BHAVYA scheme opens June 1 for states to apply for plug-and-play industrial parks

States can start filing proposals from June 1 to build industrial parks under the Rs 33,660 crore Bharat Audyogik Vikas Yojna, or BHAVYA, an official release said on Sunday. The plan aims to create 100 plug-and-play industrial parks. The Union Cabinet cleared the scheme on March 18, with a six-year rollout from 2026-27 to 2031-32.

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The Department for Promotion of Industry and Internal Trade (DPIIT) said the scheme is meant to create investment-ready industrial infrastructure. The goal is to help investors start projects more easily. The scheme is also intended to raise India’s manufacturing capacity by supporting faster project setup through prepared sites and services.

BHAVYA scheme selection process for industrial parks

Under the DPIIT operational guidelines, 50 proposals will be chosen in the first phase. This phase will run through two selection rounds. The first round window will open on June 1 and close on July 31, 2026. In that first round, authorities may pick up to 20 proposals for support.

The second round window will open on August 1 and close on September 30, 2026, the guidelines said. A proposal that is not picked in the first round can be filed again. The applicant can make suitable improvements before submitting for the second round. The two-step process is designed to widen the pool.

BHAVYA scheme land requirements for industrial parks

Land size rules vary by location under the BHAVYA scheme. For non-hilly states, an industrial park must have at least 100 acre of contiguous land. For hilly states, the northeast region, union territories, and states below 1 crore population, the minimum is 25 acre of contiguous land.

The smaller land rule applies to Himachal Pradesh, Uttarakhand, Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland and Goa. The guidelines link eligibility to clear land availability for development. The requirement focuses on contiguous land to support planned infrastructure and smooth internal movement within a park.

BHAVYA scheme park size limits and funding caps for industrial parks

Of the 100 industrial parks planned, up to 20 may have a development area between 500 acre and 1000 acre. Where a sponsoring agency wants a larger park in phases, funding will still be capped. The upper funding limit will be tied to 1000 acre, even if more land is planned later.

The guidelines also set out who can provide land for the parks. Land may come from the State Government, a Private Developer, or both jointly. A Central Public Sector Undertaking can also provide land. The model allows different ownership structures, depending on the state plan and project readiness.

Proposals will be scored on multiple factors during evaluation, the guidelines said. These include multi-modal connectivity and site suitability. Authorities will also check the quality of core, value-added and social infrastructure listed in the DPR. Other factors include the industrial ecosystem and policy enablers.

With inputs from PTI