Thu, Mar 19,
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Insights The Union Cabinet, led by Indian Prime Minister Narendra Modi, has approved the ₹33,660 crore (~$3.61 billion) Bharat Audyogik Vikas Yojna (BHAVYA) to develop 100 plug-and-play industrial parks. The scheme aims to boost manufacturing, ease doing business, attract investment, and generate jobs through world-class, sustainable infrastructure across states and Union Territories. |
The Union Cabinet, chaired by Indian Prime Minister Narendra Modi, has approved the Bharat Audyogik Vikas Yojna (BHAVYA) with an outlay of ₹33,660 crore (~$3.61 billion) to develop 100 plug-and-play industrial parks across India, aiming to boost manufacturing, attract investments, and accelerate economic growth.
The scheme seeks to create world-class industrial infrastructure by enabling faster project execution through pre-approved land, ready utilities, and integrated services. Designed to reduce entry barriers, BHAVYA will help industries move swiftly from investment intent to production, while improving ease of doing business through streamlined approvals and single-window systems led by states.
Building on the success of industrial smart cities under the National Industrial Corridor Development Programme (NICDP), BHAVYA will be implemented in partnership with state governments and private sector players. Industrial parks ranging from 100 to 1,000 acres will be developed under the scheme.
Financial assistance of up to ₹1 crore per acre will be provided for core infrastructure such as internal roads, underground utilities, drainage, treatment facilities, ICT systems, and administrative infrastructure. Additional support will cover value-added infrastructure including ready-built factory sheds, built-to-suit units, testing labs, and warehousing, along with social infrastructure such as worker housing and support amenities.
The scheme also provides support of up to 25 per cent of project costs for external infrastructure to ensure seamless connectivity and integration with existing networks. Project selection will be carried out through a challenge mode, prioritising high-quality, reform-oriented, and investment-ready proposals.
BHAVYA parks will be developed as sustainable, future-ready ecosystems aligned with PM GatiShakti principles, enabling multimodal connectivity and efficient last-mile access. Green energy integration and underground utility corridors will create a no-dig environment, ensuring efficient maintenance and uninterrupted industrial operations.
The initiative is expected to generate significant direct and indirect employment across manufacturing, logistics, and services, while catalysing large-scale investments. It will be implemented across all states and Union Territories, creating lakhs of job opportunities and driving regional industrialisation.
By promoting cluster-based development and co-location of industries, suppliers, and service providers, BHAVYA aims to strengthen domestic supply chains and enhance productivity across sectors. The scheme will benefit manufacturing units, MSMEs, startups, and global investors as primary stakeholders, while also supporting workers, logistics providers, service enterprises, and local communities.
The approval of BHAVYA marks a major step towards achieving the vision of Atmanirbhar Bharat by reinforcing India’s manufacturing capabilities, boosting exports, and building a resilient and globally competitive economy.