The Department for Promotion of Industry and Internal Trade (DPIIT) has released detailed operational guidelines for implementing the BHAVYA Scheme, a Central Sector Scheme aimed at developing investment-ready industrial parks across India, the Ministry of Commerce & Industry said in a statement on Saturday, 23 May 2026.
The scheme will support the development of 100 industrial parks over six years, from 2026-27 to 2031-32, with a total financial outlay of about ₹33,660 crore.
In the first phase, up to 50 industrial parks will be taken up through a challenge-based competitive selection process.
According to the statement, BHAVYA has been designed to strengthen India’s manufacturing ecosystem by creating integrated industrial infrastructure aligned with Make in India, PM Gati Shakti and the government’s broader objective of positioning India as a globally competitive manufacturing destination.
The guidelines provide a framework for eligibility criteria, project selection, funding structure, governance architecture, monitoring systems and implementation modalities for industrial parks under the scheme.
The main focus of BHAVYA will be to create investment-ready industrial ecosystems with plug-and-play infrastructure, multimodal logistics connectivity, reliable utility systems, worker-support infrastructure, digital governance systems and sustainable development features.
The scheme will cover both greenfield and eligible brownfield industrial parks. Minimum land requirements have been fixed at 100 acres for non-hilly states and 25 acres for hilly states, northeastern states, Union Territories and smaller states.
The guidelines also allow consideration of larger parks of up to 1000 acres.
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Under the challenge-based selection framework, proposals will be evaluated on objective parameters such as multimodal connectivity, site suitability, quality of infrastructure, industrial ecosystem strength, policy facilitation, digital governance readiness and long-term sustainability.
The quality of infrastructure will be assessed through components such as underground utility systems, water and waste management infrastructure, common effluent treatment systems, renewable energy infrastructure, worker housing, testing laboratories, digital single-window systems, skill development facilities and integrated common infrastructure.
Projects under BHAVYA will be implemented through Special Purpose Vehicles incorporated under the Companies Act, 2013.
These SPVs will handle project planning, development, operation, management, investor facilitation and long-term maintenance of assets created under the scheme.
The scheme will provide financial assistance in the form of equity contribution linked to the value of land transferred to the SPV and achievement of prescribed project milestones.
The National Industrial Corridor Development Corporation (NICDC) has been designated as the Project Management Agency for implementation and monitoring of the scheme.
The guidelines also provide for participation of private developers in industrial park development through project-specific SPVs, with defined governance frameworks, transparency safeguards and accountability mechanisms.
To ensure transparency and effective implementation, the guidelines include GIS-based monitoring systems, periodic progress reporting, audit mechanisms and oversight by the National Level Steering Committee chaired by the Secretary, DPIIT.
The scheme guidelines further provide for convergence with relevant Central and State Government initiatives related to logistics, skilling, sustainability, renewable energy, utility infrastructure and industrial development.
The ministry said the release of the guidelines marks a step towards operationalising BHAVYA and creating globally benchmarked industrial infrastructure capable of attracting large-scale manufacturing investment, strengthening domestic supply chains, generating employment and enhancing India’s integration with global value chains.
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