States will be able to submit applications from June 1 under the Centre’s ambitious Bharat Audyogik Vikas Yojna (BHAVYA) scheme aimed at developing large-scale industrial parks across the country, according to an official release issued on Sunday. The Rs 33,660 crore scheme, approved by the Union Cabinet on March 18, seeks to establish 100 plug-and-play industrial parks nationwide over a six-year period from 2026-27 to 2031-32.
The initiative is designed to create investment-ready industrial infrastructure that can help manufacturers and investors establish operations more efficiently. According to operational guidelines issued by the Department for Promotion of Industry and Internal Trade, the first phase of the scheme will involve the selection of 50 proposals from states and other eligible entities. Officials said the process would be conducted in two rounds during 2026.
The first application window will remain open from June 1 to July 31, 2026, during which up to 20 proposals may be shortlisted. The second round will take place between August 1 and September 30, 2026. Authorities clarified that applicants whose proposals are not selected in the first round would be allowed to revise and resubmit their plans for consideration in the second phase of evaluation.
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Under the guidelines, industrial parks proposed in non-hilly states must have at least 100 acres of contiguous land available for development. However, smaller land requirements have been prescribed for hilly states, northeastern states, union territories and states with populations below one crore. These include Himachal Pradesh, Uttarakhand, Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland and Goa, where only 25 acres of contiguous land will be required.
The government has also proposed flexibility for the development of larger industrial zones. Out of the 100 industrial parks planned under the scheme, up to 20 parks may be developed across areas ranging between 500 and 1,000 acres. In cases where states or developers propose larger parks in multiple phases, central funding support will be capped at the equivalent of 1,000 acres, according to the guidelines.
Officials said land for the industrial parks can be provided by state governments, private developers, central public sector undertakings, or through joint arrangements between public and private entities. Proposals submitted under the scheme will be evaluated on several criteria, including multimodal connectivity, site suitability, industrial ecosystem readiness, policy support, and the quality of social and core infrastructure planned in the detailed project reports.
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