DPIIT Releases Operational Guidelines For BHAVYA Scheme; 100 Industrial Parks Planned By 2031-32

New Delhi, May 25 (KNN) The Department for Promotion of Industry and Internal Trade (DPIIT) has released operational guidelines for the BHAVYA scheme — Bharat Audyogik Vikas Yojna — a central sector programme aimed at developing investment-ready industrial parks across the country, with a total outlay of Rs. 33,660 crore over the period 2026–27 to 2031–32.

Scheme Overview

The programme envisages the development of 100 industrial parks over six years. In the first phase, up to 50 parks will be selected through a challenge-based competitive process. Both greenfield and eligible brownfield industrial parks will be covered.

Minimum land requirements have been set at 100 acres for non-hilly states and 25 acres for hilly states, northeastern states, Union Territories, and smaller states. The scheme also provides for the development of large-format 1,000-acre industrial parks.

Industry Response: Cautious Welcome

Federation of Indian Micro and Small & Medium Enterprises (FISME) has welcomed the notification of operational guidelines for BHAVYA (Bharat Audyogik Vikas Yojna) by the Ministry of Commerce & Industry.

Speaking exclusively to KNN, FISME President Rakesh Chhabra said, “Industrial infrastructure has historically remained one of the weakest links in improving competitiveness of Indian manufacturing. MSMEs often face high entry costs, fragmented facilities and long project gestation periods. If implemented well, BHAVYA can help reduce these structural disadvantages”.

While welcoming the scheme, FISME underlined that the real test of success would not be the number of parks approved or investment announced, but the extent to which MSMEs become active users and beneficiaries of the new infrastructure.

“FISME believes that dedicated provisions for MSME participation, cluster-led development and outcome-based monitoring would help maximise the economic impact of the scheme”, he added.

Infrastructure and Ecosystem Focus

The scheme focuses on creating integrated industrial ecosystems with plug-and-play infrastructure, multimodal logistics connectivity, utility systems, worker housing, digital governance frameworks, and sustainability features.

Infrastructure components include underground utility systems, water and waste management facilities, renewable energy infrastructure, testing laboratories, skill development centres, and digital single-window systems.

Project proposals will be evaluated on parameters including site connectivity and suitability, infrastructure quality, industrial ecosystem strength, policy support, digital governance readiness, and sustainability measures.

Implementation Structure

Projects will be implemented through Special Purpose Vehicles (SPVs) incorporated under the Companies Act, 2013, which will be responsible for planning, development, operations, investor facilitation, and maintenance.

Financial assistance will be provided through equity contributions linked to land value transferred to the SPV and achievement of defined project milestones.

Private developers may also participate through project-specific SPVs. The National Industrial Corridor Development Corporation has been designated as the project management agency. Oversight will rest with a national steering committee chaired by the DPIIT Secretary, supported by GIS-based monitoring and audit mechanisms.

(KNN Bureau)