
The Union Cabinet has approved the Bharat Audyogik Vikas Yojna (BHAVYA) with a total outlay of ₹33,660 crore.
The plan is to develop 100 industrial parks across around 33,600 acres. These parks will come up in or near 100 cities, as outlined earlier in the Union Budget 2024-25.
States will lead project proposals under a challenge-based selection process. Private developers and central public sector enterprises can participate through state proposals. Each project will be handled by a special purpose vehicle with planning and execution powers.
Industrial parks will generally range between 100 and 1,000 acres. For hilly and north-eastern states, the minimum size is set at 25 acres. Selection will consider access to transport links, proximity to industrial areas, ports, and availability of skilled workforce.
The Centre will provide support of up to ₹1 crore per acre. This includes funding for internal infrastructure such as roads, drainage, utilities, and basic administrative systems. It will also cover factory spaces, warehousing, testing facilities, and worker housing.
Up to 25% of external connectivity costs will also be funded.
States will need to ensure single-window clearances for units operating in these parks. The plug-and-play format is intended to allow units to start operations without delays linked to land approvals or basic infrastructure setup.
The parks will include underground utility systems and provisions for green energy use. They will be aligned with existing transport networks to support movement of goods. The layout is expected to reduce the need for repeated digging and support routine maintenance.
The scheme will be implemented across states and Union Territories. Manufacturing units, including small and medium enterprises and start-ups, are expected to be the main users. Related sectors such as logistics and services may also see activity around these areas.
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The scheme sets out a framework for developing industrial parks through state participation, central funding, and standardised infrastructure planning.
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Published on: Mar 19, 2026, 10:26 AM IST

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