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Cabinet Approves BHAVYA Rasayan Scheme with Rs 3,030 Crore Outlay for Chemical Parks — UPSC Current Affairs 2026

Schemes & Committees24 Jul 2026

Cabinet Approves BHAVYA Rasayan Scheme with Rs 3,030 Crore Outlay for Chemical Parks

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The Union Cabinet chaired by PM Narendra Modi approved the Bharat Audyogik Vikas Yojana Rasayan (BHAVYA Rasayan) scheme on 24 July 2026.
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The scheme aims to establish three world-class, dedicated Chemical Parks across India to boost the chemical manufacturing ecosystem.
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It carries a total financial outlay of Rs 3,030 crore, for implementation over a five-year period from FY 2026-27 to FY 2030-31.
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The Centre will provide a grant of up to Rs 1,000 crore per park, subject to the host state contributing a minimum of Rs 500 crore.
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Parks will be selected via a challenge method and require a minimum of 2,000 acres (8 sq. km.) of contiguous, encumbrance-free land.

●Scheme name: Bharat Audyogik Vikas Yojana Rasayan (BHAVYA Rasayan).
●Approved by: Union Cabinet on 24 July 2026.
●Total Outlay: Rs 3,030 crore.
●Implementation Period: Five years (FY 2026-27 to FY 2030-31).
●Target: Establishment of three dedicated Chemical Parks.
●Funding model: Central grant of up to Rs 1,000 crore per park; minimum state contribution of Rs 500 crore.

BHAVYA Rasayan Scheme

Establish world-class Chemical Parks to strengthen the chemical manufacturing ecosystem and improve global competitiveness.

Key: Provides 'plug-and-play' infrastructure including Common Effluent Treatment Plants (CETPs), steam networks and hazardous waste management.

Total Scheme Outlay

Rs 3,030 crore

Infrastructure & Basic Utilities

Rs 3,000 crore

Administrative Expenditure

Rs 30 crore

Maximum Central Grant

Rs 1,000 crore per park

Minimum State Contribution

Rs 500 crore per park

Minimum Land Requirement

8 sq. km. (2,000 acres) contiguous, encumbrance-free land

The chemical industry requires highly specialized infrastructure—like Common Effluent Treatment Plants (CETPs) and steam pipelines—that is capital-intensive and environmentally sensitive to build. By funding three dedicated Chemical Parks with 'plug-and-play' facilities, BHAVYA Rasayan significantly reduces the setup costs and regulatory hurdles for individual manufacturers. This mirrors the successful Mega Food Parks and PM MITRA (for textiles) models, aiming to integrate upstream, downstream, and ancillary units in one location to boost India's integration into global chemical value chains.

Exam Relevance

upsc

GS Paper 3 > Industrial Policy; Infrastructure

banking

General Awareness > Economy and Government Schemes

ssc

General Awareness > Economy

Expected Questions

★UPSC may ask: 'Consider the following statements regarding the BHAVYA Rasayan Scheme: 1. It provides up to Rs 1,000 crore grant per park. 2. It requires states to contribute at least Rs 500 crore.'
★Banking exams may ask: 'What is the total financial outlay approved for the BHAVYA Rasayan Scheme?'

historyTopic Frequency

Newly approved Cabinet schemes with multi-crore outlays are guaranteed to appear in upcoming Prelims and Banking Mains.

Key Terms

Challenge-based selection

A process where states compete for the parks by offering the best land, infrastructure support, and policy incentives.

Plug-and-play infrastructure

Ready-to-use facilities (like water, power, and waste treatment) allowing businesses to start operations immediately.

priority_highMust Remember

•BHAVYA Rasayan outlay: Rs 3,030 crore.
•Target: 3 Chemical Parks.
•Timeline: FY 2026-27 to FY 2030-31.
•Land requirement: 2,000 acres.

tips_and_updatesExam Tips

•Memorize the exact outlay (Rs 3,030 crore) and the number of parks (3). Exams frequently test these precise figures for newly approved cabinet schemes.

Question 1 of 4Score: 0/0

Factual