Cabinet clears Rs 33,660-crore BHAVYA scheme to build 100 industrial parks, boost manufacturing push

New Delhi: The Union Cabinet on Wednesday approved the ₹33,660-crore flagship scheme to develop 100 plug-and-play industrial parks across the country to give a leg-up to manufacturing.

The scheme aims to develop world-class industrial infrastructure, unlocking manufacturing potential and driving India's growth story, information and broadcasting minister Ashwini Vaishnaw told reporters.

It also approved ₹2,585-crore small hydro power development scheme, support for cotton farmers and a national highway project connecting Barabanki and Bahraich district in Uttar Pradesh.

The BHAVYA (Bharat Audyogik Vikas Yojna) scheme will support the development of 100 plug-and-play industrial parks across the country, each spread over 100 to 1,000 acres, with central assistance of up to ₹1 crore per acre, he said. The scheme was announced in the budget and aims to develop world-class industrial infrastructure, unlocking manufacturing potential and driving India's growth story.

He added that states across the country will compete for the scheme, and the conditions will be specified later.

The scheme is expected to generate about 15 lakh direct jobs while creating ready-to-use industrial ecosystems to attract investment in line with the government's push to strengthen India's manufacturing base.

Elaborating on the details on the scheme, Department for Promotion of Industry and Internal Trade (DPIIT) secretary Amardeep Singh Bhatia said the scheme is sector-agnostic and will be implemented in partnership with states and private sector players.

"It will cover funding support for core, value-added infra, social infra such as housing, and up to 50 parks will be taken up in the first phase," Bhatia said.

"The minimum land acquired has to be 100 acres for mainland states and 25 acres in hilly and northeast states," Bhatia said, adding that the available land should be without litigation and encumbrance.

A special purpose vehicle with planning and development powers, and single window clearances is a mandatory eligibility criterion in the scheme.

The cabinet approved a ₹2,585-crore small hydro power development scheme to add 1,500 MW of renewable capacity over the next five years till 2030-31. The projects will be developed as run-of-river systems without large dams, minimising displacement and environmental impact.

The government estimates a potential of 21,000 MW across 7,133 sites, of which around 5,100 MW across 1,196 sites is already operational. Each project will have a capacity ranging between 1 MW and 25 MW, and the scheme is expected to crowd in investments of around ₹15,000 crore.

In the north eastern states and in districts with international border the central financial assistance will be given at Rs 3.6 crore/MW or 30% of the project cost, whichever is lower with an upper limit of Rs 30 crore per project. For other states it is Rs 2.4 crore/MW or 20% of project cost, whichever is lower.

The Cabinet Committee on Economic Affairs cleared a ₹6,969.04-crore project to build a 101.5-km, four-lane access-controlled stretch of National Highway-927 between Barabanki and Bahraich in Uttar Pradesh.