Cabinet approves Rs 33K crore BHAVYA industrial cluster scheme

The Union Cabinet on Wednesday approved Bharat Audyogik Vikas Yojana (BHAVYA), with an outlay of Rs 33,660 crore, to develop 100 industrial clusters across the country to boost manufacturing.

The new industrial clusters, each spanning from 100 to 1,000 acres of land, will offer ready infrastructure to investors and businesses, Union Minister Ashwini Vaishnaw told reporters. For the Northeast and hilly regions, the minimum land requirement has been kept at 25 acre.

Under the scheme, the Union government will provide financial support of up to Rs 1 crore per acre for development of core and value-added infrastructure like roads, underground utilities, drainage, common treatment facilities, ICT, administrative systems, ready-built factory sheds, built-to-suit units, testing labs and warehousing. The financial support will also be provided for the development of social infrastructure like worker housing and support amenities.

Vaishnaw said the plug-and-play industrial parks will be developed across the country in collaboration with state governments, public sector undertakings and private firms.

The scheme will run for six years beginning 2026-27.

The government targets to develop around 34,000 acres of investment-ready, plug-and-play industrial facilities at competitive rates through this initiative.

“By enabling cluster-based development and co-location of industries, suppliers and support services, BHAVYA will strengthen supply chains, reduce costs and foster vibrant industrial ecosystems across regions,” Commerce and Industry Minister Piyush Goyal said in a post on X.

According to Goyal, BHAVYA is a Central Sector Scheme. It seeks to build next-generation industrial infrastructure, boost ease of doing business through reforms and plug-and-play ecosystems; create future-ready, sustainable and efficient industrial parks and drive investment, employment and stronger industrial ecosystems.

“The scheme will extend to all states and Union Territories, creating lakhs of employment opportunities across the country and accelerating industrial growth nationwide,” the Ministry of Commerce & Industry said in a statement.

Manufacturing units, MSMEs, startups, and global investors seeking ready-to-use industrial infrastructure are targeted to be the primary beneficiaries of the scheme.

The scheme is also likely to benefit workers, logistics providers, service sector enterprises and local communities.

The National Industrial Corridor Development Corporation Ltd (NICDC), under the Ministry of Commerce and Industry, will be the nodal agency for implementation of the scheme.

According to an official statement released after the Cabinet meeting, the BHAVYA scheme has been formulated by building on the success of Industrial Smart Cities developed under the National Industrial Corridor Development Programme (NICDP) framework.

The NICDC-led initiatives are built on the concept of plug-and-play industrial parks — ready-to-use ecosystems where land, utilities, approvals and infrastructure are pre-developed, enabling industries to start operations quickly without delays related to land acquisition or infrastructure setup. The NICDC is currently implementing 20 projects across 13 states.