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Government allocates INR 33,660 crore for industrial parks, states to provide land

#Law & Policy#Infrastructure#India
Last Updated : 23rd Mar, 2026
Synopsis

The Union government has approved an allocation of INR 33,660 crore under the Bharat Audyogik Vikas Yojna (BHAVYA) to develop 100 plug-and-play industrial parks across India. The scheme is aimed at strengthening manufacturing, attracting investment, and reducing setup delays by offering ready infrastructure and pre-approved land. States will support implementation by providing land and facilitating development. The programme is planned over six years, with parks ranging from 100 to 1,000 acres, and smaller thresholds set for hilly and North Eastern regions to account for terrain constraints.

The Union government has approved an allocation of INR 33,660 crore for the development of industrial parks under the Bharat Audyogik Vikas Yojna (BHAVYA), a policy measure aimed at improving industrial infrastructure and supporting manufacturing growth across the country. The initiative focuses on creating integrated industrial zones that can reduce the time and effort required for businesses to begin operations.


Under this scheme, 100 plug-and-play industrial parks will be developed with pre-established infrastructure, including land parcels with necessary approvals, basic utilities, and supporting facilities. The intent is to allow industries to set up units quickly without facing prolonged clearance processes or initial infrastructure constraints, which have traditionally slowed down project execution.

The implementation of the scheme is planned over a period of six years, covering the financial years from FY27 to FY32. Each industrial park is expected to span between 100 and 1,000 acres. In regions such as the North East and hilly areas, the minimum land requirement has been kept lower at around 25 acres, taking into account geographical limitations and development challenges in those locations.

States are expected to play a central role in the execution of the scheme, particularly in identifying and allocating suitable land parcels. Their involvement is considered important for ensuring that projects move forward smoothly, as land availability and local coordination are key factors in infrastructure development. The collaboration between central and state authorities is intended to support timely project rollout.

The financial support under the scheme is not limited to land development alone. It is also directed towards building core infrastructure such as internal roads, drainage systems, and power and water supply networks. In addition, the plan includes provision for value-added infrastructure like warehouses, factory sheds, testing facilities, and other industrial support services that can help industries operate efficiently from the start.

External connectivity is also a component of the scheme, with emphasis on linking these industrial parks to nearby transport and logistics networks. This includes access to highways, railways, ports, or other distribution channels, which is expected to improve movement of goods and reduce logistical bottlenecks.

The broader objective of the initiative is to improve ease of doing business by addressing infrastructure gaps that often delay industrial projects. By offering ready-to-use industrial ecosystems, the scheme aims to encourage both domestic and foreign investment while also supporting small, medium, and large-scale industries. The approach reflects a continued focus on strengthening the manufacturing base and building long-term industrial capacity across different regions of the country.

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