Union Cabinet approves BHAVYA-Rasayan Scheme to strengthen India's chemical sector
In a major push for the chemical industry, the Union Cabinet has approved Bharat Audyogik Vikas Yojana Rasayan (BHAVYA - Rasayan) Scheme for setting up three dedicated Chemical Parks in India. The initiative, announced in the Union Budget FY 2026-27, is expected to attract domestic and foreign investments, enhance domestic production capacity and generate employment. It will also boost the global competitiveness of the sector thereby promoting Atmanirbharta.
The Scheme will have a total financial outlay of Rs 3,030 crore, with Rs 3,000 crore towards meeting the cost of establishing the Common Infrastructure Facilities and Basic Utilities inside the park and Rs 30 crore as administrative expenditure. The scheme would run for a period of 5 years from FY 2026-27 to FY 2030-31. The Centre would provide a grant of up to Rs 1,000 crore per park. This will be subject to minimum contribution of Rs 500 crore by the concerned State Government.
The BHAVYA Rasayan Scheme will promote development of the Chemical industry along the whole value chains including upstream, downstream and ancillary industries promoting efficient utilization of resources, leading to lower logistics cost. The development of 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, helping achieve the goal of Viksit Bharat @ 2047.
