NEW DELHI: In a fresh effort to bolster India’s manufacturing prospects, the Union Cabinet on Wednesday approved a ₹33,660 crore plan to develop 100 world-class plug-and-play industrial parks across the country, with the Centre funding up to ₹1 crore per acre as well as up to 25 per cent of external connectivity infrastructure costs.
The new Bharat Audyogik Vikas Yojna or BHAVYA scheme, to develop industrial parks over an estimated 33,600 acres of land, will be implemented with States through a challenge mode. Private sector developers can also pitch if their projects are routed through the States, and so can central public sector enterprises.
A scheme to facilitate development of investment-ready, “plug and play” industrial parks with complete infrastructure in or near 100 cities, in partnership with the states and private sector, was announced in the Union Budget for 2024-25.
Project sites, between 100 and 1,000 acres each, will be selected on the basis of a matrix that includes proximity to bigger industrial hubs, skilling centres, ports, and so on, and the focus will be on high-quality proposals, said a top official in the Department for Promotion of Industry and Internal Trade (DPIIT). The minimum contiguous land parcel size has been kept at 25 acres for north-eastern and hilly States.
States will be required to form a special purpose vehicle (SPV) for these projects with planning and development powers and they must ensure that once the parks are functional, prospective manufacturing units get a single-window clearance to occupy and begin operations.
“The scheme is sector-agnostic and we aim to build 50 world-class parks with high-quality infrastructure in the first phase. The Centre will fund core infrastructure, value-added infrastructure, social infrastructure, as well as external connectivity,” the official said, adding that the projects must factor in green energy systems.
Manufacturing units, particularly the micro, small and medium enterprises, and startups as well as global investors, seeking ready-to-use industrial infrastructure, will be the primary beneficiaries of the scheme. Apart from new job opportunities, the park is also expected to boost business prospects for services firms, logistics providers and local communities, the government said.
The industrial parks will be designed as futuristic and sustainable ecosystems, an official statement said, stressing that the parks will be aligned to enable seamless multimodal connectivity and efficient last-mile access. Green energy and sustainable resource use with integrated underground utility corridors will also enable a no-dig environment for efficient maintenance and uninterrupted industrial operations. “These parks will set new benchmarks in industrial infrastructure, ensuring reliability, reducing inefficiencies, and enhancing productivity across sectors,” the statement said.
Commerce and Industry Minister Piyush Goyal said the scheme is built around the key pillars of building next-generation industrial infrastructure, boosting ease of doing business through reforms and plug-and-play ecosystems, creating future-ready, sustainable & efficient industrial parks, and driving investment, employment and stronger industrial ecosystems.
“By enabling cluster-based development and co-location of industries, suppliers and support services, BHAVYA will strengthen supply chains, reduce costs and foster vibrant industrial ecosystems across regions… (and) marks a significant step towards strengthening domestic manufacturing, enhancing India’s global manufacturing competitiveness and advancing the vision of Atmanirbhar Bharat,” the minister said in a post on social media after the Cabinet’s decision.
Source: Business Standard
