**Executive Summary**
On March 18, 2026, the Union Cabinet approved the Bharat Audyogik Vikas Yojna (BHAVYA) with an allocation of Rs. 33,660 crore to develop 100 plug-and-play industrial parks across India. The scheme aims to accelerate manufacturing-led growth and ease of doing business through pre-approved land and ready-to-use infrastructure. Implementation will be carried out in partnership with states and private sector players, utilizing a challenge-mode selection process for new projects.
**Key Points / Main Content**
**Financial and Structural Framework**
* **Total Allocation:** Rs. 33,660 crore dedicated to developing 100 industrial parks.
* **Park Scale:** Project sizes will range from 100 to 1,000 acres.
* **Financial Support:** Provision of up to Rs. 1 crore per acre for internal development and up to 25% of the project cost for external infrastructure.
* **Selection Process:** Projects will be selected via a "challenge mode" to prioritize reform-oriented and investment-ready proposals.
**Infrastructure Provisions**
* **Core Infrastructure:** Includes internal roads, underground utilities, drainage, common treatment facilities, and administrative/ICT systems.
* **Value-Added Facilities:** Development of ready-built factory sheds, built-to-suit units, testing labs, and warehousing.
* **Social Infrastructure:** Provision for worker housing and various support amenities.
* **Sustainable Design:** Integration of green energy, sustainable resource use, and underground utility corridors to ensure a "no-dig" maintenance environment.
**Ease of Doing Business**
* **Plug-and-Play Ecosystem:** Provides industries with pre-approved land and integrated services to move quickly from intent to production.
* **Regulatory Reform:** Emphasis on deregulation, streamlined approvals, and state-led single-window systems.
* **Connectivity:** Alignment with PM GatiShakti Principles for seamless multimodal connectivity and efficient last-mile access.
**Strategic Goals**
* **Economic Growth:** Focus on cluster-based development to strengthen domestic supply chains and boost exports.
* **Regional Development:** Extension of the scheme to all States and Union Territories to promote nationwide industrialization.
**Impact Analysis**
**Manufacturing Units, MSMEs, and Startups**
**Impact**
These entities gain access to ready-to-use industrial ecosystems, significantly reducing entry barriers and delays related to land acquisition or infrastructure setup.
**Action Required**
Leverage the plug-and-play facilities to transition quickly from investment intent to active production.
**Global Investors**
**Impact**
Investors benefit from a more certain and streamlined investment environment characterized by pre-approved land and investor-friendly reforms.
**Action Required**
Evaluate and submit investment proposals for the 100 planned world-class industrial parks.
**Workers and Local Communities**
**Impact**
The scheme is expected to create lakhs of direct and indirect jobs and provide improved living conditions through dedicated social infrastructure and housing.
**Action Required**
Engage with new employment opportunities generated across the manufacturing, logistics, and service sectors.
**State Governments and Private Sector Players**
**Impact**
Acting as implementation partners, these stakeholders are responsible for driving reforms and developing the physical infrastructure of the parks.
**Action Required**
Collaborate to submit high-quality, reform-oriented project proposals under the challenge-mode selection framework.
Key Entities Referenced
Bharat Audyogik Vikas Yojna (BHAVYA): A newly approved scheme with an allocation of Rs. 33,660 crore aimed at developing 100 plug-and-play industrial parks to accelerate manufacturing and ease of doing business.
National Industrial Corridor Development Corporation Limited (NICDC): The agency spearheading the development of industrial smart cities and implementing projects under the BHAVYA scheme to enhance manufacturing competitiveness.
National Industrial Corridor Development Programme (NICDP): The broader framework and programme upon which BHAVYA is built, focusing on the successful implementation of industrial smart cities.
PM GatiShakti: A set of guiding principles integrated into the scheme to ensure seamless multimodal connectivity and efficient last-mile access for the industrial parks.
Department for Promotion of Industry and Internal Trade (DPIIT): The nodal department under the Ministry of Commerce and Industry that oversees the NICDC and the implementation of industrial development initiatives.
