Cabinet okays new Rs 33,660-crore scheme to develop 100 industrial parks

Union minister Ashwini Vaishnaw

• Cabinet approves Rs 33,660 crore for 100 industrial parks
• BHAVYA scheme aims to boost manufacturing and ease business entry
• Scheme offers plug-and-play parks, jobs, and investor support

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Union Cabinet has approved a new industrial parks policy worth Rs 33,660 crore as the government seeks to accelerate country’s economic growth.

The scheme, Bharat Audyogik Vikas Yojna (BHAVYA), will help in developing 100 plug-and-play industrial parks across the country, Union minister Ashwini Vaishnaw said during a press briefing on March 18.

"The scheme aims to develop world-class industrial infrastructure, unlocking manufacturing potential and driving India’s growth story,” a government statement said.

The scheme will be implemented in collaboration with the states and private sector and take inspiration from the success of Industrial Smart Cities development under the National Industrial Corridor Development Programme (NICDP) framework, the statement said.

“At the heart of BHAVYA lies a strong push for deregulation and ease of doing business, with streamlined approvals, effective single-window systems, and investor-friendly reforms led by states,” the government said.

DPIIT secretary Amardeep Singh Bhatia said that the scheme was finalised after consultation with state governments and industry.

Bhatia said the government expects around 33,600 acres of land to be covered under the scheme and developed in the next six years.

“We expect the state government to select the parks for development under the scheme. Private sector can also develop these parks, under partnership with Centre and state,” he said.

How will the scheme boost industrial activity?

Through BHAVYA, the government seeks to remove entry barriers for investors. The scheme is expected to provide a plug-and-play industrial ecosystem and allow companies to move from intent to production with speed and certainty.

“With pre-approved land, ready infrastructure, and integrated services, BHAVYA will significantly reduce entry barriers for investors.”

The government said industrial parks ranging from 100 to 1,000 acres will be taken up for development under the scheme and a financial support of up to Rs 1 crore per acre will be provided for core infrastructure, value-added infrastructure and social infrastructure.

In addition, support for external infrastructure will also be provided up to 25 percent of the project cost, ensuring seamless connectivity and integration with existing networks.

“These parks will set new benchmarks in industrial infrastructure, ensuring reliability, reducing inefficiencies, and enhancing productivity across sectors,” it said.

The scheme is expected to general jobs and provide direct and indirect employment opportunities in manufacturing, logistics, and services.

Manufacturing units, MSMEs, startups and global investors seeking ready-to-use industrial infrastructure are likely to benefit from this scheme, apart from workers, logistics providers, service sector enterprises and local communities.