Cabinet approves Rs 3,030 crore Bhavya Rasayan Scheme for three chemical parks

The Union Cabinet on Friday approved the Bhavya Rasayan Scheme (Bharat Audyogik Vikas Yojana Rasayan) with a financial outlay of Rs 3,030 crore to establish three dedicated chemical parks across the country, aiming to strengthen India's chemical manufacturing ecosystem, attract investment and reduce import dependence.

The scheme, announced in the Union Budget for FY27, will run for five years from FY2026-27 to FY2030-31. Of the total outlay, Rs 3,000 crore has been earmarked for developing common infrastructure and basic utilities in the parks, while Rs 30 crore has been allocated for administrative expenses.

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Under the scheme, the Centre will provide grants of up to Rs 1,000 crore for each park, subject to a minimum contribution of Rs 500 crore from the respective state government.

During the Cabinet briefing, Union Minister Ashwini Vaishnaw said, "Basic strategy with this park is plug and play chemical parks." He added that "three dedicated parks will be set up as part of this scheme."

The three chemical parks will be selected through a challenge-based competitive process and each must have a minimum contiguous area of 8 square kilometres (2,000 acres) of encumbrance-free land.

The parks will provide plug-and-play infrastructure for chemical manufacturers, including common effluent treatment plants (CETPs), treatment, storage and disposal facilities (TSDFs), water supply and distribution systems, solvent recovery and distillation units, steam generation and distribution networks, interconnected pipelines, and logistics and warehousing facilities.

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According to the government, the scheme is designed to support the development of upstream, downstream and ancillary chemical industries while lowering logistics costs through shared infrastructure. It is also expected to improve India's integration into global value chains, boost exports, encourage import substitution and strengthen the sector's global competitiveness.

Highlighting the expected impact of the initiative, Vaishnaw said it would enhance domestic production capacity, reduce import dependence and attract both domestic and foreign investments. The scheme is also expected to generate employment, improve resource efficiency through integrated value chains and promote sustainable manufacturing.

The government said shared infrastructure could lower operational costs for manufacturers by 20-30%, while centralised facilities for hazardous and non-hazardous waste management will help improve environmental compliance and support eco-friendly industrial development.

The chemical parks are expected to benefit a range of downstream sectors, including agriculture, textiles, pharmaceuticals, nutraceuticals, construction, automobiles and electronics, contributing to the government's vision of Viksit Bharat 2047 and its broader goal of building an Atmanirbhar Bharat.