Cabinet
Cabinet approves a New Era of Plug-and-Play
Industrial Development through Bharat Audyogik
Vikas Yojna (BHAVYA)
Development of World-Class Industrial Parks with Rs.33,660
crore Expenditure
Advancing Viksit Bharat through Manufacturing-Led Growth
Jobs, Investment and Opportunity at Scale
BHAVYA: Accelerating India’s Journey to Atmanirbhar Bharat
Posted On: 18 MAR 2026 4:05PM by PIB Delhi
In a landmark step towards accelerating industrial growth, the Union Cabinet chaired by the Prime
Minister Shri Narendra Modi has approved the Bharat Audyogik Vikas Yojna (BHAVYA), with an
allocation of Rs.33,660 crore for developing 100 plug-and-play industrial parks across the country.
The scheme aims to develop world-class industrial infrastructure, unlocking manufacturing potential and
driving India’s growth story.
Laying the Industrial Foundation for Viksit Bharat:
Building on the success of Industrial Smart Cities developed under the National Industrial Corridor
Development Programme (NICDP) framework, BHAVYA will be implemented in partnership with states
and private sector players.
From Approvals to Operations: A New Ease of Doing Business
At the heart of BHAVYA lies a strong push for deregulation and ease of doing business, with streamlined
approvals, effective single-window systems, and investor-friendly reforms led by states.
The scheme will deliver plug-and-play industrial ecosystems, enabling industries to move from intent to
production with speed and certainty. With pre-approved land, ready infrastructure, and integrated services,
BHAVYA will significantly reduce entry barriers for investors.
Under the scheme, industrial parks ranging from 100 to 1000 acres will be taken up for development.
Financial support of up to Rs. One crore per acre will be provided for:
Core infrastructure (internal roads, underground utilities, drainage, common treatment facilities, ICT and
administrative systems)
Value-added infrastructure (ready-built factory sheds, built-to-suit units, testing labs, warehousing)
Social infrastructure (worker housing and support amenities)Support for external infrastructure will also be provided up to 25% of the project cost, ensuring seamless
connectivity and integration with existing networks.
Project selection will be undertaken through a challenge mode, ensuring that only high-quality, reform-
oriented and investment-ready proposals are taken forward.
Future-Ready, Sustainable and Efficient Industrial Parks:
The industrial parks will be designed as futuristic and sustainable ecosystems:
Aligned with the PM GatiShakti Principles to enable seamless multimodal connectivity and efficient last-
mile access
Green energy and sustainable resource use with integrated underground utility corridors enabling a no-dig
environment for efficient maintenance and uninterrupted industrial operations
These parks will set new benchmarks in industrial infrastructure, ensuring reliability, reducing
inefficiencies, and enhancing productivity across sectors.
Driving Jobs, Investment and Economic Growth Across Regions:
BHAVYA is expected to drive large-scale job creation, generating substantial direct and indirect
employment across manufacturing, logistics, and services, while catalysing significant investments.
The scheme will extend to all States and Union Territories, creating lakhs of employment opportunities
across the country and accelerating industrial growth nationwide.
By fostering cluster-based development and enabling co-location of industries, suppliers, and service
providers, BHAVYA will strengthen domestic supply chains, promote regional industrialization, and create
new opportunities for millions of people.
The scheme will benefit:
Primary beneficiaries: Manufacturing units, MSMEs, startups, and global investors seeking ready-to-use
industrial infrastructure
Secondary beneficiaries: Workers, logistics providers, service sector enterprises, and local communities
The approval of BHAVYA represents a transformational step in India’s journey towards Atmanirbhar
Bharat, reinforcing the country’s manufacturing capabilities, boosting exports, and laying the foundation
for a resilient, inclusive, and globally competitive economy.
About NICDC:
National Industrial Corridor Development Corporation Limited (NICDC), under the Department for
Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry, is spearheading
the development of world-class greenfield industrial smart cities to enhance manufacturing
competitiveness, attract investments, and generate employment. NICDC is currently implementing 20
projects across 13 states.
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.
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MJPS
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