Mumbai, July 24: The Indian Cabinet, chaired by Prime Minister Narendra Modi, approved the Bhavya Chemical Scheme on Friday. This initiative aims to develop three chemical parks across the country. The announcement was made during the Union Budget for 2026-27.
According to the Cabinet’s information, the scheme will be operational from the fiscal year 2026-27 to 2030-31, spanning five years. A total budget of ₹3,030 crore has been allocated, with ₹3,000 crore designated for developing essential infrastructure and services, while ₹30 crore is set aside for administrative expenses.
Under this scheme, the central government will provide grants of up to ₹1,000 crore for each park. The respective state governments are required to contribute at least ₹500 crore.
The government asserts that the Bhavya Chemical Scheme will bring numerous benefits to the economy. It will promote the development of the entire value chain of the chemical industry, including upstream, downstream, and ancillary industries. This will lead to efficient resource utilization and reduced logistics costs.
Additionally, by addressing the needs of the chemical industry, the scheme will enhance competitiveness through shared common infrastructure facilities and basic utilities, positioning the Indian industry to compete globally.
Moreover, it will help the Indian chemical sector integrate more effectively into the global value chain, boosting exports and promoting import substitution.
The scheme also aims to foster sustainable development in the Indian chemical industry by creating an environmentally friendly ecosystem. This ecosystem will include centralized facilities such as common effluent treatment plants, treatment, storage and disposal facilities, and hazardous waste management infrastructure. This will ensure better compliance with environmental regulations and facilitate environmentally friendly industrial growth.
The development of the chemical sector will also stimulate growth in downstream sectors of the economy, creating more job opportunities and further economic development. This aligns with the goal of achieving a ‘Developed India by 2047.’
According to the Cabinet, this sector produces chemicals and petrochemicals used in various downstream industries such as agriculture, textiles, pharmaceuticals, nutraceuticals, construction, automobiles, and electronics. Launching the Bhavya Chemical Scheme is expected to attract both domestic and foreign investment, enhance domestic production capacity, generate employment, and promote the sector’s growth. This will increase the global competitiveness of the sector and support the goal of self-reliance.
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