The Union Cabinet on Wednesday approved the Rs 33,660 crore Bharat Audyogik Vikas Yojna (BHAVYA) to develop 100 plug-and-play industrial parks across the country to boost manufacturing and accelerate industrial growth, Information and Broadcasting Minister Ashwini Vaishnaw said while briefing reporters on Cabinet decisions.The meeting, chaired by Prime Minister Narendra Modi, cleared the scheme, which is expected to generate around 15 lakh direct jobs and support wider industrial expansion across sectors.
World-class industrial infrastructure planned
Under the scheme, industrial parks spanning 100 to 1,000 acres will be developed with financial assistance of up to Rs 1 crore per acre. These parks will include core infrastructure such as internal roads, underground utilities, drainage systems, common treatment facilities, ICT networks and administrative systems.
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They will also feature value-added infrastructure including ready-built factory sheds, built-to-suit units, testing laboratories, warehousing facilities and social amenities such as housing for workers. Support for external infrastructure up to 25 per cent of the project cost will be provided to ensure seamless connectivity with existing networks, he said.
States, private sector to partner in execution
Project selection will be undertaken through a challenge-based process to ensure that only investment-ready and reform-oriented proposals are taken forward.
Building on the experience of Industrial Smart Cities developed under the National Industrial Corridor Development Programme (NICDP), the BHAVYA scheme will be implemented in partnership with states and private sector players.Vaishnaw said the initiative will focus on deregulation and ease of doing business, with streamlined approvals, single-window clearances and investor-friendly reforms led by state governments. With pre-approved land, ready infrastructure and integrated services, the scheme aims to reduce entry barriers and enable faster transition from investment intent to production.
Cluster development, green focus and job creation
The proposed industrial parks will be designed as future-ready and sustainable ecosystems, aligned with PM GatiShakti principles to ensure multimodal connectivity and efficient last-mile access. They will promote green energy adoption and efficient resource utilisation, supported by integrated underground utility corridors enabling a “no-dig” environment and uninterrupted industrial operations.Officials said the scheme is expected to strengthen domestic supply chains through cluster-based development and co-location of industries, suppliers and service providers. It will benefit manufacturing units, MSMEs, startups, logistics firms, service enterprises and local communities, while generating large-scale employment across manufacturing, logistics and allied sectors.The initiative will be implemented across all states and Union Territories, with the National Industrial Corridor Development Corporation Limited (NICDC) under the Department for Promotion of Industry and Internal Trade spearheading execution. NICDC is currently implementing 20 industrial projects across 13 states, based on the plug-and-play industrial park model aimed at enhancing manufacturing competitiveness and attracting investment.
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