Guidelines issued; first parks not yet selected
DPIIT issued the operational guidelines on 23 May 2026, with NICDC as the project management agency. Round 1 of Phase I, for up to 20 parks, closed on 31 July 2026 with 87 proposals from States and UTs; no selection had been announced as of 6 October 2026. Check the current position before committing to a location.
On 18 March 2026 the Union Cabinet approved the Bharat Audyogik Vikas Yojna (BHAVYA) with an outlay of Rs 33,660 crore. The scheme proposes 100 plug-and-play industrial parks across the country, implemented by the National Industrial Corridor Development Corporation (NICDC) under the Department for Promotion of Industry and Internal Trade, and builds on the industrial-corridor model NICDC already runs in 20 projects across 13 states. It is an infrastructure programme, and it is worth being clear at the outset about what it is not: it creates no new duty or tax regime. A unit in a BHAVYA park will still decide whether to operate in the domestic tariff area, under MOOWR, as an EOU, or, where a park is notified, as an SEZ unit.
What was approved
| Parameter | Approved position |
|---|
| Outlay | Rs 33,660 crore |
| Parks | 100 plug-and-play parks; about 50 in the first phase |
| Area | About 33,600 acres in total; parks of 100 to 1,000 acres, 25 acres in hill and north-eastern states |
| Central assistance | Up to Rs 1 crore per acre for core infrastructure; up to 25% of project cost for external connectivity |
| Employment | About 15 lakh direct jobs projected |
| Period | Six years from 2026-27 |
| Implementing agency | NICDC under DPIIT |
What "plug-and-play" is meant to include
The stated intent is that a unit should arrive to find the pre-production work done:
- internal roads and underground utility corridors for power, water and gas, so that later connections do not require digging;
- drainage and common effluent treatment;
- digital connectivity;
- pre-built factory sheds, testing and certification laboratories, warehousing and logistics facilities;
- worker housing and commercial amenities;
- external links to highways, rail and ports aligned with PM GatiShakti planning, and green energy and waste management built in.
How parks will be chosen
Selection is by challenge mode. States submit proposals and are scored on investment-readiness, ease-of-doing-business reforms, single-window clearance, transparent and bankable land allocation, connectivity and workforce, and proximity to existing clusters. Each selected park will be developed and managed by a dedicated special purpose vehicle with statutory planning and single-window powers. The design is deliberate: states that have done the regulatory work get the parks, which is also a signal to a business about where approvals are likely to be quickest.
How BHAVYA fits with the zone regimes
For a manufacturer deciding where and under what status to set up, BHAVYA adds a location option, not a fiscal one. The combinations to consider:
| Status inside a BHAVYA park | What it gives | What it requires |
|---|
| DTA unit | Ready infrastructure; ordinary duty and GST | State allotment only |
| MOOWR (Section 65) unit | Duty deferred on imported inputs and machinery; no export obligation | Customs licence for the premises |
| EOU | Duty-free imports and domestic procurement against positive NFE | Letter of permission from the Development Commissioner; bonding |
| SEZ unit | Full exemption and zero-rated supplies against positive NFE | The park, or a part of it, must be notified as an SEZ and a unit approved by the Unit Approval Committee |
Two observations from our side. For SEZ developers, a well-located BHAVYA park with state-subsidised infrastructure is a competitor for the same tenants, and the case for an SEZ will rest more heavily on its fiscal treatment than on its infrastructure. For FTWZ operators, parks that sit on the planned corridors create demand for duty-free warehousing and value-addition close to the factory gate.
Risks to watch
- Whether states with the highest industrial demand move fast enough on land and proposals.
- Whether the first-phase timeline holds, given the record of large infrastructure programmes.
- Whether infrastructure quality is consistent across states once allotment begins.
- How the parks coordinate with PLI schemes, NICDP projects and GatiShakti planning in practice.
What to do now
- If you are planning capacity in the next three to five years, add the likely first-phase states to your location shortlist and track the challenge-mode outcomes.
- Decide your Customs status on the merits of your sales mix, not the park: MOOWR for domestic-led, EOU or SEZ for export-led.
- If you hold an EOU or Section 65 licence and may relocate, plan the transfer of bonded stock and the fresh premises approval before signing for land.
