The Union Cabinet has approved the Bharat Audyogik Vikas Yojna (BHAVYA) with a significant allocation of ₹33,660 crore. The scheme is designed to develop 100 plug-and-play industrial parks across India, ranging from 100 to 1,000 acres each, to accelerate manufacturing-led growth and job creation.
BHAVYA reflects growth in the government's strategy to reduce entry barriers for investors by providing pre-approved land and ready-to-use infrastructure. This initiative is supported by the National Industrial Corridor Development Programme (NICDP) framework and will be implemented through a "challenge mode" to ensure high-quality, reform-oriented project selection across all States and Union Territories.
Key Features of the BHAVYA Scheme
Financial Scale: Total expenditure of ₹33,660 crore, providing up to ₹1 crore per acre for park development.
Plug-and-Play Ecosystem: Provides ready-built factory sheds, testing labs, and underground utilities to enable industries to move from "intent to production" with speed.
Infrastructure Scope: Covers core utilities, value-added facilities (warehousing), and social infrastructure such as worker housing.
Connectivity & Logistics: Aligned with PM GatiShakti principles for seamless multimodal connectivity; external infrastructure support is provided up to 25% of the project cost.
Sustainability Focus: Features green energy integration and a "no-dig" environment through integrated underground utility corridors for uninterrupted operations.
Selection Process: Projects are selected via a challenge mode, prioritizing states that implement investor-friendly reforms and effective single-window systems.
What is "Plug-and-Play" Industrial Infrastructure? Plug-and-play infrastructure refers to industrial parks that are fully equipped with all necessary utilities and regulatory clearances before an investor arrives. It plays a role in bypassing the traditional delays associated with land acquisition, environmental approvals, and setting up basic electricity or water connections. In the BHAVYA framework, this is supported by the goal of enabling "speed and certainty" for global investors, MSMEs, and startups. By providing pre-approved sites with ready-built factory sheds and integrated ICT systems, plug-and-play ecosystems reflect growth in India’s ease of doing business, allowing units to start operations almost immediately upon allotment.
Policy Relevance: Driving Manufacturing-Led Growth
Scaling Atmanirbhar Bharat: BHAVYA reflects growth in India’s manufacturing capabilities, aimed at strengthening domestic supply chains and boosting high-value exports.
Internalising Regional Development: By extending to all States and UTs, the scheme plays a role in promoting industrialization in Tier-II and Tier-III regions, spreading economic opportunities beyond metros.
Bypassing Inefficiencies: The "no-dig" underground utility corridors are supported by the need to reduce maintenance downtime and operational inefficiencies in traditional industrial clusters.
Supporting MSMEs and Startups: Ready-to-use factory sheds and testing labs contribute to lowering the high initial capital expenditure for smaller enterprises and new-age startups.
Relevant Question for Policy Stakeholders: How will the DPIIT ensure that the "challenge mode" for park selection remains objective and rewards states with the highest actual reform implementation?
Follow the Full Release Here: Cabinet approves New Era of Plug-and-Play Industrial Development through BHAVYA
