States can now submit applications to establish industrial parks under the Rs 33,660 crore Bharat Audyogik Vikas Yojna (BHAVYA) scheme from June 1, 2026. According to an official release, the Union Cabinet approved the scheme on March 18 for developing 100 plug-and-play industrial parks across the country over a six-year period from 2026-27 to 2031-32. The first phase will comprise 50 proposals selected as per operational guidelines, with applications accepted through two rounds of selection. The scheme has now been officially notified with detailed guidelines, marking the formal launch of the application process.
The first round of selection will open on June 1 and close on July 31, 2026, with up to 20 proposals potentially selected. The second round will open on August 1 and close on September 30, 2026. As reported by the Department for Promotion of Industry and Internal Trade (DPIIT), applicants whose proposals are not selected in the first round may submit improved versions for consideration in the second round. The scheme targets investment-ready, world-class industrial infrastructure to enable investors to ground investments easily and add to manufacturing capacity. Applications will be received and processed through an online portal developed and managed by the Project Management Agency (PMA), with each application accompanied by a Detailed Project Report (DPR) prepared in accordance with prescribed templates.
According to DPIIT guidelines, non-hilly states must provide minimum 100 acres of contiguous land for industrial park development. For hilly states, northeast region, union territories and states with population less than 1 crore, the minimum requirement is 25 acres of contiguous land. The guidelines now specify that non-contiguous, adjoining or connected parcels (not exceeding two) with a minimum area of 100 acre each located within a radius of 2 km may also be considered for hilly states. The scheme allows up to 20 industrial parks to have development areas between 500 to 1,000 acres. For larger parks developed in phases, funding will be capped at 1,000 acres per proposal. States with populations below one crore include Himachal Pradesh, Uttarakhand, Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Tripura and Sikkim, Andaman and Nicobar Islands, Chandigarh, Dadra and Nagar Haveli, Daman and Diu, Delhi, Jammu and Kashmir, Ladakh, Lakshadweep, Puducherry, and Goa.
The scheme provides funding through land provided by State Government, private developers, joint arrangements, or Central Public Sector Undertakings. As reported by DPIIT, proposals will be evaluated based on multi-modal connectivity, site suitability, quality of core, value-added and social infrastructure, industrial ecosystem, and policy enablers. The scheme aims to develop world-class industrial infrastructure that enables investors to establish manufacturing operations with ease. Land for the parks can be provided by states, private developers, CPSEs, or jointly, while proposals will be assessed on connectivity, site suitability, industrial ecosystem, policy support and infrastructure quality. The application process requires sponsoring agencies to submit applications in prescribed formats through the designated portal, with each industrial park requiring separate applications and accompanying detailed project reports.
