BHAVYA Industrial Park Scheme 2026: Outlay, Tenure, Parks

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

1. 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.
2. Decide your Customs status on the merits of your sales mix, not the park: MOOWR for domestic-led, EOU or SEZ for export-led.
3. 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.