Centre Clears ₹3,030 Crore BHAVYA-Rasayan Scheme for Three Chemical Parks

The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved a new scheme to establish three dedicated chemical parks across the country, with a total financial outlay of ₹3,030 crore.

Announcing the decision on Friday, Information and Broadcasting Minister Ashwini Vaishnaw said the Bharat Audyogik Vikas Yojana Rasayan (BHAVYA-Rasayan) scheme was approved to strengthen India's chemical industry and promote the development of integrated industrial ecosystems.

The scheme, which was announced in the Union Budget 2026-27, will be implemented over five years, from the current financial year until 2030-31. Of the total allocation, ₹3,000 crore will be utilised for developing common infrastructure facilities and basic utilities within the chemical parks, while the remaining ₹30 crore will cover administrative expenses.

Under the scheme, the Centre will provide a grant of up to ₹1,000 crore for each chemical park, subject to a minimum contribution of ₹500 crore by the respective state government. Vaishnaw clarified that the government's ₹3,030-crore support is primarily intended for common infrastructure, while the total investment required to establish the three parks is expected to be significantly higher.

The minister described the chemical industry as a foundational sector that supplies essential raw materials to several other industries and plays a critical role in the broader economy.

According to the government, the scheme is aimed at promoting the chemical industry across the entire value chain, including upstream, downstream and ancillary industries. The parks are also expected to encourage efficient resource utilisation, improve industrial integration and reduce logistics costs, thereby enhancing the competitiveness of India's chemical sector.