BHAVYA Rasayan Scheme: Promoting Integrated Growth of India’s Chemical Industry

Context

The Union Cabinet has approved the Bharat Audyogik Vikas Yojana (BHAVYA) – Rasayan Scheme for establishing three dedicated chemical parks across the country.

About Bharat Audyogik Vikas Yojana (BHAVYA) – Rasayan Scheme

1. The BHAVYA Rasayan Scheme aims to establish three dedicated chemical parks to promote the development of the entire chemical value chain, including upstream, downstream, and ancillary industries.
2. It seeks to create integrated industrial ecosystems with modern common infrastructure to enhance the efficiency and competitiveness of India’s chemical sector.
3. Implementation Period: FY 2026–27 to FY 2030–31 (five years).
4. Financial Outlay: ₹3,030 crore, comprising:
   1. ₹3,000 crore for developing common infrastructure and basic utilities within the chemical parks.
   2. ₹30 crore for administrative expenses.

Salient Features

1. Central Financial Assistance: The Central Government will provide up to ₹1,000 crore for each chemical park, subject to a minimum contribution of ₹500 crore by the respective state government.
2. Selection Process: Chemical parks will be developed by state governments through a challenge-based selection process.
3. Land Requirement: Each park must have at least 2,000 acres (8 sq. km.) of contiguous, encumbrance-free land.
4. Plug-and-Play Infrastructure: The parks will provide ready-to-use industrial infrastructure, including:

1. 1. Common Effluent Treatment Plants (CETPs) for industrial wastewater treatment.
   2. Treatment, Storage and Disposal Facilities (TSDFs) for hazardous waste management.
   3. Water supply and distribution systems.
   4. Solvent recovery and distillation facilities.
   5. Steam generation and distribution networks.
   6. Interconnected pipeline systems.
   7. Logistics and warehousing infrastructure.

FAQs

Q1. What is the primary objective of the BHAVYA Rasayan Scheme?

Ans: The scheme aims to establish three dedicated chemical parks to promote the development of the entire chemical value chain, including upstream, downstream, and ancillary industries.

Q2. What is the total financial outlay of the BHAVYA Rasayan Scheme?

Ans: The scheme has a total financial outlay of ₹3,030 crore, comprising ₹3,000 crore for developing common infrastructure and ₹30 crore for administrative expenses.

Q3. How much financial assistance is provided by the Central Government under the scheme?

Ans: The Central Government will provide up to ₹1,000 crore for each chemical park, subject to a minimum contribution of ₹500 crore by the respective state government.

Q4. What are the eligibility requirements for establishing a chemical park under the BHAVYA Rasayan Scheme?

Ans: Each chemical park must be developed by a state government selected through a challenge-based process and must have at least 2,000 acres (8 sq. km.) of contiguous, encumbrance-free land.

Q5. What is meant by plug-and-play infrastructure under the scheme?

Ans: It refers to ready-to-use industrial facilities such as CETPs, TSDFs, water supply systems, steam networks, solvent recovery units, interconnected pipelines, and logistics infrastructure, enabling industries to commence operations with minimal additional infrastructure.

Q6. What is the implementation period of the BHAVYA Rasayan Scheme?

Ans: The scheme will be implemented over five years, from FY 2026–27 to FY 2030–31.

Q7. Why is the BHAVYA Rasayan Scheme significant?

Ans: The scheme aims to develop integrated chemical parks with modern common infrastructure, strengthen the chemical value chain, and improve the efficiency and competitiveness of India’s chemical manufacturing sector.