Cabinet clears BHAVYA scheme for 100 industrial parks at Rs33,660 crore
Scheme to deliver 34,000 acres of investment-ready land and 15 lakh direct jobs across states by 2031-32
By Samreen Wani
Last Updated: Mar 19, 2026, 10:19 IST1 min
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On Wednesday, the Union Cabinet approved the Bharat Audyogik Vikas Yojana (BHAVYA), a Rs33,660 crore central sector scheme to develop 100 plug-and-play industrial parks across India between 2026-27 and 2031-32.
Addressing the media at a press conference, Ashwini Vaishnaw, Union Minister of Information and Broadcasting, said India is increasingly becoming a preferred global manufacturing destination, citing policy certainty, a skilled talent pool, and the country’s growing design capabilities as key differentiators. The scheme, he said, is designed to translate that advantage into shovel-ready infrastructure.
Framework and implementation
The National Industrial Corridor Development Programme (NICDC), under the Ministry of Commerce and Industry, has been designated as the nodal agency. To ensure seamless execution, the NICDC will form special purpose vehicles in collaboration with state governments and central public sector undertakings.
Cities and projects under this scheme will be selected via a “challenge mode”. This competitive basis rewards proactive states that demonstrate a commitment to industrial reforms and ease of doing business.
State eligibility
The scheme requires a minimum of 100 acres of “unencumbered land” for general category states, while Northeastern and hilly states qualify at a lower threshold of 25 acres. Brownfield projects seeking upgrades are also eligible, provided they meet the same criteria as greenfield developments.
The government is offering financial support of up to Rs1 crore per acre. This funding covers core infrastructure, such as underground utilities and ICT systems, alongside “value-added” assets like ready-built factory sheds, testing labs, and essential social infrastructure like worker housing. Additionally, the Centre will fund up to 25 percent of external infrastructure costs to ensure multimodal connectivity.
Jobs and investment
BHAVYA is designed to be industry-agnostic, catering to everything from MSMEs to global tech giants. The government estimates the scheme will generate 15 lakh direct jobs, while significantly more opportunities will be created in indirect sectors like logistics and services.
By providing 34,000 acres of pre-approved, plug-and-play land, the government intends to slash the time between investment intent and actual production.
First Published: Mar 19, 2026, 10:27
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