Union Parliamentary Affairs Minister Kiren Rijiju announced on Friday, 25 July 2026 that the Union Cabinet, under the leadership of Prime Minister Narendra Modi, has approved the Bharat Audyogik Vikas Yojana Rasayan (BHAVYA-Rasayan) scheme to establish three dedicated Chemical Parks across India, with a total financial outlay of ₹3,030 crore to be implemented between FY 2026–27 and FY 2030–31.

Context

Rijiju shared the Cabinet decision on X, stating: 'Under the leadership of Hon'ble PM Shri Narendra Modi ji, the Union Cabinet has approved the Bharat Audyogik Vikas Yojana Rasayan or BHAVYA-Rasayan Scheme for establishing three dedicated Chemical Parks in the country.' The announcement was part of a broader set of #CabinetDecisions cleared in the same sitting. The scheme marks a significant step in India's push to build dedicated, integrated infrastructure for the chemicals and petrochemicals sector.

The approval signals the government's intent to move beyond ad hoc industrial zones and create purpose-built Chemical Parks with planned utilities, logistics, and regulatory support — a model that has gained traction globally for attracting large-scale manufacturing investment.

Policy Backdrop

India's policy interest in dedicated chemical clusters dates to the Petroleum, Chemicals and Petrochemicals Investment Regions (PCPIR) policy notified in 2007, which sought to promote integrated investment regions for the sector. States such as Gujarat have since developed chemical and petrochemical clusters, particularly along the coast, leveraging port connectivity and existing industrial ecosystems.

The BHAVYA-Rasayan scheme builds on this lineage, aligning with the broader 'Make in India' and Aatmanirbhar Bharat frameworks that successive Union Budgets have reinforced. By committing ₹3,030 crore over a five-year horizon, the Centre is signalling sustained, multi-year capital commitment rather than one-time grants — a structural shift in how industrial policy is being executed.

The chemical sector is a significant contributor to India's manufacturing GDP and export basket, and dedicated parks are expected to reduce logistics costs, improve environmental compliance clustering, and attract foreign direct investment into specialty and bulk chemicals.

Stakeholders and Impact

The primary beneficiaries of the scheme are chemical manufacturers — ranging from large integrated players to small and medium enterprises — who stand to gain from shared infrastructure, reduced land-acquisition friction, and common effluent treatment facilities within the parks. State governments that host the parks will be key implementation partners, responsible for land allocation, utility provisioning, and single-window clearances.

Workers in the chemicals and allied industries, as well as ancillary logistics and construction sectors, are expected to see employment generation as the parks are developed and operationalised. The scheme's five-year implementation window — from FY 2026–27 to FY 2030–31 — provides states sufficient runway to prepare land banks and infrastructure before the parks become fully functional.

What's Next

The immediate priority will be the selection of sites for the three Chemical Parks, a process that will require formal coordination between the Union government and participating state governments. Site-selection criteria are likely to weigh port proximity, existing industrial corridors, water availability, and state-level incentive frameworks.

Formal inter-ministerial and Centre-state coordination mechanisms will need to be established to govern land acquisition, environmental clearances, and phased capital disbursement. How quickly the government moves on site identification and notifies implementing agencies will determine whether the scheme stays on its FY 2026–27 start timeline.