India to develop 100 plug-and-play industrial parks to boost manufacturing
The new industrial clusters, each spanning from 100 to 1,000 acres of land, will offer ready infrastructure to investors and businesses. For North East and hilly regions the minimum land requirement has been kept at 25 acre.
The Union Cabinet chaired by Prime Minister Narendra Modi on March 18 approved Bharat Audyogik Vikas Yojana (BHAVYA), with an outlay of Rs 33,660 crore, to develop 100 industrial clusters across the country to boost manufacturing.
The new industrial clusters, each spanning from 100 to 1,000 acres of land, will offer ready infrastructure to investors and businesses. For North East and hilly regions the minimum land requirement has been kept at 25 acre.
Under the scheme the central government will provide financial support of up to Rs 1 crore per acre for development of core and value-added infrastructures like internal roads, underground utilities, drainage, common treatment facilities, ICT, administrative systems, ready-built factory sheds, built-to-suit units, testing labs and warehousing. The financial support will also be provided for the development of social infrastructure like worker housing and support amenities,
Briefing media after the cabinet meeting Union Minister Ashwini Vaishnaw said the plug-and-play industrial parks will be developed across the country in collaboration with state governments, public sector undertakings and private firms.
The scheme will run for six years beginning 2026-27. The government targets to develop around 34,000 acres of investment-ready, plug-and-play industrial facilities at competitive rates through this initiative.
“By enabling cluster-based development and co-location of industries, suppliers and support services, BHAVYA will strengthen supply chains, reduce costs and foster vibrant industrial ecosystems across regions,” Commerce and Industry Minister Piyush Goyal said in a post on X.
According to Goyal, BHAVYA is a Central Sector Scheme. It seeks to build next-generation industrial infrastructure, boost ease of doing business through reforms & plug-and-play ecosystems; create future-ready, sustainable & efficient industrial parks and drive investment, employment & stronger industrial ecosystems.
“The scheme will extend to all States and Union Territories, creating lakhs of employment opportunities across the country and accelerating industrial growth nationwide,” the Ministry of Commerce & Industry said in a statement.
Manufacturing units, MSMEs, startups, and global investors seeking ready-to-use industrial infrastructure are targeted to be the primary beneficiaries of the scheme. The scheme is also likely to benefit workers, logistics providers, service sector enterprises, and local communities.
The National Industrial Corridor Development Corporation Limited (NICDC), under the Ministry of Commerce and Industry, will be the nodal agency for implementation of the scheme.
According to an official statement released after the cabinet meeting, BHAVYA scheme has been formulated building on the success of Industrial Smart Cities developed under the National Industrial Corridor Development Programme (NICDP) framework.
The NICDC-led initiatives are built on the concept of plug-and-play industrial parks—ready-to-use ecosystems where land, utilities, approvals, and infrastructure are pre-developed, enabling industries to start operations quickly without delays related to land acquisition or infrastructure setup. The NICDC is currently implementing 20 projects across 13 states.
