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REGD. No. D. L.-33004/99
The Gazette of India
CG-DL-E-10042026-271698
EXTRAORDINARY
PART I-Section 1
PUBLISHED BY AUTHORITY
No. 106]
NEW DELHI, FRIDAY, APRIL 10, 2026/CHAITRA 20, 1948
MINISTRY OF COMMERCE AND INDUSTRY
(Department for Promotion of Industry and Internal Trade)
NOTIFICATION
New Delhi, the 10th April, 2026
F. No. P-32026/2/2024-MIIUS.—The Government of India is pleased to announce the Bharat Audyogik
Vikas Yojna (BHAVYA) scheme.
1. Scheme Title: This Scheme shall be called Bharat Audyogik Vikas Yojna (BHAVYA).
2. Background & Objective: BHAVYA aims to develop 100 investment-ready plug-and-play industrial parks
in and near cities, in partnership with States, Central Public Sector Undertakings and private sector. By providing
high quality plug-and-play infrastructure for industrial units, with focus on proximity to cities, seamless
connectivity to multi-modal logistics facilities and industrial hubs, the industrial parks developed under the
Scheme will enable investors to ground their investments with ease and foster an efficient and globally
competitive ecosystem essential to boost manufacturing.
3. Commencement and Duration of the Scheme: The scheme will be operational for a period of six (6) years
commencing from financial year 2026-27 up to 2031-32, with an outlay of 33,660 crores.
4. Scope of the Scheme: Financial assistance will be provided under the Scheme for development of 100 industrial
parks in two or more phases. In the first phase, development of 50 industrial parks shall be taken up.
5. Eligibility for assistance under the Scheme:
5.1 Land requirement: For non-hilly states, a contiguous and encumbrance free land parcel of minimum 100
acre is required for consideration of the application for the industrial park. Non-contiguous, adjoining or
connected parcels (not exceeding 2 with a minimum area of 100 acre each) located within a radius of 2
km may be considered on a case-to-case basis.
5.2 For hilly states, northeast region, union territories and states with population of less than one crore, minimum
land requirement is 25 acre of contiguous and encumbrance-free land.
5.3 Land shall be provided by the state government, private developer, or central PSU, as the case may be.
Further, availability of at least 90 percent encumbrance free land shall be mandatory, before consideration
for approval under the Scheme.
5.4 Of the 100 industrial parks to be developed, upto twenty industrial parks will be between 500 acre to 1000
acre area, while remaining would be less than 500 acre.
5.5 Brownfield parks will be considered on a case-to-case basis subject to availability of minimum area of
unencumbered, litigation-free, contiguous and unallotted land as per paragraph 5.1 and 5.2 above.
5.6 Projects where land is made available for development through land pooling or town planning schemes
would be given additional weightage.
5.7 Delegation of planning and development powers: Planning and development powers for effective single-
window mechanism, shall be delegated to the implementing agency by the State Government. Such
delegation shall be mandatory before transfer of any fund for the project to the implementing agency.
5.8 In addition to the mandatory requirements for land and delegation of planning and development powers, each
application/ proposal for the industrial park shall be evaluated on a challenge mode for the purpose of
selection for funding under the scheme.
6. Mode of implementation:
6.1 The State/UT government or the Central PSU shall be the sponsoring agency. The State/UT government shall
also be the sponsoring agency for proposals from private developers.
6.2 The development of the park shall be carried out by a Special Purpose Vehicle (SPV) formed between
National Industrial Corridor Development and Implementation Trust (NICDIT) under DPIIT and the state
nodal agency. States / UT government shall designate a state nodal agency, which may be the State
Industrial Development Corporation, State Industrial Development Authority or such other government
agency/authority mandated to develop industrial areas.
6.3 The SPV shall be the owner of assets created under the scheme, and shall be responsible for planning,
construction, operation and maintenance of the industrial park to be developed. The ownership of the land
for industrial park shall be transferred to the SPV, and funding would be provided by the Central
Government through NICDIT.
6.4 The following SPVs shall be used:
(i) An existing SPV jointly promoted by the State Nodal Agency and NICDIT for developing industrial
townships/parks.
