SYLLABUS
GS-3: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment; Changes in Industrial Policy and their Effects on Industrial Growth.
Context: The Department for Promotion of Industry and Internal Trade (DPIIT) has released the detailed operational guidelines for the implementation of the BHAVYA Scheme, a landmark Central Sector Scheme aimed at developing investment-ready, world-class industrial parks across the country.
More on the News
- BHAVYA was approved by the Union Cabinet in March 2026 with a total outlay of ₹33,660 crore for developing 100 plug-and-play industrial parks across the country.
- The newly released guidelines provide the institutional, financial, governance, and project-selection framework for implementation of the scheme by States and implementing agencies.
- The scheme will be implemented over a six-year period beginning 2026–27 and builds upon the experience of industrial smart cities developed under the National Industrial Corridor Development Programme (NICDP).
- The guidelines emphasise plug-and-play infrastructure, multimodal connectivity, sustainability, competitive federalism, and investment-ready industrial ecosystems.
Key Features of the BHAVYA Guidelines
- Plug-and-Play Industrial Ecosystem:
- The scheme promotes a plug-and-play industrial model by providing pre-approved land, ready infrastructure, integrated utilities, and single-window clearances to reduce project gestation periods and accelerate manufacturing activity.
- BHAVYA is a sector-agnostic scheme open to manufacturing industries across sectors, with a focus on supporting MSMEs, startups, large manufacturing units, logistics providers, and global investors.
- The scheme is aligned with PM GatiShakti to ensure multimodal connectivity, logistics efficiency, and seamless integration with transport networks.
- Phased Rollout and Selection Framework:
- The scheme will be implemented over six years beginning FY 2026–27, with up to 50 industrial parks proposed in the first phase.
- Projects will be selected through a Challenge Mode competitive framework to promote competitive federalism and encourage reform-oriented, investment-ready proposals from states.
- The first application window will remain open from 1 June to 31 July 2026, while a second round from 1 August to 30 September 2026 will allow revised or previously unselected proposals to reapply.
- Project proposals will be evaluated on parameters such as multimodal connectivity, quality of Detailed Project Reports (DPRs), institutional readiness, and sustainability standards.
- Land and Infrastructure Framework:
- Industrial parks will generally range between 100 and 1,000 acres, with the minimum land requirement relaxed to 25 acres for hilly and North-Eastern regions. Both Greenfield projects and unallotted Brownfield industrial land are eligible under the scheme.
- The scheme provides central assistance of up to ₹1 crore per acre for the development of core infrastructure such as roads, underground utility corridors, drainage systems, treatment plants, ICT infrastructure, factory sheds, testing facilities, warehousing, worker housing, and social amenities.
- Up to 25% of the total project cost may be provided for external connectivity infrastructure linking industrial parks with highways, railways, ports, and logistics networks.
- Governance and Institutional Structure:
- The Department for Promotion of Industry and Internal Trade (DPIIT) is the nodal ministry, while the National Industrial Corridor Development Corporation (NICDC) is the implementing agency.
- Each selected project must establish a dedicated Special Purpose Vehicle (SPV) under the Companies Act with planning, infrastructure management, and single-window clearance powers, while allowing participation of private developers through transparent public-private partnership models.
Significance of the Scheme
- Boost to Manufacturing: BHAVYA aims to strengthen India’s position as a global manufacturing hub by reducing infrastructure bottlenecks and improving industrial competitiveness.
- Employment Generation: The scheme is expected to generate around 15 lakh direct jobs, apart from substantial indirect employment in logistics and services sectors.
- Investment Attraction: Ready infrastructure and simplified approvals can reduce entry barriers and improve investor confidence for domestic and global industries.
- Strengthening Industrial Clusters: Cluster-based industrial development can improve supply-chain integration and reduce logistics costs through the co-location of industries.
- Regional and Inclusive Industrialisation: The scheme promotes balanced industrial development across States and Union Territories, including special support for hilly and North-Eastern regions.