India’s Union Cabinet, led by Prime Minister Narendra Modi, backed the BHAVYA-Rasayan Scheme on Friday, allocating Rs 3,030 crore to build three dedicated Chemical Parks.
Of the total funding, Rs 3,000 crore is set aside for common infrastructure and basic utilities at the parks, while Rs 30 crore covers administrative expenses.
The Centre will provide a grant of up to Rs 1,000 crore per park, on condition that the relevant state government contributes at least Rs 500 crore.
Each park must have a minimum contiguous area of 8 square kilometres, equal to roughly 2,000 acres, of encumbrance-free land.
Announced in the Union Budget for FY 2026-27, the scheme will run for five years, until FY 2030-31, aiming to integrate India’s chemical industry into global value chains and reduce import dependence.
The chemical parks are designed to give industry players plug-and-play infrastructure and shared utilities.
(Image: Rajiv Nair EIL (CC BY-SA 4.0))