Government of India Approves ₹3,030 Crore Scheme to Establish Three Chemical Parks

The Government of India has approved a ₹3,030 crore scheme to establish three dedicated chemical parks across the country, marking an important development for India's chemical manufacturing industry. The initiative, known as the Bharat Audyogik Vikas Yojana Rasayan (BHAVYA-Rasayan), is intended to strengthen industrial infrastructure, support domestic chemical production, and improve the competitiveness of Indian manufacturers.

According to the Government of India's Press Information Bureau (PIB), the scheme will operate for five years, from the financial year 2026–27 through 2030–31. Its approval follows the announcement of the initiative in the Union Budget for 2026–27.

Financial Support for Industrial Infrastructure

The scheme has a total financial outlay of ₹3,030 crore. Of this amount, ₹3,000 crore is allocated towards establishing common infrastructure facilities and basic utilities within the proposed chemical parks, while ₹30 crore is earmarked for administrative expenditure.

The Central Government will provide grants of up to ₹1,000 crore per chemical park, subject to a minimum contribution of ₹500 crore from the respective state government.

The proposed infrastructure is intended to create a more supportive environment for chemical manufacturers by facilitating access to essential industrial facilities and utilities. Shared infrastructure can help participating companies reduce the burden of developing certain facilities independently and focus more resources on production, technology, and process improvement.

Opportunities for Chemical Manufacturers

The establishment of dedicated chemical parks could create opportunities for existing manufacturers as well as companies considering new investments in India's chemical sector.

Chemical manufacturing depends on reliable utilities, appropriate industrial infrastructure, efficient material handling, and well-coordinated production operations. Industrial parks designed around shared facilities may help companies improve operational coordination and explore opportunities for greater production efficiency.

The initiative also highlights the importance of strengthening domestic manufacturing capabilities and creating a more competitive industrial ecosystem.

Importance of Industrial Engineering and Production Planning

As industrial infrastructure expands, chemical manufacturers will need effective systems for managing production capacity, raw materials, manpower, equipment utilisation, quality, and delivery schedules.

Industrial engineering practices can support these objectives through time and motion studies, process optimisation, manpower planning, production cost analysis, and productivity improvement. Production Planning and Control (PPC) systems can further help manufacturers coordinate customer orders, material availability, production schedules, and dispatch commitments.

For companies operating across multiple production lines, customised Enterprise Resource Planning (ERP) software can improve visibility into manufacturing operations, inventory consumption, order status, and production performance.

These capabilities are particularly important when manufacturers seek to increase output while controlling operating costs and maintaining consistent quality.

Strengthening India's Manufacturing Competitiveness

The BHAVYA-Rasayan scheme represents a government initiative to support the development of dedicated chemical manufacturing infrastructure. Its long-term impact will depend on implementation, infrastructure development, state-level participation, and the ability of participating industries to translate these facilities into efficient production and sustainable business growth.

For chemical manufacturers, industrial infrastructure investment can provide an opportunity to reassess production processes, improve resource utilisation, and strengthen supply-chain coordination.

Conclusion

The Government of India's approval of the ₹3,030 crore BHAVYA-Rasayan scheme is an important development for the country's chemical manufacturing sector. By supporting three dedicated chemical parks, the initiative aims to strengthen industrial infrastructure and encourage a more competitive domestic manufacturing ecosystem. Manufacturers can complement such infrastructure development with industrial engineering, productivity improvement, production planning, and customised ERP solutions to build efficient and scalable operations.

Source: Press Information Bureau, Government of India, July 24, 2026.