Introduction: BHAVYA Scheme 2026

The BHAVYA Scheme 2026 is one of India’s biggest industrial infrastructure programmes. The Union Cabinet approved it on 18 March 2026 with an outlay of ₹33,660 crore. Under the scheme, the Government of India will support 100 plug-and-play industrial parks across the country. Moreover, it offers a strong financial incentive of up to ₹1 crore per acre.

However, the rules are detailed. Many states, developers and investors want clear answers. This guide explains the Bharat Audyogik Vikas Yojana in simple words. It covers eligibility, funding, private developer rules and the next steps.

What Is the Bharat Audyogik Vikas Yojana (BHAVYA)?

Bharat Audyogik Vikas Yojana (BHAVYA) is a central sector scheme. DPIIT notified it on 10 April 2026. The scheme followed on 23 May 2026. The goal is simple. The scheme wants to build investment-ready industrial parks, so investors can start production without delay.

Here are the key facts at a glance:

• Total outlay: ₹33,660 crore, including ₹60 crore for administration
• Number of parks: 100 industrial parks
• Scheme period: Six years, from FY 2026-27 to 2031-32
• First phase: Up to 50 parks
• Project Management Agency: NICDC
• Selection mode: Challenge mode, based on scoring

In addition, each park will run through a Special Purpose Vehicle (SPV). The SPV will plan, build, allot plots, and manage the park.

BHAVYA Scheme Eligibility Criteria

Every proposal must meet the mandatory criteria first. Only then does it move to scoring. Therefore, check these points before you plan anything.

BHAVYA Industrial Park Land Requirement

Land is the first test. The rules differ by region:

• Non-hilly states: At least 100 acres of contiguous land
• Two-parcel Option: Up to two parcels of 100 acres each, within a 2 km radius
• Hilly states, the Northeast, smaller states and UTs: At least 25 acres of contiguous land
• Larger parks: Up to 20 parks may range from 500 to 1,000 acres

The 25-acre relaxation covers Himachal Pradesh, Uttarakhand, Assam, Goa, Delhi, Jammu & Kashmir, Ladakh and other listed states and UTs. Funding for a larger park is capped at 1,000 acres.

Land Ownership Rules

Next, the sponsor must hold at least 90% of the land encumbrance-free at the time of application. Further, the land must move to the SPV within three months of approval. The NLSC may add three more months for genuine reasons. If the transfer fails, the approval is treated as cancelled.

The state must also hand over planning and development powers to the SPV. This delegation is a must before any funds are released. As a bonus, proposals that use land pooling or town planning schemes earn extra marks.

Who Can Apply?

Only a state or UT government or a central public sector enterprise (CPSE) can submit a proposal. A state must send it with the State Level Committee’s recommendation. A CPSE needs its board’s approval. Each park needs a separate application with a detailed project report (DPR).

BHAVYA Scheme Funding Per Acre: The Financial Incentive

This is the part that attracts most readers. Funding comes as equity through NICDIT. Equity is linked to the value of the land moved to the SPV. It can never exceed that value. Also, NICDIT’s share cannot go above 50% of the SPV’s paid-up equity.

For example, a 100-acre state-led park could get up to ₹100 crore. Similarly, a 1,000-acre park could reach ₹1,000 crore. A private developer-led 100-acre park could get up to ₹50 crore. Please treat these as upper limits. The competent authority approves the final amount, and the funding is fixed once approved.

How Funds Are Released

The Centre releases money in three tranches over three years. The ratio is 40:40:20.

1. Tranche I (40%): After NLSC approval, land transfer, power and water allocation, environmental clearance and start of work
2. Tranche II (40%): After 75% use of the first tranche, physical progress and land allotment to at least two manufacturing units
3. Tranche III (20%): After 90% use of earlier funds, external infrastructure, construction of two units and final completion

What Does the Funding Cover?

The money supports four groups of works:

• Core infrastructure: Roads, underground utilities, drainage, CETP, WTP, STP, ICT and fire safety
• Value-added infrastructure: Built-to-suit facilities, warehousing, testing labs and renewable energy
• Social infrastructure: Worker housing, common facility centres, day care and skill centres
• External infrastructure: Last-mile roads, power lines and water pipelines

Up to 25% of the approved funding can go to external works. However, the scheme pays only 25% of that external cost. The state must fund the remaining 75%.

