The Union Cabinet chaired by Narendra Modi has approved the Bharat Audyogik Vikas Yojna (BHAVYA), with an allocation of Rs 336.6 billion to develop 100 plug-and-play industrial parks across India.

The scheme aims to create world-class industrial infrastructure, unlock manufacturing potential, and support India’s economic growth. It builds on the success of industrial smart cities developed under the National Industrial Corridor Development Programme (NICDP) and will be implemented in partnership with states and private sector players, with the National Industrial Corridor Development Corporation (NICDC) anchoring execution.

BHAVYA focuses on improving ease of doing business through streamlined approvals, single-window systems, and investor-friendly reforms. The parks will offer pre-approved land, ready infrastructure, and integrated services, enabling industries to move quickly from investment intent to production.

Industrial parks ranging from 100 to 1,000 acres will be developed, with financial support of up to Rs 10 million per acre. This includes funding for core infrastructure such as internal roads, underground utilities, drainage systems, treatment facilities, ICT and administrative systems; value-added infrastructure including factory sheds, built-to-suit units, testing labs and warehousing; and social infrastructure such as worker housing and amenities. Support for external infrastructure of up to 25 per cent of project cost will also be provided.

Project selection will be undertaken through a challenge-based approach to prioritise high-quality, investment-ready proposals.

Aligned with the PM GatiShakti National Master Plan, the parks will enable multimodal connectivity and efficient last-mile access. They will incorporate sustainable design elements, including green energy use, underground utility corridors, and no-dig infrastructure for efficient maintenance and uninterrupted operations.

The scheme is expected to generate large-scale employment across manufacturing, logistics and services, while attracting significant investments. It will extend across all states and Union Territories, supporting cluster-based development and strengthening domestic supply chains through co-location of industries, suppliers and service providers.

Primary beneficiaries include manufacturing units, MSMEs, start-ups and global investors, while workers, logistics providers, service enterprises and local communities will benefit as secondary stakeholders.

BHAVYA builds on NICDC’s experience in developing industrial corridors and smart cities, including nodes such as Dholera, Shendra-Bidkin, Vikram Udyogpuri and Greater Noida, which have demonstrated integrated planning, infrastructure development and investor readiness.

NICDC is currently implementing 20 projects across 13 states and also serves as the Project Management Agency for seven PM MITRA Parks under the Ministry of Textiles. Its initiatives focus on plug-and-play industrial ecosystems with pre-developed infrastructure, multimodal connectivity, integrated planning and digital monitoring systems, alongside sustainable features such as green energy and water reuse.