Explainer: What India’s plug-and-play industrial ecosystem promises

What is the Bhavya scheme? 

The Bhavya (BHARAT Audyogik Vikas Yojna) scheme is a Central government initiative to develop 100 investment-ready industrial parks across the country over the next six years. With a total financial outlay of Rs 33,660 crore, the scheme envisages 100 plug-and-play industrial parks to be built from 2026-27 to 2031-32.

Earlier on May 23, the Department for Promotion of Industry and Internal Trade (DPIIT) had released the detailed operational guidelines for the implementation of the scheme. The scheme aims to build on the success of Industrial Smart Cities developed under the National Industrial Corridor Development Programme (NICDP) framework.

The National Industrial Corridor Development Corporation (NICDC) has been designated as the project management agency for the scheme, and will be responsible for its implementation and monitoring. NICDC is currently implementing 20 projects across 13 states under the NICDP, and Bhavya will be likewise implemented in partnership with states and private sector players.

Why is a plug-and-play model needed?

The plug-and-play model now is placed at the centre of India’s national industrial policy. From land acquisition to securing zoning approvals to building internal roads and utilities, the hurdles are many for industrialists looking at a greenfield venture.

The Bhavya scheme aims to remove these obstacles by delivering a plug-and-play industrial ecosystem, enabling industries to move from intent to production with speed and certainty. With pre-approved land, ready infrastructure, and integrated services, Bhavya is expected to significantly reduce entry barriers for investors.

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.

How will the projects be selected? 

Project selection will be under-taken through a challenge mode, ensuring that only high-quality, investment-ready proposals are taken forward. In the first phase, up to 50 industrial parks will be taken up through a challenge-based competitive selection process.

Based on the applications received between June 1 and July 31, up to 20 industrial parks will be selected. Another 30 more will be selected from applications received in the subsequent four months, said the DPIIT Secretary Amardeep Singh Bhatia.

The remaining 50 parks will be selected in the second phase. He added that an evaluation matrix has been laid down for use by the National Steering Committee to select applicants.

The scheme seeks to ensure that industrial parks are designed according to the specific needs of different sectors and investors. The government would work closely with industry to identify suitable sectors and infrastructure requirements for each location, whether for chemicals, manufacturing, data centres or other industries.

Onus on states to promote industrialisation 

States are expected to come up with strong project proposals, and parks will be allocated on the basis of the quality of those proposals. They will be encouraged to submit detailed project proposals highlighting their industrial strengths, availability of land, investor interest and sectoral potential.

Four states — West Bengal, Rajasthan, Maharashtra and Haryana — have already expressed interest in the scheme. States can also partner with private sector players and submit proposals, under which the Centre will provide assistance of `50 lakh per acre.

While the land for parks will be provided by states, the Centre will provide incentives covering infrastructure, facilities and connectivity.  Under the scheme, industrial parks ranging from 100 to 1000 acres will be taken up for development. For hilly states, states in the North East, Union Territories, and smaller states, industrial parks can be approved on 25 acres of land. 

Driving jobs and economic growth 

Support of up to Rs one crore per acre will be provided for core infrastructure (internal roads, underground utilities, drainage, common treatment facilities, ICT and administrative systems), value-added infrastructure (ready-built factory sheds, built-to-suit units, testing labs, warehousing) and social infrastructure (worker housing and amenities).

Support for external infrastructure will be provided up to 25% of the project cost, ensuring seamless connectivity and integration with existing networks. 

The scheme will benefit not just the primary beneficiaries — manufacturing units, MSMEs, startups, and global investors seeking ready-to-use industrial infrastructure — but also workers, logistics providers, service sector enterprises, and local communities in the vicinity of these industrial parks.

Bhavya is expected to drive large-scale job creation, generating substantial direct and indirect employment across sectors, while promoting regional industrialisation.