Cabinet Approves Rs 3,030 Crore Scheme to Establish Three Chemical Parks

NEW DELHI: The Union Cabinet on Friday approved the Bharat Audyogik Vikas Yojana Rasayan (BHAVYA-Rasayan) scheme, which aims to establish three dedicated chemical parks in the country. The scheme comes with a total financial outlay of Rs 3,030 crore.

Of this amount, Rs 3,000 crore has been allocated for developing common infrastructure facilities and basic utilities within the parks, while Rs 30 crore is earmarked for administrative expenses. The scheme will run for five years, as announced in the Union Budget.

Under the scheme, the central government will provide a grant of up to Rs 1,000 crore for each park. The respective state governments where the parks are located will have to contribute at least Rs 500 crore each.

According to the government, the BHAVYA-Rasayan scheme is intended to promote the growth of the chemical industry and its value chain, including upstream, downstream, and ancillary industries, while ensuring efficient resource utilisation.

By providing shared common infrastructure and basic utilities tailored to the chemical industry, the scheme is expected to enhance cost competitiveness and help the Indian chemical industry become globally competitive. It is also expected to facilitate better integration with global value chains, boosting exports and import substitution.

The scheme includes provisions for an environment-friendly ecosystem, with centralised facilities such as a common effluent treatment plant, treatment, storage, and disposal facilities, and hazardous waste management infrastructure. The government stated that the development of the chemical sector will generate employment and contribute to economic growth.