and distribution network
• Solvent recovery and distillation units
• Steam generation and distribution system
• Interconnected pipeline network
• Logistics and warehousing space

Budget of the Bharat Audyogik Vikas Yojana Rasayan Scheme 

The government has set aside Rs. 3,030 crore for the whole initiative. Of this, Rs. 3,000 crore goes toward building common infrastructure and utilities, while Rs. 30 crore covers administrative costs. Per park, the Centre will chip in up to Rs. 1,000 crore, but only if the respective state matches with a minimum of Rs. 500 crore of its own.

Benefits of the BHAVYA Rasayan Scheme

BHAVYA Rasayan is expected to bring the following gains to the economy:

1. Strengthens the entire chemical value chain — upstream, downstream, and ancillary units — cutting logistics costs through efficient resource use
2. Improves cost competitiveness via shared infrastructure, helping Indian players compete globally
3. Deepens India's role in global value chains, lifting exports and reducing import dependence
4. Builds an eco-friendly ecosystem through centralized effluent and hazardous waste management, ensuring better regulatory compliance
5. Triggers a cascading boost across downstream sectors: pharma, textiles, agriculture, electronics, construction, generating jobs and supporting Viksit Bharat @2047 and Atmanirbharta