Why in the News
The Union Cabinet approved Bharat Audyogik Vikas Yojna (BHAVYA) to develop 100 plug-and-play industrial parks with an allocation of 33,660 crore rupees.
Key Highlights of the Scheme
- Nodal Ministry: Ministry of Commerce & Industry.
- Objective: It aims to develop 100 investment-ready plug-and-play industrial parks (100–1000 acres) in and near cities, in partnership with States, Central Public Sector Undertakings and private sector.
- Duration: The scheme will be operational for a period of six (6) years commencing from financial year 2026-27 up to 2031-32, with an outlay of ₹ 33,660 crores.
- Implementation Mechanism: Implemented by National Industrial Corridor Development Corporation (NICDC) under the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry in partnership with States and private sector.
- Mode of Implementation:
- The State/UT government or the Central PSU shall be the sponsoring agency.
- The development of the park shall be carried out by a Special Purpose Vehicle (SPV) formed between National Industrial Corridor Development and Implementation Trust (NICDIT) under DPIIT and the state nodal agency.
- The SPV shall be the owner of assets created under the scheme, and shall be responsible for planning, construction, operation and maintenance of the industrial park to be developed.
- Financial support: Up to ₹1 crore per acre will be available for eligible projects, while parks developed in partnership with private developers will receive support of up to ₹50 lakh per acre or 50% of infrastructure cost, whichever is lower. Financial support is provided for
- Core infrastructure (roads, utilities, drainage, ICT)
- Value-added infrastructure (factory sheds, labs, warehousing)
- Social infrastructure (worker housing, amenities)
- Additional support: Up to 25% of project cost for external infrastructure (connectivity and integration with existing networks)
- Beneficiaries:
- Primary: Manufacturing units, MSMEs, startups, investors
- Secondary: Workers, logistics providers, service sector, local communities
Significance
- Sustainable and Future-Ready Industrial Park Design
- Green energy and sustainable resource use with integrated underground utility corridors enabling a no-dig environment for efficient maintenance and uninterrupted industrial operations.
- Alignment with PM GatiShakti for multimodal connectivity
- Ease of Doing Business: With pre-approved land, ready infrastructure, single window system and investor-friendly reforms led by states.
- BHAVYA will significantly reduce entry barriers for investors.
- Employment Generation: Creating lakhs of direct and indirect employment across manufacturing, logistics and services
- Regional Industrial Growth: Through cluster-based development and enabling co-location of industries, suppliers and service providers
Conclusion
The approval of BHAVYA represents a transformational step in India's journey towards Atmanirbhar Bharat, reinforcing the country's manufacturing capabilities, boosting exports and laying the foundation for a resilient, inclusive and globally competitive economy.
