Cabinet approves scheme of Chemical Parks “Bharat Audyogik Vikas Yojana Rasayan (BHAVYA Rasayan)

Why in news

The Union Cabinet has approved the BHAVYA Rasayan Scheme for establishing three dedicated Chemical Parks in the country, with a financial outlay of Rs. 3,030 crore.

Exam relevance

GS3 · Economy, Governance · Prelims · Mains

Key facts

1. The Union Cabinet has approved the BHAVYA Rasayan Scheme.
2. The scheme aims to establish three dedicated Chemical Parks in the country.
3. The total financial outlay for the scheme is Rs. 3,030 crore.
4. Rs. 3,000 crore is allocated for Common Infrastructure Facilities and Basic Utilities.
5. Rs. 30 crore is allocated for administrative expenditure.
6. The scheme will run for 5 years, from FY 2026-27 to FY 2030-31.
7. The Centre will provide a grant of up to Rs. 1,000 crore per park.
8. Concerned State Governments must contribute a minimum of Rs. 500 crore per park.
9. The scheme is expected to promote the chemical industry's value chains and reduce logistics costs.
10. Shared infrastructure is intended to enhance cost competitiveness and global competitiveness of the Indian chemical industry.

Prelims pointers

• BHAVYA Rasayan Scheme aims to establish three dedicated Chemical Parks.
• Total financial outlay for the scheme is Rs. 3,030 crore.
• Central grant for each park is up to Rs. 1,000 crore.
• State government's minimum contribution per park is Rs. 500 crore.
• Scheme duration: FY 2026-27 to FY 2030-31.

Mains practice question

Examine the significance of the BHAVYA Rasayan Scheme in promoting the Indian chemical industry and its potential impact on economic competitiveness and resource utilization.

Static linkage

Industrial Policy, Make in India initiative, Infrastructure Development, Ease of Doing Business.

Significance

The BHAVYA Rasayan Scheme is significant as it aims to bolster the Indian chemical industry by creating dedicated infrastructure. By establishing chemical parks with shared common facilities and basic utilities, the scheme seeks to improve resource utilization, reduce logistics costs, and enhance the cost-competitiveness of domestic players. This initiative is expected to foster growth across the entire chemical value chain, from upstream to downstream and ancillary industries, thereby contributing to India's manufacturing sector and its global standing in the chemical market. It aligns with broader economic objectives of industrial development and self-reliance.