BHAVYA Rasayan Scheme: Nadda asks states to help build chemical parks

Union Chemicals and Fertilisers Minister J P Nadda inaugurated the 14th edition of India Chem 2026, the government's international exhibition and conference for the chemicals and petrochemicals industry, at the Bombay Exhibition Centre in Mumbai on Thursday, October 22, 2026. Speaking at the event, he described the Bharat Audyogik Vikas Yojna (BHAVYA) Rasayan Scheme for new dedicated chemical parks as a game changer for the sector and urged states to work closely with the Centre to implement it. He said India aims to build a one-trillion-dollar chemicals market by 2040.

Chemicals are an input to almost every manufactured product, from medicines and fertilisers to plastics, paints and textiles. A country that wants to make more goods at home needs a strong chemicals base, or it remains dependent on imports for key raw materials. The government's plan is to concentrate new production in large, purpose-built parks where companies can share infrastructure such as power, water, waste treatment and transport links.

That is what the BHAVYA Rasayan scheme is meant to deliver. A chemical park built from scratch needs land, environmental clearances, pipelines, effluent plants and good connections to ports, through which raw materials and finished products move. Nadda's emphasis on connectivity reflects that. Under the funding model described in one report, the Centre would put Rs 1,000 crore into each park and the state at least Rs 500 crore, so states that want a park must commit their own money and land.

This is why the minister appealed to states. Land and local approvals are state subjects, and investors look for states that can deliver both quickly. The presence of chief ministers from Madhya Pradesh and Odisha at the event suggests states are already competing to host such parks.

The trillion-dollar target for 2040 is ambitious and depends on new investment arriving at scale. Chemical parks can also raise environmental and safety concerns for nearby communities, so how states handle clearances, pollution control and local consultation will matter as much as the funding.

What it means for you: For businesses in the chemicals supply chain, the scheme signals where new industrial clusters may come up and where incentives may be offered. For workers and job-seekers in states that win a park, it could mean new manufacturing jobs over the coming years.

Short-term: States are likely to step up proposals to host the new parks, and companies at India Chem will weigh investment plans against the scheme's details.

Long-term: If the parks are built and filled, India could reduce its reliance on imported chemicals and expand exports, supporting the 2040 market target.

Who is affected: Chemical and petrochemical companies, state governments, workers in industrial regions, downstream industries such as pharmaceuticals and textiles, and communities near proposed park sites.

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