₹33,660 crore for ready-made factories: What is BHAVYA scheme?

The Union Cabinet on Wednesday approved a new scheme, Bharat Audyogik Vikas Yojna (BHAVYA), with an outlay of ₹33,660 crore to develop 100 plug-and-play industrial parks across the country.

The decision was taken at a meeting of the Cabinet chaired by Prime Minister Narendra Modi.

Addressing a Cabinet briefing, Union Minister Ashwini Vaishnaw said the scheme comes at a time when India is emerging as a preferred global manufacturing destination due to policy certainty, skilled talent and strong design capabilities.

The scheme seeks to create world-class industrial infrastructure by developing parks ranging from 100 to 1,000 acres.

BHAVYA will be implemented in partnership with states and the private sector, building on the experience of industrial smart cities developed under the National Industrial Corridor Development Programme (NICDP).

Under the scheme, financial support of up to ₹1 crore per acre will be provided for core infrastructure such as internal roads, underground utilities, drainage systems and common facilities.

It will also cover value-added infrastructure including ready-built factory sheds, customised units, testing laboratories, warehousing and social infrastructure, including houses for workers and other amenities.

According to an official statement, the initiative focuses on easing entry barriers for investors through pre-approved land, ready infrastructure and streamlined approval systems, including single-window clearances.

Project selection will be undertaken through a challenge mode, ensuring that only high-quality, reform-oriented and investment-ready proposals are taken forward.

Addressing a media briefing, Secretary in the Department for Promotion of Industry and Internal Trade (DPIIT) Amardeep Singh Bhatia informed that the BHAVYA scheme will have a duration of six years, from FY27 to 2031-32, with 50 parks to be developed in the first phase.

The government said the parks will be aligned with PM GatiShakti principles to ensure multimodal connectivity and efficient logistics, while also incorporating sustainable practices such as green energy use and integrated underground utility corridors.

By promoting cluster-based development and enabling the co-location of industries, suppliers, and service providers, BHAVYA is expected to strengthen domestic supply chains, encourage regional industrialisation, and open up new opportunities for millions.

The scheme will directly benefit manufacturing units, MSMEs, startups, and global investors seeking ready-to-use industrial infrastructure, workers, logistics providers, service sector enterprises, and local communities.