The government on Wednesday approved a scheme to develop 100 industrial parks across India that will involve Rs 33,660 crore support from the exchequer over the next six years. The approval for the Bharat Audyogik Vikas Yojna (BHAVYA), announced in the 2024-25 budget speech, came at the cabinet meeting. The scheme envisages setting up 100-acre to 1000-acre industrial parks near major cities with plug-and-play infrastructure.
For Northeast and hilly areas, the minimum size for industrial parks can be 25 acres. In the first phase, 50 parks will be developed and the central government will spend Rs 1 crore per acre for core infrastructure, value-added infrastructure, social infrastructure and support for external connectivity infrastructure.
The scheme will deliver 33,660 acres of investment-ready, plug-and-play industrial land at competitive rates, said Amarjeet Singh Bhatia, Secretary in the Department for Promotion of Industry and Internal Trade (DPIIT).
Strategic External Connectivity
Support for external infrastructure will also be provided up to 25% of the project cost, ensuring seamless connectivity and integration with existing networks. “Project selection will be undertaken through a challenge mode, ensuring that only high-quality, reform-oriented and investment-ready proposals are taken forward,” said Information and Broadcasting Minister Ashwani Vaishnaw.
Collaborative Development
Each project will be implemented through a Special Purpose Vehicle (SPV) with National Industrial Corridor Development and Implementation Trust (NICDIT). The parks will be developed in partnership with states, whose contribution will be in the form of land.
“We expect that the state governments will be primary sponsoring agencies,” Bhatia said.
Central public sector companies can develop industrial parks if they have land, Bhatia said. Private developers can also set up these parks but NICDT and the state government would be part of the SPV.
Normally, it takes two to three years for the land to be developed. After that they take another two years for units to start coming up.
The 100 industrial parks are smaller versions of 20 large industrial parks that are either functional or coming up in 10 states through the National Industrial Corridor Development Corporation (NICDC). Of these 20, four are operational and four are final stages of trunk infrastructure development.
Of the 12 that were approved in 2024, infrastructure work of 11 of those have already commenced.