The Union Cabinet approved the BHAVYA scheme on 18 March 2026 to build 100 plug-and-play industrial parks. Notably, its full name is Bharat Audyogik Vikas Yojna. Prime Minister Narendra Modi chaired the meeting. The scheme carries an outlay of Rs 33,660 crore. Hence, it marks a major push for manufacturing-led growth and jobs.
What the Bharat Audyogik Vikas Yojna Offers
Each park will cover 100 to 1,000 acres. Moreover, the Centre will give up to Rs 1 crore per acre for infrastructure inside the park. This support covers core facilities such as internal roads, drainage, utilities and common treatment plants. In addition, it covers value-added assets like ready-built factory sheds, testing labs and warehouses. It also funds social infrastructure, such as worker housing and amenities.
Support for External Infrastructure
Beyond the park boundary, the scheme will fund up to 25% of the project cost for external infrastructure. Then, the Centre will choose projects in challenge mode. Thus, reform-oriented and investment-ready proposals from states will get priority. Furthermore, the Centre will work with states and private players across all States and Union Territories.
Building on Industrial Smart Cities
The scheme builds on the industrial smart cities of the National Industrial Corridor Development Programme (NICDP). Currently, the National Industrial Corridor Development Corporation (NICDC) runs 20 projects across 13 states. NICDC works under the Department for Promotion of Industry and Internal Trade (DPIIT). Meanwhile, the Prime Minister called the approval “A landmark step towards accelerating India’s industrial growth!”
Who Gains from Plug-and-Play Parks
Manufacturing units, MSMEs, startups and global investors form the primary beneficiaries. Similarly, workers, logistics providers and local communities will gain indirectly. Because the parks come ready with utilities, firms can start production faster. As a result, the government expects lakhs of employment opportunities nationwide.
BHAVYA Scheme: Key Facts for Revision
- Full name: Bharat Audyogik Vikas Yojna (BHAVYA)
- Approval: Union Cabinet, 18 March 2026
- Outlay: Rs 33,660 crore
- Parks: 100 plug-and-play parks of 100 to 1,000 acres each
- Internal support: Up to Rs 1 crore per acre
- External infrastructure: Up to 25% of project cost
- Selection: Challenge mode, with states and the private sector
Why the BHAVYA Scheme Matters for UPSC and UKPSC
Notably, BHAVYA links industrial policy with cooperative federalism. So, remember the outlay, the per-acre support and the challenge-mode selection. Also, link BHAVYA with NICDP and Make in India. For official updates, also visit DPIIT. Next, for a related story, read about the Semicon 2.0 approval.
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