BHAVYA Rasayan Scheme: Government of India Launches Dedicated Chemical Parks to Transform the Chemical Industry

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Dated: 12.08.2026

BHAVYA Rasayan Scheme: Government of India Launches Dedicated Chemical Parks to Transform the Chemical Industry

The Government of India has launched the BHAVYA Rasayan Scheme, a transformative initiative aimed at accelerating the growth of the chemical and petrochemical sector. This article provides a comprehensive overview of the scheme, its objectives, implementation strategy, and expected impact on India’s industrial landscape.

Background

The chemical and petrochemical sector is a cornerstone of India’s economy, supplying essential raw materials to industries such as automobiles, textiles, pharmaceuticals, construction, and electronics. Recognizing the need to address challenges related to scale, infrastructure, and cost competitiveness, the government has introduced the BHAVYA Rasayan Scheme to foster coordinated policy support and shared industrial infrastructure.

Key Objectives

Enhance Domestic Production: Expand production capacities to meet rising domestic and downstream demand.
Achieve Economies of Scale: Enable large-scale manufacturing to reduce costs and improve competitiveness.
Promote Import Substitution and Exports: Reduce reliance on imports and boost exports of chemical products.
Attract Investment: Encourage both domestic and foreign investment in the chemical sector.
Generate Employment: Create jobs across the chemical value chain, contributing to the vision of a developed India (Viksit Bharat) by 2047.

Scheme Details

Duration: Five years (2026-27 to 2030-31)
Total Outlay: ₹3,030 Crore
Scope: Establishment of three dedicated greenfield chemical parks, each with at least 8 square kilometres of contiguous, encumbrance-free land.

Infrastructure Support

The scheme provides financial assistance for developing common infrastructure and utilities, including:

Central effluent treatment plants
Water supply systems
Solvent recovery and distillation plants
Steam generation and distribution
Pipeline networks
Common logistics facilities
Laboratory testing centres
Emergency response and technical support centres

Financial Assistance Structure

Up to ₹1,000 Crore per park for common infrastructure and utilities
Minimum ₹500 Crore to be mobilised by the respective State Government
Any additional costs to be borne by the State

Implementation Framework

Land Acquisition

State Governments are responsible for providing and acquiring the required land, ensuring it is free from encumbrances, and bearing all associated costs.

State Implementing Agencies (SIAs)

Each park will be managed by a designated SIA, responsible for project execution, coordination, and compliance with scheme guidelines.

Governance Mechanism

Scheme Steering Committee (SSC): Approves proposals and oversees implementation, comprising senior officials from relevant ministries and the concerned State Government.
Empowered Committee (EC): Conducts periodic reviews, chaired by the Minister-in-Charge and including top-level secretaries from key departments.
Project Management Unit (PMU): Provides secretarial, managerial, and monitoring support to ensure smooth execution.

Selection Process

The three parks will be selected through a transparent “Challenge Route,” evaluating proposals based on strategic relevance, viability, implementation plans, financial soundness, policy alignment, and sustainability.

Expected Impact

The BHAVYA Rasayan Scheme is poised to:

Strengthen India’s position as a global chemical manufacturing hub
Foster innovation and technology adoption in the sector
Enhance environmental compliance and safety standards
Drive regional economic development and job creation

Conclusion

The BHAVYA Rasayan Scheme marks a significant step towards building a robust, competitive, and sustainable chemical industry in India. By focusing on infrastructure, investment, and innovation, the scheme is set to catalyze growth and contribute to the nation’s long-term economic vision.

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Source: Ministry of Chemicals and Fertilizers

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