Cabinet Approves Rs. 33,660 Crore ‘BHAVYA’ Scheme for 100 Plug-and-Play Industrial Parks

The Union Cabinet has approved a scheme titled the Bharat Audyogik Vikas Yojna (BHAVYA), with a total outlay of ₹33,660 crore, for the development of 100 plug-and-play industrial parks across India. The scheme is aimed at promoting manufacturing-led economic growth, improving ease of doing business, and strengthening the country’s industrial infrastructure framework.

The scheme will be implemented through a collaborative model involving the Central Government, State Governments, and private sector participants, reflecting a coordinated approach towards large-scale industrial infrastructure development.

Under the scheme, the proposed industrial parks will function as plug-and-play facilities, where land, utilities, regulatory approvals, and essential infrastructure are intended to be made available in advance. This framework is expected to reduce project implementation timelines and lower entry barriers for investors, thereby enabling quicker commencement of manufacturing operations.

The industrial parks are proposed to range between 100 and 1,000 acres, with a reduced minimum size of 25 acres for parks located in hilly and North-Eastern states, taking into account geographical and logistical constraints.

The scheme is proposed to be implemented in phases up to 2032, beginning in FY 2026–27, with the first phase focusing on the development of 50 industrial parks.

Financial assistance under the scheme will primarily support the development of core industrial infrastructure. The Central Government will provide assistance of up to ₹1 crore per acre for key infrastructure components such as internal road networks, power and water utilities, drainage systems, and administrative facilities within the parks. The scheme also provides support for the development of common industrial facilities, including factory sheds, testing laboratories, warehousing infrastructure, and worker housing.

To improve connectivity and logistics efficiency, the scheme will provide financial support for external infrastructure, including road and transport connectivity, with assistance of up to 25% of the project cost.

The proposed industrial parks will be aligned with the PM GatiShakti National Master Plan, enabling integration with multimodal transport networks and last-mile connectivity infrastructure.

Overall, in addition to supporting industrial expansion, the scheme is intended to generate employment across manufacturing, logistics, and allied service sectors, while promoting regional industrialisation, strengthening supply chains, and supporting the growth of MSMEs and startups within the manufacturing ecosystem.