Govt Launches Rs 3,030-Cr Plan to Build 3 Chemical Parks

Announcing the decision after the Union Cabinet meeting, information & broadcasting minister Ashwini Vaishnaw told the media that each park could see investments in the range of Rs 20,000 crore to Rs 50,000 crore and the scheme will act as a ‘multiplier’. “The Cabinet, chaired by Prime Minister Narendra Modi, has approved Bharat Audyogik Vikas Yojana Rasayan, or BHAVYA-Rasayan Scheme, to establish three dedicated chemical parks in the country,” the minister said.

According to an official statement, Rs 3,000 crore would be towards the cost of establishing the common infrastructure facilities and basic utilities inside the parks. “The remaining Rs 30 crore will be for the administrative expenditure. The scheme would run for a period of 5 years from the current fiscal to 2030-31,” the government said in the statement.

Replying to a question, Vaishnaw said that the total investment for establishment of these three parks will be significantly higher than this. The outlay of Rs 3,030 crore is only for common infrastructure. “The Centre will facilitate development of three dedicated chemical parks by the state governments under challenge route. Each such park will have a minimum contiguous area of 8 sq km (minimum 2,000 acres) of encumbrance-free land,” the statement said.

However, the minister explained that the chemical parks could be greenfield or brownfield, depending on the state governments' selection based on the challenge route. “There are many sectors in the economy that are foundational, and the chemical sector is one of them, as it provides basic raw materials for many other industries,” the minister said.

As per the government, the Centre would provide a grant of up to Rs 1,000 crore per park. “However, this will be subject to the minimum contribution of Rs 500 crore by the concerned state government. The introduction of the scheme would facilitate development of the sector by attracting domestic and foreign investments, enhancing domestic production capacity and generating employment,” it said, adding that it will boost the global competitiveness of the sector, thereby promoting Atmanirbharta.

Detailing the scheme, the government said that the proposed three parks would provide plug-and-play infrastructure in the form of common facilities and basic utilities for the chemical industry. “The facilities include a common effluent treatment plant (CETP); treatment, storage, and disposal facility (TSDF), water supply and distribution systems; solvent recovery and distillation facilities; steam generation and distribution network; interconnected pipeline network; and logistics and warehousing facilities,” it said.

The government also noted that the establishment of three parks would make the Indian chemical industry globally competitive. “It will promote development of the Indian chemical industry in a sustainable way by creating an environment-friendly ecosystem which will consist of centralized facilities,” it said.