States Can Apply For BHAVYA Industrial Parks From June One
ECONOMY & POLICY

States Can Apply For BHAVYA Industrial Parks From June One

States can begin submitting applications from June one to set up industrial parks under the Bharat Audyogik Vikas Yojna (BHAVYA), which has been allocated Rs 336.6 billion (bn), the Department for Promotion of Industry and Internal Trade (DPIIT) issued guidelines indicating the Cabinet approved the scheme on March 18. The programme will develop 100 plug-and-play industrial parks over six years from 2026-27 to 2031-32. The guidelines were issued to operationalise the scheme and set out selection and eligibility criteria.

50 proposals will be selected in the first phase through two rounds, with the first round opening on June one and closing on July 31, 2026. Up to 20 proposals are likely to be selected in the first round, while the second round will run from August one to September 30, 2026. States whose proposals are not selected in the first round may resubmit improved applications in the second round.

Minimum land requirements vary by region: non-hilly states must provide at least 100 acres, while hilly states, the north-east, union territories and states with a population below 10 million (mn) must provide a minimum of 25 acres. The list of states cited as meeting the smaller threshold includes Himachal Pradesh, Uttarakhand, Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland and Goa. For larger projects, up to 20 parks may have a development area between 500 acres and 1,000 acres, with government funding capped at 1,000 acres for phased developments.

Land for the parks may be provided by states, private developers or central public sector enterprises (CPSEs), either singly or jointly, and proposals will be assessed on connectivity, site suitability, industrial ecosystem, policy support and infrastructure quality. The scheme aims to create investment-ready, world-class industrial infrastructure to support manufacturing growth and ease of doing business. Officials indicated that the selection criteria and timelines are intended to encourage pan-India participation and timely project delivery.

States can begin submitting applications from June one to set up industrial parks under the Bharat Audyogik Vikas Yojna (BHAVYA), which has been allocated Rs 336.6 billion (bn), the Department for Promotion of Industry and Internal Trade (DPIIT) issued guidelines indicating the Cabinet approved the scheme on March 18. The programme will develop 100 plug-and-play industrial parks over six years from 2026-27 to 2031-32. The guidelines were issued to operationalise the scheme and set out selection and eligibility criteria. 50 proposals will be selected in the first phase through two rounds, with the first round opening on June one and closing on July 31, 2026. Up to 20 proposals are likely to be selected in the first round, while the second round will run from August one to September 30, 2026. States whose proposals are not selected in the first round may resubmit improved applications in the second round. Minimum land requirements vary by region: non-hilly states must provide at least 100 acres, while hilly states, the north-east, union territories and states with a population below 10 million (mn) must provide a minimum of 25 acres. The list of states cited as meeting the smaller threshold includes Himachal Pradesh, Uttarakhand, Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland and Goa. For larger projects, up to 20 parks may have a development area between 500 acres and 1,000 acres, with government funding capped at 1,000 acres for phased developments. Land for the parks may be provided by states, private developers or central public sector enterprises (CPSEs), either singly or jointly, and proposals will be assessed on connectivity, site suitability, industrial ecosystem, policy support and infrastructure quality. The scheme aims to create investment-ready, world-class industrial infrastructure to support manufacturing growth and ease of doing business. Officials indicated that the selection criteria and timelines are intended to encourage pan-India participation and timely project delivery.

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