The Union Cabinet has launched an ambitious plan called BHAVYA Rasayan to develop India’s chemicals industry. It was first introduced in the FY 2026-27 Union Budget and is to continue until FY 2030-31, spanning five years. ₹3,030 crore has been allocated to this project, of which ₹3,000 crore will be used for park development and ₹30 crore for administrative expenses. Under this scheme, the Central Government will set up three large, specialised Chemical Parks across the country using a competitive “Challenge Route.”
For the development of these parks, the Central Government will provide a financial grant of up to ₹1,000 crore for each park. However, it is obligatory that the respective State Governments contribute at least ₹500 crore each. It is essential that the chosen park consists of a land area of at least 8 square kilometres (around 2,000 acres). The special zones will have plug-and-play infrastructure facilities, which will encourage business ventures. The parks will feature shared basic utilities and advanced facilities. These include water supply networks, steam generation, solvent recovery plants, warehousing, and interconnected pipelines.
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A major focus of the scheme is environmental sustainability. The parks will include centralised eco-friendly systems, such as Common Effluent Treatment Plants and hazardous waste management infrastructure. This will help companies easily follow environmental laws. This will help them decrease their logistics costs and compete globally. The strategy is planned to encompass the entire chemical industry value chain, including key segments such as agriculture, textiles, pharmaceuticals, electronics and automobiles. Finally, BHAVYA Rasayan will attract significant domestic and international investment, increase exports, reduce imports and create employment opportunities, thereby helping India become a developed nation in 2047.
