The Centre on Saturday announced a four-month window for states to submit applications to set up 50 industrial parks under the ₹33,660-crore Bharat Audyogik Vikas Yojna (BHAVYA) scheme.
On March 18, the Union Cabinet had approved the scheme to develop 100 plug-and-play industrial parks across the country over six years, from 2026-27 to 2031-32.
In the first phase, up to 50 industrial parks will be selected through a challenge-based competitive process.
The scheme aims to create world-class industrial infrastructure, unlock manufacturing potential, and accelerate the country’s economic growth.
Briefing the media on the operational guidelines for implementing the scheme, Commerce and Industry Minister Piyush Goyal said applications from states would be invited for 20 parks during the first two months and for another 30 parks over the following two months.
“These 50 parks will be approved in the first phase, while the remaining 50 will be taken up in the next phase,” he said.
The scheme will be implemented in partnership with state governments and private sector players.
Under BHAVYA, industrial parks spread across 100 to 1,000 acres will be developed. Goyal said financial assistance of up to ₹1 crore per acre would be provided for infrastructure creation.
For hilly states, industrial parks can also be approved on a minimum of 25 acres.
The selection process will follow a “challenge method”, with states offering better infrastructure and investor-friendly facilities — including land, water, and power availability — expected to attract greater investment, Goyal said. He added that states such as Rajasthan, Maharashtra, West Bengal, and Haryana have already shown keen interest.
“I invite all states and Union Territories to participate in this. From today, we are inviting applications from the states/UTs over the next four months. We are looking for applications for 50 industrial parks so that we can quickly roll out the scheme across the country,” he said.
The scheme also allows states to partner with private players while submitting proposals, under which the Centre will provide assistance of ₹50 lakh per acre, Goyal said.
States have been asked to establish a Special Purpose Vehicle (SPV), notify a planning authority, and put in place a single-window clearance mechanism to ensure faster approvals.
“We expect that in three years, these 50 parks will be operationalised,” Goyal said.
The government said BHAVYA would strengthen domestic supply chains by promoting cluster-based industrial development and enabling the co-location of industries, suppliers, and service providers. The scheme is also expected to support regional industrialisation and create employment opportunities for millions.
The initiative is expected to benefit manufacturing units, MSMEs, startups, and global investors looking for ready-to-use industrial infrastructure.
The operational guidelines lay out a comprehensive framework covering eligibility criteria, project selection methodology, funding structure, governance architecture, monitoring systems, and implementation modalities for industrial parks under the scheme.
The guidelines also provide for the development of both greenfield and eligible brownfield industrial parks.
Under the challenge-based selection framework, proposals will be evaluated on objective parameters such as multimodal connectivity, site suitability, infrastructure quality, industrial ecosystem strength, policy facilitation, digital governance readiness, and long-term sustainability.
The evaluation framework also covers infrastructure components including underground utility systems, water and waste management, common effluent treatment systems, renewable energy integration, worker housing, testing laboratories, and digital single-window systems.
Projects under BHAVYA will be implemented through SPVs incorporated under the Companies Act, 2013.
These SPVs will be responsible for project planning, development, operations, management, investor facilitation, and long-term maintenance of assets created under the scheme.
