New initiative aims to strengthen India’s chemical manufacturing ecosystem, attract investments, boost exports and generate employment through world-class industrial infrastructure
TFP Bureau, New Delhi, July 24,2026: The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the Bharat Audyogik Vikas Yojana Rasayan (BHAVYA Rasayan) Scheme for the establishment of three dedicated Chemical Parks across the country. The initiative, announced in the Union Budget 2026-27, is aimed at strengthening India’s chemical manufacturing sector and enhancing its global competitiveness.
The scheme will be implemented with a total financial outlay of ₹3,030 crore, including ₹3,000 crore for the development of common infrastructure and basic utilities within the parks and ₹30 crore towards administrative expenses. It will be operational for five years, from the financial year 2026-27 to 2030-31.
Under the scheme, the Central Government will provide financial assistance of up to ₹1,000 crore for each Chemical Park, while the respective state governments will be required to contribute a minimum of ₹500 crore.
According to the government, the BHAVYA Rasayan Scheme is expected to accelerate the development of the chemical industry across the entire value chain, including upstream, downstream and ancillary industries. The integrated industrial ecosystem is expected to improve resource utilisation, reduce logistics costs and enhance the competitiveness of Indian manufacturers in global markets.
The proposed parks will feature shared common infrastructure designed specifically for the chemical industry, enabling industries to operate more efficiently while reducing operational costs. These facilities are expected to help Indian chemical manufacturers integrate more effectively into global value chains, increase exports and reduce dependence on imports.
The scheme also places strong emphasis on sustainable industrial development. Each Chemical Park will include modern environmental infrastructure such as Common Effluent Treatment Plants (CETPs), Treatment, Storage and Disposal Facilities (TSDFs), and hazardous waste management systems to ensure compliance with environmental regulations and promote eco-friendly manufacturing practices.
The government said the development of the chemical sector is expected to create a multiplier effect across several downstream industries, including agriculture, textiles, pharmaceuticals, nutraceuticals, construction, automobiles and electronics. The initiative is also expected to generate substantial employment opportunities while supporting the vision of Viksit Bharat 2047.
Officials said the scheme would encourage both domestic and foreign investments, expand India’s manufacturing capacity, strengthen supply chains and contribute to the country’s goal of becoming self-reliant under the Atmanirbhar Bharat initiative.
The three Chemical Parks will be developed by state governments through a competitive challenge-based selection process. Each park will require a minimum of 2,000 acres (approximately 8 square kilometres) of contiguous, encumbrance-free land.
The parks will offer plug-and-play industrial infrastructure, including Common Effluent Treatment Plants, Treatment, Storage and Disposal Facilities, water supply and distribution systems, solvent recovery and distillation units, steam generation and distribution networks, interconnected pipeline systems, and integrated logistics and warehousing facilities.
The government believes the initiative will provide a major boost to India’s chemical manufacturing capabilities and position the country as a preferred global destination for investments in the chemical and petrochemical sectors.
