New Delhi, May 26: The Centre has rolled out an ambitious new industrial infrastructure programme aimed at accelerating manufacturing growth and boosting investment across the country through the development of large integrated industrial parks.
The scheme, titled BHAVYA, proposes financial assistance of up to ₹1 crore per acre for eligible industrial park projects and will be implemented through Special Purpose Vehicles (SPVs) involving state governments, central agencies and private developers.
According to the scheme guidelines, financial assistance will be provided by the Central Government through the National Industrial Corridor Development and Implementation Trust (NICDIT) in the form of equity contribution and, in some cases, debt support. The equity participation of NICDIT, however, will not exceed 50 per cent of the paid-up equity capital of the SPV.
The scheme seeks to promote world-class industrial infrastructure with integrated planning, plug-and-play facilities, worker housing, renewable energy systems, digital infrastructure, logistics connectivity and common utility services.
Under the funding structure, projects involving private developers will be eligible for support up to ₹50 lakh per acre or 50 per cent of infrastructure cost, whichever is lower. The Centre clarified that funding would only cover approved infrastructure components and not land acquisition, working capital, vehicles, interest costs or commercial real estate development.
The guidelines specify that funds will be released in three tranches linked to project milestones, including land transfer, environmental clearance, infrastructure progress and commencement of manufacturing activity.
The scheme also places strong emphasis on external connectivity and utilities. Up to 25 per cent of total approved funding can be allocated for external infrastructure such as road links, power transmission, water pipelines and logistics connectivity. State governments will be responsible for bearing the remaining 75 per cent cost of such external infrastructure.
To ensure transparency and accountability, the projects will be monitored by a National Level Steering Committee headed by the Secretary of the Department for Promotion of Industry and Internal Trade (DPIIT), while the National Industrial Corridor Development Corporation will function as the Project Management Agency.
The evaluation framework gives preference to projects with strong transport connectivity, uninterrupted power and water supply, integrated planning, renewable energy facilitation and digital single-window clearance systems.
The scheme also encourages development of worker housing, testing labs, skill centres, warehousing and sustainable infrastructure through public-private partnerships.
For hilly states and Union Territories, including Jammu and Kashmir, the scheme relaxes certain investment thresholds. Anchor investors in such regions will need to commit a minimum investment of ₹10 crore compared to ₹50 crore in non-hilly states.
The Centre said the first phase selection process under the scheme will be completed within one year of notification, while approved projects are expected to complete development work within 24 months.