(ii) In case such SPV is not in existence, a new SPV under Companies Act, 2013 shall be incorporated for the
purpose on similar lines to the SPVs constituted in 6.4(i).
(iii) In case of private developers, SPV shall be formed as a joint venture company between the State nodal
agency, private developer and NICDIT. The private developer may also be the anchor investor and allot
to itself up to 25% of developed land. Remaining developed land (minimum 75%) shall be allotted to
other industries/ units by the SPV.
6.5 Details of the role and responsibilities of the SPVs shall be issued as part of the detailed guidelines.
7. Funding under the Scheme:
7.1 The total outlay of the Scheme is 33,660 crore.
7.2 Funding up to 1 crore per acre shall be provided for each project (except private developer led parks), in
milestone linked tranches, without any escalation, in the form of equity through NICDIT. This fund can be
used to develop core infrastructure, value added infrastructure, social infrastructure and external
infrastructure.
7.3 Out of the total funding for each industrial park under the scheme, up to 25% may be allocated for development
of external infrastructure works for providing last-mile connectivity. Further, for the total cost of such
external infrastructure, the funding under BHAVYA shall not exceed 25% with the remaining 75% to be
funded by State/UT government.
7.4 In case of projects developed in partnership with private developers, financial assistance shall be provided in
form of equity through NICDIT, and shall be limited to 50 lakh per acre or 50% of infrastructure cost,
whichever is lower.
7.5 The disbursement of funds for each project will be spread over three tranches over a period of three years,
with specific milestones for release in each tranche.
7.6 The details of eligible components, ineligible components and milestones for funding will be issued in the
guidelines separately.
8. Process of application and project evaluation
8.1 Applications under the scheme will be invited in two or more rounds.
8.2 Applications will be submitted by sponsoring agencies to DPIIT.
8.3 The applications will be evaluated using Challenge method with parameters that would cover the entire life
cycle of the industrial park, from planning and development to operation and long-term sustainability,
such as site selection, cost-competitiveness reforms, quality of DPR, operational readiness, sustainability,
and institutional O&M framework.
8.4 The evaluation shall be done only for those applications that meet the mandatory requirements of land
availability and delegation of planning and development powers, etc.
8.5 The details of the parameters that shall be part of the evaluation criteria/ matrix, and the selection through
evaluation will be issued in the guidelines separately.
9. Governance Mechanism:
9.1 The scheme shall be implemented under the supervision of DPIIT. A two-tier monitoring mechanism will be
instituted to oversee the scheme. The following committees would be constituted:
9.2 National Level Steering Committee (NLSC) will be chaired by the Secretary, DPIIT and have members
from:
i. NITI Aayog
ii. Ministry of Road Transport and Highways,
iii. Ministry of Housing and Urban Affairs
iv. Ministry of Railways
v. Ministry of Labor & Employment
vi. Ministry of Electronics and Information Technology
vii. Ministry of Textiles
viii. Ministry of Micro, Small and Medium Enterprises
ix. Department of Expenditure
x. Department of Economic Affairs
xi. Department of Pharmaceuticals
xii. Department of Commerce
The NLSC will recommend detailed guidelines, evaluation criteria and scoring methodology and
changes thereof; approve projects and take other necessary measures for effective implementation of the
scheme.
9.3 State Level Committee (SLC) will be chaired by the Chief Secretary of the concerned State/UT and would
recommend projects, including those from private sector; and monitor and review the progress of the
sanctioned projects. The composition of SLC and its responsibilities would be issued separately in the
guidelines.
10. Project Management Agency (PMA) – National Industrial Corridor Development Corporation (NICDC) will
assist NLSC in the implementation of the scheme at all stages of appraisal, selection, implementation and
monitoring. The role and functions of PMA would be further detailed in the guidelines.
11. Scheme guidelines: Detailed operational guidelines for implementation of scheme will be issued separately.
12. Modifications to the Scheme: The authority to approve modifications in the scheme notification and guidelines is
vested in the Minister-in-charge of DPIIT.
GURNEET TEJ, Jt. Secy.
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and Published by the Controller of Publications, Delhi-110054.
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