The Commerce Ministry on Saturday, 23 May released detailed operational guidelines for the BHAVYA Scheme, a flagship initiative designed to develop 100 investment-ready industrial parks across India over six years, backed by a total financial outlay of approximately ₹33,660 crore. The scheme runs from 2026-27 to 2031-32 and is positioned as a structural push to make India a globally competitive manufacturing destination.

What BHAVYA Covers

The scheme provides for development of both greenfield and eligible brownfield industrial parks. Minimum land requirements have been set at 100 acres for non-hilly states and 25 acres for hilly states, northeastern states, Union Territories, and smaller states. Parks of up to 1,000 acres are also permitted under the framework.

The guidelines lay down a comprehensive architecture covering eligibility criteria, project selection methodology, funding structure, governance, monitoring systems, and implementation modalities. The core emphasis is on plug-and-play infrastructure, multimodal logistics connectivity, reliable utility systems, worker-support facilities, digital governance systems, and sustainable development features.

Phase-Wise Rollout and Selection Process

In the first phase, up to 50 industrial parks will be taken up through a challenge-based competitive selection process. This approach is intended to ensure that only viable, well-planned projects receive central support, reducing the risk of stalled or underutilised industrial estates — a recurring problem with past government-backed parks.

Implementation will be undertaken through Special Purpose Vehicles (SPVs) incorporated under the Companies Act, 2013. Each SPV will be responsible for project planning, development, operation, management, investor facilitation, and long-term asset maintenance.

Policy Convergence and Strategic Alignment

BHAVYA has been explicitly aligned with 'Make in India', 'PM Gati Shakti', and the broader industrial competitiveness agenda. The guidelines also provide for convergence with Central and State Government initiatives spanning logistics, skilling, sustainability, renewable energy, utility infrastructure, and industrial development.

This convergence architecture is notable: rather than operating as a standalone scheme, BHAVYA is designed to act as an integrating layer across existing policy pipelines — potentially amplifying the impact of each constituent programme.

Why This Matters for India's Manufacturing Push

India's industrial park ecosystem has historically struggled with fragmented land acquisition, inadequate utilities, and poor last-mile connectivity. The BHAVYA framework's stress on investment-ready ecosystems directly addresses these bottlenecks. The inclusion of worker-support infrastructure and digital governance signals a shift toward parks that attract not just capital, but sustained operations.

With global supply chains actively diversifying away from China, the timing of these guidelines is strategically significant. Industry bodies and state governments are expected to begin engaging with the challenge-based selection process in the coming months. The first tranche of parks under Phase 1 will set the template for the remaining 50 parks in subsequent phases.