Union Cabinet approved Bharat Audyogik Vikas Yojna (BHAVYA) | Current Affairs | Vision IAS

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In Summary

  • BHAVYA Scheme: Aims to develop 100 plug-and-play industrial parks across India with Rs. 33,660 crore allocation over 6 years (FY 2026-27 to 2031-32).
  • Financial Support: Provides up to Rs. 1 crore per acre for core, value-added, and social infrastructure, plus 25% for external infrastructure.
  • Implementation & Existing Parks: Managed by NICDC in partnership with states and private sector; Union Budget 2025-26 allocated Rs. 2,500 crores; India has 306 existing parks.

In Summary

BHAVYA offers new era of Plug-and-Play Industrial Development towards world-class industrial infrastructure

Key Features of BHAVYA

  • Objective: Developing 100 plug-and-play industrial parks across India with an allocation of Rs.33,660 crore. 
    • Industrial park is a planned tract of land with/without ready-built factories, and supported by shared facilities for multiple industries. 
  • Eligibility: Industrial parks ranging from 100 (25 acres for NE & hilly regions) to 1000 acres would be chosen. 
  • Duration: 6 years (FY 2026–27 to 2031–32). 
  • Financial Support: Up to Rs. One crore per acre for:
    • Core infrastructure (internal roads, underground utilities, drainage, common treatment facilities, ICT and administrative systems). 
    • Value-added infrastructure (ready-built factory sheds, built-to-suit units, testing labs, warehousing). 
    • Social infrastructure (worker housing and support amenities). 
    • Support for external infrastructure up to 25% of project cost would also be provided. 
  • Beneficiaries:
    • Primary: Manufacturing units, MSMEs, startups, and global investors seeking ready-to-use industrial infrastructure. 
    • Secondary: Workers, logistics providers, service sector enterprises, and local communities. 
  • Implementation: By National Industrial Corridor Development Corporation (NICDC), under Department for Promotion of Industry and Internal Trade, and in partnership with State and Private Sector. 

Plug and Play Industrial Parks in India

  • Ready-to-use ecosystems where land, utilities, approvals, and infrastructure are pre-developed, enabling industries to start operations quickly without delays. 
  • Union Budget 2025-26 allocated Rs. 2,500 crores for their development. 
  • There are 306 plug-and-play industrial parks in India, with additional 20 plug-and-play industrial parks and smart cities being developed under NICDC (December 2025). 
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Social Infrastructure

Investments in facilities and services that enhance the well-being and quality of life for citizens, such as schools, hospitals, and sanitation projects. Lending to this sector is considered under PSL.

Value-added infrastructure

Additional facilities beyond core infrastructure in an industrial park, such as ready-built factory sheds, built-to-suit units, testing laboratories, and warehousing, aimed at enhancing operational capabilities for businesses.

Core infrastructure

Essential foundational facilities within an industrial park, including internal roads, underground utilities, drainage systems, common treatment facilities, and ICT and administrative systems, funded under schemes like BHAVYA.

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