BHAVYA-Rasayan Scheme: India to Build Three Mega Chemical Parks
India is moving ahead with three large chemical parks under the Bharat Audyogik Vikas Yojana Rasayan (BHAVYA-Rasayan) scheme. These parks will give chemical companies a ready-made base to make products, grow and try new ideas.
The scheme was announced in the Union Budget 2026-27 and approved by the Union Cabinet on July 24, 2026. It is run by the Ministry of Chemicals and Fertilizers.
The total outlay (planned spending) is ₹3,030 crore over five years, from 2026-27 to 2030-31. The Centre gives up to ₹1,000 crore per park, and each host state must put in at least ₹500 crore.
States will compete for the parks through a "challenge route" (a contest). Each park needs at least 2,000 acres (8 sq km) of land in one piece, free of legal disputes. The scheme was notified on August 10, 2026, and state proposals are due by November 30, 2026.
The parks will offer "plug-and-play" facilities: shared waste-water treatment, hazardous waste disposal, water, steam, pipelines, solvent recovery, logistics and warehousing.
The aim is to lower costs, attract investment, raise exports and cut India's dependence on imported chemicals.
BHAVYA-Rasayan Scheme: Chemical Parks for India
BHAVYA-Rasayan is a central government scheme to build three large, ready-to-use industrial parks only for the chemical industry. Its full name is Bharat Audyogik Vikas Yojana Rasayan ("Rasayan" means chemicals in Hindi). The Centre helps states build shared facilities inside each park, such as waste treatment plants, water and steam supply, pipelines and warehouses. A chemical company can then set up its factory there quickly and cheaply, without building all of this on its own.
The news is about India pushing ahead with these three chemical parks. With states now preparing bids under the challenge route, the scheme is moving from approval to the stage where the host states will be chosen.
Petroleum, Chemicals and Petrochemicals Investment Regions (PCPIRs)
A Petroleum, Chemicals and Petrochemicals Investment Region, or PCPIR, is a very large, specially planned area (about 250 sq km) where refineries, chemical plants, petrochemical units, housing and services are all built together. Each PCPIR is built around one big "anchor" unit, usually an oil refinery or a cracker plant, that supplies basic raw materials to the smaller plants around it. India brought in the PCPIR policy in 2007 to create world-class chemical hubs like those in China, Singapore and the Middle East.
The new BHAVYA-Rasayan chemical parks follow the same cluster idea as PCPIRs, but are smaller and come with direct central grants. The mixed record of PCPIRs is one reason the government chose a challenge route and ready-made common facilities this time.
- Scheme: Bharat Audyogik Vikas Yojana Rasayan (BHAVYA-Rasayan), Ministry of Chemicals and Fertilizers
- Total outlay: ₹3,030 crore (₹3,000 crore for common infrastructure, ₹30 crore for administration)
- Period: 2026-27 to 2030-31 (5 years)
- Number of chemical parks: 3, chosen by the challenge route
- Central grant: up to ₹1,000 crore per park; minimum state share: ₹500 crore per park
- Minimum land: 8 sq km (about 2,000 acres), contiguous and encumbrance-free
- Cabinet approval: July 24, 2026; notified: August 10, 2026; proposals due: November 30, 2026
- Separate BHAVYA scheme: ₹33,660 crore for 100 industrial parks, implemented by NICDC
- India: 6th largest chemical producer globally, 3rd in Asia
- NITI Aayog (2025): chemical trade deficit about US$31 billion (2023); 3.5% GVC share; target 12% by 2040
- PCPIR policy: 2007; four PCPIRs approved, three active (Gujarat, Andhra Pradesh, Odisha)