Rajasthan Chief Minister Bhajan Lal Sharma on Friday, 25 July 2026, welcomed the Union Cabinet's approval of the BHAVYA-Rasayan Scheme, calling it a 'far-sighted decision' under the leadership of Prime Minister Narendra Modi. The scheme envisages an outlay of ₹3,030 crore for the establishment of three dedicated chemical parks aimed at accelerating industrial growth and employment generation across India.

Context

Sharma posted on X expressing gratitude to the Prime Minister, stating — 'BHAVYA - Rasayan Scheme ko di gayi svikrti ek doordarshi nirnay hai' ['The approval given to the BHAVYA-Rasayan Scheme is a far-sighted decision']. He noted that the scheme would 'open new doors of industrial development and employment creation' in the country's chemical sector. The post was accompanied by two images and carried the hashtag #CabinetDecisions, indicating a coordinated response to the Union Cabinet announcement.

The Union Cabinet, chaired by Prime Minister Modi, approved the scheme as part of the central government's broader push to strengthen domestic manufacturing capacity in the chemicals and petrochemicals space.

Policy Backdrop

India's focus on dedicated chemical industry infrastructure has a long lineage. The Petroleum, Chemicals and Petrochemicals Investment Regions (PCPIR) policy, notified in 2007, first promoted integrated chemical industry clusters to attract large-scale investment. The Make in India programme, launched in 2014, further elevated chemicals as a priority manufacturing sector.

The BHAVYA-Rasayan Scheme's three dedicated chemical parks build on this approach, aiming to co-locate upstream and downstream chemical units within common infrastructure. This model is widely seen as a mechanism to reduce import dependence in critical industrial inputs, aligning with the Atmanirbhar Bharat framework for self-reliance.

Stakeholders and Impact

The primary beneficiaries of the scheme are expected to be chemical manufacturers — both large enterprises and small and medium units — who stand to gain from shared infrastructure, logistics, and regulatory facilitation within dedicated park zones. Industrial workers are the other key stakeholder group, with the government positioning the parks as drivers of both direct and indirect employment generation.

Successive central governments have used the dedicated-park model as a tool to integrate supply chains and reduce the fragmentation that has historically limited the competitiveness of India's chemicals sector on global markets.

What's Next

Attention will now shift to the selection of sites for the three chemical parks and the timelines for state-level implementation. States with existing petrochemical and chemical manufacturing ecosystems are likely to put forward investment proposals and bid for park locations. Rajasthan, whose Chief Minister was among the first to publicly welcome the scheme, may be among those seeking to attract one of the designated parks. The pace of land acquisition, environmental clearances, and private investment commitments will determine how quickly the scheme translates from policy approval to ground-level activity.