Cabinet approves ₹33,660 crore BHAVYA scheme, 100 plug-and-play industrial parks to be developed
The scheme aims to develop 100 plug-and-play industrial parks across India, offering ready infrastructure to investors and businesses.
- Mar 18, 2026,
- Updated Mar 18, 2026 4:51 PM IST
In a major push to boost manufacturing and industrial growth, the Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved the Bharat Audyogik Vikas Yojana (BHAVYA), with an outlay of ₹33,660 crore. The scheme aims to develop 100 plug-and-play industrial parks across India, offering ready infrastructure to investors and businesses.
The BHAVYA scheme is designed to create world-class industrial ecosystems and accelerate India’s journey towards becoming a global manufacturing hub. Building on the success of industrial smart cities developed under the National Industrial Corridor Development Programme (NICDP), the new initiative will be implemented in collaboration with state governments and private players.
A key highlight of the scheme is its focus on ease of doing business. With streamlined approvals, single-window clearances and investor-friendly reforms, BHAVYA aims to help companies move from planning to production faster. The plug-and-play model ensures pre-approved land, ready utilities and integrated services, significantly reducing entry barriers for both domestic and global investors.
Under the plan, industrial parks ranging from 100 to 1,000 acres will be developed. The government will provide financial support of up to ₹1 crore per acre for core infrastructure such as roads, utilities and drainage, along with value-added facilities like factory sheds, testing labs and warehousing.
Social infrastructure, including worker housing, will also be part of the development. Additionally, up to 25% of project costs will be allocated for external infrastructure to ensure seamless connectivity.
Projects will be selected through a competitive “challenge mode,” ensuring only high-quality, investment-ready proposals are approved.
The parks will be future-ready and sustainable, aligned with PM GatiShakti principles for multimodal connectivity. Features such as green energy usage and underground utility corridors will support efficient and uninterrupted industrial operations.
The government expects BHAVYA to generate large-scale employment across manufacturing, logistics and services sectors. The scheme will benefit MSMEs, startups, global investors, workers and local communities, while strengthening supply chains and promoting regional industrialisation.
Overall, BHAVYA is seen as a transformative step towards building a self-reliant, competitive and export-driven economy.
In a major push to boost manufacturing and industrial growth, the Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved the Bharat Audyogik Vikas Yojana (BHAVYA), with an outlay of ₹33,660 crore. The scheme aims to develop 100 plug-and-play industrial parks across India, offering ready infrastructure to investors and businesses.
The BHAVYA scheme is designed to create world-class industrial ecosystems and accelerate India’s journey towards becoming a global manufacturing hub. Building on the success of industrial smart cities developed under the National Industrial Corridor Development Programme (NICDP), the new initiative will be implemented in collaboration with state governments and private players.
A key highlight of the scheme is its focus on ease of doing business. With streamlined approvals, single-window clearances and investor-friendly reforms, BHAVYA aims to help companies move from planning to production faster. The plug-and-play model ensures pre-approved land, ready utilities and integrated services, significantly reducing entry barriers for both domestic and global investors.
Under the plan, industrial parks ranging from 100 to 1,000 acres will be developed. The government will provide financial support of up to ₹1 crore per acre for core infrastructure such as roads, utilities and drainage, along with value-added facilities like factory sheds, testing labs and warehousing.
Social infrastructure, including worker housing, will also be part of the development. Additionally, up to 25% of project costs will be allocated for external infrastructure to ensure seamless connectivity.
Projects will be selected through a competitive “challenge mode,” ensuring only high-quality, investment-ready proposals are approved.
The parks will be future-ready and sustainable, aligned with PM GatiShakti principles for multimodal connectivity. Features such as green energy usage and underground utility corridors will support efficient and uninterrupted industrial operations.
The government expects BHAVYA to generate large-scale employment across manufacturing, logistics and services sectors. The scheme will benefit MSMEs, startups, global investors, workers and local communities, while strengthening supply chains and promoting regional industrialisation.
Overall, BHAVYA is seen as a transformative step towards building a self-reliant, competitive and export-driven economy.