What is BHAVYA Rasayan scheme?

• The Union Cabinet, chaired by Prime Minister Narendra Modi, approved Bharat Audyogik Vikas Yojana Rasayan (BHAVYA) Rasayan Scheme for establishing three chemical parks in the country. 

• The scheme was announced in the Union Budget of FY 2026-27.

Key points on BHAVYA Rasayan scheme:

• It will have a total financial outlay of Rs 3,030 crore.

• Of the total budget, Rs 3,000 crore would be towards the cost of establishing the common infrastructure facilities and basic utilities inside the parks. 

• The remaining Rs 30 crore will be for the administrative expenditure.

• The scheme would run for a period of five years from the current fiscal to 2030-31.

• The Centre will facilitate development of three dedicated chemical parks by the state governments under challenge route. 

• Each such park will have a minimum contiguous area of 8 sq km (minimum 2,000 acres) of encumbrance-free land.

• The Centre would provide a grant of up to Rs 1,000 crore per park. 

• However, this will be subject to the minimum contribution of Rs 500 crore by the concerned state government.

• The investments on each park could be to the tune of Rs 20,000 crore to Rs 50,000 crore.

• The sector produces chemicals and petrochemicals that are used in various downstream sectors such as agriculture, textiles, pharma, nutraceuticals, construction, automobile and electronics.

• The growth of the chemical sector will lead to a cascading effect through enhanced development of downstream sectors of the economy as well, thereby leading to higher employment generation and greater development of the economy.

• It will boost the global competitiveness of the sector.