BHAVYA scheme to help attract huge investments, create jobs: Piyush Goyal

The Union Cabinet approved the Bharat Audyogik Vikas Yojana (BHAVYA) scheme with an outlay of ₹33,660 crore to develop 100 plug-and-play industrial parks acr...

What Happened

The Union Cabinet approved the Bharat Audyogik Vikas Yojana (BHAVYA) scheme with an outlay of ₹33,660 crore to develop 100 plug-and-play industrial parks across India over six years (2026-27 to 2031-32).
The scheme was formally launched by the Ministry of Commerce and Industry in May 2026, inviting state bids for the first 50 parks within four months.
Applications for 20 parks were to be invited in the first two months, followed by 30 more, with the remaining 50 taken up in a subsequent phase.
The scheme targets creation of approximately 15 lakh direct employment opportunities and aims to attract large-scale domestic and foreign investments.

Static Topic Bridges

Industrial Policy and Make in India

India's industrial policy has shifted from command-and-control licensing (pre-1991) to liberalised, incentive-led manufacturing promotion. The Make in India initiative (launched 2014) marked a structural pivot toward positioning India as a global manufacturing hub across 25 sectors. BHAVYA represents the next generation of this approach — using infrastructure readiness rather than just incentives to attract investors.

Make in India targets increasing manufacturing's share of GDP to 25% (from ~17%).
National Industrial Corridor Development Corporation (NICDC) was established to develop integrated industrial townships along freight corridors.
Production Linked Incentive (PLI) schemes (launched 2020 onwards) have allocated over ₹1.97 lakh crore across 14 sectors for output-based incentives.

Connection to this news: BHAVYA builds on the same industrial promotion philosophy but addresses a key bottleneck: infrastructure unavailability. By creating "plug-and-play" parks — ready with power, roads, water and connectivity — it aims to reduce time-to-production for investors.

Public-Private Partnership (PPP) Model

A PPP model involves collaboration between government and private entities, where the public sector provides policy support or financing while the private sector contributes operational efficiency and investment. India uses several PPP structures: Build-Operate-Transfer (BOT), Hybrid Annuity Model (HAM), and direct grant models.

BHAVYA provides financial support of up to ₹1 crore per acre for core infrastructure, plus 25% additional for external infrastructure.
Parks will range from 100 to 1,000 acres (hill states minimum 25 acres), developed as greenfield and brownfield projects.
State governments and private developers are co-implementation partners.

Connection to this news: The scheme uses the PPP route to leverage private capital and state-level execution capacity, with NICDC as the nodal implementing agency overseeing coordination across 13 states.

National Industrial Corridor Development Corporation (NICDC)

NICDC (earlier DMICDC) is a Special Purpose Vehicle under the Ministry of Commerce and Industry, established to develop integrated industrial townships along dedicated freight corridors. It has active projects in 13 states spanning over 20 industrial nodes.

Projects include DMIC (Delhi-Mumbai), CBIC (Chennai-Bengaluru), AKIC (Amritsar-Kolkata), and others.
Industrial smart cities developed under corridors include Dholera (Gujarat), Shendra-Bidkin (Maharashtra), and Vikram Udyogpuri (MP).

Connection to this news: NICDC's existing corridor expertise makes it the designated implementing agency for BHAVYA, extending its mandate from corridor-linked townships to a broader national industrial parks programme.

Key Facts & Data

Scheme full name: Bharat Audyogik Vikas Yojana (BHAVYA)
Total outlay: ₹33,660 crore
Duration: Six years — 2026-27 to 2031-32
Number of parks: 100 (plug-and-play, greenfield and brownfield)
Park size: 100–1,000 acres; hill states minimum 25 acres
Financial support: Up to ₹1 crore per acre for infrastructure; 25% additional for external infrastructure
Implementing agency: NICDC (National Industrial Corridor Development Corporation)
Nodal ministry: DPIIT, Ministry of Commerce and Industry
Employment target: ~15 lakh direct jobs
Rollout plan: First 20 parks (month 1-2), next 30 (month 3-4), remaining 50 in subsequent phase
Cabinet approval date: March 18, 2026