In a major move to strengthen India’s manufacturing ecosystem, the Union Cabinet has approved a ₹33,660 crore scheme titled Bharat Audyogik Vikas Yojna (BHAVYA). The initiative aims to develop 100 world-class, plug-and-play industrial parks across the country, offering ready-to-use infrastructure for businesses.
This ambitious scheme is expected to significantly improve ease of doing business, attract global investments, and generate large-scale employment opportunities.
A Big Push for Manufacturing
- The BHAVYA scheme was first announced in the Union Budget 2024–25 as part of the government’s broader vision to transform India into a global manufacturing hub.
- With this approval, the plan is now set to be implemented in partnership with state governments and the private sector.
- Under the scheme, industrial parks will be developed over approximately 33,600 acres of land. Each park will be equipped with modern infrastructure, allowing companies to start operations quickly without delays related to construction or approvals.
Financial Support and Implementation
- The central government will provide financial support of up to ₹1 crore per acre for developing these parks. In addition, it will also bear up to 25% of the cost for external connectivity infrastructure such as roads, rail links, and logistics networks.
- The scheme will be implemented through a “challenge mode,” where states will compete to get their projects approved based on predefined criteria. Private developers can also participate, provided their proposals are routed through state governments.
- The Department for Promotion of Industry and Internal Trade will play a key role in overseeing the implementation and selection of projects.
Selection Criteria and Structure
- The industrial parks will be developed in or near 100 cities, with each project spanning between 100 and 1,000 acres.
- However, for northeastern and hilly states, the minimum land requirement has been relaxed to 25 acres.
- Project selection will be based on several factors, including proximity to industrial hubs, ports, and skill development centres. The focus will remain on high-quality proposals that can deliver long-term economic benefits.
- To ensure smooth execution, states will be required to set up a Special Purpose Vehicle (SPV) with adequate planning and development powers.
- Once operational, these parks will offer single-window clearance systems, making it easier for businesses to set up and begin operations.
Modern, Green, and Future-Ready Infrastructure
- One of the standout features of the BHAVYA scheme is its emphasis on sustainability and future-ready infrastructure.
- The industrial parks will be designed as integrated ecosystems with green energy systems, efficient resource utilization, and underground utility corridors to ensure a “no-dig” environment.
- These parks will also feature seamless multimodal connectivity, ensuring efficient movement of goods and people. Strong last-mile connectivity will further enhance operational efficiency for industries.
Benefits for Businesses and Economy
- The scheme is expected to benefit a wide range of stakeholders, including MSMEs, startups, and global investors looking for ready-to-use industrial infrastructure.
- By reducing setup time and costs, BHAVYA will make India a more attractive destination for manufacturing investments.
- In addition to boosting industrial growth, the initiative is also expected to generate employment opportunities and support related sectors such as logistics, services, and local businesses.
Government’s Vision
- Commerce and Industry Minister Piyush Goyal highlighted that the scheme focuses on building next-generation infrastructure, promoting ease of doing business, and creating sustainable industrial ecosystems.
- He emphasized that cluster-based development under BHAVYA will strengthen supply chains, reduce costs, and foster vibrant industrial ecosystems across regions.
- The initiative is also a significant step toward achieving the vision of Atmanirbhar Bharat and enhancing India’s global manufacturing competitiveness.
The approval of the BHAVYA scheme marks a crucial step in India’s journey toward becoming a global manufacturing powerhouse. By offering world-class infrastructure, faster clearances, and sustainable development, the scheme is set to transform the country’s industrial landscape and drive long-term economic growth.