Cabinet Clears ₹33,660 Cr BHAVYA Scheme to Build 100 Industrial Parks

In a major push to accelerate manufacturing and industrial growth, the Union Cabinet chaired by Prime Minister Narendra Modi has approved the Bharat Audyogik Vikas Yojna (BHAVYA)—a ₹33,660 crore mega scheme to develop 100 plug-and-play industrial parks across India.

The initiative is being positioned as a transformative step toward building world-class industrial infrastructure and advancing the vision of Viksit Bharat.

Mega Industrial Push: Scale and Vision

Under BHAVYA, industrial parks ranging from 100 to 1,000 acres will be developed nationwide, creating ready-to-use ecosystems designed to significantly reduce time and cost for investors.

The scheme builds on the success of Industrial Smart Cities under the National Industrial Corridor Development Programme (NICDP) and will be implemented in partnership with state governments and private sector players.

Officials say the goal is to unlock India's manufacturing potential while strengthening its position in global supply chains.

Plug-and-Play Model to Transform Ease of Doing Business

At the core of BHAVYA is a plug-and-play framework, enabling industries to move quickly from investment decisions to operational production.

Key features include:

• Pre-approved land and clearances

• Single-window approval systems

• Ready infrastructure and utilities

• Integrated industrial services

This model is expected to cut delays, reduce compliance burdens, and improve investor confidence.

Massive Infrastructure Investment

The scheme provides financial support of up to ₹1 crore per acre for developing:

Core Infrastructure:

• Internal roads and drainage systems

• Underground utilities

• Common effluent treatment facilities

• ICT and administrative systems

Value-Added Infrastructure:

• Ready-built factory sheds

• Built-to-suit manufacturing units

• Testing laboratories and warehousing

Social Infrastructure:

• Worker housing

• Support amenities and services

Additionally, up to 25% funding support will be provided for external infrastructure such as connectivity to highways, rail, and logistics networks.

Competitive 'Challenge Mode' Selection

Projects will be selected through a challenge-based mechanism, ensuring that only:

• Investment-ready proposals

• Reform-oriented states

• High-quality industrial plans

are approved for development—introducing competition and accountability into the process.

Future-Ready, Sustainable Industrial Ecosystems

BHAVYA parks will be designed with a strong focus on sustainability and efficiency:

• Alignment with PM GatiShakti for seamless multimodal connectivity

• Use of green energy solutions

• Integrated underground utility corridors for a "no-dig" environment

• Efficient maintenance systems to minimise disruptions

These features aim to set new benchmarks in industrial infrastructure while improving productivity and reducing operational inefficiencies.

Driving Jobs, Investment and Regional Growth

The scheme is expected to generate large-scale employment, both directly and indirectly, across manufacturing, logistics, and services.

Key expected impacts:

• Creation of lakhs of jobs nationwide

• Attraction of domestic and global investment

• Strengthening of supply chains through cluster-based development

• Boost to exports and industrial output

By enabling co-location of manufacturers, suppliers, and service providers, BHAVYA aims to enhance efficiency and competitiveness.

Wide-Ranging Beneficiaries

The scheme is designed to support a broad spectrum of stakeholders:

Primary beneficiaries:

• Manufacturing companies

• MSMEs and startups

• Global investors

Secondary beneficiaries:

• Workers and local communities

• Logistics and service providers

• Regional economies

A Step Toward Atmanirbhar Bharat

The approval of BHAVYA is being seen as a key pillar in India's push toward self-reliance (Atmanirbhar Bharat) and global manufacturing leadership.

By combining infrastructure, policy reform, and investment facilitation, the scheme aims to create a resilient, inclusive, and globally competitive industrial ecosystem.