BHAVYA Scheme: If you’re looking to establish a factory, just focus on starting production; the government will handle all the other complexities. The Modi administration has sanctioned an impressive Rs 33,660 crore (BHAVYA) initiative, which will offer entrepreneurs a ready-made plug-and-play environment. This means you won’t need to purchase land or endure long waits for government approvals. Simply bring in your machinery and commence production.
What is the grand plan?
The Union Cabinet, led by Prime Minister Narendra Modi, has given the green light to the “Bharat Industrial Development Scheme” (BHAVYA) to boost industrial growth. This initiative aims to fulfill the government’s vision of a “developed India.” As part of this scheme, 100 “plug-and-play” industrial parks will be established nationwide. These parks will vary in size from 100 acres to 1,000 acres. This initiative is vital for investors and startups that have faced challenges in launching their operations due to insufficient infrastructure and delays. The Modi government is set to invest Rs 33,660 crore into this ambitious project.
The entire strategy is rooted in the vision of the National Industrial Corridor Development Program (NICDP). The NICDP primarily aims to develop “industrial smart cities” throughout India. This ambitious initiative will build on the success of the smart cities already established under this program, reaching every part of the country. Its main goal is to improve India’s manufacturing competitiveness on a global scale and attract significant foreign investment.
What is the plug and play model?
Plug and Play can be thought of as the electricity supply to the electrical circuit, and you simply plug in the device and it starts working. The government has set a similar goal under its grand plan. The government will provide industries with a ready-made ecosystem, including pre-approved land, ready-made infrastructure, and integrated services. This will eliminate the delays in acquiring land or obtaining approvals, enabling companies to begin production immediately. This grand plan will take the “ease of doing business” campaign a step further.
Financial Assistance and Facilities Framework
The government will provide financial assistance of up to ₹1 crore per acre under this scheme. These parks will offer three types of facilities:
Infrastructure: roads, drainage, water, and IT systems.
Value Added Facilities: Factory sheds, testing labs and warehouses.
Social infrastructure: Housing and other necessary facilities for workers to live in.
25 per cent of the total cost of the project will also be allocated for improving external connectivity like road-rail links.
There will be competition between states and private partners for the development of the parks. A “challenge mode” will be adopted. This means that only those proposals that are fully investment-ready and implement reform-oriented policies will be approved.