Why in news?
In May 2026 the Department for Promotion of Industry and Internal Trade (DPIIT) released operational guidelines for the Bharat Audyogik Vikas Yojna (BHAVYA) scheme. The central government plans to develop 100 investment‑ready industrial parks across India with an outlay of around ₹33,660 crore between 2026‑27 and 2031‑32. The guidelines outline eligibility criteria, selection processes and funding mechanisms for states and private developers.
Background
Announced in April 2026, BHAVYA is a central sector scheme intended to transform India into a globally competitive manufacturing hub. The objective is to create plug‑and‑play industrial ecosystems with reliable utilities, multimodal logistics connectivity, worker housing and digital governance. The scheme draws inspiration from the Prime Minister’s Gati Shakti National Master Plan and Make in India initiatives, aiming to strengthen domestic supply chains and attract foreign investment.
Key features of the guidelines
- Scope and timeline: BHAVYA will develop 100 industrial parks over six years (2026‑27 to 2031‑32) with a total financial outlay of ₹33,660 crore. The first phase will take up to 50 parks through a challenge‑based selection process.
- Eligibility and land requirements: States must provide at least 100 acres of contiguous land (25 acres in hilly and northeastern states). A few parks may span up to 1,000 acres. Land must be encumbrance‑free and transferred to a Special Purpose Vehicle (SPV) within three months of project approval.
- Selection criteria: Proposals will be evaluated on parameters such as multimodal connectivity, quality of core and social infrastructure, strength of the industrial ecosystem, policy support and sustainability. Only projects scoring above a benchmark threshold will be approved.
- Project implementation: Each park will be developed through an SPV formed under the Companies Act, 2013. The SPV may include state governments, central public sector enterprises and private developers. The National Industrial Corridor Development Corporation will act as the project management agency.
- Funding pattern: Financial assistance from the central government will be provided as equity linked to land value and achievement of milestones. Projects will incorporate renewable energy infrastructure, wastewater treatment, common testing laboratories and digital single‑window systems.
- Monitoring and governance: The guidelines require GIS‑based monitoring, periodic progress reports and oversight by a National Level Steering Committee. Provisions exist for private developers to participate through project‑specific SPVs with clear governance safeguards.
Conclusion
BHAVYA is an ambitious attempt to build world‑class industrial parks that can host modern manufacturing units without bureaucratic delays. Transparent selection, sustainable infrastructure and private sector participation are essential for success. If implemented well, the scheme could improve India’s ease of doing business, create employment and integrate domestic industries into global value chains.