India launches ₹3,030 crore scheme to build three mega chemical parks across 2,000 acres each
The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved a new scheme called Bharat Audyogik Vikas Yojana Rasayan, or BHAVYA-Rasayan Scheme, for establishing three dedicated chemical parks in the country. The scheme, announced in the Union Budget for 2026-27, has a total financial outlay of ₹3,030 crore.
Information and Broadcasting Minister Ashwini Vaishnaw announced the decision on Friday (July 24, 2026). He stated that each park could see investments ranging from ₹20,000 crore to ₹50,000 crore, and the scheme would act as a 'multiplier' in attracting investments.
The scheme will run for five years from the current fiscal year to 2030-31. Of the total outlay, ₹3,000 crore is allocated for establishing common infrastructure facilities and basic utilities inside the parks, while ₹30 crore is earmarked for administrative expenditure.
Each chemical park will have a minimum contiguous area of 8 sq km (at least 2,000 acres) of encumbrance-free land. The parks can be greenfield or brownfield, depending on the selection by state governments through a challenge route.
The central government will provide a grant of up to ₹1,000 crore per park, subject to a minimum contribution of ₹500 crore by the concerned state government.
The government said the scheme aims to make India self-reliant in the chemical sector by attracting domestic and foreign investments, enhancing domestic production capacity, and generating employment. It will boost the global competitiveness of the sector and promote 'Atmanirbharta' (self-reliance).
The chemical parks will offer plug-and-play infrastructure, including common effluent treatment plants (CETP), treatment, storage, and disposal facilities (TSDF), water supply and distribution systems, solvent recovery and distillation facilities, steam generation and distribution networks, interconnected pipeline networks, and logistics and warehousing facilities.
The scheme is expected to promote development along the entire value chain, including upstream, downstream, and ancillary industries. The growth of the chemical sector will have a cascading effect on downstream sectors such as agriculture, textiles, pharmaceuticals, nutraceuticals, construction, and automobiles, leading to higher employment and economic development.