What Is Not Covered?

Land acquisition and development, commissioning fees, royalty, pre-operative expenses, capitalised interest, vehicles and working capital are not eligible. As a result, proposals must plan these costs from other sources.

BHAVYA Scheme for Private Developers

Private developers have a clear role. They cannot apply on their own, though. They join a state-led project through a project-specific SPV. The developer may bring land and act as an anchor investor.

Here are the key conditions for BHAVYA private developer funding:

• Registration: An Indian company under the Companies Act, 2013
• Net worth: At least 15% of the project cost, certified by a chartered accountant
• Experience: A completed project of at least 50 acres in the last ten years
• Clean record: No debarment in the last three years
• Equity: At least 26% of the SPV
• Consortium: The lead member must hold at least 26% in the consortium

Funding for these projects comes in equity form only. Moreover, an anchor investor may take up to 25% of the developed land. The investment must be at least ₹50 crore in non-hilly states or ₹10 crore elsewhere. The remaining 75% goes to other units in a fair and open way.

In addition, the lock-in is five years from completion. After that, the developer must first offer shares to NICDIT and the State Nodal Agency. The SHA must be signed within 60 days of approval, and the State Support Agreement within 90 days.

BHAVYA Scheme: Greenfield and Brownfield Industrial Park Rules

The scheme accepts both types. A greenfield industrial park is a new park on undeveloped land. In contrast, a brownfield industrial park is an existing park with unallotted land. That land must be unencumbered, litigation-free and contiguous. It must also meet the same minimum area rules. The authorities review brownfield cases one by one.

How Proposals Are Scored

Selection runs in challenge mode. The matrix tests four areas: connectivity and site suitability, quality of infrastructure in the DPR, industrial ecosystem and policy support.

Key scoring points include:

• DPR quality and competitiveness: 25 marks, the highest weight
• Distance from a city: 10 marks
• Power and water supply: 10 marks
• Single-window clearance: 10 marks
• Power tariff competitiveness: 10 marks
• States with income below the national average: Up to 10 marks

Therefore, a strong DPR is the best way to improve a score. Also, supporting papers such as government orders and PM Gati Shakti screenshots must go with the application.

BHAVYA Scheme Consultancy: How Finraja Consultancy Helps

The process needs strong planning, accurate data, and clean paperwork. Finraja Consultancy Pvt Ltd is a subsidy consultancy. We help clients understand the scheme and prepare for it. Our support can include:

• Eligibility review: Check land, ownership, and location against the guidelines
• DPR support: Prepare the report as per the DPIIT template
• Scoring strategy: Map your strengths to the evaluation matrix
• Private developer structuring: Plan SPV, equity and anchor investor terms
• Coordination: Guide documents, state-level approvals, and portal steps

As a result, you save time and avoid costly errors.

Frequently Asked Questions

What is the BHAVYA Scheme 2026?
It is a ₹33,660 crore Central Sector Scheme to build 100 plug-and-play industrial parks by 2031-32.

What is the BHAVYA Scheme funding per acre?
State or CPSE-led parks can get up to ₹1 crore per acre. Private developer-led parks get up to ₹50 lakh per acre, or 50% of infrastructure cost, whichever is lower.

What is the minimum land requirement?
It is 100 contiguous acres in non-hilly states. Hilly states, North-East states and listed UTs need 25 acres.

Can a private company apply directly?
No. A state, UT or CPSE must submit the proposal. Private developers join through an SPV.

Does the scheme cover brownfield parks?
Yes. Eligible brownfield parks with free, unallotted land can apply.

Conclusion

The BHAVYA Scheme 2026 gives states and developers a rare chance. The funding per acre is high, and the rules are clear. However, the process is competitive, so preparation matters. Start with land checks, build a strong DPR and plan the SPV early.

Call us now: +91 9373114747 or visit finraja.com/contact for quick assistance.